HomeMy WebLinkAboutFIN 01-22Report to
Executive Committee
Report Number: FIN 01-22
Date: January 10, 2022
From: Stan Karwowski
Director, Finance & Treasurer
Subject: 2022 Interim Levy and Interim Tax Instalment Due Dates
File: F-4200-001
Recommendation:
1.That an interim property tax levy be adopted for all realty property classes for 2022;
2.That the interim property tax levy instalment due dates be February 25 and April 25,
2022;
3.That the attached draft by-law, providing for the imposition of the taxes, be enacted; and
4.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 2022 Budget and 2022
Final Tax Levy by-laws are approved by Council. The first instalments payable to the School
Boards and Region are due shortly after the due dates.
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 over the 6 instalments that occur after the City’s
Report FIN 01-22 January 10, 2022
Subject: 2022 Interim Levy and Interim Tax Instalment Due Dates Page 2
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budget has been passed and after the Province sets the 2022 (final) education tax rates. The
City currently has approximately 12,000 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 an increase to the same extent as a
taxpayer who pays their taxes on the four regular instalment due dates.
For 2021, the taxation front counter property tax payments were limited to either cheque or
debit. This change has worked well both for residents paying their taxes and City staff. The
payment processing time for cheque or debit payments is quicker than cash transactions and
therefore, taxation staff can serve the customer quicker. The reduction of cash payments was
a prudent measure to safeguard staff and our residents during COVID. It also assisted with
the daily balancing process. For 2022, staff will continue with this policy of only receiving
cheques or debit payments for City Hall taxation counter payments. It should be noted that the
taxpayer still has many options of paying their property taxes, such as through internet
banking, at their financial institution or using the City’s drop box.
Attachments:
1. By-law to Establish the 2022 Interim Instalment Due Dates
Prepared By:
Original Signed By:
Karen Uphoff
(Acting) Supervisor, Taxation
Approved/Endorsed By:
Original Signed By:
Stan Karwowski
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer
Attachment #1 to Report #FIN 01-22
The Corporation of the City of Pickering
By-law No. /22
Being a by-law for the collection of taxes and to establish the instalment
due dates for the Interim Levy 2022
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 2021.
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 2021.
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
2021.
2. For the purposes of calculating the total amount of taxes for the year 2022 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 2021 because assessment was added to the
collector’s roll during 2021, 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
2021 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.
6. 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 2022 interim 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 25, 2022
- Due date of the second instalment April 25, 2022; or either date adjusted by
the Director, Finance & Treasurer.
9. 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 all 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 24th day of January, 2022.
By-law passed this 10th day of January, 2022.
______________________________
David Ryan, Mayor
______________________________
Susan Cassel, Clerk