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HomeMy WebLinkAboutFIN-2022-408 - Applications for Cancellation, Refund, Reduction of Taxes REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: August 22, 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: August 9, 2022 REPORT NO.: FIN-2022-408 SUBJECT: Applications for Cancellation, Refund, Reduction of Taxes nd August 22 Hearing RECOMMENDATION: That the applications to City Council for write-off, cancellation, reduction, or refund of taxes totalling $220,540.42 as attached to Financial Services Department report FIN-2022- 408, 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: Sixty-three 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 $220,540.42. The required notices to the affected parties were sent out in accordance with the relevant legislation. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 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 $29,051.84 357(1)(c) Became exempt $14,523.80 357(1)(d)(i) Razed by fire, demolition or otherwise $103,181.61 357(1)(d)(ii) Damaged and substantially unusable 18,249.98 357(1)(f) Gross or manifest clerical/factual error (in the assessment roll) $5,337.64 357(1)(g) Repairs/renovations preventing normal use $50,195.55 Total $220,540.42 ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this 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 $58,966.40 and a reduction in BIA levies of $1,871.16 dollars, both of which are accommodated within the 2022 Operating Budget. The City share forms part of the net supplementary taxes and write-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. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer. Click or tap here to enter text.