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Prince
TOWNSHIP
ASH simply Reantipfrl, Natarally Prince
THE CORPORATION OF THE TOWNSHIP OF PRINCE
BYLAW 2025-34
BEING A BY-LAW TO FORMALLY ADOPT A TAX COLLECTION POLICY FOR
THE CORPORATION OF THE TOWNSHIP OF PRINCE
WHEREAS the Municipal Act, 2001 is the governing legislation that sets out tax billing and
collection processes and procedures.
NOW THEREFORE the Council of the Corporation of the Township of Prince hereby enacts
as follows:
1. THAT the Tax Collection Policy attached as Schedule ‘A’ forms part of this by-law;
2. THAT this policy will provide guidance to both Council and Staff and will provide a
basis for decision-making relating to tax billing and tax collection procedures for alll
ratepayers in the municipality;
3. THAT this policy is designed to be implemented in accordance with the governing
legislation. Should there be any incongruences between the policy and the
governing legislation, the provisions of the governing legislation will prevail;
4. THAT and any and all former Tax Collection Policies are hereby repealed; and
5. THAT this By-law shall become effective upon passing.
ENACTED and PASSED in Open Meeting this 8" day of July 2025
Mayor
Melanie Mageran
Clerk call 4 oti
Sam Carolei
Schedule “A” to By-law 2025-34
PRINCE TOWNSHIP TAX COLLECTION POLICY
Policy Type: Finance
Policy Title: Property Tax Collection Policy Approval Date: July 8", 2025
This Policy will provide direction to staff in the timely and efficient billing and collection
of property tax levies.
The Corporation of the Township of Prince will fallow a prescribed policy for the billing
and collection of property tax levies. This policy will conform to current legislation and
the Municipal Act, 2007.
This policy will also provide an open and transparent framework for the tax billing and
tax collection process and will provide a reference document for municipal staff and
Council in their communications with ratepayers.
Authority:
This policy is enacted under the authority of the Municipal Act, 2007 and may be
amended as needed.
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.
Scope
This policy applies to the Treasury Department. The Treasurer shall report to Clerk and
Council on the status of Tax Collection twice a year and will make recommendations to
Council at the time of budgeting.
Schedule “A” to By-law 2025-34
These procedures may be updated from time to time to reflect current legislation,
continuous improvement objectives, or technological changes. The Treasurer will
review all procedures prior to implementation and notify the council of updates.
Responsibility
The Treasurer is responsible for ensuring that all tax collection procedures conform to
legislation and this policy.
Definitions
“Tax Arrears” — any taxes outstanding following the due date for which they have been
levied.
Guidelines For Tax Billing
Real Property Tax is levied on the assessment for real property within the Municipality in
accordance with Section 307 of the Municipal Act, 2007.
Standard Tax Billings
Interim Tax Bills will be issued in January and will be due on the dates specified in the
by-law passed annually to provide for an Interim Levy. The preferred due dates shall be
the 25th of the month of February and the 25th of the month of May. The amount billed
is calculated as no more than fifty percent of the previous year’s total tax levy.
Final Tax Bills will be issued in June and will be due on the dates specified in the by-law
passed annually to adopt the budget, set the tax rate and establish due dates for taxes.
The preferred due dates shall be the 25th of the month of August and the 25th of the
month of October. The amount billed will be calculated based on assessment value on
the returned assessment roll and the final tax levy as approved by Council through the
Annual Budget in accordance with Subsection 312(2) of the Municipal Act, 2007.
Due Dates will be clearly identified on the tax bill in accordance with the levying by-law
passed by Council.
Tax bills will contain all required information as set out in Subsection 343(2) of the
Municipal Act, 2001.
MAILING
Schedule “A” to By-law 2025-34
The Municipal Act, 2001 Subsection 343(1) requires tax billing to be postmarked and
mailed no less than 21 calendar days prior to the due date. The Township of Prince
also offers eBilling as an alternative to paper billing.
Tax bills sent via eBilling are deemed to have been received on the date they are sent.
It is the responsibility of the property owner to ensure that the Township has the correct
and up-to-date email address on file. Failure to receive a tax bill does not excuse a
taxpayer from the responsibility of payment by the due date or from any resulting
penalty or interest.
Supplementary Tax Billings
There are two sections of the Assessment Act, 7990 that allow for taxation of ratable
property not included in the annual assessment roll. They deal with Omissions and
Additions to the roll as follows:
Omissions — Section 33 of the Assessment Act, 1990 allows for the
taxation of real property that has been omitted from the roll. This
provision allows for taxation in the current year, plus a maximum of two
preceding years.
Additions — Section 34 of the Assessment Act, 1990 allows for the taxation
of real property 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.
Supplementary Tax Bills will be generated as soon as possible after each
Supplementary Roll is received from MPAC and mailed in the same manner as Interim
and Final tax bills. The due date for a credit amount will be the date the bill is issued.
The due date for taxes owing will be the end of the month, providing that date is not less
than 21 days from the date the bill is issued, or the end of the following month.
Application Of Payments
Section 347 of the Municipal Act, 2007 outlines how payments are applied to
outstanding balances:
First, the payment shall be applied against late payment charges owing in
respect of those taxes according to the iength of time the charges have
owed, with the charges imposed earlier being discharged before charges
imposed later.
Schedule “A” to By-law 2025-34
Secondly, the payment shall then be applied against the taxes owing
according to the length of time they have been owed, with the taxes
imposed earlier being discharged before taxes imposed later.
Partial payment will NOT be accepted on a tax account where a tax
arrears certificate has been registered against the property unless an
extension agreement has been granted.
It is the policy of the Municipality not to issue a refund of overpayment or as a result of
adjustments. The Treasurer may at his/her discretion issue a refund in extenuating
circumstances when the ratepayer insists on and sends a written request. Otherwise,
adjustments are credited to the tax account.
Accepted Payment Methods
Payments are payable to The Corporation of the Township of Prince at 3042 Second
Line West Prince Township ON, P6A 6K4, in the following methods:
Interac (debit) or cash in person at the office during regular business
hours.
Cheque — delivered in person, in the drop box after hours, or by mail.
The date the cheque is received in the office will be considered the date of
the payment. Postdated cheques will be accepted and held until the
negotiable date. A service charge of $50.00 will apply to any cheque
returned due to non-sufficient funds (NSF).
Payments made by Mortgage companies or financial institutions on behalf
of taxpayers. The date received in the office will be considered the day
the payment was made.
Telephone or Internet Banking.
Payments made at a financial institution will be considered received on
the date of the payment notification is received by the municipal office.
Monthiy Payment Plans may be established to address arrears via a Tax
Arrears Payment Agreement (TPA).
Schedule “A” to By-law 2025-34
Payments tendered in US funds (cheques only) will be accepted based on
the exchange rate established by the Municipality’s bank on the day of the
deposit. A $25 processing fee applies to all U.S cheques.
Third party cheques will NOT be accepted.
Tax Collection Procedures
Review of all past-due accounts will be done on a regular basis. An updated Arrears
Report will be generated monthly. There are a number of additional aids that will be
used to assist in collection of property tax accounts before proceeding to tax
registration and sales. Arrears will be managed by the Treasurer to ensure collection
and with regard to the impact on the budget.
Arrears Notices are mailed a minimum of four times per year, after each billing due
date. The first three notices are mailed only to those taxpayers with a minimum
balance selected by the Treasurer. The fourth and final notice is mailed to all those
taxpayers with a balance greater than $10.00.
Personalized letters are sent out at the discretion of the Treasurer as part of their
duties to manage and collect Arrears. Such letters shall request a payment ora
response by a specified date. If compliance is not forthcoming, an additional letter will
be mailed. A copy of all correspondence shall be placed in the Roll File for that
property.
When possible, telephone contact will be made to taxpayers with large past due
balances. All cails will be documented on the roll in the “Notes” Section of TMM, the
tax program for the municipality. A copy of ail correspondence shall be placed in the
Roil File for that property.
The Municipal Treasurer shall encourage property owners in tax arrears to
establish a monthly payment plan to repay outstanding taxes in a timely manner,
to avoid tax sale registration.
Tax Arrears Payment Plans (TPA):
1. Eligibility and Purpose:
The Municipal Treasurer may offer formal monthly payment plans to property
owners with tax arrears, with the goal of fully resolving outstanding balances
Schedule “A” to By-law 2025-34
within a reasonable timeframe and avoiding enforcement actions such as tax
registration or sale under the Municipal Act, 2001.
2. Conditions:
To qualify, the following conditions must generally be met:
The arrears exceed $100 or are more than 2 months past due;
» The owner agrees to a monthly repayment schedule sufficient to clear all
arrears within 24 months, unless otherwise approved by the Treasurer in
exceptional circumstances;
o Current taxes must be kept up to date during the repayment period;
o All penalty and interest will continue to accrue until the account is paid
in full:
Payment plans are to be documented and signed by both the property
owner and the Treasurer.
2. Default
Failure to comply with the terms of the payment plan, either by missing
payments or falling behind on current taxes, will result in immediate
cancellation of the agreement and initiation of tax sale proceedings in
accordance with the Municipal Act, 2007.
3. Exceptions
The Treasurer may approve longer payment terms for ratepayers in
exceptional hardship or under approved assistance programs, provided that
the account remains in good standing and the agreement is reviewed
annually.
Collection Remedies
Penalty and Interest on Overdue Accounts
Application of Penalty and Interest
In accordance with Section 345 of the Municipal Act, 2001 and the Municipality's
annual Tax Rate By-law:
+ Apenalty of 1.25% shall be added on the first day of default on any current tax
installment not paid by the due date.
+ Thereafter, interest at a rate of 1.25% per month will be added on the first day of
each month on ail outstanding balances in default, including any unpaid penalty,
until December 31st of the taxation year.
Schedule “A” to By-law 2025-34
Interest in Subsequent Years
Taxes remaining unpaid as of January 1st of the following year shall incur interest at a
rate of 1.25% per month, applied on the first day of each month for as long as the
taxes remain outstanding.
« Non-Compounding
Penalty and interest charges are not compounded. They are calculated on the
original amount in default, not on previously applied penalty or interest.
- Adjustments and Exceptions
Penalty and interest may only be reversed or adjusted under the following
circumstances:
+ Authorized tax adjustments under Sections 357 or 358 of the Municipal Act,
2007;
At the discretion of the Treasurer or Clerk
* By resolution or direction of Council;
+ Clerical or manifest errors, as confirmed and approved by the Treasurer.
Rent Attornment — Rent Attornment is an option for a tenant occupied property.
The Municipal Act, 2001 Subsections 350(1) and 350(2). This option should be
carefully considered before imposing as it may cause undue hardship on the property
owner.
Bailiff Action — Bailiff Action may be used as provided for in Section 349 of the
Municipal Act, 2001. Taxes may be recovered as a debt due to the Municipality from
the taxpayer originally assessed for this cost and from any subsequent owner of the
assessed land or any part of it. Treasurer is authorized to engage a qualified bailiff firm
without issuing a formal request for quotation or tender, where:
* The service is required urgently to protect the municipality's financial interest;
: The bailiff possesses unique qualifications or legal standing necessary to carry
out the enforcement.
- Orit is otherwise impractical to solicit multiple bids.
Such engagements shall be permitted as an exemption from the Procurement By-law
under the non-competitive procurement provisions, and the Treasurer shall retain
documentation detailing the terms of the engagement.
Collection Agency - lf a taxpayer does not respond to notices or does not make a
reasonable attempt to enter into a suitable payment arrangement, and if there is a
Schedule “A” to By-law 2025-34
possibility that taxes may not ultimately be, or have been determined not to be
collectable by tax sale or by another method, the Treasurer may proceed to engage the
services of a collection agency to attempt the collection of the taxes. Collection
agencies charge a commission on the amounts that they collect. Section 304 of the
Municipal Act, 2001, 5.0. 2001, ¢.25 allows Municipalities to recover the commission
charged for the recovery of debt including taxes. All collection agency fees shall be
added to the tax account in accordance with the Municipal Act, 2007.
