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HomeMy WebLinkAboutFCS-14-199 - Tax Cancellations, Refunds, etc.KI Staff Report Finance an,d Corporate Services Department www kitchener ra REPORT TO: Council DATE OF MEETING: December 15, 2014 SUBMITTED BY: Joyce V. Evans, Deputy City Treasurer, Director of Revenue PREPARED BY: Feras AbdulHadi, Tax Specialist 519- 741 -2200 x7440 WARD(S) INVOLVED: All DATE OF REPORT: December 3, 2014 REPORT NO.: FCS -14 -199 SUBJECT: Applications for Cancellation, Refund, Reduction of Taxes — December 15th Hearing RECOMMENDATION: That the applications to City Council for cancellation, reduction, refund of taxes totalling $368,342.88 as attached to Finance and Corporate Services Department report FCS -14 -199, 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 eight 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 $368,342.88. The required notices to the affected parties were sent out in accordance with the relevant legislation. 8. -1 KI Staff Report Finance an,d Corporate Services Department www1itchener ra The following table shows a breakdown of the reduction in taxes in this report by the applicable reason. Municipal Act Total Taxes Percentage 357 Section Reason for Application Reduced of Taxes Reduced 357 (1) (a) Ceases to be Liable for Taxes at rate it $1,088.47 0.30% was taxed (Change of tax class) 357 (1) (c) Taxable to Exempt 286,192.65 77.70% 357 (1) (d) (i) Razed by Fire, Demolition or otherwise 10,758.23 2.92% 357 (1) (d) (ii) Damaged and substantially unusable 36,825.58 10.00% 357 (1) (f) Gross or Manifest Clerical /Factual Error 761.06 0.21 (in the assessment roll) 357 (1) (g) Repairs /Reno's preventing normal use 32,716.89 8.88% (min. 3 months) Total $368,342.88 100.00% 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 $105,864.61 in tax levy and $13,168.12 in BIA 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, CPA, CA, Deputy CAO and City Treasurer (Finance and Corporate Services) 8 ■-2