Report to: General Committee Date of Meeting: October 16, 2006

SUBJECT: Tax Write-Offs in Accordance with Section 354 of the Municipal Act, 2001

PREPARED BY: Paul Wealleans, Director, Taxation

RECOMMENDATIONS:

THAT taxes totalling $116,235.67 (includes penalty and interest estimated in the amount of $44,005.14) 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.

EXECUTIVE SUMMARY:

Not applicable.

FINANCIAL CONSIDERATIONS:

The amount of taxes that require removal from the Tax Collector’s roll total $72,230.53 (excluding penalty and interest). Of this total, the Town’s share is $18,077.90. The balance of $54,152.63 will be recovered from the Region of York and School Boards accordingly.

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

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

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 $72,230.53 of taxes (excluding penalty and interest) of which the Town of Markham share is $18,077.90.

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 tax relief or a decision of any court. 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.

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/ DISCUSSION:

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.

The amounts of taxes to be written off total $72,230.53 (excluding penalty). Of this total the Town’s share is $18,077.90. The balance of $54,152.63 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

Levying Body	Total Taxes
Town Region Education Penalty Interest (Estimated)	$18,077.90 $29,157.86 $24,994.77 $44,005.14
Total	$116,235.67

Reason	Total Taxes
Assessed Incorrectly Town Property PIL	$23,524.01 $7,304.12 $85,407.54
Total	$116,235.67

Write offs for payment in lieu of taxes are adjustments resulting from incorrect assessment values for properties owned by Public Work Canada, Management Board Secretariat and Ontario Transportation Capital Corporation. Payment in lieu write offs total $85,407.54 or 73% of the total write off amount of $116,235.67.

A total of $30,828.13 or 27% must be written off due to assessment and /or billing errors in which incorrect assessment values, property class information or severance figures were included on original billings. Example of these types of write offs include: classification errors, roll numbers created in error, and roll numbers that should have been deleted from the returned roll.

FINANCIAL TEMPLATE (Separate Attachment):

Not applicable

ENVIRONMENTAL CONSIDERATIONS:

Not applicable

ACCESSIBILITY CONSIDERATIONS:

Not applicable

ENGAGE 21^ST CONSIDERATIONS:

Not applicable

BUSINESS UNITS CONSULTED AND AFFECTED:

[Insert text here]

RECOMMENDED

BY: ________________________ ________________________

Andy Taylor, Commissioner Barb Cribbett

Corporate Services Treasurer

ATTACHMENTS:

Appendix A: Summary of Tax Writeoffs

Q:\Finance and Administration\Finance\SHARED\2006 General Committee Finance\0628 Tax Writeoffs in Accordance with S 354 of Mun Act.doc

APPENDIX A: SUMMARY OF TAX WRITEOFFS

APPENDIX A: SUMMARY OF TAX WRITE OFFS
ROLL NO	ADDRESS	AMOUNT	REASON
020-113-26600-0000	0 GALLERIA PKY	$688.50	Assessed Incorrectly
020-153-73100-0000	2643 ELGIN MILLS RD E	$4,194.97	Assessed Incorrectly
020-154-54500-0000	2696 ELGIN MILLS RD E	$2,666.50	Assessed Incorrectly
030-220-11300-0000	8360 KENNEDY RD	$1,988.94	Assessed Incorrectly
030-222-30640-0000	0 RAINTREE DR	$252.29	Assessed Incorrectly
030-224-66902-0000	55 BURNDENFORD CRES	$1,630.60	Assessed Incorrectly
030-231-53990-0000	0 AUTUMNGLEN RD	$226.74	Assessed Incorrectly
030-231-53992-0000	0 AUTUMNGLEN RD	$226.74	Assessed Incorrectly
030-231-53996-0000	0 WILLAMSON RD	$458.70	Assessed Incorrectly
030-231-65000-0000	0 SWAN LAKE BLVD.	$6,908.91	Assessed Incorrectly
030-231-65030-0000	0 SWAN LAKE BLVD.	$551.94	Assessed Incorrectly
030-231-65060-0000	0 SWAN LAKE BLVD.	$690.82	Assessed Incorrectly
030-232-76735-0000	0 LAMPTON CRES	$1,535.43	Assessed Incorrectly
030-256-77364-0000	24 CHRISTIAN REESOR	$492.33	Assessed Incorrectly
040-351-19226-0000	106 CHURCH STREET	$1,010.60	Assessed Incorrectly
020-111-82000-0000	0 LYNDHURST DR	$228.60	Town Property
030-212-43500-0000	0 ROUGE RIVER CIR	$1,597.19	Town Property
030-220-41000-0000	187 HELEN AVE	$231.52	Town Property
030-221-01000-0000	276 HELEN AVE	$3,375.24	Town Property
030-232-99300-0000	9350 HIGHWAY 48	$1,871.57	Town Property
010-040-85500-0000	8425 YONGE ST	$1,676.28	PIL - Management Board
030-213-71500-0000	7931 KENNEDY RD	$3,088.41	PIL - Ministry of Transportation
030-214-90000-0000	8096 NINTH LINE	$4,541.85	PIL - Ministry of Transportation
030-214-91000-0000	8170 NINTH LINE	$9,433.53	PIL - Ministry of Transportation
030-253-60000-0000	8285 NINTH LINE	$7,837.97	PIL - Ministry of Transportation
030-255-38600-0000	8294 YORK-DURHAM LINE	$7,513.75	PIL - Ontario Realty Corporation
030-262-25800-0000	7134 MAJOR MACKENZIE	$43,394.10	PIL - Public Works Canada
030-264-58000-0000	0 ELGIN MILLS RD E	$7,921.65	PIL - Public Works Canada
Total		$116,235.67