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The Corporation of the Township of Carlow/Mayo
By-Law 15-2024
Being a By-Law to Adopt the Tax Collection Policy of the Corporation of the
Township of Carlow/Mayo
Whereas Part X of the Municipal Act, 2001, S.O. 2001, c. 25, states, provides the power
and authority for tax enforcement by municipalities;
And Whereas the Municipal Act, 2001, S.O. 2001, c. 25, Section 5 (3) provides that a
municipal power shall be exercised by by-law unless it is specifically authorized to do
otherwise;
Now Therefore the Council of the Corporation of the Township of Carlow/Mayo
enacts as follows:
That this By-Law repeals all previous By-Laws and/or Motions of Council pertaining to
same.
Severability:
Should any provisions, or any part of a provision, of this By-Law be declared invalid, or
to be of no force or effect, by a court of competent jurisdiction, it is the intent of Council
that such a provision, or part of a provision, shall be severed from this By-Law, and
every other provision of this By-Law shall be applied and enforced in accordance with
its terms to the extent possible according to law.
Read a first, second and third time and finally passed this 14 day of May 2024.
Randy\Wallac ce Jéhny Snider
Mayor CAO/Clerk
The Corporation of the Township of Carlow/Mayo
By-Law 15-2024
Tax Collection and Billing Policy
Schedule A to By-Law 15-2024
1.0 Purpose
The purpose of this policy is to ensure that the municipality is in a position to manage
its accounts receivable effectively and to ensure timely collection to minimize
outstanding amounts owing to the municipality. This policy will assist with the
ongoing success of administration, more specifically; it will ensure prompt, efficient,
courteous and consistent service to all ratepayers of the municipality.
2.0 Scope
This document will provide guidance to Council and staff and provide a basis for
decision-making relating to tax billing and tax collection procedures for all ratepayers
in the municipality. It is designed to be implemented in accordance with the
governing legislation.
More specifically, this policy is written in compliance with the Municipal Act - Parts
VIII, IX, X and XI in particular, related Ontario Regulations made under the Municipal
Act, the Planning Act, the Assessment Act and applicable Municipal by-laws, as
amended.
Should there be any incongruences between the policy and the governing
legislation, the provisions of the governing legislation will prevail.
3.0 Definitions
“Cancellation Price” means 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 thereon and all reasonable costs incurred by the municipality after the
treasurer becomes entitled to register a tax arrears certificate.
“Extension Agreement’ is a contract between the municipality and the registered
owner of the property to obtain information for collection purposes and/or collect tax
arrears including, but not limited to, title search fees, corporate search fees, registered
or certified mail, administrative charges, legal costs and tax sale costs.
“Municipal Tax Sale” is the sale of land for tax arrears according to proceedings
prescribed by the Act and Ontario Regulation 181/03.
“Property Taxes” means the total amount of taxes for municipal, county and school
purposes levied on a property and includes other amounts added to the tax roll as may
be permitted by this policy and/or any applicable Provincial legislation.
“Tax Arrears” means any portion of property taxes that remain unpaid after the date on
which they are due.
“Third Party Cheque’ is defined to be a cheque payable to another party other than
the Township of Carlow/Mayo.
“Treasurer’ is the individual appointed by the municipality who is responsible for
handling all of the financial affairs of the municipality on behalf of and in the manner
directed by Council.
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The Corporation of the Township of Carlow/Mayo
By-Law 15-2024
4.0
5.0
6.0
Review Cycle
4.1
This policy shall be reviewed by Council when required.
Tax Billing
5.1
5.2
5.3
5.4
A levying tax rate by-law passed by Council is required in advance
of either an Interim or Final Tax billing.
