HomeMy WebLinkAboutFIN-2022-147 - Applications for Cancellation, Refund, Reduction of Taxes
Financial Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: March 21, 2022
SUBMITTED BY: Saleh Saleh, Director of Revenue, 519-741-2200 ext. 7346
PREPARED BY: Feras Abdulhadi, Tax Specialist, 519-741-2200 ext.7440
WARD(S) INVOLVED: All
DATE OF REPORT: March 11, 2022
REPORT NO.: FIN-2022-147
SUBJECT: Applications for Cancellation, Refund, Reduction of Taxes
st
March 21 Hearing
RECOMMENDATION:
That the applications to City Council for write-off, cancellation, reduction, or refund of
taxes totalling $217,173.11 as attached to Financial Services Department report FIN-2022-
147, be approved, pursuant to Sections 354 and 357 of the Municipal Act, S.O. 2001, c. 25
.
BACKGROUND:
Sections 354 and 357 of the Act allow the local municipality to write-off, 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 these sections of the Act.
REPORT:
Forty-five applications for adjustment of taxes under Sections 354 and 357 of the Act were
processed, resulting in a net reduction of taxes in the amount of $217,173.11. The required
notices to the affected parties were sent out in accordance with the relevant legislation.
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The following table shows a breakdown of the reduction in taxes in this report by the applicable
reason.
Relevant
Total Taxes
subsection of the Reason for Application
Reduced
Act
357(1)(a) Ceases to be liable for tax at rate it was taxed $47,854.74
357(1)(c) Became exempt $5,978.45
357(1)(d)(i) Razed by fire, demolition or otherwise $13,137.89
357(1)(f) Gross or manifest clerical/factual error (in the assessment roll) $62,246.29
357(1)(g) Repairs/renovations preventing normal use $87,955.74
Total $217,173.11
In addition to the above, four applications were received under Section 357(1)(d)(ii) with the
COVID-19 pandemic provided as the reason. In accordance with the legislation and consistent
with a letter dated April 26, 2021 issued by the Ontario Ministry of Finance, these applications
have been denied on the basis that the properties were not physically damaged.
STRATEGIC PLAN ALIGNMENT:
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, including
a reduction in City levies of $51,749.77 and a reduction in BIA levies of zero dollars, both of
which are accommodated within the 2022 Operating Budget. The City share forms part of the
-offs, which carries a net revenue budget of $1.1 million
annually.
COMMUNITY ENGAGEMENT:
INFORM
council meeting.
The required notices to the affected parties were sent out in accordance with the relevant
legislation under Section 357 of the Act.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer.
ATTACHMENTS:
Attachment A Council Tax Adjustment 3/21/2022.