Report to: General Committee                                                  Date of Meeting: May 15, 2006

 

 

SUBJECT:                          Cancellation, Reduction or Refund of Taxes under Sections 357 and 358 of the Municipal Act, 2001

PREPARED BY:               Paul Wealleans, Director, Taxation

 

 

RECOMMENDATIONS:

THAT residential taxes totalling $47,491.99 be adjusted under Section 357 (in the amount of  $24,897.34) and Section 358 (in the amount of  $22,594.65) of the Municipal Act, 2001 of which the Town’s portion is estimated to be $11,398.08.

 

AND THAT the associated interest be cancelled in proportion to the tax adjustments;

 

AND THAT the Treasurer be directed to adjust the Collector’s Roll.

 

 

FINANCIAL CONSIDERATIONS:

The amount of taxes adjusted for each of the Region and School Boards will be reflected on the 2006 payment submissions to these bodies.

 

The Town of Markham’s portion of these taxes for the two year period 2004 to 2005 is $11,398.08.


1. Purpose                2. Background         3. Discussion             4. Financial         5. Environmental

 

6. Accessibility       7. Engage 21st             8. Affected Units       9. Attachment(s)

 

PURPOSE:

The purpose of this report is to authorize the Treasurer to adjust the Collector’s Roll under Sections 357 and 358 of the Municipal Act, 2001.

 

 

BACKGROUND:

Sections 357 and 358 of the Municipal Act, 2001 allow for the reduction, cancellation or refund of taxes. Section 357 permits tax adjustments for the following reasons: 

 

*          if a property or portion of a property is eligible to be reclassified in a different class of property, and that class has a lower tax ratio for the taxation year than the class the property or portion of the property was in before the change, and if no supplementary assessment is made in respect of the change under subsection 34(2) of the Assessment Act;

*          property that has become vacant land or excess land during the year;

*          property that has become exempt from taxation during the year; 

*          building that during the year was razed by fire, demolition or otherwise, or

was damaged by fire, demolition or otherwise so as to render it substantially unusable for the purposes for which it was used immediately prior to the damage;

*          person who was unable to pay taxes because of sickness or extreme poverty;

*          mobile unit that was removed from the municipality during the year;

*          property overcharged by reason of any gross or manifest error that is a clerical error, the transposition of figures, a typographical error or similar type of error, but not an error in judgment in making the assessment upon which the taxes have been levied; or

*          in respect of a property which by reason of repairs or renovations could not be used for its normal use for a period of at least three months during the year. 

 

Section 358 of Municipal Act, 2001 permits application for tax adjustment by property owners who are overcharged by reason of any gross or manifest error in the preparation of the assessment roll that was an error of fact, which may include but is not limited to, clerical errors, the transposition of figure or typographical errors, but not an error in judgment in making the assessment upon which the taxes have been levied.  These applications relate to taxes levied in each or either of the two years preceding the year in which the application is made.

 

The attached schedules identify the year of taxation, the assessment roll number of each property, the reason for the tax appeal and the tax adjustment. The tax value includes the Town, Region and School Board share of taxes. There are three main reasons for these applications: (1) “Razed, Demolished” which relates to the demolition of a building on a property that reduced the tax burden; (2) “Became Exempt” which are properties that were assessed on the assessment roll as taxable but became exempt during the year: these properties were transferred during the year from a taxable owner to the Town and therefore became exempt from tax (generally lands as part of subdivision agreements); and, (3) “Overcharged By Error” that are the result of errors by the Municipal Property Assessment Corporation (MPAC) on the assessment roll which caused an overcharge of taxes. 

