HomeMy WebLinkAboutFIN 09-21Report to Council
Report Number: FIN 09-21 Date: May 25, 2021
From: Stan Karwowski Director, Finance & Treasurer
Subject: 2021 Property Tax Deferral Program
-Phase II ImplementationFile: F-4200-002
Recommendation:
1.That Report FIN 09-21 of the Director, Finance & Treasurer be received;
2.That the Director, Finance & Treasurer be authorized to implement Phase II of the 2021Property Tax Deferral Program for the residential property tax class, consistent with the
principles of the Council approved program established through Report FIN 02-21 and thatproperty tax payments be deferred and interest and penalty be waived from June 1, 2021 toOctober 25, 2021 for those applicants that meet the criteria;
3.That the Director, Finance & Treasurer be authorized to waive interest and penalty for
residential properties for an extended period from November 1, 2021 up to December 31,2021 and that the deferral of the interest and penalty be based on financial hardship due tothe pandemic; and
4.That the appropriate City of Pickering officials be authorized to take the necessary actions as
indicated in this report.
Executive Summary: The COVID-19 pandemic presents one of the greatest financial challenges that our community has seen in generations. The COVID-19 pandemic has affected many Pickering taxpayers at the same time. With the City operating under the current province wide shutdown, staff are recommending that the City implement a second phase of the successful
“Property Tax Deferral Program” that was established earlier this year through Report FIN 02-21
(Resolution #507/21).
Staff are recommending that the phase two plan be based on the following principles:
•Property taxes are paid in full by May 31, 2021.
•Penalty and interest will be waived basically for five months (June, July, August, September,October 25, 2021) and then penalty and interest will be applied on November 1, 2021.
•The applicant must establish a disruption or lack of employment beginning in March 2020 or
later by providing documentation.
•Residential property owners that pay their property taxes through their mortgage payment arenot eligible for this program.
FIN 09-21 May 25, 2021
Subject: Property Tax Deferral Program Phase II Implementation Page 2
Staff will promote this program through various communication channels such as the property tax
brochure, community page ad and City website.
Financial Implications: Phase One of the Property Tax Deferral Program had thirty-three
participants. The cost of providing phase two of this program and the impact on the 2021 late
payment charges will depend on the volume of applications received and approved. The phase one enrollment numbers indicates that the program will likely have minimal financial impact to the City.
Discussion: A common theme of the current pandemic is its unpredictable nature. Twelve months ago there was very little discussion or newsprint dedicated to “pandemic waves” or
‘variants of concern.” Over the last twelve plus months, we continually learn how difficult it is to
predict the future trend of the pandemic and its corresponding economic impacts. These uncertain times can translate into economic challenges for our taxpayers that requires the City to continue to be compassionate by maintaining its application based deferral program.
The phase two program would operate as the earlier program with interested taxpayers
completing an application and, if eligible, applicants would have the late payment fees (penalty
and interest) waived for the months of June up to October 25, 2021. Applicants of the program will be required to demonstrate and provide supporting documentation of financial hardship incurred as a result of the COVID-19 pandemic in one or more categories: suspension of pay and/or loss of pay. Staff will consider the following supporting documentation as proof of a
decrease of income: Record of Employment or ROE; lay-off notice; termination letter, letter from
employer and evidence of receiving of benefits under a Federal Benefit program. In addition, the property owner must not have tax arrears prior to June 1st, 2021. Applications received by the end of September 30, 2021 will be eligible to be backdated to June 1, 2021 and to receive the full 147 days of property tax deferral.
If this report is approved, the current work plan is to have the phase two application posted on the
City’s website to facilitate the application process. It should be noted that if any of the applicant information is incorrect or inaccurate, the taxpayer will be removed from the program and penalty will be retroactively applied to June 1, 2021. Property owners that have their property taxes paid with their mortgage payment by their financial institutions are not eligible for the property tax
deferral program. As these accounts have no amounts outstanding, the property owner is
encouraged to speak with their financial institution to seek any payment flexibility which they may require.
Recommendation 3 provides the Treasurer the authority and flexibility to continue with the program if the need is required. One of the many lessons learned from the pandemic is that
forecasting the future is more art than science.
FIN 09-21 May 25, 2021
Subject: Property Tax Deferral Program Phase II Implementation Page 3
The table below provides a comparison of the 2020 and 2021 property tax deferral programs.
Comparison of Property Tax Deferral Programs By Year
2020 2021
General Application
Tax Bill Billing Period Days Days
Interim 60 90
Final 90 147
Total 150 237
The 2021 Property Tax Deferral Program will provide an additional 87 days or almost three additional months of property tax relief in contrast to the 2020 program. Under the application based model, those in need will receive the relief they require.
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Mike Jones Stan Karwowski Supervisor, Taxation Director, Finance & Treasurer
Recommended for the consideration of Pickering City Council
Original Signed By:
Marisa Carpino, M.A. Chief Administrative Officer