HomeMy WebLinkAboutCS 01-06PICKERING
REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 01-06
Date: January 9, 2005
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: 2006 Interim Levy and Interim Installment Due Dates
Recommendation:
1. It is recommended that Report CS 01-06 of the Director, Corporate Services &
Treasurer be received and:
That an interim levy be adopted for 2006 for all of the realty property classes;
That the interim levy installment due dates be February 27 and April 27, 2006;
That the Director, Corporate Services & Treasurer be authorized to make any
changes or undertake any actions necessary, including altering due dates, in
order to ensure the tax billing process is completed;
That the attached By-law, providing for the imposition of the taxes, be read three
times and passed by Council; and,
6. That the appropriate City of Pickering officials be authorized to take the
necessary actions to give effect thereto.
Executive Summary: Each year, prior to the adoption of the estimates for the
year, Council authorizes the adoption of an interim levy. Under Provincial legislation,
the interim levy can be no more than 50% of the previous years annualized taxes. In
other words, if a property experienced an assessment increase, due to an additional
supplementary or omitted assessment, or a decrease in assessment due to an appeal,
demolition or class change, the 2006 interim levy would be based on the adjusted
annualized 2005 taxes.
The tax levy raises funds that are used for the continuing operations of the City,
Region and the School Boards.
Report CS 01-06
Subject: 2006 Interim Levy and Interim Installment Due Dates
Date: January 9, 2006
Page 2
145
Financial Implications: Adoption of the recommendations and passing the By-law
will allow staff of the Corporate Services Department to bill the 2006 interim levy to all
properties. Passing of the By-law will assist the City of Pickering to meet its financial
obligations and reduce any borrowing costs. (The first school board payment is due on
March 31,2006)
Background: In accordance with the legislation mentioned above, the City issues
Interim tax bills based on the previous year's annualized taxes. The recent Province-
wide re-assessment however, is not taken into consideration when calculating the
interim taxes payable. For those property owners whose assessment increases or
decreases, the impact of the assessment change will be reflected on the 2006 Final tax
bill. Property owners who receive substantial assessment increases lose the benefit of
spreading the potential tax increases over four payments. However, for those
taxpayers that utilize the City's Pre-authorized Payment Plan (PAP), they will have the
benefit of spreading any potential tax increase due to re-assessment over the five
instalments that occur after the budgets of the City of Pickering have been passed and
after the Province sets the 2006 (final) education tax rates. (The City currently has
approximately 5,600 ratepayers using the PAP program.) Taxpayers who have taxes
included with their mortgage payments pay their taxes over a 12-month period and also
do not feel the impact of re-assessment to the same extent as a taxpayer who pays
their taxes on the four regular instalment due dates.
Chanqes to the Billinq Schedule
Recommendation 4, will allow the Director, Corporate Services & Treasurer some
latitude, limited by Provincial legislation, in effecting whatever may be necessary in
order to ensure that the taxes are billed properly and in a timely fashion. It was always
staff's understanding that Recommendation 4 would be used to change the due dates
by a few days in order to meet Provincial legislation requirements. (Section 343,
subsection one of the Municipal Act states the property owner must have at least
twenty-one days to pay their taxes.) A report would be prepared to Council if there was
a substantial delay in the billing of the interim taxes.
Attachments:
1. By-law to establish the 2006 Interim Installment Due Dates
1
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Subject: 2006 Interim Levy and Interim
Instalment Due Dates
Date: January 9, 2006
Page 3
Prepared By:
Approved / Endorsed By:
Coordinator, Taxation Services
GAP:vw
Attachment
Copy: Chief Administrative Officer
Gillis A. Paterson
Director, Corporate Services & Treasurer
Recommended for the consideration of
Pickering City Council ,
Th~ J. QL~n, C~ef Adm--'l~,,s~..~tive Officer
ATTACHMENT #__L_TO REPORT
THE CORPORATION OF THE CITY OF PICKERING
BY-LAW NO.
Being a by-law for the collection of taxes and to establish the
installment due dates for the Interim Levy 2006.
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% of the total taxes for municipal
and school purposes levied in the year 2005.
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% of the total taxes for municipal
and school purposes levied in the year 2005.
For the payment-in-lieu property classes, there shall be imposed and
collected an interim levy of:
If no percentage is prescribed, 50% of the total taxes for municipal
and where applicable for school purposes, in the year 2005.
For the purposes of calculating the total amount of taxes for the year 2006 under
paragraph one, if any taxes for municipal and school purposes were levied on a
property for only part of 2005 because assessment was added to the collector's
roll during 2005, 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.
The provision of this By-law apply in the event that assessment is added for the
year 2006 to the collector's roll after the date this By-law is passed and an
interim levy shall be imposed and collected.
4. Taxes shall be payable to the Treasurer, City of Pickering.
When not in default, the payment of taxes, or any instalment thereof, may also
be made at any financial institution permitted by Section 346 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.
147
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.
The Treasurer is hereby authorized to prepare and give one separate tax notice
for the collection of 2006 taxes, one notice being an INTERIM notice, with two
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 27, 2006
Due date of the second instalment April 27, 2006; or either date
adjusted by the Director, Corporate Services & Treasurer.
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 one and one-quarter percent 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 installment 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 installments 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.
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 one and one-quarter percent 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 twenty-one 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 twenty-one
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 twenty-one 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.
11.
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.
12.
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 thirty 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.
13.
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.
14. That this By-law is to come into effect on the 1st day of January, 2006. ~. 4 9
BY-LAW read a first, second and third time and finally passed this 16th day of
January, 2006.
David Ryan, Mayor
Debi Bentley, City Clerk