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HomeMy WebLinkAboutFCS-12-150 - Tax CancellationsStaff Re~p~r~ I~~rc~~nT~~ Finance and Corporate Services 1~eparfinent w~+w.kitthenerca REPORT TO: Council DATE OF MEETING: August 27, 2012 SUBMITTED BY: Dan Chapman, Deputy CAO PREPARED BY: Joyce V. Evans, Deputy City Treasurer, Director of Revenue WARD(S) INVOLVED: All DATE OF REPORT: August 21, 2012 REPORT NO.: FCS-12-150 SUBJECT: Applications for Cancellation, Refund, Reduction of Taxes - August 27th Hearing RECOMMENDATION: That the applications to City Council for cancellation, reduction, refund of taxes totalling $389,655.56 as attached to Finance and Corporate Services Department report FCS-12-150, 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. REPORT: One hundred and thirty three applications for adjustment of taxes under Section 357 of The Municipal Act, S.O. 2001 were processed under Section 357 of the Municipal Act, resulting in a net reduction of taxes in the amount of $389,655.56. The required notices to the affected parties were sent out in accordance with the relevant legislation. 6-1 Staff Re~p~r~ I~~rc~~nT~~ Finance and Corporate Services 1~eparfinent www.kitchenerca 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 $ 38,508.34 9.883% rate it was taxed (Change of tax class) 357 (1) (c) Taxable to Exempt 334,255.93 85.782% 357 (1) (d) (i) Razed by Fire, Demolition or 2,477.71 0.636% otherwise 357 (1) (d) (ii) Damaged and substantially 2,964.10 0.761% unusable 357 (1) (f) Gross or Manifest 8,332.20 2.138% Clerical/Factual Error (in the assessment roll) 357 (1) (g) Repairs/Renovations preventing 3,117.28 0.800% normal use (minimum - 3 months) Total $ 389,655.56 100.00% ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Foundation: Efficient and Effective Government Goal: Customer Service Strategic Direction: Initiate corporate wide customer service standards and policies to ensure consistent levels of service in all departments and locations. 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 is $88,305.90 in tax levy to be reduced. COMMUNITY ENGAGEMENT: The required notices to the affected parties were sent out in accordance with the relevant legislation under section 357 of The Municipal Act, S.O. 2001. ACKNOWLEDGED BY: Dan Chapman, MPA, CA, Deputy CAO and City Treasurer (Finance and Corporate Services) 6- 2