Tax Registration — Tax Registration and sale falls under Part XI ‘Sale of Land for Tax
Arrears’. The Municipality will only consider Tax Registration for properties that are in
the second year of arrears. The property owner or interested party has one year from
the date of registration in which to redeem the property for all taxes; all interest and
penalties; all outstanding associated legal costs; all tax registration associated costs
and all administrative costs. It is recommended that a qualified tax registration firm be
used to process all statutory notices and declarations due to the complexity and strict
timing requirements under the Municipal Act, 2007. Tax registration and sale is a last
resort and will be avoided where possible by encouraging the taxpayer to either make
full payment or establish a mutually agreed upon payment plan.
Collection Process
Priority is given to properties that are two or more years in arrears.
Any Notice sent by ordinary mail is considered delivered to and received by the
addressee within five days of mailing, unless the notice is returned by the Post Office
or an error in the mailing address is proven. Returned mail due to an invalid or outdated
address does not invalidate the Municipality's collection rights. It is the taxpayers’
responsibility to notify the Municipality of any mailing address changes, Subsection
343(6) of the Municipal Act, 2007.
For tax accounts two years in arrears or more, a collection letter will be sent to the
designated primary property owner listed in the Roll Book, advising of the tax arrears
situation and requesting, as a minimum, full payment or satisfactory payment
arrangements of the longest outstanding taxes owing, including all associated interest
and penalties.
If there is no response to the collection letter within 30 days; at the discretion of the
Treasurer a second letter or a phone call may be issued. The Treasurer also has the
option of issuing a Third and Final Notice and with no further communication, will begin
initiating registration under Section 373.
Schedule “A” to By-law 2025-34
At any point in the collection process the property owner(s) can enter into a Tax
Arrears Payment Arrangement — “TPA”. Satisfactory TPA’s would include a
commitment to make specific payments on prearranged dates. Interest and
penalties will continue to accrue during all such agreements until full payment on the
account has been made.
If a TPA is agreed upon, the account is monitored for compliance and follow-up is done
as required. The Municipal Tax Collector has the full authority of Council to execute
and monitor compliance of TPA’s.
Violation of any agreed TPA will cause the agreement to become null and void and will
result in the continuation of the collection process described above. At the discretion of
the Treasurer, he/she may immediately place the property in the process of collection
of taxes by Tax Registration.
The Treasurer has authority and a duty to exercise discretion fairly in the application of
this policy. Where unusual circumstances are apparent in order that consistent
fairness is provided to the taxpayer and municipal collection procedures are
maintained in principle.
Reporting
The Treasurer shall report to Council annually, the following matters:
The allowance for doubtful accounts including outstanding taxes,
penalty and interest;
The status of tax collection efforts.
Legislation Changes
As legislation is always evolving and changes are frequent, current legislation will take
precedence over any section of this policy that becomes obsolete. Every effort will be
made to update and maintain this policy as substantial changes occur.
| Approval Date: July 8 2025 | Approved by: | Council 7 |
1.Amendment Date: Approved by:
Prince
we TOWNSHIP
Asm Staiply Beautiful Natoally Prince
THE CORPORATION OF THE TOWNSHIP OF PRINCE
Tax Arrears Payment Agreement
L the undersigned, agree and accept the terms of the payment
schedule as set out below for payment of tax arrears owing on the properties described below as:
Roll , address: in Prince
Township ON, P6A 6K4.
| agree to pay Prince Township a minimum of $ ,
, until such tax arrears and interest have
been paid in full.
| understand that default of payment as established above will cause this agreement to become
null and void. Default will result in the continuation of tax collection procedures according to the
municipality’s Tax Collection By-Law, and may result in immediate action to collect the tax arrears
and any associated legal costs and/or all tax registration associated costs.
Property Owner Date
Treasurer Date
3042 Second Line W. Prince Township, ON P6A 6K4
Phone: 705-779-2992 * Email: [email protected]