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HomeMy WebLinkAboutFIN 01/99 lillt>ORT TO COUNCIL , ",tI OF PiC :;Oll.". 1-% J: ~~ Z f- GJ ~t FROM: Gillis A. Paterson Director of Finance & Treasurer SlJB.I Eel': DATE: February 1,1999 REPORT NUMBER: FINOI/99 1999 Interim Levy ami Interim Tax Installment Due Dates for: Rcsidential/Fann Properties, Farmlands, Pipelines, Managed Forests and Payments in Lieu of Taxes, Excluding the Federal Government Non-Residential Realty Class of Property RECOMMENDATION: It is recommend that: I. an interim levy be adopted for 1999, as permitted in lhe Fairness lor Property Taxpayers Aet, 1998 (Bi II 79), applicable only to the Residential/Farm, Farmlands, Pipelines and Managed Forests as defined under section 3, Ontario Regulation 282/98 under the Assessment Act and to the Payments in Lieu of Taxes (PILs) excluding Federal nOI1- residential properties, - 2. for the 19CJCJ Interim Tax billing, the tax rates below, representing 50 per cent of the 1998 rales, be approveLl lor thc following realty classes as lollows: Residential/Farm including PILs Farmlands including PILs Pipelines including PILs Managed Forests including PILs P,lyments in Lieu of Taxes: I'lL I'lL PIL I'lL I'lL I'lL PIL PIL PIL PIL COlllmereial Occupied Commercial Vacant Unit Commercial Vacant Land Industrial Occupied Industrial Vacant Unit Industrial Vacant Land Large Industrial Occupied Office Building Occupied Parking Lot Multi-Residential .00774867 .00193717 .01580510 .00193717 .01864847 .01305392 .01305392 .02771453 .01801445 .01801445 .04432264 .02889324 .0 1864847 .01706753 3. the interim levy installment due dates bc February 26 and April 27, ]CJ99; 4. the attached by-law, providing lor the imposition of the tax rates approved under Recommendation 2 above, be read thrce times and approved by Council; and - 5. The appropr:ate Town of Pickering officials be authorizcd to take thc necessary actions to give effect dlCreto. Report to Counei I FINO 1-99 February I, 1999 -. Subject: 1999 Interim Levy and Interim Tax Instalment Due Dates far Residentiallrarm Properties, rarmlands, Pipelines, Malwged Forests and Paymcnts in Lieu ofTaxcs Excluding Federal Govcrnment Non-Residential Really Class of Property Page 2 ORIGIN: Director of Finance & Treasurer MJTIIORITY: Municipal Act, R.S.O. 1990 as amcnded. Fairness For Property Taxpayers Act, 1998 (Bill 79) Ontario Regulation 282/98 FINANCIAL IMPLICATIONS: - Adoption of the recommendations will allow staff of the Finance Department to bill the 1999 interim levy to all properties except Iar the industrial, commercial, ll1ulti-residential realty classes and the Federal payments in lieu of taxes (excluding non-residential.) The Town of Pickering receives approximately 80 per cent of its tax levy from the residential and fann realty tax class. For the 19lJ8 February installment interim tax bill, the Town of Pickering collected approximately (gross) $21.5 million. By establishing the first installmcnt date for these classes of property in February, as is usual, in contrast to a later time period, when the details of industrial/eommereial/mulli-residential capping are known, the Town of Pickering is better able to manage its cashDow. Passing of the by-law will assist the Town of Pickering to meet its financial obligations and reduce any borrowing costs. EXECUTIVE SUMMARY: Each year, prior to the adoption o[ the estimates [or the year, Counci t authorizes the adoption of an interim levy. This levy may not exceed 50 per cent of the amount that would be raised by applying the tax ratc for all purposes [or the preceding year. Residential phasc-in adjustmcnts will be reflected in both the interim and final tax bills. The tax levy raises [unds that are used [or the continuing operations of the Town, Region and the School Boards. This year's interim levy is made somewhat more complicated by the introduction in 1998 of the current value assessment by the Province, the residential phase in program by the Region of Durham; and the capping of industrial/eommercial/multi-residential increases in 1999. BACKGROUND: - The 1999 residential interim tax bill consists of two components - 50% of last years taxes and 5001., of the estimated 1999 residential phase-in adjustment.