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THE CORPORATION OF THE TOWNSHIP OF HILTON
BY-LAW NO. 1504-26
Being a by-law to adopt the Tax Collection Policy
for the Corporation of the Township of Hilton.
WHEREAS Section 5(1) of the Municipal Act, 2001, S.O. 2001, c.25, as amended, provides
that the powers of a municipality shall be exercised by its council;
AND WHEREAS Section 5(3) of the Municipal Act, 2001 provides that a municipal power
shall be exercised by by-law unless the municipality is specifically authorized to do
otherwise;
AND WHEREAS Section 5(4) of the Municipal Act, 2001 provides that subsections (1) to (3)
apply to all municipal powers, whether conferred by this Act or otherwise;
AND WHEREAS Council deems it appropriate and in the public interest to adopt a Tax
Collection Policy to establish consistent and transparent procedures for the billing,
collection, and enforcement of property taxes;
NOW THEREFORE the Council of the Corporation of the Township of Hilton hereby enacts
as follows:
1. THAT the Tax Collection Policy attached hereto as Schedule “A” is hereby adopted.
2. THAT Schedule “A” (Tax Collection Policy) and Schedule “B” (Tax Payment
Arrangement Agreement Form) attached hereto shall form part of this By-law.
3. THAT this By-law shall come into force and take effect on the day of passing.
Read a first, second and third time and finally passed this 15" day of April 2026.
Dively
Sara Dinsdale, CAO/Clerk-Treasurer
THE CORPORATION OF THE TOWNSHIP OF HILTON
Schedule “A” to By-Law No. 1504-26
Subject: Tax Collection Policy
Source: By-law 1504-26
Date Approved: April 15, 2026
Resolution No.:
PURPOSE
The purpose of this policy is to establish consistent, fair, and transparent procedures
for the billing, collection, and recovery of property taxes in accordance with the
Municipal Act, 2001, S.O. 2001, c. 25, as amended. It supports the Township’s
financial stability while ensuring ratepayers are treated equitably and in compliance
with legislative requirements.
1. DEFINITIONS
1.1 “Act” shall mean the Municipal Act, 2001, S.O. 2001, c. 25, as amended.
1.2 “Arrears” shall mean any portion of property taxes that remain unpaid after the
due date.
1.3 “Due Date” shall mean the date by which taxes must be paid to avoid penalty
or interest.
1.4 “MPAC” shall mean the Municipal Property Assessment Corporation, which is
responsible for determining assessed values for all property classes in Ontario
and administering assessment appeals.
1.5 “Penalty and Interest” shall mean charges applied to unpaid taxes in
accordance with Section 345 of the Act.
1.6 “Property Taxes” shall mean all taxes levied on real property under the
authority of the Act, including local improvement charges and special area
rates.
1.7 “Tax Roll” shall mean the official record of property assessments and taxes
levied, maintained by the Township.
1.8 “Taxpayer” shall mean an individual, corporation, or entity liable for property
taxes within the Township.
The Corporation of the Township of Hilton
Tax Collection Policy Schedule “A” Cont’d
1.9 “Treasurer” shall mean the person appointed by Council as Treasurer or their
designate.
1.10 “Township” shall mean the Corporation of the Township of Hilton.
2. LEGISLATIVE AUTHORITY
This policy is established under the authority of the Municipal Act, 2001.
Tax billing and collection process are governed primarily by Part X - Tax Collection
(Sections 342-386), including but not limited to:
e Billing and due dates (Section 342)
e Payment options (Section 342(2)-(3))
e Penalties and interest (Section 345)
e Recovery of taxes (Section 347-351)
e Tax registration and sale of land for tax arrears (Section 373-386)
Additional applicable legislation includes:
e Assessment Act — Governs property assessment and Classification
e Education Act —- Governs education tax rates and remittance
e Municipal Tax Sales Rules (O. Reg. 181/03) — Prescribes procedures for tax
sale enforcement
3. STANDARD TAX BILLING
3.1 General Provisions
All tax bills shall be prepared and issued in accordance with Section 343 of the
Act.
Pursuant to Subsection 343, tax bills shall be sent out at least 21 days prior to
the first installment due date.
Failure to receive a tax bill does not relieve the taxpayer from responsibility for
payment or from penalty and interest charges.
3.2 Interim Tax Billing
Interim tax bills are issued in February of each year in accordance with Section
317 of the Act and shall not exceed 50% of the prior year’s total taxes.
The Corporation of the Township of Hilton
Tax Collection Policy Schedule “A” Cont’d
The due date shall be established annually by by-law. The preferred due date
is February 28, if this date falls on a weekend or statutory holiday, the deadline
will move to the preceding business day The due date may be amended by
Council through applicable by-law.
