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Report
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Report To: General Government Committee
Date of Meeting: November 28, 2016
Report Number: FND-018-16 Resolution:
File Number: By-law Number:
Report Subject: 2017 Interim Tax Levy
Recommendations:
1.That Report FND-018-16 be received; and
2.That Council approve the interim rating by-law attached to Report FND-018-16 and
authorize the Director of Finance/Treasurer to proceed with the production of the 2017
interim tax bills.
Municipality of Clarington
Report FND-018-16 Page 2
Report Overview
This report is to obtain Council’s approval to levy an Interim Rate for 2017 (based on 50% of
the total 2016 taxes levied), on the taxable properties within the Municipality of Clarington
and to enable the Director of Finance/Treasurer to issue the 2017 Interim Tax bills via
approval of a by-law.
1. Background
1.1 Determining tax rates for 2017 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 2017.
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. This rate
is intended to raise approximately 50% of the 2016 taxes levied. The Interim tax billing is
scheduled to be issued in January 2017. Installment dates proposed are:
1st Installment: February 16, 2017
2nd Installment: April 20, 2017
1.4 The interim tax rates for 2017 are calculated to be approximately 50% of the approved
2016 taxes levied upon the properties.
1.5 The proposed by-law includes a provision which grants the Treasurer the authorization to
amend the installment dates for 2017 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.
Municipality of Clarington
Report FND-018-16 Page 3
2. Financial Considerations
2.1 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 properties for the previous year. A
by-law is required to be passed under Section 317(1).
3. Concurrence
Not Applicable
4. Conclusion
It is respectfully recommended that Council approve the interim tax rating by-law and
authorize the Director of Finance/Treasurer to proceed with the production of the 2017
interim tax bills.
5. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Submitted by: Reviewed by:
Nancy Taylor, BBA, CPA, CA, Curry Clifford, MPA, CMO
Director of Finance/Treasurer Interim CAO
Staff Contact: Brenda VanEssen, Tax Collector, 905-623-3379 ext 2608 or
bvanessen@clarington.net
Attachment:
Attachment 1 - 2017 Interim Tax By-law
There are no interested parties to be notified of Council's decision.
Attachment 1 to
Report FND-018-16
The Corporation of the Municipality of Clarington
By-Law 2016-
Being a by-law to authorize an Interim Tax levy for 2017
Whereas the Council for the Municipality of Clarington deems it necessary to pass a
by-law to levy an Interim Rate for 2017 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 2017 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 2016 under paragraph 1,
if any taxes were levied in 2016 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 16th day of February
2017 and the second of said installments to become due and payable on or
before the 20th day of April 2017 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
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, 2017.
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, 2017,
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, 2017 on the first
day of each calendar month for so long as the taxes remain unpaid.
By-law passed in open session this 12th day of December, 2016, and shall come into
force on January 1, 2017.
Adrian Foster, Mayor
C. Anne Greentree, Clerk