Finance and Administrative Committee

 

 

 

 

 

TO:

Mayor and Members of Council

 

 

 

 

FROM:

Barb Cribbett, Treasurer

 

 

 

 

PREPARED BY:

Paul Wealleans, Director, Taxation

 

 

 

 

DATE OF MEETING:

2003-Dec-08

 

 

 

 

SUBJECT:

2004 Interim Tax Levy and Bylaw

 

 

 

 

RECOMMENDATIONS:

 

THAT Council authorize an interim tax levy for 2004;

 

AND THAT the attached by-law be passed to authorize the 2004 interim tax levy.

 

PURPOSE:

 

This report provides the authority for the Town of Markham to levy an interim property tax levy for the 2004 tax year.  

 

BACKGROUND:

 

The Municipal Act, 2001 authorizes the council of a lower tier municipality, prior to the adoption of the estimates for the year, to pass a by-law to levy interim taxes against rateable properties in the municipality.

 

OPTIONS/DISCUSSIONS:

 

Under the provisions of the Municipal Act, 2001 municipalities may pass a by-law to levy an interim amount against rateable properties such that the interim amount raised does not exceed 50% of the amount raised for all purposes in the previous year.

 

The Act provides that interim taxes are to be based on 50% of the annualized taxes levied on a property in the previous year rather than 50% of the tax rate, as was the practice in prior years. Annualized taxes reflect taxes levied against the property at final billing as well as adjustments due to supplementary assessments and assessment appeals.  For new properties that were not assessed in 2003 but are on the assessment roll for 2004, 50% of the 2003 tax rate for that class will be applied to the property’s assessed value to generate an interim levy.

 

The Municipal Act, 2001 requires that an interim tax levy by-law be passed in the year to which it applies or in December of the previous year if the by-law provides that it does not come into force until a specified day in the following year. The Town of Markham has a policy of passing its interim levy by-law in December of the year prior to the taxation year. The interim tax levy is required to ensure cash flow in order to meet the financial obligations of the Town prior to the establishment of the final 2004 tax levy and budget requirements.

 

The three interim instalment dates for 2004 as included in the attached by-law are February 18th, March 23rd and April 21st . Should there be any delays in the billing process due to the province-wide reassessment for 2004, it could require revised instalment dates. If revised instalments are required on dates other than those as set out in the by-law, Council will be informed early in 2004. 

 

The 2004 final tax rates will be established following the approval of the budget by Council as well as the finalization of financial requirements of York Region and the school boards. The interim levy will be deducted from the final levy.       

 

FINANCIAL CONSIDERATIONS:

The interim levy bylaw is required to provide for the revenue requirements of the Town prior to the finalization of the 2004 budget and tax levy.

 

BUSINESS UNITS CONSULTED/AFFECTED:

None.

 

ATTACHMENTS:

Appendix A, “2004 Interim Levy By-law”

 

 

 

 

 

 

 

 

Paul Wealleans, Director, Taxation

 

Andy Taylor, Commissioner, Corporate Services

 

____________________________________

Barb Cribbett, Treasurer

 

 

Q:\\2003FinAdminCtteeReports\0383 2004 Interim Tax Levy and Bylaw.doc

 

 

 

Appendix A

2004 Interim Tax Levy By-law

 

 

A By-law to Levy Property Taxes Prior to the Adoption of Estimates

 

            WHEREAS the Council of the Corporation of the Town of Markham has not adopted the estimates for the year 2004;

 

            AND WHEREAS the Council of The Corporation of the Town of Markham wishes to impose an interim levy as authorized by Section 317 of the Municipal Act, 2001, S. O. 2001, c. 25, as amended;

 

            AND WHEREAS section 342 of the Municipal Act, 2001 authorizes a council to pass by-laws for the payment of taxes by instalments and the date or dates in the year for which the taxes are imposed on which the taxes or instalments are due;

 

            AND WHEREAS section 345 of the Municipal Act, 2001 authorizes a local municipality to pass by-laws to impose late payment charges for the non-payment of taxes or any instalment by due date;

 

            NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF MARKHAM ENACTS THE FOLLOWING:

 

1.                  The Council of the Corporation of The Town of Markham hereby imposes an interim levy in 2004 in an amount of 50% of the total annualized taxes for municipal and school purposes levied on the property in the previous year.

           

2.         The Treasurer is hereby authorized to adjust the interim levy of any property if it is considered to be too high or too low in relation to the estimate of the total taxes that will be levied on the property at the request of the property owner.   No adjustment shall be made to reduce the 2004 interim levy to below 50% of the 2003 adjusted tax amount.  No adjustment will be made after the Final 2004 taxes for the property have been calculated.

 

            3.         The Treasurer of the Corporation of The Town of Markham shall give to each person so taxed a printed notice specifying the amount of taxes payable.  The Treasurer is authorized to mail the notice, or cause it to be mailed.

 

            4.         Taxes may be levied under this by-law on a property that is rateable for local municipality purposes for 2004 even if the property was not rateable for local municipality purposes for 2003, including assessment of property that is added to the assessment roll after the by-law is passed at a rate not to exceed 50% of the 2003 tax rate for the property class in which the property is assessed.

 

            5.         Taxes levied by this by-law shall be due and payable in equal instalments as per the schedule following and shall be paid to the Treasurer at the Municipal Offices, 101 Town Centre Boulevard,     Markham, Ontario, L3R 9W3.  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. The schedule is as follows:

 

                        MONTHLY RESIDENTIAL PRE-AUTHORIZED PAYMENT BILLS

 

Due in five (5) equal instalments on the 1st day in each of the months of February, March, April, May and June 2004.

 

RESIDENTIAL NON PRE-AUTHORIZED, FARMLAND AND PIPELINE BILLS

 

Due in three (3) equal instalments on the 18th day of February 2004, the 23rd day of March, 2004, and the 21st  day of April, 2004.

 

MULTI-RESIDENTIAL, ALL COMMERCIAL AND ALL INDUSTRIAL BILLS

 

Due in three (3) equal instalments on the 18th day of February, 2004, the 23rd day of March, 2004, and the 21st  day of April, 2004.

 

            6.         If the taxes of any class or instalment thereof so levied in accordance with this by-law remain unpaid on the due date, a penalty of one and one quarter per cent (1 ¼%) (or 15% per annum) of the taxes remaining unpaid shall be levied on the first day of default and shall continue to accrue until paid.

 

 

7.                  On the first day of the calendar month following the due date and every month thereafter for as long as there are taxes remaining unpaid, interest at the rate of  one and one quarter per cent (1 ¼%) (or 15% per annum) of the unpaid taxes shall be levied and shall continue to accrue until paid.

 

8.                  This by-law does not take effect until January 1, 2004.