HomeMy WebLinkAboutTR-44-81 Memorandum
TO: Chairman & Members of the Finance & Administration Committee
FROM: Klaas Degroot, C.G.A. , Treasurer
DATE: June 16, 1981
SUBJECT: Resolution #C-664-81 and #C-665-81 -Ontario Property Tax Grant
ITEM: TR-44-81
Recommendation:
"'Receive for information"
Report:
It is staff's understanding that this resolution was referred so that
clarification could be provided as to whether the implementation of the
subject proposal would create a financial impact on the Town of Newcastle.
While no definitive statement can be made as to amounts and the justification
thereof, it would be safe to say that there would be additional costs of some
type.
It is staff's opinion that this cost would be less than the cost now being
incurred by the Province of Ontario in the processing of cheques payable
to the individuals, whereas the Town would be able to implement procedures
to deduct this amount from the tax bill . Staff notes that the recently
introduced Provincial Budget contemplates changes for farmer's which may
render that portion of the resolution redundant.
K. Degroot.
.. v � ��
� ..;� . WHEREAS the local mu►► ieipaI Lty IN raquLrcd ley
.; authority from the Province to levy a mill rata on property
assessment for taxes for municipal and educational purposo5 ;
ANll WHEREAS the assessment or property 1 s ►
provincial responsibility ;
AND WHEREAS the Province has recognized that a
review of assessments is long overdue and Is causing i ncqu i tit,;,
and unfairness in the tax levy ;
AND WHEREAS the Province has recognized these;
inequities and has offered compensation by paying up to
$500. 00 in a tax rebate to Senior Citizens , and up to
50 percent of farm taxes ;
AND WHEREAS the municipalities Q Ontario havc�
been recognized as a responsible body in the collecting of taxes
for municipal and educational purposes ;
AND WHEREAS the Mayor, Members of Council and
staff of local government are called upon to explain this
somewhat complicated and inequitable system ;
THEREFORE be it resolved that the Province of Ontario enact,
legislation granting authority to the local municipality to
credit the taxpayer with the amount of money that is now beint;
paid by the Province of Ontario as an Ontario Property Tax
Grant for the following reasons :
1 . This would streamline the opora t ion , and havp ;ui
enormous amount of duplication if the taxpayer were al Iow (I
this credit at the time of payment, of taxes .
2 . It would further support the Von & of th(,
Province by giving the local munici pW i t y ►Wore r(�pon:; i 1, i 1 i i y ,
as per the following examples :
l ) A senior citizen with ,c $600 . 00 Lnx I wvy , who ww" I d
qualify for a $500. 00 credit , would have this credit on his La:�:
bill , leaving; a net payment of : 100 . 00 .
ii ) - A farmer with a tax levy of $2 ,000 , o0 and a t.c,�,
credit of $1 , 000. 00, would have a tai: bill of $1 , 000 . 00 .
AND HE IT FURTHER RESOLVED that the Province maku th" pnympli :;
directly to the Municipality in one or t«o paymentm annum ly .
Tit i N 111 t, i on h(' forwa riled t o ()n Ln r i " ;;lwl I I I I11)n n `1(111 i I I In
Association of Municipalities of Ontario ,end Ruyul Ontario
Municipal Association , for t.hrir Hupp"K .