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HomeMy WebLinkAboutTR-24-98 i THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Meeting: Date: April 6, 1998 File # F d-::2. -r- A Res. kJPA -~03- clg< TR-24-98 File #: By-law # LIST OF APPLICATIONS FOR CANCELLATION, REDUCTION OR REFUND OF TAXES Report #: Subject: Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following FORTHWITH: 1. THAT Report #TR-24-98 be received; 2. THAT the attached list of applications for cancellation, reduction or refund of taxes be approved. BACKGROUND AND COMMENT: Pursuant to Sections 441, 442 and 443, Chapter M.45 of the Municipal Act R. S. O. 1990, a list of applications for cancellation, reduction or refund of taxes is presented to Committee for its review and approval. Effective January 1st, 1973, the Council rather than the Assessment Review Court shall hear and dispose of every application not later than the 30th day of April in the year following the year in respect of which the application is made (Pursuant to Subsection 7 of Section 496 of the Municipal Act as enacted by Bill 206, 1971). Last day for making application for the previous year's tax reduction is the 28th day of February in the following year. More specifically, under Section 441 the Treasurer shall recommend to Council that outstanding taxes be stricken from the roll. To strike taxes from the roll it must be by reason of a decision under Section 442 or 443, or of a decision of a judge of any court, that the taxes are uncollectible. An application for a cancellation, reduction or refund may be made for one of the following reasons: a) commercial to residential tax differential b) real property becomes exempt 801 TR-24-98 Page 2 c) fire, demolition or otherwise d) removal of a mobile unit e) inability to pay taxes because of sickness or extreme poverty t) gross or manifest clerical error g) business ceases to exist The 442 and the 443 process begins when an application is prepared by either the Regional Assessment Office or the Tax Department. The neighbourhood assessor will perform an on- site inspection of the property. The assessor will verify the reason for the application, the period of time for which the tax relief is claimed, and the amount and type of assessment that is affected. The application is then sent back to the Tax Department where the actual tax adjustment is calculated and the taxpayer's account adjusted. The total amount of taxes to be written off, at December 31, 1997, as shown in this report totals $287,047.33. Of this total, the Municipality's share represents approximately $57,409.46. For comparison the values of taxes written off under Section 442 and 443 at December 31, 1996 was $280,253.95 and $56,050.79 respectively. Also reflected in the Municipality's write off account, but not included in this report are reductions due to Assessment Review Board, Ontario Municipal Board and Court Decisions. These write offs, because they are by court decision, are irreversible and final, and are therefore written off directly to the account and are not required to form part of this report. At December 31, 1997 this account (7007-X-252) had a balance of $89,614.55, which is greater than the 1997 budget amount of $75,000.00. The comparative account values at December 31, 1996 for this account were a final balance of $82,352.04 and a budget value of $70,000.00. In 1997, an Assessment Review Board Decision on a Nash Road Condominium resulted in approximately $84,294.02 being written off, of which $16,858.80 was the Municipality's share. This appeal was a significant contributor to the Municipality's write offs to exceed the budgeted amount. In 1996, there was an unforeseen 443 application for Consumers Gas, as a gross and manifest error had been made in the calculation of the assessment. This application resulted in a write off totalling $113,746.16, of which $22,749.23 represents the Municipality's portion. This application contributed significantly to the municipality's write offs to exceed the budgeted amount. 802 TR-24-98 Page 3 Offsetting the write-offs in some instances are supplementary billings. The total supplementaries as indicated in this report total $91,139.81. A supplementary billing is in addition to the regular billings that were issued during the year. Most supplementaries are issued for new homes occupied or business opened mid-year. Therefore a business may cease operation during the year resulting in the remainder of the years taxes being cancelled. When the next business opens a supplementary bill is issued for the remainder of the year re-couping some of the tax written off for the previous business. The total dollar value of the supplementary tax bills issued, at December 31, 1997 was $805,410.00. This is up from 1996 when supplementaries totalled $573,726.45 for the entire year. Respectfully submitted, Reviewed by, ~ Ie A. Marano, H.BSc., A.M.C.T., Treasurer. w~ Chief Administrative Officer. MAM/RS/km Attachments 803 '<:t (") >.a (") '<:t '<:t 0, 0\ r- ~ 1-0 ...... 1-0 ..s 1-0 "" "" 2:! (1) 1-0 1=: 1-0 .... "'0 ~ ..s ~ ..s I (1) ;::l 0 "'0 0 "'0 '" ~ .~ ~ (1) (1) ;::l ;::l ~ (1) '" 2:! '" .0 1=: .~ .~ c<l I ~ I ~ '" t:!N '" '" '" '" '" '" '" '" '" '" '" '" '" '" c<l '" '" '" '" '" '" '" '" '" (1) (1)r- (1) t:! (1) t:! 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