HomeMy WebLinkAboutFND-012-12 FINANCE Clarftwn REPORT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: May 28, 2012 Resolution#: -3V3-1; By-law#: 1 �'
Report#: FND-012-12 File#:
Subject: TAX WRITE-OFFS UNDER SECTION 354(3) and 354(4)(b) OF THE MUNICIPAL ACT,
2001 AND MINIMUM TAX BILLING UNDER SECTION 355(1)
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-012-12 be received;
2. THAT the Treasurer be authorized, under Section 354(3) and 354(4)(b) of the
Municipal Act 2001 to write-off taxes as uncollectible and charge back the
appropriate proportionate amounts to the Region of Durham and the Province;
and
3. THAT the Mayor and Clerk be authorized to execute a By-Law as shown on
Attachment "B", under Section 355 (1) whereby in any year, if the total amount of
taxes to be imposed on a property is less than $20, the amount of actual taxes
payable shall be zero.
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Submitted by: Reviewed by:
ancy T ylor, A, CA. 4�a'nklin Wu,
Director of Finance/ Chief Administrative Officer
Treasurer
NT/M M/hjl
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: FND-012-12 PAGE 2
1. BACKGROUND AND COMMENTS
1.1 Under section 354(4)(b), the Treasurer of a local municipality shall remove unpaid
taxes from the roll without conducting a tax sale if the property is owned by a
municipality. The first property on Attachment "A" was conveyed to the
Municipality. The property is located in Bowmanville on Plan 10M797, Part 1 on
Plan 40R27221 and was required to give Clarington access to Block 162 on Plan
10M797 to enter upon land to maintain as required.
1.2 Under section 354(3), a local municipality may only write off taxes as
uncollectable after an unsuccessful tax sale and may at that point write off the
taxes whether or not the property vests in the Municipality's ownership under
Part XI of the Municipal Act, 2001. The second property listed on Attachment "A"
is vacant property located on Scugog Street in Bowmanville. We have offered
this property for sale through the tax sale process on two separate occasions in
the last five years, with no bids submitted in either case.
1.3 The property is an abandoned former gas station site. The structure was
removed through property standard orders some years ago. The "other charges"
noted on the Attachment refer to the property standard costs. The Municipality
has no interest in vesting (assuming ownership after a failed tax sale), due to the
known presence of a former gas station. Any potential bidders who may be
prepared to purchase and mediate the site may be more interested if there are
not significant costs pertaining to tax arrears on the property so the objective is to
clear the outstanding taxes in order to try to promote the sale and remediation of
the property by private interests, should the opportunity arise.
1.4 Under Section 355(1) of the Municipal Act, 2001, a local municipality may pass a
by-law providing that where, in any year, the total amount of taxes to be imposed
on a property would be less than the tax amount specified by the municipality in
the by-law, the amount of actual taxes payable shall be zero. The intent here is
that for those properties where the taxes generated would be less than $20,
those taxes would not be levied and will be cancelled. This would save printing,
postage and administration costs for two billings a year. Often these are one foot
reserves as a result of development agreements, unusual landlocked very small
tracts of land, or small pieces of land in transition that might be merged with
larger parcels in a future year. The By-Law is shown as Attachment "B".
2 CONCURRENCE — not applicable
REPORT NO.: FND-012-12 PAGE 3
3 CONCLUSION
3.1 The financial impact for the above two (2) write-offs for the municipality including
penalty amounts and other charges, which were fees relating to Property
Standard Charges and attempts to sell the property through the tax sale process
result in an impact of $64,866.93.
3.2 The financial impact for the establishment of a Minimum Tax By-Law for the
municipality would be less than $44.53 for 2012 and represents ten (10)
properties and saves printing, postage and administration costs required to
process these bills twice a year. This impact may vary slightly year to year.
CONFORMITY WITH STRATEGIC PLAN
The recommendations contained in this report conform to the general intent of the
following priorities of the Strategic Plan:
Promoting economic development
x Maintaining financial stability
Connecting Clarington
Promoting green initiatives
Investing in infrastructure
Showcasing our community
Not in conformity with Strategic Plan
Staff Contact: Nancy Taylor, B.B.A., C.A., Director of Finance/Treasurer
Attachments:
Attachment "A" —Write-Off Report 2012
Attachment "B" — Minimum Tax By-Law
Write-Off Report 2012
For Non Collectible taxes on properties
Date Owner/
Residential
Year
Property location
Applicant
Taxes
Penalty
Other
Adjusted
& Notes
To be shared with
Charges
Charges
For
Region&Province
1 May-12 Clarington
815.01
201.42
0.00
2009-2011
Whitecliffe Court Plan 10M797 Blk 161
2 May-12 Clarington/Matthews
4,371.57
34,535.67
28,323.84
1997-2012
72 1/2 Scugog Rd Bowmanville ON
Total Page 1 of 1
5,186.58
34,737.09
28,323.84
Municipality's Share 1,806.00 34,737.09 28,323.84
Total Municipal Financial Impact $ 64,866.93
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Attachment"B"to FND-012-12
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW NO. 2012-
Being a By-law to Impose a Minimum Tax Amount
WHEREAS Sections 355(1) of the Municipal Act allows for a municipality to pass
a by-law providing that where, in any year, the total amount of taxes to be
imposed on a property would be less than the tax amount specified by the
municipality in the by-law, the amount of actual taxes payable shall be zero or an
amount not exceeding the specified amount;
AND WHEREAS Council has approved the recommendations contained in
Report FND-012-12;
NOW THEREFORE BE IT ENACTED
1. THAT should the total amount of taxes to be imposed on a property
in any year is less than $20, the amount of actual taxes payable
shall be zero.
BY-LAW passed in open session this 4th day of June 2012.
Adrian Foster, Mayor
Patti L. Barrie, Municipal Clerk