The URL can be used to link to this page

Home My WebLink AboutFND-017-17Clarington Finance Department Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: November 27, 2017 Report Number: FND-017-17 Resolution: #GG -486-17 File Number: By-law Number: Report Subject: 2018 Interim Tax Levy Recommendations: 1. That Report FND-017-17 be received; and 2. That Council approve the interim rating by-law attached to Report FND-017-17 and authorize the Director of Finance/Treasurer to proceed with the production of the 2018 interim tax bills. Municipality of Clarington Resort FND-017-17 Report Overview Paae 2 This report is to obtain Council's approval to levy an Interim Rate for 2018 (based on 50% of the total 2017 taxes levied), on the taxable properties within the Municipality of Clarington and to enable the Director of Finance/Treasurer to issue the 2018 Interim Tax bills via approval of a by-law. 1. Background 1.1 Determining tax rates for 2018 cannot be completed before the Province of Ontario provides education tax rates and the Municipality of Clarington and Region of Durham approve their budgets for 2018. 1.2 Prior to levying the final tax bills each year, the Municipality requires revenue to operate and provide services. Additionally, the Municipality has legislative obligations to provide funds to the Region and School Boards prior to setting the final tax rates. 1.3 In order to meet the financial obligations of the Municipality, pursuant to Section 317 (1) of the Municipal Act, 2001, it is necessary to levy an interim tax on all rateable properties within the Municipality of Clarington. This is the Municipality's normal practice. This rate is intended to raise approximately 50% of the 2017 taxes levied. The Interim tax billing is scheduled to be issued in January 2018. Installment dates proposed are: 1St Installment: February 15, 2018 2nd Installment: April 19, 2018 1.4 The interim tax rates for 2018 are calculated to be approximately 50% of the approved 2017 taxes levied upon the properties. 1.5 The proposed by-law includes a provision which grants the Treasurer the authorization to amend the installment dates for 2018 interim tax bills, should any provincial legislation be released that could effectively delay billing. All due dates are set to accommodate the legislated notice requirement of twenty-one (21) days before the installment due date, in accordance with the Municipal Act, 2001. Municipality of Clarington Resort FND-017-17 2. Financial Considerations Paae 3 2.1 The interim tax levy is essential to provide the required cash flow to finance the municipal operations until the budget is approved. Under Section 317(1) of the Municipal Act, 2001, municipalities are authorized to impose an interim levy to a maximum limit of 50% of taxes for municipal and school purposes levied on the properties for the previous year. A by-law is required to be passed under Section 317(1). 3. Concurrence Not Applicable 4. Conclusion It is respectfully recommended that Council approve the interim tax rating by-law and authorize the Director of Finance/Treasurer to proceed with the production of the 2018 interim tax bills. 5. Strategic Plan Application The recommendations contained in this report conform to the Strategic Plan. Submitted by: Nancy Taylor, BBA, CPA, CA, Director of Finance/Treasurer Reviewed by: Z4V,�� Andrew C. Allison, B.Comm,LL.B CAO Staff Contact: Brenda VanEssen, Tax Collector, 905-623-3379 ext 2608 or bvanessen@clarington.net Attachment: Attachment 1 - 2018 Interim Tax By-law There are no interested parties to be notified of Council's decision. Attachment 1 to Report FND-017-17 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2017 - BEING A BY-LAW to authorize an Interim Tax levy for 2018 WHEREAS the Council for the Municipality of Clarington deems it necessary to pass a by-law to levy an Interim Rate for 2018 on the whole of the assessment for each property class in the local municipality as provided for in Section 317 of the Municipal Act, 2001 as amended; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON ENACTS AS FOLLOWS: 1. THAT the Council of the Corporation of the Municipality of Clarington is hereby authorized to levy in 2018 on the whole of all taxable assessment on the property according to the last revised assessment roll, a sum not to exceed that which would be produced by applying the prescribed percentage (or 50 percent if no percentage is otherwise prescribed) of the total amounts billed to each property for all purposes in the previous year on the properties that, in the current year, are in the property class as provided for in Section 317 of the Municipal Act, 2001 as amended. 2. THAT for the purposes of calculating the total taxes in 2017 under paragraph 1, if any taxes were levied in 2017 for only part of a previous year because assessment was added to the roll during the year, an amount shall be added equal to the additional taxes that would have been levied if the taxes had been levied for the entire year. 3. THAT the interim tax levy rates shall also apply to any property added to the assessment roll after this by-law is enacted; 4. THAT all taxes levied under the authority of this By-law shall be payable in Canadian funds and shall be divided into two equal installments, the first of said installments to become due and payable on or before the 15th day of February 2018 and the second of said installments to become due and payable on or before the 19th day of April 2018 and shall be paid to the Treasurer of the Corporation of the Municipality of Clarington. Upon payment of any applicable fee, and if paid on or before the due date imprinted on the bill, taxes may also be paid at most chartered banks in the Province of Ontario 5. THAT as Section 342(b) of the Municipal Act, 2001, as amended provides for alternative installments and due dates in the year for which the taxes are imposed other than those established under clause (4) to allow taxpayers to spread the payment of taxes more evenly over the year. A taxpayer may pay taxes on a 12 -month pre -authorized payment plan payable on the first day of each month from December to November. In the event of the default of payment on the pre -authorized payment plan, enrolment in the plan shall be terminated and the interim tax levy shall be due and payable on the installment dates as set out is Section 4 of this by-law. 6. THAT as provided in Section 345 (1) of the Municipal Act, 2001, as amended if the taxes or any class or installment thereof so levied in accordance with this by-law remain unpaid on the due date, a penalty of one and one quarter percent (1.25°/x) per month (15% per annum) of taxes remaining unpaid shall be levied on the first day of each calendar month thereafter in which the default continues until December 31, 2018. 7. THAT as provided in Section 345(3) of the Municipal Act, 2001 as amended any taxes levied pursuant to this by-law remain unpaid as at December 31St, 2018, interest at the rate of one and one quarter percent (1.25%) per month (15% per annum) of the unpaid taxes shall be levied from December 31St, 2018 on the first day of each calendar month for so long as the taxes remain unpaid. By-law passed in open session this 11th day of December, 2017, and shall come into force on January 1, 2018. Adrian Foster, Mayor C. Anne Greentree, Clerk