Property Tax and Collection Policy

Property Tax and Collection Policies

Accepted by Council June 4^th, 2007

1. Ensure proper billing for the levy for Local, and Educational Taxation purposes to coincide with budgetary and legislative requirements for the year;

2. Provide prompt, efficient and courteous service to the taxpayers of the Municipality;

3. Ensure that proper collection procedures are applied in reference to the following legislation;

§ Any legislation governing amounts to be collected in like (same) manner as taxes;

4. Apply such collection policies in a consistent manner ensureing all taxpayers are treated in the same manner;

5. Maximize necessary controls to ensure proper allocation of payment and custody of funds for proper banking and recording procedures.

The purpose of the Treasury Department is to provide prompt billing of the levy and to ensure collection in order to meet the budgetary expenditures for the fiscal year. It is important that both the timing and consistency with which we initiate and treat each account is correct. Both areas will be discussed separately within the following topics:

Real Property Tax is levied on all taxable real property assessment within the Township within the definition of Section 307(1) of the Municipal Act.

There are typically two billings produced each year with two installment payments as follows:

A levying by-law passed by Council is required in advance of either and Interim or Final tax billing.

INTERIM TAX BILLINGS are produced in February based on the returned assessment roll. The tax billing will be calculated to produce a tax bill no more than fifty percent of the previous year’s total taxes billed for each property in accordance with Section 317 of the Municipal Act. The tax billing shall include fifty percent of any local improvement charges, business improvement area charges and any special charges levied by the Township or required under provincial legislation.

FINAL TAX BILLINGS are produced in July based on tax rates established by by-law. The tax billing will be calculated to produce a tax billing equal to the current market value and the appropriate tax rate, all local improvement charges, area charges, business improvement area charges, any special charges levied by the Township or provincial legislation. The Interim tax billing will be deducted from the total tax amount calculated in order to produce the Final tax billing.

There are two sections of the Assessment Act that allow for taxation of rateable property not included in the annual revised assessment roll. They deal with omissions and additions to the roll.

Section 33 of the Assessment Act allows for the taxation of real property that has been omitted from the roll. The provision allows for taxation in the current year, plus a maximum of the two preceeding years.

Section 34 of the Assessment Act allows for taxation of assessment that has increased in value or has been added after the return of the last revised roll. These taxes apply to the current year only.

Supplementary tax bills are issued and mailed in the same manner as the Interim and Final tax bills with the exception of a separate levying by-law is not required. Additional information such as the reason for the increase in the assessment and the effective date must be indicated on the bill.

Supplementary tax billings will provide for one installment date, due to the various payment options that are available.

The Municipal Act, Section 343(1) requires tax billings be post marked and mailed not later than twenty one calendar days from the date of the first installment due date. The Municipality will endeavor to post mark and mail the tax billing no less than thirty calendar days prior to the first installment due date where ever possible. Penalties and interest are applied in advance to outstanding tax balances to acccomodate the latter mailing parameters.

The tax billing issued will meet all requirements of the provincially legislated standard tax bill. Arrears are included solely in the first installment due date amount. Installment due dates will be indicated on the payment stubs. Billing messages may be used to relay information to ratepayers.

There are four basic incentives set out by legislation to promote timely payment of taxes as follows:

The rate at which penalty and interest is charges is set by the Municipal By-Law. Currently the rate is established under the provisions of the Municipal Act Sections 345 (2) and (3). The Township may review this rate each year. The purpose of penalty is to persuade ratepayers to pay on time. Penalty and interest is charged pursuant to the requirements set out in the legislation, being penalty charged the day after the default of and installement payment and interest the first of each month thereafter.

Properties that are in arrears for three years are eligible for tax registration under the Part XI, Municipal Act. The property owner or interested party has one year from the date of registration in which to redeem the property for all taxes, interest and penalty outstanding plus associated legal and/or administrative costs. A contracted tax registration frim may be used to process the required statutory notices/declarations.

Registration is a last resort and should be avoided if possible by encouraging the ratepayer to either make full payment or a mutually agreed upon payment plan.

It is imperative that the schedule for registration be adhered to. Letters and correspondence should encourage payment. It is only as a last resort or if numerous cheques are returned, that the property would become subject to tax registration.

1. Interim Tax Notices are sent in February and Final Tax Notices are sent in July. Tax arrears owing at the time of the billing are included on each tax notice. Variances of notices for Commercial, Industrial, and Multi-Residential properties may occur, but will be issued as similar as possible.

2. Penalty and interest are charged according to Municipal by-laws (penalty - first day of default of an installment and interest the first day of each month thereafter for the current year, interest is charged on the first day of each month for all arrears at the prevailing rate.)

3. Standard reminder or arrears notices are sent periodically. Time constraints during tax billing periods may result in no reminder notice being issued, however arrears will be included on the tax billing.

4. Any notice sent by ordinary mail is considered delivered to and received by the addressee unless the notice is returned by the Post Office or an error in the mailing address is proven. Failure to notify the Tax Office of an address change in writing is not an error on behalf of the Township.

6. For tax accounts which indicate previous years taxes owing, a registered collection letter is sent, in the first quarter of the current year to property owner(s) advising of the tax arrears situation and asking for payment in full or satisfactory payment arrangements to be made by a given date. If acceptable payment arrangements are made, the account is monitored for compliance and follow-up is done by telephone or in writing as required. Where a collection letter is required at a time other than the first quarter of the year, timing will be consistent with all collection policies.

7. Satisifactory payment arrangements would be a series of post-dated cheques or other arrangements that are satisfactory to the Treasurer. Penalty/Interest will accrue during such period and are payable during or upon completion of payment arrangements.

8. If no reply is received from item 6 above, a final letter is sent stating that failure to remit payment will result in further action in the form of notification for the start of legal proceedings.

9. If there is no reply to the final letter, the Municipal Solicitor will be contacted. The Municipal solicitor shall send one final letter, advising the ratepayer that he/she has 15 days to make suitable arrangements with the Township for payment or tax sale proceedings will be started.

10. If no reply or satisfactory arrangements are made with the Township, the solicitor will be directed to start tax sale proccedings.

11. It is the policy of the Township that upon applications for items such as but not limited to: building permits, zoning, committee of adjustment, and planning applications that all property taxes owing against the property are up to date or have satisfactory payment arrangements on file. Failing such, applications will not be processed until taxes are current or satisfactory arrangements have been made as outlined in item 6.

12. All costs incurred for collection to obtain information and /or collect tax arrears are payable by the property owner and are added to the tax account. These costs may include, but are not limited to:

13. The Treasurer appointed by the Township has the authority to exercise discretion in the application of these policies where unusual circumstances are apparent in order that consistent fairness is provided to the taxpayer and municipal collection procedures are maintained in principal, pursuant with approved policies and/or where governed by legislation.