3.3 Final Tax Billing
Final tax bills are issued in September and reflect the assessed value as
returned on the assessment roll, the final tax levy approved by Council, less
the interim tax bill.
The due date shall be set annually by by-law. The preferred due date is
September 30, if this date falls on a weekend or statutory holiday, the deadline
will move to the preceding business day. The due date may be amended y
Council through applicable by-law.
4. SUPPLEMENTARY AND OMITTED BILLING
Supplementary and Omitted Assessment Rolls are provided by MPAC and billed in
accordance with Section 341 of the Act. These represent new assessment from the
construction of new buildings or improvements made to properties that were not
captured through the roll returned by MPAC.
Relevant provisions of the Assessment Act:
e Section 33 —- Omitted property (current year + 2 preceding years)
e Section 34 - Increased assessment after roll return (current year only)
Due dates shall be no less than 30 days from bill issuance.
5. APPLICATION OF PAYMENTS
All taxes payments are applied in accordance with Section 347 of the Act. Payments
are applied to the oldest outstanding amounts first, including penalty and interest,
before being applied to current taxes owing.
5.1 Partial Payments
Partial payments that are received will be applied to the oldest outstanding
charges in the following order:
1. Penalty and interest
2. Taxes in arrears
3. Current taxes
The Corporation of the Township of Hilton
Tax Collection Policy Schedule “A” Cont’d
5.2 Non-Sufficient Funds (NSF)
Payments returned due to non-sufficient funds or any other banking error will
result in the reversal of the payment and the application of an NSF fee, in
accordance with the Township’s current Fees and Charges By-law. Interest
and penalty will continue to accrue on any unpaid balances.
5.3 Overpayments and Refunds
All overpayments and credits resulting from adjustments will be applied to the
tax account and carried forward to future installments.
Refunds may be issued only under extenuating circumstances, at the
discretion of the Treasurer. Refund requests must be submitted in writing.
Refunds will be issued solely to the person or entity that made the original
payment.
6. ACCEPTED PAYMENT METHODS
The Township accepts the following methods of payment for property taxes:
e Cash (in person)
e Cheque (including post-dated cheques payable to the Township)
e E-Transfer (sent to [email protected] with answer to the
security question emailed separately)
e Online banking
The following forms of payment are NOT accepted:
e Third-party cheques
e Credit cards
e Debit (Interact)
Payments made in American (USD) currency will be applied at the exchange rate on
the date of deposit.
7. PAYMENT TIMING AND ALLOCATION
Payments must be received by the Township before 4:00 p.m. on the due date. In
accordance with the Act, payments are applied upon receipt by the Treasurer.
Payments are not applied based on the date they were sent, initiated, or postmarked.
Payments made by mail, courier, or electronic methods are subject to delivery
timelines and processing delays beyond the Township’s control. As such, taxpayers
The Corporation of the Township of Hilton
Tax Collection Policy Schedule “A” Cont’d
10.
are strongly advised to allow sufficient time for payment to be received and processed
prior to the due date.
Receipts will be issued upon request.
WRONG ACCOUNT PAYMENTS
It is the taxpayer’s responsibility to ensure that all payments are correctly directed to
the appropriate property roll number. The Township is not responsible for any
penalties, interest, or delays that result from payments being applied incorrectly due
to taxpayer errors. Requests for corrections are subject to the Treasurer’s discretion.
All requests must be submitted in writing and may require supporting documentation.
PERSONALIZED COLLECTION LETTERS
The Tax Collect may issue personalized collection letters to accounts that are in
arrears by one full taxation year. These letters may be sent at the discretion of the
Treasurer and will request either full payment or the establishment of a formal
payment plan by a specified deadline.
Where arrears remain unpaid and no Tax Payment Arrangement is in place, the
Township may initiate tax sale registration in accordance with Section 373(1) of the
Act. A property becomes eligible for tax sale registration if taxes remain unpaid as of
January 1 in the second year following the year in which the taxes were originally due.
For example, taxes from 2023 that remain unpaid as of January 1, 2025, are eligible for
registration of a Tax Arrears Certificate.
The issuance of personalized letters prior to tax sale registration is a courtesy
extended by the Township and is not required by legislation.
TAX COLLECTION REMEDIES
The Township may use any combination of tax collection remedies authorized under
the Act to recover unpaid property taxes. These tools may be applied at the discretion
of the Treasurer, depending on the nature, amount, and duration of the arrears.
10.1 Available Remedies
Penalty and Interest — As per Section 345 of the Act, a penalty and interest
charge of 1.25% compounded monthly. This represents the maximum rate
permitted under the Act.
