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TO: |
Mayor and Members of Council |
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FROM: |
Andy Taylor, Commissioner, Corporate Services |
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PREPARED BY: |
Paul Wealleans, Director,
Taxation |
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DATE OF MEETING: |
2004-11-22 |
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SUBJECT: |
Tax Write Offs in
Accordance with Section 354 of the Municipal Act, 2001 |
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RECOMMENDATIONS:
THAT taxes totalling $804,715.88 (excluding penalty
and interest) as set out in this report be written off pursuant to the provisions
of Section 354 of the Municipal Act, 2001;
AND THAT the applicable penalty and/or interest
charges be adjusted accordingly;
AND THAT the Treasurer be directed to remove the
taxes from the Collector’s Roll.
PURPOSE:
Provisions under Section 354 of the Municipal
Act, 2001 allow for the write-off of taxes deemed uncollectible. This report recommends the write-off of
$804,715.88 of taxes (excluding penalty and interest) of which the Town of
BACKGROUND:
Under Section 354 of the Municipal Act, the Treasurer has the authority to recommend to Council that uncollectible taxes be written off after an unsuccessful tax sale whether or not the property vests with the municipality, or are no longer payable as the result of a provision of tax relief under sections 357, 358 or a decision of any court. Applications made under Section 357, 358 of the Municipal Act, must be made within a stringent timeline. Taxes levied on property of the Crown can also be written off.
The attached list of taxes (Appendix A) reviewed by
the staff of the Tax Office is a “Summary of Uncollectible Taxes”. The list includes uncollectible taxes that
have been assessed incorrectly, properties vested to the Town of Markham, or
Payment in Lieu of taxes on Crown Lands (resulting from Current Value
Assessment Adjustments or capping adjustments).
All appropriate collection action has been carried
out and the Treasurer has ascertained the taxes to be uncollectible. It is recommended that Council approve the
cancellation of the uncollectible taxes and remove them from the Tax
Collector’s Roll.
OPTIONS/DISCUSSIONS:
Taxes being recommended for write off are from
accounts that have either gone through the Town’s collection process or are
being recommended for write off due to assessment errors, capping adjustments
or reclassification of Crown properties.
The tax collection process includes some or all of the following: Overdue Statements, Final Demand Letters,
investigations, telephone calls, meetings, Bailiff Warrants, Collection Agency
action, and tax sale. Taxes to be
written off relate to the 1997 to 2004 tax years.
The majority of taxes to be written off relate to
billing errors, property – generally in subdivisions - transferred to the Town
and therefore becoming exempt from tax and adjustments due to capping /
clawback legislation. These types of adjustments related to assessments
determined in 1997 and known as “Frozen Assessment Listing” (FAL) properties
that were in place until 2000. Many of these properties require adjustments
that date back to 1998 and can result in significant tax changes.
The amounts of taxes to be written off total
$804,715.88 (excluding penalty). Of this
total the Town’s share is $125,278.44. In addition, $1,216.04 relates to a
property in the Markham BIA which must also be written off, but is not expensed
to the Town. The balance of $678,221.40 will be charged to the Region of York
and School Boards accordingly. The following chart summarizes the categories of
write offs:
Categories of Tax
Write Offs
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Category |
Total Taxes |
Town of Markham’s Share |
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Town Property (Tax Sale, Transferred to Town) |
$8,591.46 |
$1,892.77 |
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CVA/Capping Adjustments Public Work Adjustments (Farmland) |
$660,851.06 $78,794.51 |
$77,192.64 $32,663.34 |
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PIL (CVA/Capping Adjustments) |
$2,649.20 |
$635.81 |
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MPAC Assessment/Billing Error |
$52,613.61 |
$12,894.08 |
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BIA Billing Error |
$1,216.04 |
------ |
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Total |
$804,715.88 |
$125,278.44 |
Write offs for payment in lieu of taxes are
adjustments resulting from (1) capping and clawback provisions; and, (2)
incorrect farmland classification. At the time of billing, commercial payment
in lieu properties were billed at full CVA. The Province, through subsequent
legislation, clarified that capping provisions do apply to Crown properties and
as a result, these capping adjustments that relate to payments in lieu must be
written off. Secondly, there are payments in lieu that must be written off due
to incorrect farmland classification.