(The Region of Durham passed a hy- 1mI' 10 phase-in assesslllel/I relaled increases al/d decreases over a l/tree-year period). The interim Tax Rate is 50 per cent o[ the rate used to calculate the linal 1998 property taxes. Last year, the residential phase-in assessment adjustment (related increase or decrease) was applied to the final tax bill. For 1999, the phase-in adjustment is being applied over the full year. The 1998 total residential phase-in was approximately $1.4 mi lIion and the 1999 residential phase-in is approximately $] 25,000 o[which $62,500 is applied to the 1999 interim tax bill. Report to Council FINO 1-99 February 1, 1999 - Subject: 1999 Interim Levy and Interim Tax Instalment Due Dates for Residential/Fanll Properties, Farmlands, Pipelines, Managed Forests and Payments in Lieu of Taxes Excluding Federal Government Non-Residential Realty Class of Property Page 3 The interim levy is applicable to all really classes except for those impacted by Bill 79 such as commercial, multi-residential and industrial. Bill 79 prevents the Town for levying taxes on the other realty tax classes until all of the obligations under the Bill (ie. capping) arc satisfied. Bill 71) received Royal Assent on December 18, 1998. In January, 1999, the Minister of Municipal Affairs and I lousing filed a 24 page Regulalion pertaining to Bill 79. In fact IS such Regulations have becn fixed in the last two months with more to follow. These regulations explain in detail how to apply the capping legislation for increases and to calculate the clawback of the decreases. Finance staff anticipate that the revised tax bills associated with Bill 79 will be issued by mid- March, depending upon the date of Regional Council's approval of a capping scheme. The rc- billing of the 1998 taxes for these groups will be difficult due to the complexity of the calculations and programming requirements for the computer system. A detailed communications strategy is planned to assist the various stakeholders in understanding their revised tax bill. Furthermore, the Province is mandating the content of a standard, uniform communication to be included with all such tax bills, specific to the particular property being billed. In addition, the Region may also be considering some form of communications in this regard. The interim instalhllent due dates lar 1999 arc simi lar to those in place since 1976. - ATTACHMENTS: I. By-law to establish the Tax Rates and 1999 Interim Installment Due Dates. Prepared By: Approved / Endorsed By: ,~ ~~f=-~_~ '--Gillis A. Paterson Director of Finance & Treasurer Stan Karwowski Manager of Finance SK/md Attachments - Recommended for the consideration of Pickering Town Council / - THE CORPORATION OF THE TOWN or PICKERING I3Y-LAW NO. Beil/g a by-law to establish (/// II/terim Lel~Y for I999 for residel/tial, farm. farmlal/ds. pipelil/es. I/Illl/agcd forests realty classes and for Paymel/ts in Lieu of Taxcs excluding Federal Government 1/0// residel/tial realty class propcrtics: al/(l to cstablish thc installmcnt due datcs jor thc I999 Interim LCI:Y WHEREAS Section 370, subsection (I) of the Municipal Act R.S.O. 1990, 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 a separate Tax Rate, as specified in thc by-law on the assessment in each property class, in the local municipality rateable for local municipality purposes; and WHEREAS Section 370, subscction (3) ofthe Municipal Act R.S.O. 1990, provides that the Tax Rates to be levied under subsection (I) on a propcrty class must be set so that the total amount raised, when thc Tax Rate is levied on the applicable assessment, rateable for local municipality purposes, docs not exceed 50 per cent of the total amount raised for all purposes ill the previous year by the levying of Tax Rates on all properties that, in the current year, arc in the property class; and. ~ WHEREAS Section 370, subsection (4) of the Municipal Act R.S.O. 1990, provides that if a by- law is passed under subsection (I) the Tax Rate levied under subsection (l) shall be levied on the assessment according to the assessment roll for taxation in the previous year as most recently revised; and WIIEREAS Section 368.0.3, of the Municipal Act R.S.O. 1990 as amendcd by Bill 79, provides the council of the municipality may not Icvy industrial, commercial, or multi-residential tax rates 1'01' 1999, if the 1998 levy for property taxcs on industrial, commcreial and multi-residcntial realty classcs arc affected by an upper tier and the Council of the upper tier has not satisfied its obligations under Subsection 3G8.0.0 (5) or (6); and WIIEREAS the Town of Pickering passed by-law 5392/98 implcmenting the residential phase- in for assessment related increases or decreases for the residential property class as detcll11ined in accordance with Section 372 (1) of the Municipal Act R.S.O. 1990, as amended and as adopted by the Region of Durham; and WHEREAS the residcntial phase-in schcmc is to be implemcnted over a three year period beginning in 1998 and that the 1999 rcsidential interim tax bill include 50 per cent of the estimated 1999 residential phase-in if applicable; and WIIEREAS it is uecmcd expedient at this tilllc to fix the amount anu due dates for the paYlllent of instalmcnts of the 1999 interim taxes for residential/fann, farmlands, pipelines, managed forests and far Paymcnts in Licu of Taxes exclUding Fedcral Govel"l1l1ll.:nt non-rcsidential. NOW THEREFORE, THE COUNCIL OF THE CORPORATION OF THE TOWN OF PICKERING HEREBY ENACTS AS FOLLOWS: - In the year 1999, the Tax Ratc, shall be as described under Seheuule A attached hereto Interim Tax Rates - and are due and payable in two installmcnts on the 26th day of February, 