HomeMy WebLinkAboutFIN-10-037 - Tax Sale Proceedings 2009K .R
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REPORT
REPORT TO: Mayor Carl Zehr and Members of Council
DATE OF MEETING: February 22, 2010
SUBMITTED BY: Dan Chapman, General Manager of Financial Services
PREPARED BY: Joyce V. Evans, Director of Revenue (Ext. 2895)
WARD(S) INVOLVED: All
DATE OF REPORT: February 16, 2010
REPORT NO.: FIN-10-037
SUBJECT: TAX SALE PROCEEDINGS
RECOMMENDATION:
For Information
BACKGROUND:
Section #373 (1) of The Municipal Act, S.O. 2001 states that the treasurer may prepare and
register a tax arrears certificate against the title to the land for property in the municipality on
January 1, in the third year following that in which the real property taxes become owing.
Eleven properties with tax arrears totalling $228,622.32 became eligible for tax sale under
section #373 (1) in 2009.
Staff will proceed with the tax sale process unless Council directs otherwise. If Council requires
clarification with respect to the circumstances of any individual property, it would be appropriate to
convene in closed session as the discussion would relate to personal matters about identifiable
individuals.
REPORT:
The Municipal Act provides that all land eligible for registration for tax sale requires taxes to be in
arrears on January 1 in the third year following that in which the real property taxes became owing.
Eleven properties became eligible for registration in 2009. Eight of the eleven properties are
residential and three properties are commercial or industrial.
Each property has been subject to the administrative process set out in the Municipal Act as
follows:
1. That tax sale can commence if payment of taxes is not received by a certain date. All
notifications are sent by registered mail.
2. A second notice is sent as follow-up, again by registered mail.
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3. A title search of the property is completed.
4. The mortgage holder, if any, is notified.
5. A final letter is dated December 31, 2008 and mailed in early 2009.
6. City Council is advised of the properties in tax sale position.
During this sequence of events, there has been contact between City Staff, the mortgage
company, if any, and the property owner. Throughout the administrative process City staff
would be negotiating tax payment plans with the property owner and providing the property
owner with a detailed explanation of the tax sale process.
Property owners must pay the cancellation price in full to stop tax sale proceedings. Section
#373 (1) of The Municipal Act, S.O. 2001 defines the cancellation price as an amount equal to
all the tax arrears owing at any time in respect of land together with all current real property
taxes owing, interest and penalties and all reasonable costs incurred by the municipality.
In addition to these eleven properties, several properties have been previously identified as
being in a position for tax sale although the process has not yet been completed. Legal staff will
review all properties in a tax sale position and complete the process providing there are no
impediments to doing so.
FINANCIAL IMPLICATIONS:
The arrears related to the eleven properties pending tax sale is $228,622.32.
ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services & City Treasurer
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