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Township of South Algonquin Property Tax and Collection Policy
1
CORPORATION OF THE TOWNSHIP
OF SOUTH ALGONQUIN
BY-LAW NO. 21-676
Being a By-Law to adopt a Property Tax and Collection Policy for the
Township of South Algonquin (Rescinds By-Law No. 19-600)
WHEREAS Section 224b of the Municipal Act, 2001 as amended (the Act) requires all
municipalities to develop and evaluate the policies and programs of the municipality;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWNSHIP
OF SOUTH ALGONQUIN ENACTS AS FOLLOWS:
1.
The Property Tax and Collection Policy attached hereto as Policy NO. FIN-002-02
is hereby approved and adopted.
2.
This By-Law shall come into force and take effect on the 1st day of December 2021.
3. That By-Law Number 19-600 and Policy FIN-002-01 is hereby repealed.
READ A FIRST AND SECOND TIME, this 1st day of December 2021.
__________________________
______________________________________
MAYOR - Jane A.E. Dumas CAO/ CLERK-TREASURER - Bryan Martin
READ A THIRD TIME AND FINALLY PASSED this 1st day of December 2021.
___________________________
______________________________________
MAYOR - Jane A.E. Dumas CAO/ CLERK-TREASURER - Bryan Martin
Township of South Algonquin Property Tax and Collection Policy
2
CORPORATION OF THE TOWNSHIP
OF SOUTH ALGONQUIN
SUBJECT:
Property Tax and Collection Policy
TYPE:
Finance
POLICY NO. FIN-002-02
DATE:
Dec. 1, 2021
REVIEW DATE:
December 2026
FREQUENCY:
5 years
REL. BY-LAW:
21-676
PAGE #:
7
This Policy is to be implemented in accordance with the governing legislation. In the
event of a contradiction between the Policy and the governing legislation, the
provisions of the governing legislation will prevail.
Policy:
The Responsibilities of the Finance Department are to:
1. Ensure proper billing of the levy for Municipal and Educational Taxation purposes to
coincide with budgetary and legislative requirements for the year;
2. Provide prompt, efficient and courteous service to the taxpayers of the Municipality;
3. Ensure that proper collection procedures are applied in reference to the following
legislation;
- The Municipal Act
- The Municipal Affairs Act
- Municipal By-Laws
- The Municipal Interest and Discount Act
- The Bailiffs Act
- The Small Claims' Court Act
- Any legislation governing amounts to be collected in like (same) manner as taxes;
- Assessment Act
- Any new legislation pertaining to collection of taxes
4. Apply such collection policies in a consistent manner ensuring all taxpayers are treated
in accordance with various governing statutes.
5. Maximize necessary controls to ensure proper allocation of payment and custody of
funds for proper banking and recording procedures.
Policy Procedures:
The purpose of the Finance Department is to provide prompt billing of the levy and to
ensure collection in order to meet the approved budgetary expenditures for the fiscal year.
It is important that these obligations are carried out in a timely and consistent manner.
Revisions
March 26, 2018 - Policy FIN-002-00 Created
June 5, 2019- Policy FIN-002-01 Revision to 11.0 Amount Owing Added to Tax Roll. Rescind By-Law 18-
561 and Policy No. FIN-002-00
December 1, 2021- Policy FIN-002-02 Revision to 6.01 Settlement of Accounts and 8.01 Steps and Timing
of Collection Procedure. Rescind By-Law 19-600 and Policy FIN-002-01
Township of South Algonquin Property Tax and Collection Policy
3
1.0
Real Property Tax:
1.01
Real Property Tax is levied on the assessment for real property within the
Municipality in accordance with Section 307(1) of the Municipal Act, RSO, 2001.
2.0
Standard Tax Billings:
2.01
Due Dates for the payment of taxes shall be dependent, in the case of the Final Bill,
on the final approval of the Annual Budget by Council and the subsequent passing
of a levy by- law. Notwithstanding that there may be fluctuations in due dates as a
result of budget approval, tax billings will normally be as follows:
- Interim Tax Billing - produced in March with installment dates in March and May
- Final Tax Billing - produced in August with installment dates in August and October
2.02
The specific due dates will be identified in both the Interim and Final Levy By-
laws for the Township. Where due dates are delayed as a result of factors beyond
the Township's control, they shall then be set with regard to the notice provisions
below.
2.03
Interim Tax Billings are produced in March based on the returned assessment roll.
The tax billing will be calculated to produce a tax bill no more than fifty percent
(50%) of the previous year's total taxes billed for each property in accordance with
Section 317 of the Municipal Act. The tax billing may include fifty percent (50%)
of any local improvement charges, area charges, business improvement area charges
and any special charges levied by the municipality or required under provincial
legislation (i.e. Bill 140). Amounts deemed to be taxes may be added to the interim
billing at one hundred percent (100%).