1999 and on the 27th day of April, 1999. - I. (a) Before the adoption of the estimates for 1999, there shall be levied as taxes on the assessment of all residential, farm, farmlands, pipelines, managed forests property and for Payments in Lieu of Taxes excluding I'ederal Government non-residential realty class properties in the Town of Pickering rateable for municipality purposes according to the assessment roll as most recently revised before this by-law is enacted for taxation in 1998, in amounts calculated by the Treasurer. (b) For residential properties eligible for the 1999 phase-in adjustment of an assessment rclated increase or decrease in taxes, 50 per cent of the total estimated 1999 phase-in <Idjustment shall be included on the intcrim tax levy. 2. Taxes shall be payable to the Treasurer, Town of Pickering. 3. When not in default, the payment of taxes, or any instalment thereof, may also be made at any financial institution permitted by the Municipal Act, R.S.O. 1990, c. M.4S, as amended, as designated by the Treasurer. 4. The Treasurer or Tax Collector may mail, or cause to be mailed, all notices of taxes required in accordance with the provisions of the Municipal Act, R.S.O. 1990, c. M.4S, as amended, to the address of the residence or place of business of the person taxed pursuant to this by-law. Notices will not be mailed to tenants. It is the responsibility of the person taxed to noti fy and collect taxes from tenants or other persons. 5. The Treasurer or the Tax Collector shall be and they are hereby authorized to accept part payment from time to time on account of any taxes due, and to give a receipt for such part payment provided that acceptance of any such part payment docs not affect the collection of any percentage charge imposcd or collectable under Section 399, Subsection (3) of the Municipal Act R.S.O. 1990, in respect to non-payment of any taxes or any class of taxes or of any instalment thereof. -- (J. The Treasurcr-Collector is hereby authorizcd to prepare and givc one separate tax notice for the collection of 1999 taxcs, one notice being an INTERIM notice, with two instalments, as follows: lNTERIM'Tax Notice - due date of the first instalment February 26, 1999 - due date of the second instalment April 27, 1999 7. Except in the case of taxes payable under Section 33 and 34 of the Assessment Act, R.S.O. 1990, c.A31, as amended, the percentage charge as a penalty for non-payment of taxes and monies payable as taxes shall be added 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 but not after December 31 of the year in which the taxes become payable, and it shall be the duty of a Tax Collector, imlllediately to collect at once, 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 arc incurred. - 8. In respect of taxes payable under Sections 33 and 34 of the Assessment Act, R.S.O. 1990, c.A.31, as amended, the percentage charge imposed as a penalty for non-payment of taxes and monies payable as taxes shall be added to evelY amount of taxes so payable remaining unpaid on the first day after twcnty-one days fj'Olll the date of mailing by the Treasurer or a Tax Collector of a demand for payment thcreof and on the first day of each calendar month thereafter in which default continues but not after December 31 of the year in which tlie taxes become payable; and it shall be the duty of a Tax Collector 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. Ii II Ii ,I :1 II II II I, II Ii " ii Ii :' !I II !I i' 'I :1 I ,I " II II I' :1 Ii II il \}. Nothing herein contained shall prevent the Tax Collector 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. ,; 10. Whcre tenants of land owned by the Crown or in which the Crown has an interest are liable for the payment of taxes and whcre 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 or Tax Collector on demand out of any wagcs, salary or other remuneration due to such employee, the amount then payable for taxes undcr this by- law and such payment shall rclieve the employer from any liability to the employee for the amount so paid. II. That this by-law is to come into clrect onthc I st day of January, 1<)1)<). BY -LA W read a first, seeond and third time and finally passed this 1 st day of February 1999. Wayne Arthurs, Mayor Bruce Taylor, Clerk ".... ..- "".. ,,- - --- By-Law No. Schedule A Town or Pickel"ing 1999 Interim Tax Rates A Rcalty Class Rcsidcntial/rann Farmlands Pipclincs Managcd Forcsts B Paymcnt in Licu ofTaxcs PIL CommcrcialOccupicd PIL Commcrcial Vacant Unit PIL Commcrcial Vacant Land PIL IndustrialOccupicd PIL Industrial Vacant Unit PI L Industrial Vacant Land PIL Largc Industrial Occupicd PIL Officc Building Occupicd I'lL Parking Lot I'lL Multi-Rcsidcntial .00774867 .00193717 .01580510 .00193717 .01864847 .01305392 .01305392 .02771453 .01801445 .01801445 .04432264 .02889324 .01864847 .01706753 Thc PIL ratcs for thc rcsidcntial, farmlands, pipelincs and managcd forcsts bc sct at thc samc ratc as above in part A.