The Corporation of the Township of Hilton
Tax Collection Policy Schedule “A” Cont’d
Rent Attornment — As per Section 349 and 350 of the Act, where applicable,
the Township may require tenants of a property in arrears to pay rent directly
to the Township until taxes are paid in full. This remedy will be carefully
considered prior to being imposed, as it may cause undue hardship for the
property owner or disrupt tenancies. Use of this option will be at the
discretion of the Treasurer.
Bailiff Action — As per Section 351 of the Act, where appropriate, the
Township may pursue civil enforcement measures to recover unpaid taxes as
a debt due to the Township. This may include retaining a licensed bailiff to
recover taxes through the seizure and sale of personal property, where
legally permissible.
e Bailiff action is used only in specific circumstances, such as for
leaseholds interests, movable property, or where traditional
enforcement methods are ineffective. The decision to use this remedy
will be made at the discretion of the Treasurer and may require legal
consultation.
Tax Arrears Certificate Registration — As per Section 373 of the Act, if
property taxes remain unpaid as of January 1 in the second year following the
year in which they became due, the Township may initiate the tax sale
process under Part Xl.
11. COLLECTION PROCESS
The Township follows a consistent and fair approach to tax collection in accordance
with Part X and Part XI of the Act. The process is designed to encourage timely payment
while maintaining flexibility to accommodate exceptional circumstances.
11.1 Priority for Collection
Priority is given to accounts entering second-year arrears.
11.2 Delivery of Notices
Taxpayers receive multiple forms of notice throughout the year, including
regular tax bills and arrears notices. Any notice sent by ordinary mail is
considered received five (5) days after mailing, unless returned as
undeliverable.
It is the taxpayer’s responsibility to notify the Township of any change in
mailing address pursuant to Subsection 343(6) of the Act.
The Corporation of the Township of Hilton
Tax Collection Policy Schedule “A” Cont’d
12.
11.3
11.4
Collection Letters
At the discretion of the Treasurer, a personalized collection letter may be
issued to property owners with significant or prolonged arrears. These letters
are intended as a courtesy to encourage voluntary compliance or the
establishment of a Tax Payment Arrangement.
Tax Registration
Properties with taxes owing for two (2) years become eligible for tax sale
registration. The Township is not legally required to issue a final notice before
registration. Any such notice, if sent, is a courtesy and not a statutory
requirement.
TAX PAYMENT ARRANGEMENTS (TPA’S)
To assist property owners in resolving outstanding tax balances, the Township may, at
the discretion of the Treasurer, enter into a Tax Payment Arrangement (TPA) with the
registered owner(s) of the property.
12.1
12.2
Eligibility and Approval
e TPAs are intended for ratepayers who demonstrate a willingness to
resolve their arrears but are temporarily unable to make full payment.
e AllTPAs must be made in writing and approved by the Treasurer.
e The Township reserves the right to request reasonable financial
information before approving any TPA.
e Approval of a TPA is not automatic and is granted on a case-by-case
basis, considering the overall arrears situation and history of the
account.
Terms and Monitoring
e The taxpayer must commit to a regular monthly payment schedule
sufficient to eliminate the arrears within a reasonable period (typically
within 12-24 months).
e Penalty and interest will continue to accrue on all outstanding amounts
during the term of the TPA, pursuant to Section 345 of the Act.
e The Treasurer will monitor compliance and may follow up as needed.
The Corporation of the Township of Hilton
Tax Collection Policy Schedule “A” Cont’d
12.3 Breach and Consequences
e lf the taxpayer fails to make a scheduled payment, the TPA will be
considered null and void.
e Insuch cases, the Township may immediately resume collection
activity, including tax registration, without further notice.
e Where a taxpayer has previously defaulted on a TPA, the Treasurer may
refuse to enter into a new agreement unless a minimum 50% good faith
payment toward the arrears is made up front.
12.4 Discretion and Authority
The Treasurer has full authority to:
e approve, decline, or amend TPAs;
e determine reasonable terms and conditions;
e monitor compliance; and
e terminate TPAs in the best interests of the Township.
All TPAs are subject to the Township’s right to proceed with Tax Arrears
Certificate registration under Section 373 of the Act, if arrears are not resolved
ina timely manner.
A sample Tax Payment Arrangement (TPA) Agreement form is provided as
Schedule “B” this policy.
