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HomeMy WebLinkAboutTR-4-98 .. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT DN :TR-4-98 GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Report #: Subject: TR-4-98 File #: File # 'F ;;;)/.\[:) . Res. # 0 p,~ - <6'"0 . q<;(. By-law # 'l? - :1.3 Meeting: Date: February 2, 1998 1998 INTERIM TAX LEVY - BY -LAW AMENDMENT Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT, Report TR-4-98 be received for information; and 2. THAT the amendment to the Corporation of the Municipality By-law Number 98- 17 be approved, forthwith. BACKGROUND AND COMMENTS: 1. On January 12, 1998 Council passed By-law 98-17 being a by-law to provide the implementation and' collection of an interim tax levy for 1998. Clarification of the provincial legislation requires an amendment on page 2, Section 2 of the aforementioned by-law, that reads as follows: "The levy for Commercial and Industrial taxes will be increased by approximately 30% in order to collect the taxes that would otherwise be collected as business taxes. This will be levied in accordance with incoming legislation." The 30% increase that was originally proposed is not adequate and would result in a significant shortfall of approximately $564,000 on the Interim the levy. Therefore in order to recoup the loss of the Business Occupancy Tax the Association of the Municipal Clerks and Treasurers released a formula to calculate the Interim Taxes on Commercial 801 REPORT TR-4-98 PAGE 2 and Industrial properties. The formula totals the taxes for commercial/industrial property for 1997, including business occupancy taxes and, using the commercial/industrial assessment but not including the business assessment on these properties to calculate a new "notional" mill rate. Then use 50% of the prescribed percentage of the "notional" mill rate for the purposes of Interim taxes for commercial/industrial properties. The calculation was tested using Clarington's assessment and taxation figures. The result was a "notional" mill rate of 596.149 which would cause an excessive amount of taxes to be collected from the commercial/industrial properties. Therefore, it is recommended that the rate on commercial/industrial property be set lower than the "notional" mill rate allowed. Specifically the interim rate be set at 531.092. (An increase of approximately 48% on the Residential Rate that would otherwise be used. The increase in the mill rate is strictly to recover the loss of Business Occupancy Taxes only. Please see attachment #1 for amendment to By-law 98-17. 2. An information bulletin will be mailed with the 1998 Interim Tax Notices to explain the legislated assessment and taxation changes. Please see attachment #2. The information on this bulletin will be included alongside the tax advertisements that normally run in the local newspapers at this time of year. CONCLUSION: Respectfully submitted, Reviewed by, ~~'BSC"A'M'C'T" Treasurer. ~ W.H. Stockwell, Chief Administrative Officer. MAM/RS/km Attachment 1 - By-law Attachment 2 - Information Bulletin 802 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NUMBER 98- being a by-Law to amend By-law 98-17, to provide for implementation and collection of an interim tax levy for 1998. Recitals 1 . Section 370 of the Act authorizes the Council to pass a by-law before the adoption of the estimates in the current year, providing that the Council may. before the adoption of the estimates for the year, levy on the whole of the assessment for real property according to the last revised assessment roll a sum that is subject to certain restrictions, as set out in the Act. 2. It is necessary for the operation of the municipality in 1998 and future years, to provide for an interim tax levy, as permitted by the Act. NOW. THEREFORE. BE IT ENACTED AND IT IS HEREBY ENACTED as a by-law of The Corporation of the Municipality of Clarington by its Council, as follows: 1. Interoretatlon: The lettered subsections of this section provide the definitions and interpretation rules applicable to this by-law, including its recitals and schedules, where applicable. (a) The headings and numbering of sections and paragraphs in this by-law are for ease of reference, and have no bearing on interpretation otherwise. (b) All references to Provincial legislation in this by-law refer to that legislation as amended from time to time, including successor legislation, whether enacted prior to, or subsequent to, the enactment of this by-law. (c) This by-law references "business assessment". It is recognized that, due to changes in Provincial legislation, there will be no business assessment in 1998. References to the business assessment in this by- law are references to the 1997 assessment and refer to dollar amounts, recognizing that it is anticipated that these dollar amounts will be transferred to the real property assessment for 1998. (d) The "Act" means to the Municipal Act, R.S.O. 1990, Chapter MA5. (e) The "Corporation" means The Corporation of the Municipality of Clarington. .../2 803 Page 2 of 4 (1) The "Council" means the elected council of the Corporation. (g) The "Municipality" means the Corporation of the Municipality of Clarington. 2. Levy for Municipality: In order to provide money for the general purposes of the Corporation prior to the adoption of the estimates for 1998 and future years, there shall be levied by the Corporation as an interim levy, sums equal to that which would be produced by applying the maximum rates set out in Sections 370 (1), or set by Regulation pursuant to Section 371, of the Act, to the whole of the assessment for the Municipality for real property assessment, according to the last revised roll of the Corporation. The mill rate for Commercial and Industrial taxes will be set at 531.092. This is in accordance with the legislation. Taxes on Farmland, Managed Forest and Conservation Lands will be levied in accordance with incoming legislation. 3. Where the prior year taxes were leYled for partial year only: For the purposes of calculating the total taxes in any given year, if any taxes were levied for only part of the prior year because assessment was added to the assessment roll for less than a full 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. 