HomeMy WebLinkAboutFIN 21-18DICKERING
C4 60/
Report to
Council
Report Number: FIN 21-18
Date: December 10, 2018
From: Stan Karwowski
Director, Finance & Treasurer
Subject: 2019 Interim Levy and Interim Tax Instalment Due Dates
Recommendation:
1. That an interim property tax levy be adopted for all realty property classes for 2019;
2. That the interim property tax levy tax instalment due dates be February 26 and April
26, 2019;
3. That the attached draft by-law, providing for the imposition of the taxes, be enacted;
and
That the appropriate City of Pickering officials be authorized to take the necessary
actions as indicated in this report.
Executive Summary: Each year, prior to the adoption of the estimates for the year,
Council authorizes the adoption of a by-law that establishes an interim tax levy to all
property classes, payment due dates, and penalty and interest charges. Under Provincial
legislation, the interim levy can be no more than 50 per cent of the previous year's
annualized taxes.
The tax levy raises funds that are used for the continuing operations of the City, Region
and the School Boards.
These due dates are relatively unchanged from prior years.
Financial Implications: This is an annual report which is procedural in nature.
Enacting a by-law that establishes an interim tax levy to all properties will permit the City
to meet its financial obligations and reduce borrowing costs until such time as the 2019
Budget and 2019 Final Tax Levy by-laws are approved by Council. The first instalments
payable to the School Boards and Region are due on March 31, 2019.
Report FIN 21-18 December 10, 2018
Subject: 2019 Interim Levy and Interim Tax Instalment Due Dates Page 2
Discussion: In accordance with the Municipal Act, 2001, as amended, the City
issues interim property tax bills based on the previous year's annualized taxes.
Those taxpayers that utilize the City's Pre -authorized Tax Payment Plan (PTP) will have
the benefit of spreading any potential tax increase due to re -assessment over the 6
instalments that occur after the City's budget has been passed and after the Province
sets the 2019 (final) education tax rates. The City currently has approximately 10,000
ratepayers using the monthly PTP program. Taxpayers who have taxes included with
their mortgage payments pay their taxes over a 12 -month period and 'also do not
experience the impact of re -assessment to the same extent as a taxpayer who pays their
taxes on the four regular instalment due dates.
Attachments:
1. By-law to Establish the 2019 Interim Instalment Due Dates
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
ATTACHMENT# ATO REPORT# Yr
The Corporation of the City of Pickering
By-law No. /18
Being a by-law for the collection of taxes and to establish the
instalment due dates for the Interim Levy 2019
Whereas Section 317 of the Municipal Act, 2001, S.O.2001, c.25, as amended, provides
that the council of a local municipality may, before the adoption of the estimates for the
year, pass a by-law levying amounts on the assessment of property, in the local
municipality ratable for local municipality purposes; and
Whereas, the Council of the Corporation of the City of Pickering deems it appropriate to
provide for such an interim levy on the assessment of property in this municipality.
Now therefore, the Council of the Corporation of the City of Pickering hereby enacts as
follows:
1 The amounts levied shall be as follows:
a. For the residential, pipeline, farmland and managed forest property classes
there shall be imposed and collected an interim levy of:
If no percentage is prescribed, 50 per cent of the total annualized
taxes for municipal and school purposes levied in the year 2018.
b. For the multi -residential, commercial and industrial property classes there
shall be imposed and collected an interim levy of:
If no percentage is prescribed, 50 per cent of the total annualized
taxes for municipal and school purposes levied in the year 2018.
c. For the payment -in -lieu property classes, there shall be imposed and
collected an interim levy of:
If no percentage is prescribed, 50 per cent of the total annualized
taxes for municipal and where applicable for school purposes, levied
in the year 2018.
2. For the purposes of calculating the total amount of taxes for the year 2019 under
paragraph 1, the Treasurer has the authority to prescribe the percentage for the
calculation of the interim taxes, and if any taxes for municipal and school purposes
were levied on a property for only part of 2018 because assessment was added to
the collector's roll during 2018, an amount shall be added equal to the additional
taxes that would have been levied on the property if taxes for municipal and school
purposes had been levied for the entire year.
3. The provisions of this by-law apply in the event that assessment is added for the
year 2018 to the collector's roll after the date this by-law is passed and an interim
levy shall be imposed and collected.
By-law No. Page 2
4. Taxes shall be payable to the Treasurer, City of Pickering.
5. When not in default, the payment of taxes, or any instalment thereof, may also be
made at any financial institution permitted by Subsection 346 (2) of the Municipal
Act, 2001, S.O. 2001 c. 25, as amended.
