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Corporation of the Town of Hearst
Tax Collection and Billing Policy
{By-law No. 15-19, as amended by By-law No. 44-19)
Purpose
The Town of Hearst recognizes the importance of having a written billing and
collection policy for tax accounts, incorporating good and acceptable business
practices and efficiencies, which are consistent and fair to its customers and the
Municipality.
Scope
The Tax Collection and Billing Policy apply to all customers within the geographic
boundaries of the Municipality. Municipal staff assigned to the administration and
collection of tax accounts shall adhere to the policy and procedures detailed
below.
Definitions
For the purposes of this policy:
“Extension Agreement” means a contract between the Municipality and the owner,
spouse of the owner, a mortgagee or a tenant in occupation to extend the period
of time in which the Cancellation Price is to be paid. The contract is entered into
after the registration of a Tax Arrears Certificate and before the expiry of the one-
year period following the registration date.
“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 applicable provincial legislation, including but not
limited to outstanding fines under the Provincial Offences Act, fees and charges
authorized under the Building Code Act; and fees and charges related to fire
department false alarms and calls to illegal burns.
“Receipt Date” means the date the Municipality received the money.
“Tax Arrears” means any portion of Property Taxes that remain unpaid after the
date on which they are due.
“Tax Arrears Certificate” means a document that is registered on the title,
indicating the described property will be sold by public sale if all Property Taxes
are not paid to the Municipality within one year of the registration of the
certificate.
Roles & Responsibilities
Municipal staff assigned to the administration and collection of tax accounts shall
adhere to the policy and procedures detailed below.
5. Policy
a)
b)
d)
Tax Notices and Tax Instalments
Upon receipt of the Collector’s roll, the Tax Collector is charged with the
responsibility of collecting the taxes. The Tax Collector shall prepare two tax
notices annually, an interim notice and a final notice for taxpayers in the
Municipality. Each notice shall state two instalments due dates to facilitate a
quarterly payment system. The Municipality requires a minimum of twenty-one
days between the issuance and the due date. Failure to receive a tax bill will
still result in penalty and interest charges being applied if the bill is not paid by
the due date.
A levying by-law adopted by Council is required in advance of either an interim
or final tax billing. Interim and final tax bills will be due and payable in two
instalments each year and the specific due dates will be identified in both the
interim and final by-laws adopted by Council.
Alteration of Due Date
The Tax Collector may, on occasion, find it necessary to alter an instalment
due date on a tax notice when property has changed ownership and records
have not been updated in time for correct mailing. It is the new property
owners’ responsibility to ensure correct information is provided to the
Municipality on a timely basis. The notice may go to the former owner and
often be returned to the Municipality with much delay. The instalment due date
may then be adjusted at the discretion of the Tax Collector to allow the
legislated length of time for payment by the new property owner.
Interim Tax Levy
The interim tax levy shall be levied upon all taxable assessments according to
the last revised assessment roll and not more than the maximum allowable by
statues or regulation.
Final Tax Levy
The final tax levy shall be based on the current year's tax rates as set out in
the final levying by-law adopted by Council and applied to all properties
according to the last revised assessment roll.
Local Improvement Charges and Special Area Rates
Where local improvement charges are to be piaced on the tax notice, they may
be placed on either the interim or final notice, as determined by the Treasurer
and Tax Collector. When such charges are placed on the tax notice, they
become part of the total taxes due and shall be collected in like manner as
property taxes.
Supplementary Tax Notices
Supplementary tax notices will be biiled at various times throughout the year
as assessment information is received from MPAC (Municipal Property
Assessment Corporation). Due dates wiil be set at the discretion of the Tax
Collector with an effort to have them coincide with the regular tax instalment
due dates.
Omissions - Section 33 of the Assessment Act allows for the taxation of reai
property that has been omitted from the roll. This provision allows for taxation
in the current year, plus an additional two preceding years. These will be taxed
at the appropriate rate for the effective years.
Additions - Section 34 of the Assessment Act allows for the taxation of
assessment that has increased in value or has been added to the return of the
last revised roll. These taxes apply only to the current taxation year.
9)
h)
Mailing Tax Notices
Tax notices shall be mailed or electronically delivered to each ratepayer no
later than twenty-one (21) days prior to the first instalment due date for
interim, final and supplementary notice.
Where a mortgage company is required to pay taxes on behalf of the
ratepayer, the Tax Collector may forward tax notices directly to the mortgage
company upon receiving a request from the company.
Payment of Taxes
Taxes are payable as follows:
i) Mailing cheque payment directly to the Municipal Office;
ii) Cheque payment at the Municipal Office during regular office hours or
using the drop box;
iii) Cash or debit payment at the Municipal Office during regular office
hours;
iv) Payment by telephone or internet banking;
v) Payment at a recognized bank or trust company;
B-L44-19 vi)One of the following three Pre-Authorized Payment Plan offered by
))
the Municipality;
a) 4-month payment plan;
b) 8-month payment plan; or
c) 12-month payment plan;
vii) Online payment through Paymentus.
