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CORPORATE POLICY
DEPARTMENT:
FINANCIAL SERVICES
SECTION:
COLLECTION OF PROPERTY TAXES
APPROVAL:
COUNCIL
POLICY NUMBER:
2016-04-01
EFFECTIVE DATE:
April 11, 2016
AMENDED DATE:
January 13, 2025 by Resolution of Council
1. PURPOSE:
To establish a policy that provides guidance to staff for effective and efficient collection of property
taxes and to ensure that all taxpayers are treated fairly and equitably with respect to the collection of
their property taxes.
2. POLICY STATEMENT:
The guidelines contained in this policy serve to supplement the provincial legislation that governs
this area, especially for situations where a choice is provided allowing for Treasury's discretion, and
for issues when the legislation is silent.
The scope of this document is intended to cover only the aspects of "collection and delivery" of
property taxes and any amounts added as taxes for collection.
The document will not incorporate specific "billing" policies as these are covered annually with the
Interim Billing and Final Billing Collection By-Laws as well as under the Municipal Act, 2001.
4. ACCOUNTABILITY:
The Treasurer and Taxation Coordinator are responsible to ensure that outstanding Property Tax
collection processes are performed in accordance with this policy and all applicable legislation. In
addition, the Treasurer, and Taxation Coordinator, or delegate are responsible to:
- Ensure this policy remains consistent with current legislation;
- Ensure applicable staff are aware of and trained on this policy;
- Communicate any policy revisions to applicable staff; and
- Assess overdue Property Tax accounts to ensure tax collection processes are performed in
accordance with this policy
3. SCOPE:
5. DEFINITIONS:
Municipal Tax Sale Proceedings - means the "Sale of Land for Tax Arrears" according to the
proceedings prescribed under Part XI of the Municipal Act and Ontario Regulation 181/03.
Penalties and Interest - means amounts applied by the Municipality to unpaid Property Tax
accounts, in accordance with Section 345 of the Municipal Act, 2001.
Preauthorized Payment Plan (PAP) - where the owner has authorized the Town to directly withdraw
funds from their bank account on certain dates.
Property Taxes - means the total amount of taxes for municipal, county and school board purposes
levied on a property and includes other amounts added to the tax roll as may be permitted by
applicable Provincial Legislation.
Tax Arrears - means any portion of Property Taxes that remain unpaid after the date on which they are
due.
6. PENALTY & INTEREST CHARGES:
In accordance with Section 345 of the Municipal Act, 2001, Interest at a rate of 1.25%
is added to previous years' arrears and Penalty at a rate of 1.25% may be added to over-
due current taxes on the day after the due date; and is added on the first day of each month
thereafter.
Penalty and Interest charges are adjusted only in accordance with the following situations:
- Tax Adjustments made under section 357/358 of the Municipal Act, 2001;
- Assessment Review Board Decisions;
- Payments that have been received before month end but have not been processed
through the tax system prior to penalty and interest being added;
- Approved by the Treasurer or Taxation Coordinator as a gross or manifest clerical error
7. PAYMENTS:
Payment of taxes must be received in the Municipality's administrative office, on or before the
due date. Payments not received on time are subject to Penalties and Interest. The following are the
methods of payment available for the property owner's use:
1. Telephone or Internet (online) Banking - using the nineteen-digit roll number as the account
number (property owners must allow at least 2-3 business days in order for the payment to
reach the Town of Shelburne's financial institution) payment will be deemed to be made on the
date the payment is received by the Town.
2. Visa or MasterCard through Paymentus. This can be accessed online or by telephone (property
owners must allow at least 2-3 business days in order for the payment to reach the Town of
Shelburne's financial institution) payment will be deemed to be made on the date the payment is
received by the Town.
3. One of the Municipality's Preauthorized Payment Plans (PAP)
-
Instalment Based - 10-Monthly Payments
-
Instalment Based - 12-Monthly Payments
4. Post Dated Cheque(s)
5. In Person - at the counter by cash, cheque, debit or money order
6. In the secure drop box located at the Victoria Street staff entrance door that is also accessible
after hours (payments received after hours will be processed and date stamped on the following
business day)
7. Payments by a mortgage holder
8. Payment made by regular mail will be deemed to be made on the date the payment is received
by the town, not the day it was mailed.
Receipts will be provided for all cash payments and upon request by the registered owner for all other
methods of payment. To registered owners whose payments are made on their behalf by a
mortgage company, the receipted tax bill will be sent to the registered owner once payment has been
received.
In accordance with the Municipal Act, 2001 Section 347 payments shall be applied as follows:
1. First to the oldest and all Penalty and Interest Charges
2. Then to the taxes starting with the oldest taxes up to the current taxes
3. Then to other charges that have been added to the roll (if any)
8. RETURNED PAYMENTS:
Payments that are returned by the bank marked "insufficient funds or non-sufficient funds" will be
subject to an NSF fee as set out in the Town of Shelburne's annual User Fees and Charges By-Law
for Municipal Services, Programs and Facilities. A notice will be mailed to advise the owner.
If the payment was made through the Preauthorized Payment Plan, a letter will be sent to advise
that the amount returned, and applicable finance charges and applicable penalties will be due
immediately. If any two payments should be returned within a calendar year, the enrolment in the
Preauthorized payment plan will be terminated.
9. TAX ARREARS COLLECTION:
Realty taxes are a secured special lien on land in priority to any other claim (except a claim by the
Crown). Taxes may be recovered (with costs) as debt to the Municipality from the registered owner
and/or any subsequent owner of the property.
