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Staff Report
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Report To: General Government Committee
Date of Meeting: January 4, 2021 Report Number: FSD-002-21
Submitted By: Trevor Pinn, Director of Financial Services
Reviewed By: Andrew C. Allison, CAO By-law Number: 2021-005
File Number:
Resolution#: GG-031-21
Report Subject: Delegation of Authority - Section 357(1) (d.1) Sickness or Extreme Poverty
Recommendations:
1. That Report FSD-002-21 be received;
2. That the Council of the Corporation of the Municipality of Clarington delegate
authority to the Assessment Review Board to determine eligibility for property tax
reductions or refunds under the Municipal Act, 2001, Section 357 (1) (d.1) —
Sickness or Extreme Poverty; and
3. That the By-law attached to Report FSD-002-21, as attachment 1, be approved.
Municipality of Clarington
Report FSD-002-21
Report Overview
Page 2
Staff are seeking approval from Council to delegate authority to the Assessment Review
Board to determine eligibility for applications made under Section 357 (1)(d.1) of the
Municipal Act, 2001. This section provides the ability for a property owner to apply for a
cancellation, reduction or refund of property taxes due to sickness or extreme poverty.
1. Background
1.1 Subsection 357(1) of the Municipal Act, 2001 allows property owners to apply for the
cancellation, reduction or refund of property taxes for various reasons that occur during
the year. The following list identifies reasons why the property owner may apply for a tax
adjustment
1. Change in tax class — 357(1)(a);
2. Property became exempt from taxes — 357(1)(c);
3. Property razed by fire, demolition or otherwise — 357(1)(d)(i);
4. Property is damaged and substantially unusable — 357(1)(d)(ii);
5. Sickness or extreme poverty — 357(1)(d.1);
6. Mobile Unit removed — 357(1)(e);
7. Gross or manifest clerical/factual error — 357(1)(f);
8. Repairs/Renovation prevent normal use (minimum 3 months) — 357(1)(g).
1.2 An application can be made by the owner of the land or by another person who has an
interest in the land, a tenant, occupant or other person in procession of the land, or a
spouse of the owner or other person described.
1.3 Subsection 357(11) allows Council to pass a by-law authorizing the Assessment Review
Board exercise the powers and functions of council with respect to applications made
under subsections (1) and (5).
1.4 Taxation Services receives applications for property tax reductions from property
owners throughout the year. Taxation Services, with the assistance of the Municipal
Property Assessment Corporation (MPAC), evaluates the applications for completeness
and accuracy, holds a meeting pursuant to subsection 357(5) allowing applicants to
make representation, and then determines whether a tax adjustment is required.
Municipality of Clarington
Report FSD-002-21
2. Comments
Page 3
2.1 Taxation staff have the ability, with the assistance of MPAC, to evaluate and determine
whether a property qualifies for a tax adjustment in seven of the eight reasons identified
through subsection 357(1) of the Municipal Act, 2001 as identified above. Sickness or
extreme poverty is the only exception. Similar to most municipalities, taxation staff do
not have the necessary information or expertise to evaluate an application claiming an
inability to pay taxes due to sickness or extreme poverty.
2.2 Applications claiming sickness or extreme poverty are rare. An application under this
section of the Act requires the property owner to prove sickness and extreme poverty. A
full review of their financial information including income tax returns and expenses must
occur, and they may be asked to attend a hearing to discuss their situation.
2.3 The Assessment Review Board has an established process to handle these types of
applications and can more effectively determine their appropriateness. By delegating
authority to the Assessment Review Board, this will ensure that a streamlined, impartial
and accessible program is available for property owners seeking relief.
3. Concurrence
Not Applicable.
4. Conclusion
4.1 It is respectfully recommended that Council delegate authority to the Assessment
Review Board to manage the application process for tax relief due to sickness or
extreme poverty.
Staff Contact: Jessica James, Taxation Services Manager, 905-623-3379 ext. 2609 or
jjames@clarington.net.
Attachments:
Attachment 1 — Bylaw to delegate authority to Assessment Review Board
Interested Parties:
There are no interested parties to be notified of Council's decision.
Municipality of Clarington
Report FSD-002-21
Page 4
Attachment 1 to Report FSD-002-21
The Corporation of the Municipality of Clarington
By -Law Number 2021-
Being a by-law to delegate authority to the Assessment Review Board to
exercise certain powers and functions of Council pursuant to Section
357(1)(d.1) of the Municipal Act, 2001.
Whereas subsection 357(1)(d.1) of the Municipal Act, 2001 as amended, authorizes
applications to be made to the Treasurer of a municipality for the cancellation, reduction or
refund of taxes levied in the year in respect of which the application is made where such
person is unable to pay taxes because of sickness or extreme poverty; and
Whereas subsection 357 (11) of the Municipal Act, 2001 as amended, authorizes the Council
to pass a by-law to provide that the Assessment Review Board shall exercise the powers and
functions of the Council under subsection 357(1)(d.1) and (5) with respect to the applications
under subsection 357(1)(d.1) of the Act; and
Whereas any such by-law passed by Council shall apply to applications made in and after the
year in which such by-law is passed and shall continue to apply until repealed; and
Whereas it is deemed expedient and appropriate by the Municipality of Clarington that the
Assessment Review Board exercise the functions of Council under subsection 357(1)(d.1) of
the Municipal Act, 2001 for the current year and each year hereafter until repealed;
Now therefore the Council of the Corporation of the Municipality of Clarington enacts as
follows:
That the Assessment Review Board shall exercise the functions of Council pursuant to
subsections 357(1) and (5), with respect to applications made under subsection
357(1)(d.1) of the Municipal Act, 2001.
2. That subsections 357 (6), (7), (8), (9) and (10) of said Act do not apply to such
applications due to the delegation of authority.
Municipality of Clarington
Report FSD-002-21
Page 5
3. That a certified copy of the By-law shall be forwarded to the register of the Assessment
Review Board and to the Municipal Property Assessment Corporation in accordance
with subsection 357 (12) of said Act.
4. That following the passing of this by-law, every application for cancellation, reduction or
refund of taxes due to sickness or extreme poverty shall be forwarded to the
Assessment Review Board for processing.
This By-law shall come into force and effect upon the date of the final reading thereof.
By -Law passed in open session this XX day of January, 2021
Adrian Foster, Mayor
June Gallagher, Clerk