 

Tax Adjustments under Section 357 /358  of the Municipal Act

 

 

Town

$11,398.08

Region

$22,639.22

Education

$13,454.70

Total

$47,492.00

 

 

 

ATTACHMENTS:

Appendix A – “Tax Adjustments Under the Municipal Act, 2001”

 

 

 

 

 

 

 

RECOMMENDED

                            BY:    ______________________              ________________________

                                      Barb Cribbett                                     Andy Taylor

                                      Treasurer                                            Commissioner, Corporate

                                                                                                Services

 

 

 

 

Q:\Finance and Administration\Finance\SHARED\2006 General Committee Finance\0612 Cancellation of Taxes under S 357 and 358 of Mun Act.doc

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

              Appendix A - Tax Adjustments Under the Municipal Act, 2001

 

 

 

 

 

 

 

                                     Tax Appeals - Section 357/58 (May 2006)      (Tax Adjustment Share by Levying Body)

 

 

 

 

 

 

 

Roll Number

Total

Town

Region

Education

 

 

SECTION 357

 

 

 

 

 

 

 

  

  

  

  

 

 

Year 2004

 

  

  

  

 

 

020-171-96000

 $1,244.61

 $298.71

 $584.97

 $360.94

 

 

030-221-05500

 $743.72

 $178.49

 $349.55

 $215.68

 

 

Sub-Total

 $1,988.33

 $477.20

 $934.52

 $576.62

 

 

 

 

  

  

  

 

 

Year 2005

  

  

  

  

 

 

030-221-05500

 $768.93

 $184.54

 $369.09

 $215.30

 

 

010-081-31300

 $3,278.64

 $786.87

 $1,573.75

 $918.02

 

 

030-211-89000

 $7,027.18

 $1,686.52

 $3,373.05

 $1,967.61

 

 

030-213-78700

 $2,049.17

 $491.80

 $983.60

 $573.77

 

 

020-171-40500

 $5,470.29

 $1,312.87

 $2,625.74

 $1,531.68

 

 

020-143-09000 *

 $-  

 $-  

 $-  

 $-  

 

 

030-230-36294

 $2,414.12

 $579.39

 $1,158.78

 $675.95

 

 

020-137-60400

 $1,900.68

 $456.16

 $912.33

 $532.19

 

 

030-224-02500 *

 $-  

 $-  

 $-  

 $-  

 

 

030-221-86200 *

 $-  

 $-  

 $-  

 $-  

 

 

Sub Total

 $22,909.01

 $5,498.16

 $10,996.32

 $6,414.52

 

 

 

 

 

 

 

 

 

Total Section 357

 $24,897.34

 $5,975.36

 $11,930.84

 $6,991.14

 

 

* Application was unsuccessful with MPAC so no refund forthcoming.

 

 

 

 

 

 

 

 

 

SECTION 358

  

  

  

  

 

 

 

  

  

  

  

 

 

Year 2004

  

  

  

  

 

 

030-233-81756

 $3,980.26

 $955.26

 $1,870.72

 $1,154.28

 

 

010-081-31300

 $3,823.06

 $917.53

 $1,796.84

 $1,108.69

 

 

030-211-89000

 $4,252.40

 $1,020.58

 $1,998.63

 $1,233.20

 

 

030-222-31121

 $358.70

 $86.09

 $168.59

 $104.02

 

 

020-141-69700

 $103.29

 $24.79

 $48.55

 $29.95

 

 

020-160-00316

 $847.01

 $203.28

 $398.09

 $245.63

 

 

030-231-96418

 $340.87

 $81.81

 $160.21

 $98.85

 

 

Sub-Total

 $13,705.59

 $3,289.34

 $6,441.63

 $3,974.62

 

 

 

 

 

 

 

 

 

Year 2005

 

 

 

 

 

 

020-126-41716

 $1,792.86

 $430.29

 $860.57

 $502.00

 

 

030-212-69228

 $3,569.04

 $856.57

 $1,713.14

 $999.33

 

 

030-232-13700

 $646.62

 $155.19

 $310.38

 $181.05

 

 

030-258-05208

 $258.77

 $62.10

 $124.21

 $72.46

 

 

030-258-05362

 $1,879.89

 $451.17

 $902.35

 $526.37

 

 

030-233-01630

 $741.88

 $178.05

 $356.10

 $207.73

 

 

Sub-Total

 $8,889.06

 $2,133.37

 $4,266.75

 $2,488.94

 

 

 

 

 

 

 

 

 

Total Section 358

 $22,594.65

 $5,422.72

 $10,708.38

 $6,463.56

 

 

 

 

 

 

 

 

 

Grand Total

 $47,492.00

 $11,398.08

 $22,639.22

 $13,454.70