13. CANCELLATION AND WRITE-OFFS
13.1 Cancellation of Penalty and Interest
Penalty and interest charges are generally not waived once applied. However,
cancellations may occur only in the following circumstances:
e Taxes are adjusted in accordance with the Act, including:
o Section 354 - write-off of taxes deemed uncollectible
o Section 357 - cancellation, reduction, or refund due to changes
such as demolition, fire, or assessment error
o Section 358 — overcharges due to assessment errors in one or
both of the two previous taxation years
e The tax account is adjusted as a result of a change to assessment
under the Act
e Penalty and interest were applied in error due to a clerical or
administrative error, such as:
o Incorrect due date
The Corporation of the Township of Hilton
Tax Collection Policy Schedule “A” Cont’d
14.
15.
o Failure to process an eligible adjustment in a timely manner; or
o Misapplication of a payment
In all cases, the cancellation of penalty and interest shall be limited to the
amount directly related to the tax adjustment or Township error. If a payment
has been applied to the penalty and interest charge, then it cannot be
cancelled.
13.2 Write-offs
Pursuant to Section 354 of the Act, taxes that are determined to be
uncollectible — such as in cases of bankruptcy, deceased owners with no
estate, or other legally supported scenarios — may be written off by resolution
of Council.
All cancellation and write-off requests must be reviewed by the Treasurer and
supported by appropriate documentation. Requests must be submitted within
the same year the circumstance occurred.
REPORTING TO COUNCIL
The Treasurer may provide summary updates to Council regarding the general status
of tax arrears at their discretion or upon request of Council. Such reports shall be
presented in summary form only and shall not include any identifiable property-
specific or personal information, in accordance with applicable privacy legislation.
NO WAIVER OF RIGHTS
Nothing in this Policy limits, restricts, or waives the Township’s statutory rights under
the Municipal Act, 2001 or any other applicable legislation.
Failure by the Township to enforce any provision of this Policy, to exercise any
available remedy, or to proceed with collection action at any time shall not be
construed as a waiver of the Township’s right to do so at a later day.
No act, omission, delay, or indulgence by the Township shall operate as a waiver of
any tax, penalty, interest, remedy, or enforcement right available under statute or at
law.
All taxes, penalties, and interest remain a lien on the property in accordance with
Section 349 of the Act unless paid in full.
The Corporation of the Township of Hilton
Tax Collection Policy Schedule “A” Cont’d
16. LEGISLATIVE UPDATES
The Tax Collection Policy will be reviewed and updated as required to reflect any
changes to provincial legislation, including amendments to the Municipal Act, 2007,
the Assessment Act, or related regulations (e.g. Tax Sales Rules). The Treasurer shall
monitor legislative developments and ensure the policy reflects any relevant legislative
changes.
10
THE CORPORATION OF THE TOWNSHIP OF HILTON
Schedule “B” to By-Law No. 1504-26
Tax Payment Arrangement (TPA) Agreement Form
1. Property Information
Roll Number:
Property Address:
Taxpayer Name(s):
Mailing Address:
Phone Number:
Email:
2. Agreement Terms
1.
Po RYN
Outstanding Tax Balance as of :$
Monthly Payment Amount: $
Payment Due Date Each Month:
First Payment Due On:
Estimated Completion Date:
Payment Method (circle one): Cheque Online Banking E-Transfer Cash
3. Conditions of Agreement
The taxpayer agrees to make regular monthly payments in accordance with the terms outlined
above.
Penalty and interest shall continue to accrue on the outstanding balance during the term of this
agreement in accordance with the provisions of the Act.
Failure to make a payment on or before the due date shall result in the immediate termination of
this agreement without further notice.
Upon default, the Township may proceed with collection enforcement, including but not limited
to the registration of a Tax Arrears Certificate pursuant to Part XI of the Municipal Act, 2007.
Where a taxpayer has previously defaulted on a TPA, the Township may a minimum 50% good
faith payment may be required before a new agreement is considered.
This agreement does not prevent the taxpayer from making additional lump sum payments to
reduce the balance more quickly.
lt is the taxpayer’s responsibility to ensure all payments are made on time and correctly directed
to the appropriate property roll number.
The Corporation of the Township of Hilton
Tax Collection Policy Schedule “A” Cont’d
4. Acknowledgement
| acknowledge and agree to the terms of this Tax Payment Arrangement and understand the
consequences of non-compliance.
| further acknowledge that this arrangement is a courtesy extended by the Township and does not limit
or waive the Township’s rights under applicable legislation.
Taxpayer signature: Date:
Witness signature: Date:
Tax Collector Signature: Date:
5. Termination Confirmation (To be completed by the Treasurer, if applicable)
This Tax Payment Arrangement has been terminated effective due to:
[| Payment Default LJ Voluntary Cancellation LI Balance Paid in Full
LJ Other (specify):
Treasurer Signature: Date: