Report to: General Committee Report Date: October 26, 2009

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

PREPARED BY: Paul Wealleans, Director, Taxation

RECOMMENDATIONS:

THAT taxes totalling $171,418.69 (includes penalty and interest estimated in the amount of $19,519.19) 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 $38,153.50.

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;

AND THAT staff be authorized to and directed to do all things necessary to give effect to this resolution.

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 $151,899.50 of taxes (excluding penalty and interest) of which the Town of Markham share is $38,153.50.

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 for tax relief under a provincial statute; or, a decision of any court; or, if a tax sale would be either ineffective or inappropriate. Taxes levied on property of the Crown may also be written off.

OPTIONS/ DISCUSSION:

The attached list of taxes (Appendix A), reviewed by staff of the Tax Office, is a “Summary of Tax Write-offs”. The list includes uncollectible taxes that have been assessed incorrectly or properties vested to the Town of Markham.

Taxes being recommended for write-off are from accounts that have gone through the Town’s 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 $151,899.50 (excluding penalty). Of this total the Town’s share is $38,153.50. The balance of $113,746.00 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	$38,153.50 $68,997.69 $44,748.31 $151,899.50
Penalty/Interest	$19,519.19
Total	$171,418.69

A total of $166,070.59 or 97% must be written off due to an assessment error on

a single tax roll number provided by the Municipal Property Assessment

Corporation (MPAC). The error was a duplication of the roll number and the

value. The remaining four properties relate to taxes that are no longer payable as the properties have become exempt as they have been transferred to the Town as part of subdivision agreements.

It is recommended that Council approve the cancellation of the uncollectible taxes and remove them from the Tax Collector’s Roll.

FINANCIAL CONSIDERATIONS:

The amount of taxes that require removal from the Tax Collector’s roll total $151,899.50 (excluding penalty and interest). Of this total, the Town’s share is $38,153.50. The Region of York and School Boards share of $113,746.00 will be recovered from them accordingly.

HUMAN RESOURCES CONSIDERATIONS:

Not applicable.

ALIGNMENT WITH STRATEGIC PRIORITIES:

Not applicable.

BUSINESS UNITS CONSULTED AND AFFECTED:

None.

RECOMMENDED BY:

________________________ ________________________

Barb Cribbett Andy Taylor

Treasurer Commissioner, Corporate Services

ATTACHMENTS:

Appendix A – Summary of tax Write-offs

Q:\Finance\SHARED\2009 General Committee Finance\960 Apportionment of Taxes.doc

Appendix A: Summary of Tax Write-offs (Includes penalty and interest)

Roll Number	Address	Total	Reason
020-136-45010	Woodbine Cachet	$ 166, 070.59	Roll Deleted
030-212-17510	0 Kirkham Drive	$ 356.37	Town Property
030-212-17520	0 Kirkham Drive	$ 1,377.47	Town Property
030-232-99300	9350 Highway 7	$ 872.80	Town Property
020-113-70310	0 Highway 7 S/S	$ 2,741.46	Town Property