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Home My WebLink AboutTR-42-90 TOWN OF NEWCASTLE REPORT File # /0.:;; 7'L1 Res. # By-law # fffTI f(]: DATE: ~T #: SUR.ECT : GENERAL PURPOSE & ADMINISTRATION COMMITTEE July 23, 1990 TR-42-90 FILE #: PLASTICS E .M. I. SHIELDING INC. AND AUTOMOTIVE PLASTIC PAINT ' MANUFACTURING LIMITED - APPLICATION FOR CANCELLATION OR REDUCTION OF 1989 TAXES RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That report TR-42-90 be received; and 2. That Council not approve the applications to reduce or cancel 1989 property taxes for the following Roll Numbers: (i) 18-17-010-010-01655-0000 (ii) 18-17- 010-010-01660-0000. 3. That the applicant be informed in writing of the decision rendered. BACKGROUND & COMMENTS: Pursuant to Section 495 and 496, Chapter 302 of the Municipal Act, R.S.O. 1980, application has been made by Peat Marwick Limited for cancellation of 1989 taxes. ANZ Bank Canada and Swiss Bank Corporation (Canada) have, by private appointment, made Peat Marwick Limited receiver for Plastics EMI Shielding Inc. The above mentioned banks hold first mortgages against two properties in the Town of Newcastle. In an attempt to protect their interest application has been made to cancel or reduce the outstanding property taxes from the collector's roll, under Section 496-1-(e) of the Municipal Act which reads, lI(e) who is unable to pay taxes because of sickness or extreme povertyll. 7U1 TR-42-90 Paqe 2 On March 26, 1988 the above mentioned properties went into receivership. The applicant receiver sold the company's assets in 1988. Since the time of receivership the land and buildings have not been used for commercial activity. In 1988 the appropriate tax adjustments were made on both properties; first to eliminate business taxes which were no longer applicable and secondly to reduce the assessed values from commercial to residential. These adjustments were made pursuant to Section 495 and 496 of the Municipal Act and reflect the extent of the tax adjustments which the properties are entitled too. As previously mentioned, the current applications have been made pursuant to the Section 496-1 (e) for the reason of extreme poverty. The application made for property roll number 18-17-010-010-01655-0000 has 1989 taxes outstanding totalling $56,866.02. (Principal $48,671.33 + Interest $8,194.69) The second application made for property roll number 18-17-010-010-01660- 0000 has 1989 taxes outstanding of $11,316.64. (Principal $9,685.84 + Interest $1,630.80) See Attachment #1 which provides a complete tax status on both properties. Normally, when an application is made pursuant to Section 495 and 496 the regular procedure is for the Regional Assessment Office to perform an on- site inspection of the property, verify the reason and validity of the application, determine the amount and type of assessment affected and where appropriate, establish the period of time for which the tax relief is claimed. Attachment #2 to this report is a recommendation from Ted Aldridge, Valuation Manager of the Regional Assessment Office against the application. In support of his recommendation he has included an Ontario Municipal Board decision, see Attachment #3, relating to the applications under consideration. In keeping with the assessment and recommendation of the Regional Assessment Valuation Manager, it is respectfully recommended that Council not approve any relief of municipal taxes on the identified properties. Respectfully submitted, Recommended for presentation to the Committee ~. ie A. Marano H.BSc., Treasurer Officer Attachments 702 ATTACHMENT #1 CURRENT TAX ACCOUNT STATUS: (i) Plastics E.M.I. Shielding Inc. Roll Number: 18-17-010-010-01655-0000 YEAR PRINCIPAL INTEREST TOTAL 1990 $ 38,451.49 $ 1,393.26 $ 39,844.75 1989 $ 48,671.33 $ 8,194.69 $ 56,866.02 1988 $ 83,841.42 $28,407.71 $112,249.13 Prior $ 76,354.77 $39,235.54 $115,590.31 Total $247,319.01 $77,231. 20 $324,550.21 * Future Instalment due September 21, 1990 is $14,114.00 (ii) Automotive Plastic Paint Manufacturing Limited Roll Number: 18-17-010-010-01660-0000 YEAR PRINCIPAL INTEREST TOTAL 1990 $ 7,652.79 $ 277.28 $ 7,930.07 1989 $ 9,685.84 $ 1,630.80 $11,316.64 1988 $ 8,851.97 $ 2,917.49 $11,769.46 Prior $18,790.85 $ 9,950.97 $28,741. 82 Total $44,981. 45 $14,776.54 $59,757.99 * Future Instalment due September 21, 1990 is $2,808.00. 703 .~ Ontario ATTACHMENT 1/:2 ASSESSMENT REGION NO. 13 Regional Municipality of Durham P.O.Box 270 605 Rossland Road East Whitby, Ontario L 1 N 581 May 2, 1990 (416) 668-9351 or Zenith 67140 Town of Newcastle 40 Temperance street Bowmanville, Ontario L1C 3A6 Attention: Ms. Ruth Swan Tax Collector Dear Ms. Swan: Re: Plastics EMI Shielding Inc. Roll No. 18-17-010-010-01655-0000 Roll No. 18-17-010-010-01660-0000 Tax Rebate Applications Under Section 496 Sub Section (e) of The Municipal Act In response to your request, I am pleased to comment and make a recommendation on these applications. The applicant states the properties were not used for commercial activities in 1989. In consideration of this fact, business assessments were deleted from these properties for 1989 taxation and the residential mill rate applied for realty tax purposes. Both properties are vacant industrial and must be assessed as such. The owners or their agents, have had the opportunity to appeal these properties under Section 39 of The Assessment Act and have not done so. In my opinion, Section 496(e) does not apply to corporations and in support of this, I enclose a 1983 Ontario Municipal Board Decision relating to a similar matter. In view of these considerations, we would recommend that no relief be given to the applicants. Yours very truly, ~~. /Jl; ./, ~..~. U&/k~ E.C. Aldridge, M.I.M.A. Valuation Manager ECA/lv c.c. D. O'Blenes c.c. D. Palmateer 704 1713A (88-02)