Report to: General Committee                                         Date of Meeting: November 26, 2007

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

PREPARED BY:               Paul Wealleans, Director, Taxation

RECOMMENDATIONS:

THAT taxes totalling $245,757.85 (includes penalty and interest estimated in the amount of $24,012.69) as set out in this report be written off pursuant to the provisions of Section 354 of the Municipal Act, 2001, of which the Town’s portion is $58,815.90;

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:

This report requests Council authorization for the write-off of uncollectible taxes.

FINANCIAL CONSIDERATIONS:

The amount of taxes that require removal from the Tax Collector’s roll total $221,745.16     (excluding penalty and interest).  Of this total, the Town’s share is $58,815.90 which will be funded by the tax write-offs account (budget available is $92,000), leaving an unexpended balance of $33,184. The Region of York and School Boards share of $162,929.26 will be recovered from them accordingly.

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 $221,745.16 of taxes (excluding penalty and interest) of which the Town of Markham share is $58,815.90.

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 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 for Crown lands (PIL).

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 or reclassification of Crown properties.  The write-offs recommended in this report fall into the categories of assessment errors or reclassification of Crown properties, and did not go through a collection process. If required, the tax collection process includes some or all of the following:  Overdue Statements, Final Demand Letters, investigations, telephone calls, meetings, Bailiff Warrants and Collection Agency action.

The amounts of taxes to be written off total $221,745.16 (excluding penalty).  Of this total the Town’s share is $58,815.90. The balance of $162,929.26 will be charged to the Region of York and School Boards accordingly.

The following summarizes the categories and levying bodies for the write offs:

Levying Body

Total Taxes

Town

Region

Education

Total

$58,815.90

$112,020.73

$50,908.53

$221,745.16

Penalty/Interest

$24,012.69

Total

$245,757.85

Reason

Total Taxes

Assessed Incorrectly

Payment in Lieu

Town Property

$63,407.49

$170,524.96

$11,825.37

Total

$245,757.85

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, Ontario Transportation Capital Corporation, and TRCA Lands.  This represents a total of $170,524.96 or 69% of the total write-off amount of $245,757.85.

A total of $63,407.49 or 26% must be written off due to assessment errors on information

provided by MPAC such as incorrect assessment values, property class information or

severance figures. 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.

ENVIRONMENTAL CONSIDERATIONS:

Not applicable.

ACCESSIBILITY CONSIDERATIONS:

Not applicable.

ENGAGE 21st CONSIDERATIONS:

Not applicable.

BUSINESS UNITS CONSULTED AND AFFECTED:

Legal Services.

RECOMMENDED BY:

________________________                        ________________________

Barb Cribbett                                                   Andy Taylor

Treasurer                                                         Commissioner, Corporate Services

ATTACHMENTS:

Appendix A: Summary of Tax Write-offs

Q:\Finance\SHARED\2007 General Committee Finance\0746 Tax Write-offs in Accordance with S354 of Mun Act.doc

Appendix A: Summary of Tax Write-offs

Roll Number

Address

Total

Reason For Appeal

020-112-98000

8150 Woodbine

$         2,413.74

Assessed Incorrectly

020-114-00030

48 Suncrest Blvd

$         4,486.89

Assessed Incorrectly

020-127-12530

99 YMCA Blvd

$       10,414.19

Assessed Incorrectly

030-213.97500

8005 Mc Cowan

$            994.52

Assessed Incorrectly

030-213.99900

8077 Mc Cowan

$         1,237.04

Assessed Incorrectly

030-213-71500

7931 Kennedy Rd

$            544.92

Assessed Incorrectly

030-252-91400

6780 14th Avenue

$       18,608.90

Assessed Incorrectly

040-320-18710

0 Milne Lane

$            305.75

Assessed Incorrectly

030-214-74100

0 Legacy Drive

$       14,660.79

Assessed Incorrectly

030-256-26000

0 Highway 7

$         1,266.01

Assessed Incorrectly

030-264-81700

7356 Elgin Mills

$         3,553.28

Assessed Incorrectly

030-266.08400

11201 Reesor Road

$         4,921.46

Assessed Incorrectly

030-213-97500

8005 Mc Cowan

$       11,617.52

PIL - roll deleted

030-213-99200

8055 Mc Cowan

$       46,607.87

PIL - duplicate

030-213-99900

8077 Mc Cowan

$       12,895.11

PIL - error

030-214.36300

8920 Hwy 48

$            740.47

PIL - error

030-214-00500

8135 Mc Cowan

$       49,645.29

PIL - assessment incorrect

030-214-15200

0 Markham Road

$            931.22

PIL - error

030-214-15300

0 Markham Road

$       27,147.83

PIL - assessment incorrect

030-214-36000

0 Markham Road

$       12,013.94

PIL - error

030-214-36300

8920 Hwy 48

$         7,724.85

PIL - error

030-231-95882

0 Olivia Drive

$            208.86

PIL - error

040-320-17800

0 Sarah Jane Crt

$            992.00

PIL – assessment incorrect

010-080-13700

93 Elgin Mills

$              79.04

Became Exempt – Town

020-134-53900

2960 16th Avenue

$              12.35

Became Exempt – Town

020-139-03100

101 Town Centre

$         2,006.60

Became Exempt – Town

020-144-48600

0 Warden Avenue

$         1,075.98

Became Exempt – Town

030-231-55500

0 Williamson Road

$         1,824.32

Became Exempt – Town

030-232-99300

9350 Hwy 48

$         1,504.11

Became Exempt – Town

030-256-76190

0 Riverlands Ave

$            469.95

Became Exempt – Town

030-256-77140

0 Bur Oak Avenue

$         4,853.02

Became Exempt – Town