Issued billings are to meet all requirements of Section 343 of the
Municipal Act. The treasurer shall send a tax bill to every ratepayer at
least 21 calendar days prior to the first installment due date. More
specifically, Section 343 of the Municipal Act identifies that tax bills shall
be sent to the ratepayer’s residence or place of business or to the
premises where the taxes are payable for as per the municipality's —
software system, unless the ratepayer directs the municipality otherwise
in writing. The direction for the delivery of tax bills and/or any other
applicable notices continues until it is revoked in writing by the
ratepayer (343(8)).
Interim tax billings shall be produced based on 50% of the annualized
taxes of the property for the previous calendar year. The tax billing may
include local improvement charges, area charges, business
improvement area charges and any special charges levied by the
municipality or provincial government. Outstanding charges authorized
by legislation may be added to the interim billing at one hundred
percent.
Final tax billings are produced subsequent to the passing of the annual
municipal budget and are based on tax rates established by by-law
from the budget requirements of the Township of Carlow/Mayo, County
of Hastings and each individual school board. The tax bill will be based
on the phased-in assessment value for the current year as provided to
the municipality by the Municipal Property Assessment Corporation
(MPAC). The tax billing may include local improvement charges, area
charges, business improvement area charges and any special charges
levied by the municipality or provincial government.
Outstanding charges authorized by legislation may be added to the
final billing at one hundred percent.
Due Dates
6.1
The specific due dates will be identified in the tax rate by-law for the
municipality.
> The interim billing for all property types shall become due and
payable in two (2) installments, approximately one-half being due the
315 day of March and approximately one-half being due the 31st day
of May.
> The final tax bill for all property types shall become due and payable
in two (2) installments, approximately one-half being due the 31% day
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The Corporation of the Township of Carlow/Mayo
By-Law 15-2024
7.0
8.0
9.0
of August and approximately one-half being due the 31st day of
October.
Supplementary and Omitted Assessments
7.1
72
Supplementary tax bills are issued and mailed in the same manner as
the Interim and Final tax bills with the exception of a separate levying
where a by-law is not required. The number of installments and due
dates of the supplementary bills will be determined by the treasurer.
Penalty and interest charges will be assessed on supplementary taxes
that are owing past their designated due date at a rate of 1.25 percent.
There are two sections of the Assessment Act that allow for taxation of
ratable property not included in the annual revised assessment roll.
They deal with omissions and additions to the roll.
> Omissions — Section 33 of the Assessment Act allows for the
taxation of real property that has been omitted from the roll. The
provision allows for taxation in the current year, plus a maximum
of the two preceding years.
> Additions — Section 34 of the Assessment Act allows for the
taxation of assessment that has increased in value or has been
added after the return of the last revised roll. These taxes apply
to the current year only.
Severances
8.1
8.2
8.3
8.4
Property owners may apply for severances of their properties under
the authority of the Planning Act. If granted by the County Planning
Department, the assessment values must be split between all the
parcels of land. As part of their legislated services, MPAC divides the
assessment information.
Under Section 356 of the Municipal Act, the treasurer may divide
the assessment roll into the parcels being severed and direct the
property taxes accordingly.
As severed portions of the land are often sold, the municipality will not
recalculate the property taxes for a part year. It is understood that the
seller's and buyer’s lawyers would address who owes what as part of
the property sale process.
Consolidations are processed by MPAC at the written request of
the property owner. Property owners should contact MPAC
directly.
Payments
9.1
All tax payments will be processed in accordance with Section 347(1)
of the Municipal Act. More specifically, when applicable, the payment
shall first be applied against late payment charges (penalty/interest)
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9.2
9.3
9.4
9.5
9.6
9.7
The Corporation of the Township of Carlow/Mayo
By-Law 15-2024
owing in respect of those taxes according to the length of time the
charges have been owing, with the charges imposed earlier being
discharged before charges imposed later. Then the payment shall
than be applied against the taxes according to the length of time they
have been owing, with the taxes imposed earlier being discharged
before the taxes imposed later.