The receipt date will be the official date of payment.
Penalty and Interest Charges
In the event of default of payment of instalments by the due date, a penalty
charge of 1.25% shall be imposed on the second day of default following a due
date and the second day of every calendar month thereafter, until paid.
Payments are applied to all penalties and interest first, then to oldest taxes.
If paying by mail, telephone banking, at a recognized bank or trust company
or online, the taxpayer assumes responsibility for late arrival.
A request for relief of penalty will be first considered by the Tax Collector. A
penalty charge as a result of an error made by the Municipality shall be
credited back to the ratepayer equal to the amount of the charge. All other
requests for relief of penalty must be in writing to the Treasurer, who shall
make a recommendation to Council.
The amount of penalty charges imposed will be in accordance with legislative
requirements.
Returned Cheques
In the event a cheque is returned from the bank, i.e. “Insufficient Funds”,
“Closed Account’ or “Staledated”, the ratepayer shall pay applicable late
payment penalty, interest charges and NSF fee.
In the event a “Post-dated” cheque is returned from the bank, no charges will
be made.
k)
B-L 44-19
I)
Insufficient Funds of Automatic Withdrawal
Taxpayers who choose pre-authorized payment may lose the service should
their automatic withdrawal be refused by their bank for lack of funds or other
unacceptable reason, subject to review and direction from the Treasurer.
Request for Tax Information
A Tax Certificate will be issued by the Collector or assigned staff upon request
and upon payment of the fee designated by municipal by-law.
The Tax Collector or assigned staff will only respond to verbal requests for tax
information from the owners of the property or a mortgage company
responsible for the payment of taxes.
The Tax Collector will give information as required and with regard to the
Freedom of Information and Privacy legislation.
m) Tax Reminder Notice
P)
q)
Taxes are considered in arrears after the due date for the interim and final tax
bills. Notices will be sent every month by mail or electronic means until such
time as the taxes are paid in full.
Recovery of Arrears Through Monies Owed to Taxpayer
If the Town of Hearst is holding any money owing to the customer, such as
accounts payable cheques, tax adjustments, refunds or rebates, these
amounts will be applied to the customer’s tax arrears, upon agreement with
the taxpayer.
Collection of Tenant’s Rent (Landlord in Tax Arrears)
After the taxes have been in arrears for one year, a notice may be sent to the
landlord informing him/her of the Municipality’s intention to collect the rent.
This wil) allow the landlord the opportunity to make payment arrangements
with the Tax Collector. If within fourteen (14) days of sending the notice no
reply is received, the Municipality will inform the tenant(s) to pay the rent
directly to the Municipality until all interest, penalty and taxes have been
collected. Under section 350(1) of the Municipal Act, the Municipality may give
a tenant notice, in writing, requiring the tenant to pay the rent as it becomes
due until taxes are paid.
Tax Registration
Arrears of two years may be subject to the Tax Registration process
commencing on the first day of the following year. The Tax Collector
authorizes accounts with two years’ arrears to be registered for Tax
Registration and Sale proceedings.
Fees will be added to the account as established by municipal by-law or based
on actual fees from time to time, throughout the tax registration process to
cover all costs associated with registration of the property.
Extension Agreement
A taxpayer in Tax Registration may request and Extension Agreement, which
will extend the period of time in which the balance outstanding is to be paid.
The Tax Collector may enter into an agreement with the Owner before the
property is registered. After the property is registered, the Treasurer must
approve the request within one year of the date that the property was
registered for Tax Sale. Extension Agreements are subject to terms and
conditions set out in the agreement and are established on a property-by-
property basis using the following guidelines:
i) Maximum terms of the agreement are 12 months to clear all outstanding
balances; and
t)
ii) Monthly payment(s) required over the term of extension agreement.
In the event of default, a registered letter will notify the taxpayer as such, and
the agreement is thereby terminated, putting the property in the same
position in Tax Registration and Sale proceedings as it was prior to entering
into the Extension Agreement.
Tax Sale
Properties that meet one of the following criteria will be advertised for Tax
Saie:
i) Tax arrears are not paid in full within one year of the date of
registration; or
ii) Taxpayer has defaulted on an Extension Agreement.
Successful Purchaser
Where there is a successful purchaser, the property will be transferred to the
name of the successful bidder.
Vesting
Where there is no successful purchaser, all risks of taking possession of the
property are identified, including any Crown Liens or environmental issues,
after which time the property is registered in the name of the Municipality and
the Tax Sale proceedings shall be cancelled.
Maintenance of Records
Ownership, address, assessment and other changes will be made regularly to
keep tax records up-to-date to ensure that the Municipality bills the right
person for the correct amount and to enable correct reporting. It is the new
owner's responsibility to provide this information to the Municipality on a
timely basis.
6. Related Policies & Legislation
Municipal Act, 2001
7. Appendices
Pre-authorized Payment Plan Applications