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HomeMy WebLinkAboutFND-009-10 ( REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION Date: APR 19, 2010 Resolution#: `''� ��/ /0 By-law#: Report#: FND-009-10 File#: Subject: TAX OFFICE - CHANGE OF OWNERSHIP FEE RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-009-10 be received; 2. THAT Ms. McGuey's request be received for information; and 3. THAT Ms. McGuey be advised of Council's decision. i Submitted by: Reviewed by: ancy aylor B , C.A Franklin Wu, Direct r of F ance/ Chief Administrative Officer Treasurer NT/hjl CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379 REPORT NO.: FND-009-10 PAGE 2 BACKGROUND: 1.0 At the meeting held March 1, 2010, Council approved the following resolution: Resolution C-074-10 Moved by Councillor Robinson seconded by Councillor Hooper "THAT Correspondence Item 1-11 from Ann McGuey with respect to Administration fees be referred to the Director of Finance/Treasurer". 1.1 A copy of Ms. McGuey's correspondence is attached, marked Attachment "A" 1.2 The Tax Collector has been in contact with Ms. McGuey in regards to the $25 administration fee and the tax payer would like this fee to be removed from her account. COMMENTS: 2.0 At the meeting held on November 23, 2009, Council approved report FND-032- 09 Service Fee Amendments that authorized the implementation of Ownership Change Fee of $25.00 per taxpayer effective January 1, 2010. The Ownership Change Fee was part of the cost saving measures for the 2010 Budget that was outlined in the approved Report CAO-004-09 at the Special Council meeting held on August 31, 2009. This revenue has been included in the 2010 budget to assist in reducing tax levy increases. 2.1 The Municipality of Clarington is not the only municipal government charging this Ownership Change Fee. Please refer to the below chart of the surrounding area municipalities and their rates. Town of City of City of Town of Ajax Oshawa Pickering Whitby Change of Ownership fee $ 25.00 $ 10.00 $ 25.00 $ 25.00 2.2 It has been suggested that the Ownership Change Fee be charged only to taxpayers moving into the Municipality of the Clarington for the first time. However, there is no mechanism in place to differentiate the taxpayers moving within or relocating from outside of Clarington's boundaries. The documentation for ownership changes from MPAC and lawyers only includes the new address not where an individual is moving from. 2.3 To clarify Ms. McGuey's statement in her letter, the $60 fee is for Tax Certificates not for a photocopy of tax arrears. This fee has been charged for many years REPORT NO.: FND-009-10 PAGE 3 and is consistent across municipalities. Lawyers offices require these tax certificates as part of their due diligence in administering real estate transactions. 2.4 To date the revenue collected through Ownership Change Fee is $14,800.00. Any change to the current approved process would create both budget shortfalls in 2010 as well as refund issues. CONCLUSION: 3.0 It is not recommended that any change be made to the currently approved fees. Interested Parties: Ms. McGuey 'Y DFF804 Fri Attachment 1 to FND-009-10 �o io Ta �FICES o Kim o cart//; a coo' r,r -_- L�.R`�44 +a�'-'t c-C/%%1 ii 1o'/ice. i ✓ 01— -��� E`er_ „+��✓� 00 j.P�1"" - ---- --- Gc.