Loading...
HomeMy WebLinkAboutFND-015-18Clarington 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: Date of Meeting: December 10, 2018 Report Number: FND-015-18 Resolution: JC -054-18 File Number: By-law Number: 2018-101 Report Subject: 2019 Interim Tax By-law Recommendations: 1. That Report FND-015-18 be received; and 2. That the By-law attached to Report FND-015-18 be approved. Municipality of Clarington Report FND-015-18 Report Overview Page 2 The Municipality of Clarington annually levies an interim tax prior to the approval of the final tax rates to ensure it is able to meets its financial obligations until the final tax levies are processed. 1. Background 1.1 The Municipal Act, 2001 authorizes a municipality, prior to the adoption of the estimates for the year, to pass a by-law levying amounts on the assessment of property in the local municipality for local municipal purposes. 1.2 Historically, the Municipality has passed an Interim Tax Levy in December of the preceding year to ensure that tax bills are processed in January of the taxation year. 1.3 Interim tax bills are divided into two installments: February 21, 2019 and April 18, 2019. 1.4 The by-law this year has been amended to reflect that penalty is added on the first day of the month after the installment date, and interest is added on the first day of each month thereafter. This is a housekeeping change to be consistent with wording in the Municipal Act, 2001. 1.5 If Council were not to pass the Interim Tax Levy, taxes could not be collected until the final tax bills are processed in the spring and this could result in a cash flow issue for the Municipality. It would also result in taxpayers having to pay their full tax bills in two installments rather than four (or more if they use Pre -Authorized Payments). This could result in hardship to taxpayers. 2. Concurrence Not Applicable. 3. Conclusion It is respectfully recommended that Council approve the 2019 Interim Tax By-law to ensure that interim tax bills are processed consistent with past timelines and to ensure that tax revenues can be collected throughout the whole 2019 taxation year. 4. Strategic Plan Application Not applicable. Municipality of Clarington Resort FND-015-18 Submitted by: Trevor Pinn, B.Com, CPA, CA, Deputy Treasurer Page 3 Reviewed by: Andrew C. Allison, B. Comm, LL.B CAO Staff Contact: Jessica James, CMRP(A), Tax Collector, 905-623-3379 x 2609 or jjames@clarington.net Attachments: Attachment 1 - By-law for 2019 Interim Tax THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2018 - BEING A BY-LAW to authorize an Interim Tax levy for 2019 WHEREAS the Council for the Municipality of Clarington deems it necessary to pass a by-law to levy an Interim Rate for 2019 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; 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 2019 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. 2. THAT for the purposes of calculating the total taxes for the previous year under paragraph 1, if any taxes were levied for only part of the 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 21St day of February 2019 and the second of said installments to become due and payable on or before the 18th day of April 2019 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, 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 (2) of the Municipal Act, 2001, if the taxes or any installment levied in accordance with this by-law remain unpaid on the first day of the month following the installment due dates set out in Section 4 of this by-law, a penalty of one and one quarter percent (1.25°/x) will be imposed on the amount for taxes due and unpaid. 7. THAT as provided in Section 345(3) of the Municipal Act, 2001, any taxes levied pursuant to this by-law that are due and unpaid, interest at the rate of one and one quarter percent (1.25%) per month (15% per annum) of the unpaid taxes shall be levied on the first day of each calendar month for so long as the taxes remain unpaid. By-law passed in open session this 17t" day of December, 2018, and shall come into force on January 1, 2019. Adrian Foster, Mayor Anne Greentree, Clerk