The Treasurer may mail, or cause to be mailed, all notices of taxes required in
accordance with the provisions of the Municipal Act, 2001, S.O. c. 25, as amended,
to the address of the residence or place of business or to the premises in respect of
which the taxes are payable unless the taxpayer directs the Treasurer in writing to
send the bill to another address, in which case it shall be sent to that address.
Notices will not be mailed to tenants. It is the responsibility of the person taxed to
notify and collect taxes from tenants or other persons.
7 The Treasurer is hereby authorized to accept part payment from time to time on
account of any taxes due, in accordance with the provisions of subsection 347 (1)
and (2) of the Municipal Act, 2001, S.O. c.25, as amended, and to give a receipt for
such part payment under Section 346 (1) of the Municipal Act, 2001, S.O. c.25, as
amended.
8. The Treasurer is hereby authorized to prepare and give one separate tax notice for
the collection of 2019 taxes, 1 notice being an interim notice, with 2 instalments
under the provisions of Section 342 of the Municipal Act, 2001, S.O. 2001, c.25, as
amended, as follows:
Interim Tax Notice
- Due date of the first instalment February 26, 2019
Due date of the second instalment April 26, 2019; or either date
adjusted by the Director, Finance & Treasurer.
Section 8 of this by-law in respect to the due dates does not apply to those
taxpayers who participate in the City's monthly Pre -authorized Tax Payment plan
(PTP). Monthly PTP interim due dates are the 1st, 8th and 16th day of each month.
10. Except in the case of taxes payable in respect of assessments made under Sections
33 and 34 of the Assessment Act, R.S.O. 1990, c.A31, as amended, the late
payment charge of 1.25 per cent for non-payment of taxes and monies payable as
taxes shall be added as a penalty to every tax or assessment, rent or rate of any
instalment or part thereof remaining unpaid on the first day of default and on the first
day of each calendar month thereafter in which such default continues pursuant to
subsections 345 (1), (2) and (3) of the Municipal Act, 2001, S.O. c.25, as amended.
The Treasurer shall collect by distress or otherwise under the provisions of the
applicable statutes aII such taxes, assessments, rents, rates or instalments or parts
thereof as shall not have been paid on or before the several dates named as
aforesaid, together with the said percentage charges as they are incurred pursuant
to sections 349, 350 and 351 of the Municipal Act, 2001, S.O. c.25, as amended.
By-law No. Page 3
11. In the case of taxes payable in respect of assessments made under Sections 33 and
34 of the Assessment Act, R.S.O. 1990, c.A.31, as amended, the late payment
charge of 1.25 per cent for non-payment of taxes and monies payable as taxes shall
be added as a penalty to every tax so payable remaining unpaid on the first day after
21 days from the date of mailing by the Treasurer of a demand for payment thereof
and on the first day of each calendar month thereafter in which default continues
pursuant to subsections 345 (1), (2) and (3) of the Municipal Act, 2001, S.O. c.25, as
amended. It shall be the duty of the Treasurer immediately after the expiration of the
said 21 days to collect at once by distress or otherwise under the provisions of the
applicable statutes, all such taxes as shall not have been paid on or before the
expiration of the said 21 day period, together with the said percentage charges as
they are incurred pursuant to sections 349, 350 and 351 of the Municipal Act, 2001,
S.O. c.25, as amended.
12. Nothing herein contained shall prevent the Treasurer from proceeding at any time
with the collection of any rate, tax or assessment, or any part thereof, in accordance
with the provisions of the statutes and by-laws governing the collection of taxes.
13. Where tenants of land owned by the Crown or in which the Crown has an interest
are liable for the payment of taxes and where any such tenant has been employed
either within or outside the municipality by the same employer for not less than 30
days, such employer shall pay over to the Treasurer on demand out of any wages,
salary or other remuneration due to such employee, the amount then payable for
taxes under this by-law and such payment shall relieve the employer from any
liability to the employee for the amount so paid.
14. If any section or portion of this by-law is found by a court of competent jurisdiction to
be invalid, it is the intent of Council for the Corporation of the City of Pickering that
all remaining sections and portions of this by-law continue in force and effect.
15. That this by-law is to come into effect on the 1st day of January, 2019.
Sy -law passed this 10th day of December, 2018.
David Ryan, Mayor
Debbie Shields, Clerk