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HomeMy WebLinkAboutFIN-10-141 - Application for Cancellation etc. - Taxesl FirrancialServicres REPORT Report To: Mayor Carl Zehr and Members of Council Date of Meeting: September 7th, 2010 Submitted By: Dan Chapman, General Manager of Financial Services Prepared By: Joyce V. Evans, Director of Revenue (Ext. 2895) Ward(s) Involved: All Date of Report: September 1st, 2010 Report No.: FIN-10-141 Subject: Applications for Cancellation, Refund, Reduction of Taxes September 7th Hearing RECOMMENDATION: That the applications to City Council for cancellation, reduction, refund of taxes totalling $662,344.89 as attached to Financial Services Department report FIN-10-141, be approved, pursuant to Section 357 of the Municipal Act. BACKGROUND: Section 357 of the Municipal Act allows the local municipality to cancel, reduce or refund all or part of taxes levied on land in the year in respect of which the application is made for certain specific reasons as laid out in this section of the Act. The following table shows a breakdown of the reduction in taxes in this report by the applicable reason. Municipal Act Reason for Application Total Taxes Percentage of 357 Section Reduced Taxes Reduced 357 (1) (a) Ceases to be Liable for Taxes at $ 116,814.76 17.64% rate it was taxed (Change of tax class) 357 (1) (c) Taxable to Exempt 388,918.50 58.72% 357 (1) (d) (i) Razed by Fire, Demolition or 27,388.86 4.13% otherwise 357 (1) (d) (ii) Damaged by fire, demolition or 10,062.86 1.52% otherwise - Substantially unusable 357 (1) (f) Gross or Manifest Clerical/Factual 50,452.67 7.62% Error (in the assessment roll) 357(1) (g) Repairs/Renovations Preventing 68,707.24 10.37% Use (more than 3 months) Total $ 662,344.89 100.00% 10-1 Thirty four applications for adjustment of taxes under Section 357 of The Municipal Act, S.O. 2001 were processed, resulting in a net reduction of taxes in the amount of $662,344.89. The required notices to the affected parties were sent out in accordance with the relevant legislation. FINANCIAL IMPLICATIONS: The tax reductions are shared with the Regional Municipality of Waterloo and the School Boards. The net effect to the City of Kitchener amounts to $130,988.70 in tax levy and $20,828.56 in Business Improvement area levy to be reduced. ACKNOWLEDGED BY: Dan Chapman, CA, MPA General Mana er of Financial Services & Cit Treasurer 10-2