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Finance Department
Report
If this information is required in an alternate accessible format, please contact the Municipal
Clerk at 905-623-3379 ext. 2102.
Report To: General Government Committee
Date of Meeting: November 30, 2015
Report Number: FND-018-15 Resolution: ,, -.
File Number: By-law Number:
Report Subject: 2016 INTERIM TAX LEVY
Recommendations:
It is respectfully recommended that the General Government Committee recommend to
Council the following:
1. That Report FND-018-15 be received; and
2. That Council approve the interim rating by-law and authorize the Director of
Finance/Treasurer to proceed with the production of the 2016 interim tax bills.
Municipality of Clarington
Report FND-018-15 Page 2
Report Overview
This report is to obtain Council's approval to levy an Interim Rate for 2016 (based on 50% of
the total 2015 rate), levied upon the taxable properties within the Municipality of Clarington and
to enable the Director of Finance/Treasurer to issue the 2016 Interim Tax bills via approval of a
by-law.
1 .0 Background
1.1 Determining tax rates for 2016 cannot be completed before the Province of Ontario
provides education tax rates and the Municipality of Clarington and Region of Durham
approve their budgets for 2016.
1.2 Prior to levying the final tax bills each year, the municipality requires revenue to
operate and provide services. Additionally, the municipality has legislative obligations
to provide funds to the region and school boards prior to setting the final tax rates.
1.3 In order to meet the financial obligations of the municipality, pursuant to Section 317
(1) of the Municipal Act, 2001, it is necessary to levy an interim tax on all rateable
properties within the Municipality of Clarington. This is the municipality's normal
practice and there are no other options available. This rate is intended to raise
approximately 50% of the 2015 taxes levied. The Interim tax billing is scheduled to be
issued in January 2016. Installment dates proposed are:
1St Installment: February 18, 2016
2nd Installment: April 21, 2016
1.4 The interim tax rates for 2016 are calculated to be approximately 50% of the approved
2015 taxes levied upon the properties.
1.5 The by-law includes a provision which grants the Treasurer the authorization to amend
the installment dates for 2016 interim tax bills, should any provincial legislation be
released that could effectively delay billing. All due dates are set to accommodate the
legislated notice requirement of twenty-one (21) days before the installment due date,
in accordance with the Municipal Act, 2001.
2.0 Financial Considerations
The interim tax levy is essential to provide the required cash flow to finance the
municipal operations until the budget is approved. Under Section 317(1) of the
Municipal Act, 2001, municipalities are authorized to impose an interim levy to a
maximum limit of 50% of taxes for municipal and school purposes levied on the
Municipality of Clarington
Report FND-018-15 Page 3
properties for the previous year. A by-law is required to be passed under Section
317(1).
3.0 Concurrence - Not applicable
4.0 Conclusion
It is recommended that Council approve the interim tax rating by-law and authorize the
Director of Finance/Treasurer to proceed with the production of the 2016 interim tax
bills.
Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Submitted by. / Reviewed by:�
ancy T ylor, BOK, 6PA, CA Franklin Wu,
Director of Finance/Treasurer Chief Administrative Officer
NT/BV/hjl
Staff Contact: Brenda VanEssen, Tax Collector,905-623-3379 ext. 2608 or
bvanessen(d-)clarington.net
Attachments:
Attachment 1 — 2016 Interim Tax By-Law
There are no interested parties to be notified of Council's decision.
ATTACHMENT# TO
REPORT# roQ �
The Corporation of the Municipality of Clarington
By-Law 2015-xx
Being a By-Law to authorize an Interim Tax levy for 2016
Whereas the Council for the Municipality of Clarington deems it necessary to pass a
by-law to levy an Interim Rate for 2016 on the whole of the assessment for each
property class in the local municipality as provided for in Section 317 of the Municipal
Act, 2001 as amended;
Now therefore the Council of the Corporation of the Municipality of Clarington
enacts as follows:
1. That the Council of the Corporation of the Municipality of Clarington is hereby
authorized to levy in 2016 on the whole of all taxable assessment on the
property according to the last revised assessment roll, a sum not to exceed
that which would be produced by applying the prescribed percentage (or 50
percent if no percentage is otherwise prescribed) of the total amounts billed to
each property for all purposes in the previous year on the properties that, in
the current year, are in the property class as provided for in Section 317 of the
Municipal Act, 2001 as amended.
2. That for the purposes of calculating the total taxes in the previous year under
paragraph 1, if any taxes were levied in 2015 for only part of a previous year
because assessment was added to the roll during the year, an amount shall be
added equal to the additional taxes that would have been levied if the taxes
had been levied for the entire year.
3. That the interim tax levy rates shall also apply to any property added to the
assessment roll after this by-law is enacted;
4. That all taxes levied under the authority of this By-law shall be payable in
Canadian funds and shall be divided into two equal installments, the first of
said installments to become due and payable on or before the 18th day of
February 2016 and the second of said installments to become due and
payable on or before the 21st day of April 2016 and shall be paid to the
Treasurer of the Corporation of the Municipality of Clarington. Upon payment
of any applicable fee, and if paid on or before the due date imprinted on the
bill, taxes may also be paid at most chartered banks in the Province of Ontario
5. That as Section 342(b) of the Municipal Act, 2001, as amended provides for
alternative installments and due dates in the year for which the taxes are
imposed other than those established under clause (4) to allow taxpayers to
By-Law 2015-xx
Page 2 of 2
spread the payment of taxes more evenly over the year. A taxpayer may pay
taxes on a 12-month pre-authorized payment plan payable on the first day of
each month from December to November. In the event of the default of
payment on the pre-authorized payment plan, enrolment in the plan shall be
terminated and the interim tax levy shall be due and payable on the installment
dates as set out is Section 4 of this by-law.
6. That as provided in Section 345 (1) of the Municipal Act, 2001, as amended if
the taxes or any class or installment thereof so levied in accordance with this
by-law remain unpaid on the due date, a penalty of one and one quarter
percent (1.25%) per month (15% per annum) of taxes remaining unpaid shall
be levied on the first day of each calendar month thereafter in which the
default continues until December 31, 2016.
7. That as provided in Section 345(3) of the Municipal Act, 2001 as amended any
taxes levied pursuant to this by-law remain unpaid as at December 31St, 2016,
interest at the rate of one and one quarter percent (1.25%) per month (15%
per annum) of the unpaid taxes shall be levied from December 31St, 2016 on
the first day of each calendar month for so long as the taxes remain unpaid.
By-law passed in open session this 14th day of December 2015.
Adrian Foster, Mayor
C. Anne Greentree, Municipal Clerk