HomeMy WebLinkAboutTR 02/97t '� k, t
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�� L � REPORT TO COUNCIL
FROM: 0(ilis A. Patersbn DATE: Deeember 22,1897
- ' Dlrector of Financa
REPORTNUMBER: TR 27/97
• SUBJECT: 1998 Inladm Levy, Tax Inslalmenl Due Dales and Imposilfan ol
Penally and Inleresl for Non-Payment of Taxes
' PURPOSE: To provide for an Inlerfm levy and dua dales, lenlative final lavy
duo dale9 and ta oslabllsh lhe retu of penalty and inloresl on tho
non•paymenl ot taxos nnd Wx arrcare.
RECOMMENDATION:
It is racommanded Ihal:
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7, an fnlerim Icvy be udoptad for 1988, not exccedinp lhal permilled undor
oxlelfng Iegislation, being a lovy on the whaia of the assessmenl
according lo lho lasl rovised ossessmonl roll, a sum nol exceeding 50 per
Cent, os dascribed fn lho Fafr Municipal F(nance Acl, 1997 (8111 108 and
No. 2 BIII 149), and Ihe da�es bn set as February 24 and April 27, 1898;
, 2. final Ievy duo dales, subJecl lo change, ba set al June 25 and Seplember
25, 1998;
3. lhe penalty for non•paymenl of curront year laxes be Incroasod from 12.0
pur conl par annum l0 15.0 por cant por onnum, commondng March 1,
1098;
4. Intnmsl on lax erroars ba fncrcased Bom 12.0 per cont per annum to 15.0
, per cenl per nnnum, commencing March 1,1890;
5. lho appropriata bydaws, in lhn form allachod, be read lhreo limes and
� / ' appraved 6y Council; ond
8. Iho appmpriale officials of Iho Town of Pickerfng be aulhodzed lo pivo
affecl lherelo,
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(, AUTHORITY; Municipal AW, R.S.0.1990, as amended
Fafr Municipal Finunce Act,1997 (Bill 108)
Fafr MuNcipal Finance Act,1897 (No.2) (Bill 149)
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�: � .; RepoA lo Council pTR 27187 : , , . <
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' FINANCIALIMPLICATIONS; ' •
� AdopUon of lhe rewmmnndallona will ullow etalf of the Ffnance Deparlment lo
bill Iho 1888 Inledm levy on Iho laxpnyers ol lhe Town nnd establfsh lenlalivo
'� final levy due dales lo Ilaance Ihe expendi�wes of Iha Town and to meet Reglon
and School Boards' lovles. �naeasfng lhe penalty and intereet rales from 12 lo
15 per cent wiil result In an increasa In rovonue of approximaloly 5200,000 in
1998,
BACKGROUND:
Each year, prior lo Ihe adoption of lhe eslimales (or Ihe forthcominp year,
Councll authorizes Ihe adopUon of an intorim lovy. This levy, whlch may nol
exceed 50 per cenl of Ihe amounl Ihal would be raised by applying lhe mfll rale
for all purposes for Ihe precedfng year, provides funds to ensura Iho conlinufng
oporallons of lhn Corporalion. It also includas sulficfenl Nnds for lha Region
and School Boards purposas.
A penally may bo charged on the non•paymenl of taxes of up l0 15 per cent per
annum for lhn perfod ending Oecember 31 of tha year In which lho taxes are
payabie. Following which fntaresl may ba charged al up l0 15 per cenl per
annum, unlil Iha laxes, panallies and inleresl aro paid.
( Discusston:
n i vy
In o lyplal yem, our curranl silualion would ba dcar, f.e., Iha Town woutd
preparo an fnlcrim bilPu�p, fo� Town, Repion and School Ooards pwposes, based
upon long eslablished Icgislalivo autlioritles. Willi llio frlroducllon of o number
of naw pfecos of lepislalion, fncluding Iho now Onlarlo Fair Assessmonl System,
on January 1,1998 and with Ieqfslalion, repulalions nnd clarificatlon yet lo tollow,
il ls oxlremoty dilficutl fo bo cerlain al Ihfs lime as lo exaclly how avenls wiil
unfold. Hanco, a cerlafn lack of specifics in this report. Howover, we are
reasonably ceda(n Ihal an Intodm Ievy wiil bo permilled and requlred for Town,
Reglon und School Board purposas. Tho liming ol everything, (ncluding
Council's meelinps In the ear�y parl of Iho now year, �ecessilates prosenling Ihis
repoA now.
' Tho instalmanl due dales lor 1908 aro s(mflar !o Ihoso In place sincu 1876. Tho
/ doies have boen sot ta allaw a thrce businesa day graw per(od boforo a non-
paymenl ponalty ts upplicd on Iha firsl of Iho monlh following,
The amount af Ihe Inlerim lavy is, under current legislalion, limiled to
approximalely 50 per cenl of lho prior yuar� laxes for all purposes. In 1898,
undar new legislatlon, wilti further darifiwlion ponding, Iho Busfnass Occupancy
Tax (DO'q is disappearing as a separale lax and is befng 'rotted up' inla the
commerciaUndustrfal really lax. Furlhermore, lhe Farm Taz Rebale will
disappear lo be replaced by a lower ralo of lax. WIi1a il is hoped lho lax
�.. Irealmonl fmm a bilGng parspaclive will ba cloar by lho timo Iho finnl bilis ara
senl out, lh(s may nol be ao fn Ihe caso of Uio (ntedm bill�.