The federal government disputed the classification as returned on the
assessment roll by the Municipal Property Assessment Corporation (MPAC). MPAC
classed the farmland as residential and the lands were taxed at that rate. The
federal government has made payments at the farmland rate (which is 25% of the
residential rate) and the balance must be written off.
Capping adjustments represent the largest category and
these relate to adjustments resulting from incorrect Frozen Assessment
Listing (FAL) values. The Town share is
$77,192.64. The largest single adjustment relates to a property located at 377
Church Street – which is a commercial portion of the Markham Stouffville
Hospital. This property required adjustments to 1998 and resulted in a
significant change totaling almost $487,000.
A total of $52,613.61 (Town share is $12,894.08) must
be written off because of assessment and billing errors in which incorrect
assessment values, property class information or severance figures were
included on original billings.
There is also $1,216.04 (Town share is $0) for a
Markham Business Improvement Area (BIA) levy to be written off as it was
incorrectly levied against a property outside the BIA boundary.
FINANCIAL CONSIDERATIONS:
The
amount of taxes that require removal from the Tax Collector’s roll total
$804,715.88 (excluding penalty and interest of $12,593.92). The main source of
these write-offs is no longer business taxes but rather billing errors based on
incorrect assessment data, adjustments resulting from capping legislation, and
exempt property. Of the $804,715.88 total, the Town’s share is $125,278.44. A
total of $1,216.04 relates to a Markham
BIA property. The balance of $678,221.40 will be recovered from the Region of
York and School Boards accordingly.
The
2004 budget allowance for write-offs is $1,021,600, of which $233,203.75 has
been expended for ARB decisions and tax write-offs under Sections 357 and 358
of the Municipal Act (see Nov. 22, 2004 report). The write off balance will be increased by $125,278.44, to $358,482.19. Processing of additional ARB decisions will
continue until year end 2004.
BUSINESS
UNITS CONSULTED/AFFECTED:
None.
ATTACHMENTS:
Appendix A “Summary of Uncollectable Taxes”
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Paul
Wealleans, Director, Taxation |
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Andy
Taylor, Commissioner, Corporate Services |
_______________________________
Barb
Cribbett, Treasurer
Q:\Finance
and Administration\Finance\SHARED\2004 Finance_Admin Cttee Reports\0476 Tax
Writeoffs under S 354 of Mun Act.doc
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APPENDIX
A: SUMMARY OF TAX WRITE OFFS |
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Tax Year |
Roll Number |
Address |
W/O |
Reason |
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2003 |
02-0-111-46325-0000 |
93 Green Lane |
$4,515.69 |
CVA/Capping Adjustment |
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2004 |
02-0-111-46325-0000 |
93 Green Lane |
$3,684.80 |
CVA/Capping Adjustment |
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2004 |
02-0-111-81400-0000 |
0 Lynhurst Dr |
$1,683.69 |
Town Property |
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2002 |
02-0-111-82000-0000 |
0 Lynhurst Dr |
$659.25 |
Town Property |
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2004 |
02-0-111-82000-0000 |
0 Lynhurst Dr |
$2,530.70 |
Town Property |
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2001 |
02-0-113-03215-0000 |
8300 Woodbine |
$3,191.29 |
CVA/Capping Adjustment |
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2002 |
02-0-113-03215-0000 |
8300 Woodbine |
$3,342.85 |
CVA/Capping Adjustment |
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2002 |
02-0-113-03215-0000 |
8300 Woodbine |
-$808.35 |
CVA/Capping Adjustment |
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2001 |
02-0-122-83750-0000 |
398 Ferrier Street |
$116.31 |
CVA/Capping Adjustment |
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2002 |
02-0-122-83750-0000 |
398 Ferrier Street |
$22,026.95 |
CVA/Capping Adjustment |
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2003 |
02-0-122-83750-0000 |
398 Ferrier Street |
$22,236.32 |
CVA/Capping Adjustment |
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2004 |
02-0-122-83750-0000 |
398 Ferrier Street |
$11,118.00 |
CVA/Capping Adjustment |
