Loading...
HomeMy WebLinkAboutFIN-08-093 - Section #357 Application - Islamic Shia Ithna-Asheri Jamaat of K-W j Financial Services Report To: Date of Meeting: Submitted By: Prepared By: Ward(s) Involved: Date of Report: Report No.: Subject: Mayor Carl Zehr and Members of Council June 9, 2008 Dan Chapman, General Manager of Financial Services Joyce V. Evans, Director of Revenue (Ext. 2895) Ward 4 June 4, 2008 FIN-08-093 Section #357 Application - Islamic Shia Ithna-Asheri Jamaat of Kitchener -Waterloo RECOMMENDATION: THAT, pursuant to Section #357 of The Municipal Act, S.O. 2001, no action be taken with respect to the application to City Council for Cancellation, Reduction, refund or levy of taxes, for Islamic Shai Ithna-Asheri Jamaat of Kitchener Waterloo, 6 Executive Place, for the taxation year 2007 BACKGROUND: Following the presentation of report FIN-08-074 (May 20, 2008) related to cancellations, reductions and refunds of taxes, the Finance and Corporate Services Committee deferred approval of the adjustment for the Islamic Shia Ithna-Asheri Jamaat of Kitchener-Waterloo to June 23 to allow staff time to review the basis of calculation with the applicant, as the calculation had resulted in a net increase in taxes payable. Staff has reviewed the circumstances surrounding this application with the applicant and are in a position to report back at this time. REPORT: An application under Section #357 of the Municipal Act, S.O. 2001, was made on behalf of the Islamic Shia Ithna-Asheri Jamaat of Kitchener- Waterloo to apply for exempt status for the period from November 28, 2006, the date of purchase of the property, to December 31 , 2007. The returned roll for 2007 assessed the property at CX - Vacant Commercial. As a result of an ARB decision released on December 7, 2007 (resulting from an application made by the previous owner for the years 2005, 2006 and 2007) the property class was changed to C1 - Commercial Taxable - Farmland 1. This class is commercial lands which are being farmed, since the property was being farmed by the previous owner. This class results in a tax rate lower than CX or RT - Residential Taxable. Despite this classification, the current owner has not farmed the property since they took possession of the property in late 2006. The Assessment Review Board would require supporting evidence for this decision and the municipality had the ability to request a review of the ARB decision. In order to request a review of decision, a party must have requested written reasons at the hearing or, in writing, within 14 days following the hearing. At the point in time the decision was made the City of Kitchener had no reason to make such a request. When the Section #357 application was made to MPAC the property would have reflected the returned roll assessment class of CX. The assessor may not have been aware of the ARB decision and changing the original assessment class of CX to RT would have resulted in a reduction of taxes. However, given the actual assessment is at the C1 rate, the change resulting from C1 to RT would have resulted in an increase in taxes which was reflected in the report to Council. The ARB decision establishes the tax class for 2007 at the C1 rate. While staff could file an application under Section #359 of the Municipal Act to increase this to the RT rate, this decision may not be supported by the ARB given the previous ARB decision establishing the C1 class for 2007. The revised recommendation is that no action be taken with respect to the application under Section #357 and that the tax class of C1 established by the ARB for 2007 be maintained. FINANCIAL IMPLICATIONS: None COMMUNICATIONS: Staff has reviewed this information with the applicant. Joyce V. Evans, MPA, FCGA Director of Revenue Dan Chapman, CA, MPA General Manager of Financial Services - 0) ~:o .oroO) ro ~ u ~ ~ c ~ 0 ro o > .~ ~~> u.. c -::J "'0 0) ~1:5 o 0) ~"o ~ a.. o f:F} o f:F} 00 f:F} f:F} o f:F} o f:F} o o o I'-- ~ o o o I'-- ~ o o o I'-- ~ o ~ 00 00 00 1'--0 (J') L{) <D~ T"""~ f:F} f:F} C\J ~ C\J ~ C\J f:F} "'0 0) en 1:5 ~ 0) a.. "e C\J C\J T""" T""" T""" a.. ~ ~ f:F} f:F} f:F} 0 T""" T""" T""" f:F} L{) L{) L{) ~ ~~ ~~ ~~ 0 T""" T""" T""" ~ ~ f:F} f:F} f:F} 1:5 >- <( ~ CJ) a.. 0) :0 ro "~ 0.. 0.. ro >. c ro en 0) "'0 ~ en U 0) c 0) "'0 u.. C 0) ro c ~ E CJ) ~ CJ u.. en ~ "0 c (J ro w 0 CI) ~ u.. u.. 0 .0' en 0) ~ Jo.. 0) 0 D.. "'0 0) 0) ~ ro 0 en c CI) U s en "~ J: E ~ >< 0) ~ 0 0) CJ) g 0) ..... L{) 0 c 0 en c CV) co c ~ 0 0 T""" 0 C 0) .(3 0 <D 0 0 en 0 c en u "'0 ex:> C\J ""5 0) "-B w 0) ;: m ro cO ~ 2 en CI) .Q) 0) .0 C c~ c C "'0 .;:: 0) en .Q) 0) c ~"'O en C "t:J 0) a:l 0 .~ > en c 0.. 0) 0) en CI) ~ ~O ~ 0 0) 0 0) >< ~ <( a: en W c 0 c 0 0 (J 0) c >< ~ 0) ~ 0) ~ CI) 0 o 0) > 0.. .0' 0"'0 en 0) 0 >< 0 Jo.. Z o.s <( a: ~ w ~ D..