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; . ' , = Decembor 22,1897 3 . .
i:, , Report lo Counctl 1�7R 27IB7 � � 2 5
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• C � PenalN end Interest on Overd a Texe�
Texea aro due end payablo at a placo and mannar end at cuch I(mee ae may ba
approved by lhe Couneil af a municipality, Whan taxes ara not paid in Iho ycar
in whfch thoy como duo, a ponaity Is added. In Iho yoar following, and unlil lho
laxes are patd, tnlerest is added. Today, in mosl municipalilios, lhe Iwo rales aro
Iho same.
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' Pfckerinp currently charpes 12 par cent per annum and Iho �acommondaUons
aro to inaeaso Iho Iwo ralos l0 15 per conl par snnum each. Our raasons for
Ihe recammondatlons are lhal lhe penalry ts jual Ihat, a penally for Ihe non•
paymenl of a dabl, Ihal raliecls not only the cosls of Onancing bu( Ihe internal
costs of hondiing overdue paymenls. Many busfnesses chargo 2 per cenl per
moalh and it Is my underslanding ihat all municipalilles araund Pickering chargo
15 per cenl por annum. Chargo cards are fypically 18 per cenl par annum and
higher.
Picker(ng should nol ba seen as a source of financing, a lendinp inslilulion, an
al�ernalive source of Mancfng lo pay olhor h(gher Inlaresl baaring obllgaUans,
nor ba slgnfOcanlly oul of slep wflh tho proclkes ot tho surrounding
municlpalities.
Moreover, Pfckering implemenled a Pre-aulhorized Payment plan, whore each
year's payments ere spread oul over 10 monlhe. Paymenls ure accepted el a
number of financial inslitulions o, weil as al lhe Financo Deparlment. Wilh Ihase
sleps, Pickcring has mado Iho paynienl ol laxes easler.
The dale ol March 1, 1998 was colected !o coincido wilh lhe firsl duo dalo In Ihe
new yoar, lhoroby providing iha requisile minimum 21 days nolico.
ATTACHMENTS:
1. By-taw la pravido for Iha addilion of (nloresl lo tax orrcara.
2. Bylaw to providc for lho Impoeilion of o penalty for non•paymont of laxes.
3. By-law lo eslabiish Instalmenl Duo Dales for Iho 1gp8 Inlerfm and Final
Levy.
GAP/t
Copy: Gancral Manager
,�'� G.� ,e r
Gillis A. Patcrson
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�CORPORATION OF TH8 TOWN OP PICKERINa
j, � DY•LAW N0.
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�� Bcing u by-!nw to amend Bylaw S183/97 cstublishing
InstuUnent Due Dntes for the 19981nterim and Final
Levy.
Wf�REAS ByInw S l83/97, enacted by lhe Council oCthe Corporntion of the Town of Pickcring
on December 22nd, 1997, estabiishes irutaUnent due dates for the 1998 Interim and Finai Levy;
and
WHEREAS it is decmed cxpedient to amcnd By-law 5183/97 to deletc the Final Levy duc dules;
NOW TFIEItEFORE THE COUNCIL OF THG CORPORAT[ON Of 'fHE TOWN Of
PICKERINd HEREBY ENACTS AS FOLLOW3:
1. Thnt Pamgmph 7 of IIylaw 5183/97 bc amcndcd by dcicting thc final Tax Noticc Pue
Dutes of June 25,1996 and Scptcmbcr 25,1998.
BY-LAW rcnd u fust, scconJ and third timc nnd finally passcd this Ist dny of Junc, 1998.
Wuync Arthurs, Mayor
Brucc Taylor, Clcrk
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arc OllllDdudcd lu, coo..denlloo to, cOUUllWUIy p'ae .dvenllll'a
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ITATlIII!NT 0' THI! TOWN TRU.IURI!R
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-PAUl
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AUTHORITY
NOTE ..
"'yor W. MhUtl
Counelllo,.
M.Btennet S1.733
O. DicQ<1OI\ 1.Q80
R. Johnson 2.808
E.Pistritlo 3.5~
O. Ryan
S. Senia ~ S11.715
COUNCil APPOINTEES
Cmnmlttae of AdJustment NOTE ..
R. Johnson S153
M.Dilecce 83
P.Wlite 65
C. Yonge 126
S. SmitII .. $411
'.new.....,. NOTE ..
P. Sc:olI
J.~ 12
G.CIat1l 36
C. VOIN! 4g
A. Burtnoy ---L Sgg
llv..tfte:k V.lu.,. NOTE ..
R. Johnson
J. ROIllndul S10
J. l.aider ~ S58
PrQftarv !bndarda CommiftM
C. AmolI
O. Smith
G.Fomandea
TOTAL EXPENSES PAID
S12,213
This SlItomont is lor Iho period from
January 1, 1 gge to Docembor 31, 1 gge
Oaled .. Picl<o<ing. lhia 24th day 01
Fobruary, 18117.
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T~ ) T_.colIodor