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2003 |
02-0-122-83780-0000 |
398 Ferrier Street |
$12,846.05 |
CVA/Capping Adjustment |
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2004 |
02-0-122-83780-0000 |
398 Ferrier Street |
$2,426.00 |
CVA/Capping Adjustment |
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2003 |
02-0-122-83781-0000 |
398 Ferrier Street |
$15,091.68 |
CVA/Capping Adjustment |
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2004 |
02-0-122-83781-0000 |
398 Ferrier Street |
$2,782.00 |
CVA/Capping Adjustment |
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2003 |
02-0-122-83782-0000 |
398 Ferrier Street |
$20,507.70 |
CVA/Capping Adjustment |
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2004 |
02-0-122-83782-0000 |
398 Ferrier Street |
$3,155.00 |
CVA/Capping Adjustment |
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2003 |
02-0-122-83783-0000 |
398 Ferrier Street |
$13,085.50 |
CVA/Capping Adjustment |
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2004 |
02-0-122-83783-0000 |
398 Ferrier Street |
$2,471.00 |
CVA/Capping Adjustment |
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2003 |
02-0-122-83784-0000 |
398 Ferrier Street |
$13,175.31 |
CVA/Capping Adjustment |
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2004 |
02-0-122-83784-0000 |
398 Ferrier Street |
$2,486.00 |
CVA/Capping Adjustment |
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2003 |
02-0-122-83785-0000 |
398 Ferrier Street |
$12,306.93 |
CVA/Capping Adjustment |
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2004 |
02-0-122-83785-0000 |
398 Ferrier Street |
$2,346.00 |
CVA/Capping Adjustment |
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2003 |
02-0-126-65063-0000 |
7725 Birchmount #13 |
$22.71 |
CVA/Capping Adjustment |
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2001 |
02-0-126-65068-0000 |
7725 Birchmount #18 |
$150.81 |
CVA/Capping Adjustment |
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2001 |
02-0-126-71700-0000 |
0 Miller Ave N/S |
$12,855.71 |
Public Works Adjustment |
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2002 |
02-0-126-71700-0000 |
0 Miller Ave N/S |
$12,716.88 |
Public Works Adjustment |
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2003 |
020-139-03100-0000 |
101 Town Centre Blvd |
$569.78 |
CVA/Capping Adjustment |
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1997 |
02-0-144-71244-0000 |
60 Prospectors |
$2,107.64 |
Town Property |
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2003 |
02-0-180-72900-0000 |
151 Main Street |
$2,044.11 |
CVA/Capping Adjustment |
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2000 |
03-0-211-74405-0000 |
Sandham Crescent |
$130.44 |
Town Property |
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2000 |
03-0-214-15000-0000 |
McCowan Road |
$2,649.20 |
PIL Adjustment |
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2000 |
03-0-220-20200-0000 |
50 Castan |
$713.44 |
MPAC - Billing Error |
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2000 |
03-0-220-32200-0000. |
65 Main Street Union |
$852.77 |
MPAC - Billing Error |
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1999 |
03-0-221-0000-0000 |
258 Helen Street |
$1,205.46 |
MPAC - Billing Error |
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2001 |
03-0-231-96506-0000 |
182 Bur Oak |
$243.82 |
MPAC - Billing Error |
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2000 |
03-0-234-00728-0000 |
0 Saxony Dr N/S |
$1,479.74 |
MPAC – Billing Error |
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2002 |
02-0-243-26000-0000 |
130 Pond Drive |
$16,772.10 |
MPAC – Billing Error |
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2003 |
02-0-243-26000-0000 |
130 Pond Drive |
$16,919.35 |
MPAC – Billing Error |
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2004 |
02-0-243-26000-0000 |
130 Pond Drive |
$15,669.67 |
MPAC – Billing Error |
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2003 |
03-0-243-10000-0000 |
6445 !9th Avenue |
$3,609.00 |
Public Works Adjustment |
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2004 |
03-0-256-61000-0000 |
377 Church Street |
$486,892.29 |
CVA/Capping Adjustment |
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2000 |
03-0-256-77992-0000 |
111 White’s Hill Ave |
$237.00 |
Public Works Adjustment |
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2003 |
03-0-261-08500-0000 |
