HomeMy WebLinkAboutFND-005-03
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REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
MONDAY, FEBRUARY 24,2003 Resolution #:6lfl~I/3(J:3
Date:
Report #: FND-005-03
File#:
/11 ?-
By-law #:
Subject:
MUNICIPAL TAX SALES UTILIZING SERVICES OF
REALTAX INC. (TAX REGISTRATION AND TAX SALE
SPECIALISTS)
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-005-03 received;
2. .THAT routine potential tax sale properties be handled by Realtax Inc.; and
3. THAT the more complex tax sale properties continue to be referred to the
municipal solicitor, Dennis Hefferon.
Submitted by:
Reviewed bY:C'') C~...~~~ {0Ll
Franklin Wu,
Chief Administrative Officer.
NT/MWF/hjII
, 1301
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REPORT NO.: FND-005-03
PAGE 2
BACKGROUND AND COMMENT:
The Municipality's solicitor, Dennis Hefferon, handles the current tax sale procedures, in
addition to all the complex legal issues that the Municipality of Clarington is faced with.
Due to the significant burden that all of the legislative changes have placed upon the
department, we have primarily focused on tax proceedings that were already underway. As
Council is aware, the billing processes itself is significantly cumbersome and dealing with
inquiries from taxpayers has consumed most of our resources over the past several years.
However, it has now become time to take more decisive action on those properties significantly
in arrears.
Since a large part of the tax sale registration process is routine, much of which is clerical in
nature and has multiple deadlines, it is suggested that it would be more efficient, from a timing
perspective and possible volumes involved, to utilize the services of Realtax Inc. (Tax
Registration and Tax Sale Specialists).
In November of 2002, the Tax Department, as part of our collection process, wrote a letter to
approximately 350 taxpayers who are eligible for Tax Sale proceedings. Their taxes are in
arrears three (3) or more years. They were requested to pay the balance in full, or submit
suitable payment arrangements to clear this balance.
This process was a huge success, but there is still a number of taxpayers who did not respond.
The next step is to register a lien on their property. If after one (1) year from registration the
taxes are still not paid, then the Municipality has iwo options, to sell the property by public
tender or by public auction. Often the actual commencement of the process will trigger action
by the taxpayer.
Realtax Inc. does almost all the work involved with tax registrations and tax sales, the research,
preparation and registration, from start to finish. This will save more than 90% of the time
involved with these procedures, giving us the freedom to work on other tasks.
The Municipality's advantage is that almost in every case, 100% of the cost is recovered. We
can charge back Realtax Inc.'s fees to the property's tax account.
The above recommendations have been discussed with Dennis Hefferon, who is in agreement
that the routine tax sale properties be referred to Realtax Inc.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-0608
, 1302