Payments will be in the form of cash, cheques, debit/credit, money
orders, bank drafts, electronic and telephone banking made payable to
the Township of Carlow/Mayo. All payments from a recognized
Canadian financial institution shall be applied to individual tax rolls in
accordance with the provisions contained in the Municipal Act.
Ratepayers are responsible for any fees and charges that may be
imposed when making payments.
Payments from financial institutions through telephone or electronic
banking are processed by the municipality the day they are received
by the municipality. This is typically different (later) than the day you
make your payment. Therefore, please allow 3 to 5 business days
from the time you make a payment until it is processed.
Cheques issued to the municipality for payment of taxes that are
returned from the bank as non-negotiable, will be subject to the
municipality’s fees and charges by-law and the additional charge will
be applied to the property tax roll and payment of taxes reversed.
Cheques issued to the municipality where the author has issued a
‘stop payment’ and has not provided the required written notice, will be
subject to the municipality's fees and charges by-law and the additional
charge will be applied to the property tax roll and payment of taxes
reversed.
Cheques that are post-dated will be accepted and held by the finance
department until the date indicated on the cheque. If the ratepayer
does not want the post-dated cheque processed, they must notify the
municipality, in writing, at least 5 business days prior to the date
indicated on the cheque. If proper notice is not received, the ratepayer
is encouraged to issue a stop payment on their cheque, however,
applicable return cheque fees will apply.
Payments in U.S. Funds will be posted to the tax roll with the exchange
rate on the date that they are deposited.
Payment of taxes will be accepted at the Township of
Carlow/Mayo office building during regular operating hours or via
mail to:
Township of Carlow/Mayo
3987 Boulter Road
Boulter, ON KOL 1G0
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The Corporation of the Township of Carlow/Mayo
By-Law 15-2024
10.0
11.0
12.0
13.0
Penalty and Interest for Non-Payment
10.10
10.10
The maximum rate under Section 345 of the Municipal Act, 2007 for
penalty and interest for non-payment of taxes is 1.25 percent per
month. The municipality adheres to this legislation and is set by
municipal by-law.
The purpose of penalty and interest is to ensure ratepayers pay on time
and this is also a revenue tool for the municipality to recover monies
remitted to other tax authorities when ratepayers do not pay their taxes
on time. By law, the municipality is required to pay the County of
Hastings and the Minister of Finance in relation to Education even if the
municipality does not receive payment from the ratepayer for their
property tax account.
Late Payment Charge Adjustments
11.1
11.2
Late payment charges are adjusted only in the following circumstances:
> Taxes are adjusted under Sections 354, 357 or 358 of the
Municipal Act.
> Taxes are adjusted in accordance with a decision of the courts
> In the event penalty or interest or both was charged as a result
of the municipality's error or omission.
Penalty and interest will not be adjusted on property tax accounts that
claim they did not receive a tax bill or claim it was sent to the wrong
address. Section 343 of the Municipal Act identifies that tax bills shall
be sent to the ratepayer’s residence or place of business or to the
premises where the taxes are payable for, unless the ratepayer(s)
directs the municipality otherwise in writing. The direction for the
delivery of tax bills and/or any other applicable notices continues until
it is revoked in writing by the ratepayer (343(8)). Therefore, it is the
responsibility of the ratepayer to inform the municipality, in writing, of
any changes and/or updates to their property address.
General Property Tax Account Adjustments
12:1
If a payment is processed incorrectly by the ratepayer or the
ratepayer’s financial institution, it is up to the ratepayer to inform the
municipality of this error. More specifically, at the written request of the
ratepayer, an adjustment can be made by the treasurer to correct the
error. Please allow 10 business days for the adjustment to be
processed once received. Furthermore, any penalty and interest
incurred as a result of the error is the responsibility of the ratepayer.