4. Where property was non-rateable prior years: Taxes shall be levied on a property that is rateable for local municipality purposes for 1998, and future years, even if the property was not rateable for local municipality purposes for any given year. 5. Collection: Notwithstanding the provisions of any previous by-laws of the Corporation, which may have set the time for payment of rates, taxes and assessment, the taxes levied under this by-law shall be collected in two instalments. The first instalment shall be due on or about the end of the first week in March, and the second instalment shall be due on or about the 4th week in April. Notwithstanding the foregoing, all arrears of rates, taxes and assessments levied and imposed in any year prior to the current year (plus penalties and interest thereon), must be paid before any instalment of the taxes for the current year is paid. Upon default in payment of any instalment, the privilege of payment by instalments shall be forfeited and the subsequent instalment or instalments shall immediately be~ome payable. .../3 805 Page 3 of 4 6. Penalties/Interest: Penalties and interest shall be added to and collected with rates, taxes and assessments at the rate established by the Corporation's By-law No. 83-38 and 83-39 respectively as amended from time to time. No such interest or percentage added to taxes shall be compounded. 7. CorresDondlnQ reduction: The total levies to be later defined in the Final Levy By-law in accordance with Section 155 of the Act with respect to real property, shall be reduced by the amount raised by the interim levy imposed in this by-law. 8. Part Payment: The Treasurer and the Tax Collector may accept part payment from time to time on account of any rates and assessments and may give a receipt for that payment. Notwithstanding the foregoing, acceptance of any part payment shall not affect the collection of the percentage charge imposed and collectable under Section 6 of this by-law In respect of non-payment of any taxes or any instalment of taxes. 9. Payment methods: The rates, taxes and assessments imposed by this by-law shall be paid during the calendar year of at most Financial Institutions. All prior years taxes shall be paid into the office of the Treasurer. Realty taxpayers in good standing may enter into the optional Pre- Authorized Payment System for taxes as authorized under the authority of By-law 96-50, effective December 1, 1996 for the 1997 taxation year and subsequent years. Municipality of Clarington employees shall also have the right to enter into the Employee Payroll Deduction for tax payments as authorized under the same By-law 96-50. 10. MalllnQ of Notice: The Tax Collector may mail or cause to be mailed to the address of the residence or place of business of the person taxed, the notice in pursuance of Section 392 of the Act. 11. Collection after return of Collector's Roll: In case the Tax Collector fails or omits to collect the taxes or any portion of the taxes on the day appointed for the return of the Collector's roll, the Tax Collector is authorized to continue the levy and collection of the unpaid taxes, penalties and interest in the manner and with the powers provided by law for the general levy and collection of taxes. 12. ReDeal: By-law 74-23 and By-law 80-145 are repealed and the repeal takes effect upon third reading of this by-law. 804 .../4 13. Effect of Bv-Iaw: repealed. Page 4 of 4 This by-law shall remain in force until it is 14. Bylaw 98-17 is hereby amended. By-Law read a first and second time this 12th day of January 1998. By-Law read a third time and passed this 12th day of January 1998. MAYOR CLERK 806 II 1998 INTERIM TAX BILL II The Province of Ontario has legislated significant changes to the provincial assessment and municipal tax system. Some of these changes are reflected on the enclosed tax notice and have been outlined below. Additional changes are forthcoming and will be in place by the time the final tax notices are mailed in approximately June. The impact of these changes and other provincial implications is not yet known. Your Final taxes cannot be determined until the Final assessment information is received from the Province, and the new rates are set. Interim Changes as provincially legislated: II Farmland Ratepayers II Due to the elimination of the provincially sponsored farm tax rebate program the Municipality is now responsible for granting a reduction of municipal taxes. Specifically the farmland portion of your bill will be calculated at 25% of the residential mill rate. Please note: The reduction has been given to those properties designated as farmland on the assessment roll. When the final tax notice is issued based on a new assessment roll only those properties deemed to be eligible will continue to receive the benefit of the reduction. II Managed forest Ratepayers II Changes are Similar to farmland Ratepayers, except the managed forest portion of your bill will be calculated at 12.5% of the residential mill rate. 807 II Conservation Land II The portion of a property identified as Conservation Land on the assessment roll is now exempt from taxation. The Business Occupancy Tax has been eliminated by Provincial legislation therefore the municipality will no longer issue business tax notices. The legislation provides for the recovery of this lost revenue from the commercial and industrial tax base. Therefore, you will notice an increase in the interim mill rate over the previous year to recoup this lost revenue. The final tax bill will reflect the new assessment value as determined by the Province under the Ontario Fair Assessment Systems (OFAS). Questions regarding the enclosed interim tax bill should be directed to the Municipal Tax Office at (905) 623-3379. Questions regarding assessment should be directed to the Regional Assessment Office at (905) 432-8444 or 1-800-268-2224. Questions relating to Provincial Property Tax Policies may be directed to your Member of Provincial Parliament whose constituency office telephone number is listed below: John O'Toole (Durham East)................697-1501 808