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HomeMy WebLinkAboutFIN-18-001 - Applications for Cancellation, Refund, Reduction of Taxes - May 7th HearingREPORT TO: Council DATE OF MEETING: May 7, 2018 SUBMITTED BY: Joyce V. Evans, Deputy City Treasurer, Director of Revenue 519-741- 2200 x. 7895 PREPARED BY: Feras Abdulhadi, Tax Specialist 519-741-2200 x. 7440 WARD (S) INVOLVED: All DATE OF REPORT: April 17, 2018 REPORT NO.: FIN-18-001 th SUBJECT:Applications for Cancellation, Refund, Reduction of Taxes – May 7 Hearing _________________________________________________________________________________________ RECOMMENDATION: That the applications to City Council for cancellation, reduction, refund of taxes totalling $1,040,539.28 as attached to Finance and Corporate Services Department report FIN-18-001, 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 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 $1,040,539.28. The required notices to the affected parties were sent out in accordance with the relevant legislation. The following table shows a breakdown of the reduction in taxes in this report by the applicable reason. Municipal Act Total Taxes Reason for Application 357 Section Reduced 357 (1) (a) Ceases to be liable for tax at rate it was taxed 136,225.04 357 (1) (c) Became exempt 269,602.01 357 (1) (d) (i) Razed by Fire, Demolition or otherwise 36,784.68 357 (1) (d) (ii) Damaged and substantially unusable 412,640.77 357 (1) (f) Gross or Manifest Clerical/Factual Error (in the assessment roll) 1,506.86 357 (1) (g) wĻƦğźƩƭΉwĻƓƚǝğƷźƚƓƭƦƩĻǝĻƓƷźƓŭƓƚƩƒğƌǒƭĻ 183,779.92 Total1,040,539.28 *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 3 - 1 ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city’s strategic vision through the delivery of core service. 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 a reduction in current year revenue of $268,845.07 and $37,284.56 in BIA levies, which is accommodated within the 2018 operating budget. This City of Kitchener share forms part of the year’s net supplementary taxes and write-offs, which carries a net revenue budget of $1 million annually. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. 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: Jonathan Lautenbach, Chief Financial Officer 3 - 2