Refunds
13.1
Change will not be returned for cheques accepted in excess of the
amount due on the tax account. Should a credit appear on the tax
account as a result of the payment, it will be applied to subsequent
installments not yet due in the current year. However, at the written
request of the ratepayer, a refund cheque will be issued, after allowing
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The Corporation of the Township of Carlow/Mayo
By-Law 15-2024
14.0
15.0
13.2
sufficient time (15 business days) for the ratepayer’s cheque to clear
their financial institution. The minimum amount for a refund request to
be processed will be $50.
Banks requesting refunds on funds paid to the municipality to
settle municipal ratepayers tax accounts will send a written
request accompanied by a written verification from the
registered property owner(s) that the municipality is to reimburse
the funds paid.
Tax Collection
14.1
14.2
14.3
14.4
14.5
14.6
There are five basic incentives set out by legislation to promote
timely payment of taxes as follows; Penalty/interest, bailiff action,
collection agency, rent attornment and tax registration/tax sale.
Penalty and interest for non-payment of taxes is defined within this policy.
Bailiff action - Section 349 of the Municipal Act, provides that taxes may
be recovered with costs as a debt due to the municipality from the
taxpayer originally assessed for them and from any subsequent owner
of the assessed land or any part of it.
Collection agency - Section 304 of the Municipal Act provides that if a
municipality uses a registered collection agency in good standing under
the Collection Agencies Act to recover a debt, including taxes, payable
to the municipality, the collection agency may recover its costs as long
as the costs do not exceed the amount approved by the municipality.
The cost in this case is paid up front by the municipality and added to
the ratepayer’s property tax account as amount to be recovered.
Rent attornment - Section 350 of the Municipal Act provides that where
taxes are owed in respect of any land occupied by a tenant, the
municipality may seize the rents of an income producing rental property
upon giving proper notice. It is a severe action and should only be
initiated after adequate notice.
Tax registration/tax sale - Property taxes (including any part thereof)
that are in arrears for 2 years or more are eligible for tax registration
under Part XI of the Municipal Act. The municipality will endeavor to
work with the ratepayers by encouraging the ratepayer to either make
full payment or a mutually agreed upon payment plan before sending
a property to tax sale.
Amount Owing Added to Tax Roll
15.1
Section 398 of the Municipal Act allows the municipality to place
unpaid fees and charges owing to the municipality on to the property
tax roll to which the services were provided regardless of who was in
receipt of the said service.
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The Corporation of the Township of Carlow/Mayo
By-Law 15-2024
16.0 Additional Tax Collection Tools
17.0
16.1
16.2
16.3
Tax reminder notices - The municipality will endeavor to send out
tax arrears notices after the May 31* installment and the October 31°
Installment in an effort to collect unpaid taxes on property tax
accounts. Property tax accounts with arrears owing less than $50.00
will not be mailed notices.
Courtesy tax sale proceedings letter — In an effort to work individually
with property owners, the municipality will endeavor to send each
ratepayer whose property tax account is in tax arrears 2 years or more
a courtesy tax sale proceedings letter advising of the tax arrears
situation and asking for payment in full or satisfactory payment
arrangements to be made at a mutually agreed upon date. If
acceptable payment arrangements are made, the account will be
monitored for compliance.
If no reply is received and/or sufficient payment arrangements have
not been made as a result of tax arrears notices and/or courtesy tax
sale proceedings letters, additional collection efforts may be used at
the discretion of the treasurer. If the municipality has been unable to
secure payment of the tax arrears or a firm, suitable repayment plan,
the municipality will commence municipal tax sale proceedings by
registering a tax arrears certificate against the property.
Tax Sale Proceedings
17.1
Th
17.3
17.4
In each year, the municipality will review its property tax aged ledger
summary for individual property tax accounts that are at 2 years or more
in arrears. If acceptable payment arrangements are not negotiated,
then all properties that meet legislated criteria will be subject to the
municipal tax sale process.
The municipality uses a third-party tax collection specialist to
administer the tax sale process on property tax accounts.
