HomeMy WebLinkAboutTR-59-97 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# Fa Lc-
Date: June 16 1997
Res. #G'&_
By-Law#
Report#:_ PD_r-9_7-7- File #:
Subject: TAX SALE REGISTRATION PROCESS
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report TR-59-97 be received;
2. THAT Council approve the attached By-Law establishing the legal fees to be
charged to property owners through the Tax Sale Registration process on a
graduated scale of costs per property for arrears less than $6,000.00 and on a full
cost recovery basis for properties in arrears greater than $6,000.00.
Background and Comment:
1.0 Currently the Municipality uses the services of Dennis Hefferon to assist in the collection
of tax arrears pursuant to the Municipal Tax Sales Act, R.S.O. 1990.
1.1 In general terms, the municipal lawyers conduct all of the necessary searches to get the
tax sale process underway by preparing the initial Tax Arrears Certificate at the request
of the Tax Collector. This document prepared by Mr. Hefferon's office and executed by
the Municipality is returned to Dennis Hefferon for registration. This officially
commences the legal one year period stipulated in the Municipal Tax Sales Act during
which time we issue the following documents:
1. First Notices of Registration of a Tax Arrears Certificate
2. Statutory Declaration Regarding the Sending of the First Notices
3. Final Notices
4. Statutory Declaration Regarding the Sending of the Final Notices
5. Tax Arrears Cancellation Certificate. If the cancellation price is paid within the
one year period.
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1.2 Various searches and documentation is undertaken at each stage of the process. It is
time consuming to track all of the legal costs associated with each registration for cost
recovery purposes. Often a taxpayer will arrive at the Municipality at the last possible
moment to pay the exact cancellation price (which includes legal costs incurred). At this
time, the legal costs may have to be estimated in order to meet cancellation deadlines.
Recommendations:
2.0 It is recommended for ease of adminstration, that the legal fees cost recovery be according
to the graduated scale of costs set out below for all properties with arrears less than
$6,000.00. This will assist for the bulk of the registrations at the lower amount to
expedite the cancellation process.
COSTS AT EACH STAGE OF THE TAX SALE REGISTRATION PROCESS
1. Preliminary work - title searches, reporting etc. $ 200.00
2. Registration of the Tax Arrears Certificate $ 100.00
3. First Notices of Registration of a Tax Arears Certificate $ 100.00
4. Statutory Declaration Regarding Sending of the first Notices $100.00
5. Final Notices $100.00
6. Statutory Declaration Regarding the Sending of Final $100.00
Notices
7. Tax Arrears Cancellation Certificate $100.00
8. Extension Agreement $200.00
9. Tax Sale Advertising $800.00
10. Preparation of Deed or Vesting Order $430.00
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2.1 If a property is in arrears greater than $6,000.00 it is recommended that the legal fees
cost recovery be set on an actual full cost recovery basis. These situations are too
unpredictable to establish a fixed rate as the Municipality may be out of pocket for legal
costs should the registration unexpectedly become involved and/or complicated.
Resp7tfully submitted, Reviewed by,
xMarie A aran ; f.BSc., A.M.C.T., W.H. Stockwe l"
Treasurer. Chief Administrative Officer.
MM/NT/hj I
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW NUMBER 97-
Being a By-Law to Establish Cost Recovery
rates for legal fees and other fees incurred
under the Municipal Tax Sales Act.
WHEREAS, the Municipal Tax Sales Act, R.S.O. 1990, provides for a municipality to recover legal
fees and other fees incurred during the property tax registration process, the Council of the
Corporation of the Municipality hereby enacts as follows:
1. THAT effective July 1, 1997, the Municipality of Clarington will recover legal and
other property tax registration costs according to the graduated scale set out below for
properties where the total arrears are less than $6,000.00.
COSTS AT EACH STAGE OF THE TAX SALE REGISTRATION PROCESS
1. Preliminary work - title searches, reporting etc. $ 200.00
2. Registration of the Tax Arrears Certificate $ 100.00
3. First Notices of Registration of a Tax Arears Certificate $ 100.00
4. Statutory Declaration Regarding Sending of the first Notices $100.00
5. Final Notices $100.00
6. Statutory Declaration Regarding the Sending of Final Notices $100.00
7. Tax Arrears Cancellation Certificate $100.00
8. Extension Agreement $200.00
9. Tax Sale Advertising $800.00
10. Preparation of Deed or Vesting Order $430.00
2. THAT the fee or charge will be on a full cost recovery basis for properties in arrears
greater than $6,000.00.
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By-Law read a first and second time this 23rd day of June 1997.
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By-Law read a third time and finally passed this 23rd day of June 1997.
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