HomeMy WebLinkAboutFIN 19-17PICKERING
Report to
Executive Committee
Report Number: FIN 19-17
Date: September 5, 2017
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Section 357/358 of the Municipal Act - Adjustment to Taxes
Recommendation:
1. That the write-off of taxes as provided for in Attachment 1, in accordance with sections
357/358 of the Municipal Act, 2001 be approved; and
2. That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
Executive Summary: Not Applicable
Financial Implications: If approved, the write-off of taxes as referred to in Attachment 1 of this
report represents a gross cost of $43,839.10 with a net cost to the City of approximately
$9,000.50, the balance being charged back to the Region of Durham and the school boards.
Pickering's share of the costs will be charged to the 2017 Current Budget allocation under General
Government — Provision for Uncollectable Taxes.
Discussion: The Municipal Act provides the Treasurer with various tax tools regarding the
administration and collection of property taxes. Under the provisions of section 357 of the
Municipal Act, a reduction of taxes due to fire, demolition, exemption, assessment change or error
is allowed. A change in realty tax class can translate into lower property taxes if a property is
moved from industrial to commercial tax class or commercial to residential tax class. Demolitions
and other physical changes to a property, such as filling in a swimming pool, or damage caused
by fire or flooding, result in a reduction in assessment and a corresponding reduction in property
taxes.
Section 358 of the Municipal Act allows taxpayers to have their assessments revised if they have
been overcharged due to a gross or manifest clerical error. On this basis, taxpayers are allowed
to seek reduction of their assessments for the current year as well as the two prior years. This
section of the Act allows for the reduction of taxes due to such errors, once confirmed by MPAC.
Application # 80/16 is the largest adjustment on this report. It was filed to remove the value of a
large commercial building from the assessment because it was demolished.
Report FIN 19-17 September 5, 2017
Subject: Section 357/358 of the Municipal Act— Adjustment to Taxes Page 2
Two of the applications in Attachment 1 reflect the comment "Ceases to be liable for tax at rate it
was taxed". These two properties contained some commercial operations in the past, but those
uses have ceased. A lower tax rate is being applied for part of the year to reflect this change in
use.
The two remaining adjustments on Attachment 1 reflect the comment "Raised by demolition". A
house and a pool were demolished, and the adjustments are to remove the value of the structures
from the corresponding assessments.
The purpose of sections 357 and 358 is to allow the municipality to rectify assessment and
classification changes that are otherwise unable to be changed.
Attachments:
1. Section 357/358 Adjustment to Taxes - Taxable
Prepared By:
Mike Jones
Supervisor, Taxation
Approved/Endorsed By:
Stan Karwowski
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
zoi 7
City of Pickering
Sections 357/358 Adjustment to Taxes
September 11, 2017
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