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HomeMy WebLinkAboutTR-8-89 REPORT #3 TOWN OF NEWCASTLE f sw`1 REPORT File # a " Res. # By-Law # MEETING: COUNCIL MEETING DATE: January 16, 1989 REPORT #: TR-8-89 FILE #: SUBJECT: SECTION 496 - TAX ADJUSTMENTS RECOMMENDATIONS: It is respectfully recommended to Council the following: 1. That report TR-8-89 be received; and 2. That the tax adjustments on the following properties be approved for cancellation at the amounts stated: Roll No. Applicant Amt. to Adjust 010-010-01655 EMI Plastics $ 5,638.43 010-010-01660 Automotive Plastics 1,122.07 010-010-01665 Plastic Group Tech. 261.81 BACKGROUND & COMMENTS: Report #TR-5-89 was presented to the G.P.A. meeting of January 9th, requesting that certain items be approved for cancellation, reduction or refund of taxes. Items 1,2 & 3, were pulled from that report and Staff was requested to provide an explanation as to why these particular items were being considered for cancellation. The taxes in question relate to operations that have gone into receivership on March 26, 1988 and ceased their business operations. . . .2 TR-8-89 Page 2 Under the legislation contained in the Municipal Act, Section 496 (1) (a) , it is necessary for the Commercial assessment classification to be transferred to a Residential Assessment classification when an active business operation becomes inactive. This means that the taxes outstanding automatically revert to a Residential classification, and because there is a differential of 150 less taxation associated with Residential as opposed to Commercial assessment, the tax assessed must be reduced by this amount. The taxes assessed reverted to a Residential rating as of March 26th, and will continue to be assessed at this rate until an active business commences operation. Collection procedures through the receivership channels apply to the balance of the original taxes outstanding and will be collected 100% upon sale of the assets. It is therefore suggested that the reduction is appropriate. Respectfully submitted, Recommended for presentation to the Committee f � Marie A. Marano, awrence .!i otseff, Deputy Treasurer. Chief Ad in strative Officer. MAM/pp Sec. 490 (I) �NI uN I(A PA 1, Chap. 302 335 like amount out of any public money that would otherwise be Payable to the municipality or to the treasurer thereof, or by action against the corporation. 1984, c. 48, s. 20 (6), /ea),l. 494. Any person aggrieved by the default of the treasurer C11y, etc., may recover from the municipality the amount due or payable ftr default P Y for�era„n to such person as money had and received to the person's use. of treasurer, 1984, c. 48, s. 20 (6), pail. etc. a11tiCGl.l.:\NEc1US 4():i.—(I) \\/here the treasurer ascertains that certain uncortectable taxes are uncollectable, he shall recommend to the council taxes that such outstanding taxes be struck off the roll, and the council may direct the treasurer to strike such taxes off the roll. (2) Notwithstanding subsection (1), the treasurer may aoo tectabie strike from the roll taxes that by reason of a decision under section rea8on 496, or of a decision of a judge of any court are uncollect-aeoi ion able. R.S.O. 1980, c. 302, s. 495. 449(;.—(1) An application to the council for the can- cancellations, reductions, collation, reduction or refund of taxes levied in the year in refunds,etc., respect of which the application is made may be made by oftaxes any person, (a) in respect of real property liable to taxation at the rate levied on commercial assessment as defined in the Ontario Unconditional Grants Act that has ceased to R.S.O. 198o, be real property that would be liable to be taxed at such c'"s9 rate; or (b) in respect of real property that has become exempt from taxation during the year or during the preceding year after the return of the assessment roll; or (c) in respect of a building;that during the year or during the preceding year after the return of the assessment roll, (i) was razed by fire, demolition or otherwise, or I (ii) was damaged by fire, demolition or otherwise so as to render it substantially unusable for the purposes for which it was used immediately prior to the damage; or (d) in respect of a mobile unit that was removed from the municipality during the year or during the preceding year after the return of the assessment roll; or Sec. 7 (4) ONTARIO UNCONDITIONAL GRANTS Chap. 359 1205 excludes amounts required for school purposes and sums included in the net regional levy, net county levy and special regional levy; (g) "special regional levy" means an amount apportioned by a regional municipality to one or more area municipalities that is not included in the net regional levy and excludes amounts required for school purposes. (2) Each lower tier municipality shall levy, in accordance Levy with subsection (3), separate rates as applicable on com- mercial assessment and on residential and farm assessment in each year in respect of the, (a) net regional levy; (b) net county levy; (c) net lower tier levy; (d) special regional levy; and (e) special lower tier levy. (3) The rates to be levied in each year for each separate Dater lnr- levy specified in subsection (2), r.t1818 (a) on residential and farm assessment shall be 85 per cent of the rates to be levied on commercial assessment; and (b) on commercial assessment shall be determined by multiplying the amount required for each such levy by 1,000 and dividing the product by 85 per cent of the sum of the residential and farm assessment plus the commercial assessment. 1975,c. 7, s. 7 (1-3). (4) Notwithstanding subsection (2), except where there apportionment has been a different assessment generally of real property in;e�a me:-Zed an area municipality under section 63 of the Assessment Act, R.S.O. 19n:. the net regional levy and the net lower tier levy charged` " against the whole rateable property of an area municipality shall be apportioned among the merged areas of such area municipality in the proportion that the total equalized assessment of each merged area bears to the total equalized assessment of the area municipality both according to the last revised assessment roll as equalized by the Ministry of Revenue. 1979, c. 10, s. 1 (1).