Once a property is registered and tax sale proceedings have
begun, payment of taxes owing is required in full. Otherwise, an
extension agreement must be signed. The ratepayer has one
year from the time the tax arrears certificate is registered to pay
the cancellation price to the municipality, otherwise the property
is subject to public tax sale as per Part XI of the Municipal Act.
The Municipal Act provides that the property may be sold by sealed
tender, or public auction. The municipality's preference is by sealed
tender. Tenders are opened in an open forum, recorded as received,
and then reviewed to ensure completeness of the tenders submitted.
(Note: Council may make a bid or tender on a property, by resolution,
but they must have a public purpose for the property.) The highest
tender or two highest tenders, if more than one is received, is retained.
The minimum acceptable bid is the cancellation price (In addition a
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The Corporation of the Township of Carlow/Mayo
By-Law 15-2024
17.5
17.6
tender must have a certified deposit that is at least 20% of the amount
tendered). Notice is sent to the highest bidder requesting payment of
the balance of the amount tendered, applicable land transfer tax, and
accumulated taxes to date. All tax sale costs, including legal costs are
added to the individual property tax account balance. Payment must be
received from the highest bidder within 14 days from the date of the
notices of highest bidder being mailed by the treasurer or their agent.
Upon receipt, the treasurer shall issue a receipt and declare the highest
bidder to be the successful purchaser. If no payment is received within
14 calendar days of the mailing of the notice, the deposit is forfeited. A
notice is then sent to the second highest bidder and the process
repeats.
The application of proceeds under section 380(1) of the Municipal Act
shall,
> (a) Firstly, be applied to pay the cancellation price;
> (b) Secondly, be paid to all persons having an interest in the
land according to their priority at law, except the person who
immediately before the registration of the tax deed was the
owner of the land; and
> (c) Thirdly, be paid to the person who immediately before
the registration of the tax deed was the owner of the land.
Vesting — Under section 379 of the Municipal Act provides where there is
no successful purchaser, a notice of vesting may be issued and the
treasurer shall register a declaration to that effect at the local land
registry office. Council has two 2 years to decide whether to vest a
property. The Municipal Act allows for inspection of the property
including an environmental assessment. Council may re-advertise for
another tender or auction within 2 years without writing off the tax
arrears. If Council decides not to vest, Council may choose to write off
the taxes and issue a tax cancellation certificate. Each year the
treasurer may prepare a list of such properties for annual write-off
thereafter. Council may also decide to write off all or part of the taxes
with the purpose of re-registration of the tax arrears and repeating the
tax sale process from the beginning. If Council decides to vest the
property, the tax arrears will be written off and the property may be
declared surplus and advertised for sale.
18.0 Municipal Property Assessment Corporation (MPAC) Adjustments
18.1
18.2
Request for reconsideration - A property owner may be eligible to
have their property reassessed if they feel that there are
discrepancies in the original assessment. Forms can be obtained
online at: hitp:/Avww.mpac.ca/property_owners/forms.asp.
Section 357/358/359 application - A property owner may be eligible to
have their property assessment adjusted by MPAC if any one or more
reasons apply under Section 357, 358 and 359 of the Municipal Act.
The current owner may revert up to three years back if applicable,
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The Corporation of the Township of Carlow/Mayo
By-Law 15-2024
and if approved by Council. Applications can be obtained from the
Municipal Office
18.3. Direction of School Board Support - If a change is required, the
property owner or tenant will be asked to complete an Application for
Direction of School Support form. The form can be obtained from the
local school board office or MPAC. As required by section 16(3) of
the Assessment Act, changes to school support designation must be
made in writing.
19.0 Reporting Requirements
19.1. The treasurer shall include the municipality's outstanding arrears total
in a quarterly treasurer's report to Council.
20.0 Legal Requirements
20.1 By-Law (Section 311 (13) Municipal Act), the municipality is required to
- pay the County and the individual school boards in relation to
Education levy amounts owing on a quarterly basis even if the funds
have not been collected by the municipality for the individual property
tax accounts.
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