9768 Reesor Road |
$0.85 |
Public Works Adjustment |
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2003 |
03-0-261-65000-0000 |
9556 York-Durham L |
$1,671.47 |
Public Works Adjustment |
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2003 |
03-0-261-85500-0000 |
7255 Major Mack |
$11,285.82 |
Public Works Adjustment |
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2003 |
03-0-262-09800-0000 |
7591 Major Mack |
$81.03 |
Public Works Adjustment |
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2003 |
03-0-262-28600-0000 |
7258 Major Mack |
$0.85 |
Public Works Adjustment |
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2003 |
03-0-262-35400-0000 |
7630 Major Mack |
$4,210.22 |
Public Works Adjustment |
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2003 |
03-0-262-52500-0000 |
10093 Ninth Line |
$0.86 |
Public Works Adjustment |
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2003 |
03-0-262-57500-0000 |
10233 Ninth Line |
$91.25 |
Public Works Adjustment |
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2003 |
03-0-262-67700-0000 |
10369 Ninth Line |
$5,633.53 |
Public Works Adjustment |
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2003 |
03-0-262-87900-0000 |
10691 Ninth Line |
$0.85 |
Public Works Adjustment |
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2003 |
03-0-263-29500-0000 |
10676 Reesor Road |
$0.85 |
Public Works Adjustment |
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2003 |
03-0-263-41000-0000 |
10251 Reesor Road |
$3,227.82 |
Public Works Adjustment |
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2003 |
03-0-263-55000-0000 |
10377 Reesor Road |
$52.86 |
Public Works Adjustment |
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2003 |
03-0-263-74500-0000 |
10531 Reesor Road |
$4.26 |
Public Works Adjustment |
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2003 |
03-0-263-92500-0000 |
10268 Reesor Road |
$679.67 |
Public Works Adjustment |
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2003 |
03-0-264-42600-0000 |
7129 Elgin Mills Rd |
$0.85 |
Public Works Adjustment |
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2003 |
03-0-264-96300-0000 |
7840 Elgin Mills Rd |
$0.85 |
Public Works Adjustment |
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2003 |
03-0-265-10900-0000 |
10987 Ninth Line |
$0.85 |
Public Works Adjustment |
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2003 |
03-0-265-63300-0000 |
11122 Reesor Road |
$0.85 |
Public Works Adjustment |
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2003 |
03-0-265-94500-0000 |
10905 Reesor Road |
$4,586.76 |
Public Works Adjustment |
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2003 |
03-0-266-17700-0000 |
11223 Reesor Road |
$1,483.00 |
Public Works Adjustment |
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2003 |
03-0-266-20700-0000 |
11315 Reesor Road |
$1,622.00 |
Public Works Adjustment |
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2003 |
03-0-266-34400-0000 |
11290 York-Durham L |
$3,320.20 |
Public Works Adjustment |
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2003 |
03-0-266-35000-0000 |
0 York-Durham L |
$3,632.89 |
Public Works Adjustment |
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2003 |
03-0-266-38400-0000 |
11410 York-Durham L |
$2,387.81 |
Public Works Adjustment |
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2003 |
03-0-266-54000-0000 |
6997 19th Avenue |
$20.47 |
Public Works Adjustment |
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2003 |
03-0-266-54500-0000 |
0 19th Ave S/S |
$79.59 |
Public Works Adjustment |
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2003 |
03-0-266-58000-0000 |
0 19th Ave S/S |
$2,601.01 |
Public Works Adjustment |
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2003 |
03-0-266-64500-0000 |
0 19th Ave S/S |
$1,466.80 |
Public Works Adjustment |
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2003 |
03-0-266-65000-0000 |
0 19th Ave S/S |
$1,466.80 |
Public Works Adjustment |
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2002 |
04-0-280-02800-0000 |
7725 Birchmount #18 |
$140.22 |
CVA/Capping Adjustment |
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2003 |
04-0-280-02800-0000 |
7725 Birchmount #18 |
$144.15 |
CVA/Capping Adjustment |
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$804,715.88 |
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