HomeMy WebLinkAboutCS 37-10
Cyr Report To
Executive Committee
PICKERING Report Number: CS 37-10
307 Date: September 7, 2010
From: Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: 2010 Assessment Appeals
Recommendation:
1. That Report CS 37-10 of the Director, Corporate Services &'Treasurer
regarding 201.0 assessment appeals be received;
2. That Council approve the filing of the assessment appeals by Municipal Tax
Equity for 2010 for the following roll numbers: 18-01-202-022-047-68 and 18-01-
020-016-120-00;
3. That the attached By-law providing for the confirmation of the filing of
assessment appeals be enacted;
4. That Council authorize the Director, Corporate Services & Treasurer to engage
the firm of Municipal Tax Equity and or Walker Poole Nixon LLP to represent the
City for the assessment appeals filed above; and,
5. That the appropriate City of Pickering officials be authorized to take the
necessary actions to give effect thereto.
Executive Summary: The City has filed the assessment appeals for the properties
outlined above due to the fact their current value assessment (used for 2010 taxation
billing) bears little resemblance to the their sales price transaction value. Taxation
staff's goal is to have the property's assessment value revised and corrected to more
accurately reflect the arm lengths sale transaction history.
Financial Implications: The City has benefited financially from previous
assessment appeals. If the City is successful with these appeals, the increased
property taxation will be reflected for the 2011 taxation year.
Report CS 37-10 Date: September 7, 2010
Subject: 2010 Assessment Appeals Page 2
308
Sustainability Implications: Passing the attached By-law will allow the City to
obtain the funds require to maintain it's financial sustainability objectives.
Background: The City's property tax base funds approximately 62.45% of its
operating costs. In other words for every dollar in expenditures, sixty-two cents comes
from property taxes. Staff reviews the assessment data base on an annual basis to
ensure that the City receives maximum economic benefit from this major revenue
source. As a result of this review in conjunction with the City's consultant (Municipal
Tax Equity or MTE), the City has appealed the two properties listed on Table One. Our
consultant has recommended that Council confirmation, in the form of a by-law, is
required for assessment appeals.
Table One
2010 Assessment Appeals
Roll Number/ Tax Sale
Location Class Owner Amount CVA Difference
020 016 120 00
Kindwin
2095 Brock Rd Res. Dev. Corp $1,620,000 $468,000 $1,152,000
020 022 047 68
1650 Alliance 4345142
Rd. Corn Canada Inc. $6,500,000 $3,432,000 $3,068,000
As the above table indicates, there appears to be a significant difference between the
sales price and current assessment value used for taxation purposes. Council report
CS 07-10 (Recommendation 12) provided the Treasurer the authority to file protective
assessment appeals which was done by March 31 of this year for the above referenced
properties. Further investigation by staff strongly indicates that the City should pursue
increasing the assessment value of these properties and therefore, formal specific
Council approval in the form of a by-law is required to in contreast to the "general"
approval provided in the previous report.
Principle of Fairness to All City Taxpayers
The property tax system is based on the principle of every property owner paying their
fair share of taxes based on the assessed value of their property. Property owners may
disagree with the assessed value of their property but at least they understand that the
system is fair because everyone basically pays property taxes based on a fair
assessment property value. Where a property is under assessed and therefore pays
less in taxes - the other property owners have to pay more to offset the revenue
shortfall. The principle of fairness does not exist under this scenario. Property tax
owners expect the City to ensure that the principle of fairness is maintained and that all
taxpayers pay their fair share.
Report CS 37-10 Date: September 7, 2010
Subject: 2010 Assessment Appeals Page 3
Attachments:
1. By-law to Authorize Specific Complaints to the Assessment Review Board
Prepared By: Approved / Endorsed By:
Stan Karwowski. Gillis A. Paterson
Manager, Finance & Taxation Director, Corporate Services & Treasurer
Copy: Chief Administrative Officer
Recommends for the consideration of
Pickerin ' y ou
Tony Prevedel, P. Eng.
Chief Administrative Officer
The Corporation of the City of Picâ–ºt2 T~CHMENT#_L_TOREPORT#L%t7-In
By-law No. 310
Being a By-law to Authorize Specific Complaints to the
Assessment Review Board.
Whereas the Council of the Corporation of the City of Pickering (the "City"), may
complain in writing to the Assessment Review Board that it or another person was, in
respect of real property, assessed too high or too low, was wrongly placed on or omitted
from the assessment roll and/or was wrongly on or omitted from the role in respect of
school support pursuant to s.40 and s. 40.1 of the Assessment Act, R.S.O. 1990 c. A.31,
as amended (hereinafter referred to as the "Acf');
Whereas the Council of the City of Pickering deems it appropriate to enact this by-law
for the purposes of exercising its privileges under the Act,
Now therefore the Council of the Corporation of the City of Pickering hereby enacts as
follows:
1. In this By-law,
"property" means any property or portion of property that is or should be
identified on the assessment roll prepared in respect of the municipality; and
"delegate(s)" means any person or persons upon whom this By-Law confers
duties associated with complaints filed with the Assessment Review Board (ARB)
under sections 40 or 40.1 of the Act.
2. The City hereby authorizes and ratifies the filing of complaints to the Assessment
Review Board in respect of the assessment of the following persons and
properties:
Roll No. 1801 020 016 120 00
Roll No. 1801 020 022 04768
3. In respect of the administration of any complaints authorized in paragraph 2 of
this By-law, the Director, Corporate Services & Treasurer or designate hereby
authorized to sign on behalf of the City, and to participate in any associated legal
proceedings with respect thereto.
4. Municipal Tax Equity Consultants Inc. shall be appointed on record as agent for
the City.
By-law No. Page 2
31 1
5. This By-law shall come into effect on the date it is finally passed and shall serve
to ratify all administrative tasks and responsibilities undertaken prior or
subsequent to that date in respect of any appeal authorized through this By-law.
By-law read. a first, second and third time and finally. passed this 14th day of September,
2010.
David Ryan, Mayor
Debbie Shields, City Clerk
I