The Municipality will primarily use the following methods to collect Tax Arrears:
- Verbal communications;
- Monthly Tax Arrears Statements;
- Annual Auditor Verification Letters;
- Sending a personalized reminder letter to those approaching one year in arrears;
- Sending a personalized reminder letter to those approaching two years in arrears;
- Arranging a satisfactory term of payment that significantly reduces the previous and current taxes;
- Legal action
- Municipal Tax Sale Proceedings
To remind property owners that their tax account is not in good standing, the Finance Department shall
send a reminder notice to each property owner whose account is over five dollars ($5.00) in arrears.
This shall take place at the beginning of each month following the addition of the monthly Penalty and
Interest charges.
At least once per year the Municipality shall review its Property Tax Aged Trial Balance for owners
whose taxes are approaching one (1) and two (2) years in arrears. A personalized reminder letter will
be sent to the affected properties providing them with options and giving them the opportunity to bring
their account into good standing. If the letter is a Final Notice, a deadline date will be given and no
further notices will be sent after that date has passed.
Payment arrangements may be entered into by the Treasurer or the Taxation Coordinator, with a
property owner who is in tax arrears, prior to the file being forwarded to the Town's solicitors to
commence Municipal Tax Sale Proceedings under the Municipal Act. However, payment
arrangements must include all tax arrears, current taxes, accruing estimates of future taxes as well
as Penalties and Interest and be sufficient to ensure payment in full is realized within a reasonable
period as outlined in the chart below. Penalties and Interest will continue to accrue during all
such payment arrangements until full payment on the account has been made.
If acceptable payment arrangements are negotiated, the account will be monitored for compliance. If
there are two consecutive returned payments, or two payments are returned or "missed/not made"
within six months, the payment arrangement will be deemed void and the taxpayer will be advised that
payment in full, by certified cheque or money order, is required or the account will be sent to the
Town's solicitors to commence Municipal Tax Sale Proceedings. No partial payment to the
negotiated arrangement will be accepted. If a payment arrangement has been accepted, and terms
are not met and the payment arrangement has been made void by the municipality, a new payment
arrangement will not be considered by the municipality.
MAXIMUM NEGOTIABLE PAYMENT ARRANGEMENT TERM
Staff Level for Authorization
Residential
Non-Residential
Treasurer or Taxation Coordinator
12 Months
6 Months
10. MUNICIPAL TAX SALE PROCEEDINGS:
If acceptable payment arrangements are not negotiated prior to the deadline date provided in the Final
Notice, then all properties more than two (2) years in arrears shall be subject to Municipal Tax Sale
Proceedings.
The Town of Shelburne's municipal solicitors will be engaged to carry out the Tax Sale Process as
outlined in the Municipal Act, 2001 and Ontario Regulation 181/03
If a Tax Arrears Certificate has been registered against a property under Section 373(1) of the
Municipal Act, no partial payments can be accepted by the Municipality. All further correspondence
regarding the tax arrears on the account will take place directly with the Town's appointed solicitors.
Should an Extension Agreement be discussed at this point with the property owner and the Town's
appointed solicitors, the Extension Agreement may be presented to the Town's Treasurer for review
and approval. It is at the discretion of the Treasurer or designate as to whether the Extension
Agreement is accepted on behalf of the Municipality.
Payment of the Cancellation Price will include all and any fees incurred by the Municipality during the
collection process and in accordance with the Municipal Act, 2001.
Failure to provide payment in full within the prescribed time following of the registration of the Tax
Arrears Certificate will result in the property being advertised for Sale by Public Tender in accordance
with the Municipal Act, 2001 and Ontario Regulation 181/03.
11. DELIVERY OF PROPERTY TAX BILLS:
The Town of Shelburne issues 2 Property Tax Bills per year, with 2 due dates on each bill (4 payments
per year). The Interim Billing is sent in January with payments due in February and May. The Final
Billing is sent in July with payments due in August and October.
Property Tax due dates are also listed on the Town of Shelburne's website, www.shelburne.ca
Property Tax bills are either mailed to the mailing address on file or emailed to the email address
specified by the property owner. Once Property Tax Bills are issued and mailed/emailed, it is the
responsibility of the property owner to ensure receipt of their property tax bill, and make the payment
specified by each due date.
Additional instalment due dates may occur in the event of a Supplemental Property Tax bill as a result
of assessment changes.
If an owner of a property fails to notify the Municipality of a change in mailing/email address, resulting
in lost or the return of their mail, no further action will be taken by the Municipality to locate the owner.
12. MISCELLANEOUS:
Credit Balances:
From time-to-time property tax accounts may experience credit balances for various reasons such as
reduction in assessment, tax class change, duplicate payment, payment in error or overpayment.
Credit balances may be refunded if the owner makes a request in writing and if all instalments billed
have been cleared. If the credit remains on the account, it will be applied to the next instalment(s)
due.
Taxes Owing - Itemized Statement - Tax Certificate:
In accordance with Section 352(1) of the Municipal Act, upon the written request of any person, the
Treasurer shall provide that person an itemized statement of all amounts owing for taxes.
The fee for this service is set out in the Town of Shelburne's User Fees and Charges By-Law adopted
annually, and includes the following types of requests:
- Tax Certificate (for refinancing or in accordance with the Municipal Act)
- Express Tax Certificate (same day)
- Property Certificate (includes water and sewer - and prompted by ownership changes)