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HomeMy WebLinkAboutCS 50-04PICKERING REPORT TO EXECUTIVE COMMITTEE Report Number: CS 50-04 Date: November 8, 2004 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Section 357/358 of the Municipal Act - Adjustment to Taxes Recommendation: 1. It is recommended that Report CS 50-04 of the Director, Corporate Services & Treasurer be received and that: 2. the write-offs of taxes as provided under Section 357/358 of the Municipal Act, 2001 be approved; and, 3. the appropriate officials of the City of Pickering be authorized to take the necessary action to give effect hereto. Executive Summary: Not Applicable Financial Implications: If approved, the write-off of taxes as contained in this report represents a gross cost of $16,862.87 with a net cost to the City of approximately $3,091.63, 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 2004 Current Budget allocation under General Government Provision for Uncollectable Taxes (Account 2134). (This account is used to write-off City cost or share of property taxes due to Minutes of Settlement, Assessment Review Board decisions and Council approved Section 357/358 reductions.) The 2004 recommended budget provision is $173,163 and $79,133 including the above has been spent to date. Background: The Municipal Act provides the Treasurer with various tax tools regarding the administration and collection of property taxes. Under the provisions of the new Municipal Act, 2001, as amended, Section 357 of the Act (formerly Section 442) provides for the reduction of taxes due to fire, demolition, exemption, assessment change or error and the tax reduction is applicable to the current year only. Section 358 of the new Municipal Act (formerly Section 443) allows for the reduction of taxes due to assessment error and this section can be applied to property taxes for the two preceding years (2002 & 2003). Report CS 50-04 Date: November 8, 2004 Subject: Section 357/358 of the Municipal Act- Adjustment to Taxes Page 2 When the City of Pickering or Region of Durham acquires property, the property becomes exempt from taxation and therefore, the taxes have to be cancelled, as reflected in the attached report. Demolitions, and other physical changes to a property, such as removing or filling in a swimming pool, or damage caused by fire result in a reduction in assessment and taxes. Attachments: 1. Section 357/358 Adjustment to Taxes Prepared By: Approved / Endorsed By: Tax Anal~ GAP:tp Attachment Copy: Chief Administrative Officer Recommend~ideration of Pickering~____~~ ~~i Ou~inistrative Gillis A. Paterson Director, Corporate Services & Treasurer Officer LU Z Z W m Z _J --I 0 I-- Z U.J 0 u. Z 0 I.U Z ATTACHMENT #_L__TO REPORT #/~:0