2.04
Final Tax Billings are produced in August based on tax rates established by by-
law (Section 312(2) from the budget requirements of the Municipality and the
Ministry of Education. The tax billing will be calculated to produce a tax billing
equal to the assessed value and the appropriate tax rate, all local improvement
charges, area charges, business improvement area charges, any special charges
levied by the municipality or provincial legislation (Bill 140). The Interim tax
billing will be deducted from the total tax amount calculated in order to produce
the final tax billing.
3.0
Mailings:
3.01
The Municipal Act, Section 343 (1) requires tax billings to be post marked and
mailed not later than twenty one (21) calendar days prior to the date of the first
installment due date. The Municipality will endeavor to post mark and mail the tax
billing no less than twenty-five (25) calendar days prior to the first installment due
date where ever possible.
4.0
Bill Format:
4.01
The tax billing issued will meet all requirements of the provincially legislated
standard tax bill. Arrears are included solely in the first installment due date
amount. Installment due dates will be indicated on the payment stubs. Billing
messages may be used to relay information to ratepayers.
5.0
Supplementary Tax Billings:
5.01
There are two sections of the Assessment Act that allow for taxation of rate able
property not included in the annual revised assessment roll, omissions and additions
to the roll.
Township of South Algonquin Property Tax and Collection Policy
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5.02
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.
5.03
Additions: Section 34 of the Assessment Act allows for 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.
5.04
Supplementary tax bills are issued and mailed in the same manner as the Interim &
Final tax bills with the exception a separate levying by-law is not required. The
number of installments and due dates of the supplementary bills will be
determined by the Finance Department.
Penalties and interest are charged on supplementary taxes outstanding.
6.0
Settlement of Accounts:
6.01
Payment will be in the form of cash, interac debit, interac e-Transfer, internet and
telephone electronic bank transfers, cheques, money orders, and bank drafts made
payable to the Township of South Algonquin. Cheques which are post-dated to the
tax due date will be accepted and held by the Finance Department. Payment of
taxes will be accepted at the Township of South Algonquin Office, at all local
banks, Credit Unions and Trust Company locations or via mail to:
Township of South Algonquin
7 Third Ave. P.O. Box 217
Whitney, ON
K0J 2M0
6.02
Third party cheques will be accepted at the discretion of the CAO/Clerk-Treasurer.
6.03
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 taxpayer, a refund cheque will be
requisitioned, after allowing sufficient time (15 business days) for the taxpayer's
cheque to clear their financial institution. The minimum amount for a refund request
to be processed will be $25, unless the amount is in excess of the next tax
installment that is yet to become due.
6.04
If two cheques are returned N.S.F. on a taxpayers account, personal cheques from
that taxpayer, for any financial transaction within the municipality, will no longer
be accepted unless they are certified. This restriction will be placed on the
individual for a period of one year on the first restriction, and if there is a
reoccurrence of two more NSF payments, cheques will no longer be accepted.
6.05
Should payment of a tax account be tendered in U.S. funds, it will be accepted
at the exchange rate established by the financial institution holding the
accounts of the municipality on the due date.
7.0
Tax Collection Avenues:
7.01
There are five basic avenues set out by legislation to promote timely payment of
taxes as follows:
- Penalty/interest
- Bailiff action
- Collection Agency
Township of South Algonquin Property Tax and Collection Policy
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- Rent attornment
- Tax Registration/Tax Sale
7.02
Penalty/Interest: The rate at which penalty and interest is charged is set by the
Municipal By-Law. Currently the rate is established under the provisions of the
Municipal Act Section 345. The municipality may review this rate each year but
cannot exceed the maximum percentage established at 1.25% per month. The
purpose of penalty is to persuade ratepayers to pay on time. Penalty and interest
shall be charges as set out in the legislation.
7.03
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.
7.04
Collection Agency: Section 304 of the Municipal Act provides that if a
municipality uses a registered collection agency under the Collection Agencies Act
to recover a debt including taxes, the collection agency may recover its costs as
long as the costs do not exceed the amount approved by the municipality.
7.05
Rent Attornment: Under Sections 350 of the Municipal Act, 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.
7.06
Tax Registration/Tax Sale: Properties that are in arrears for two years are
eligible for tax registration under the Part XI, Municipal Act. The property owner
or interested party has one year from the date of registration in which to redeem
the property for all taxes, interest and penalty outstanding plus associated legal
and/or administrative costs. A contracted tax registration firm may be used to
process the required statutory notices/declaration or may be processed by the
CAO/Clerk-Treasurer.
Registration is a last resort and should be avoided if possible, by encouraging the
ratepayer to either make full payment or a mutually agreed upon payment plan.
It is imperative that the schedule for registration be adhered to.
Letters and correspondence should encourage payment.
7.07
Additional Collection Tools: The following additional tools are available to assist
in the collection of realty taxes:
- Reminder notices
- Form or personalized letters
- Telephone follow-up
- Interview
- Title Searches - Interested Party Notification
- External Collection Agencies
8.0
Steps and Timing of Collection Procedure:
8.01
Reminder notices containing prior year tax arrears amounts and related late
payment charges are sent to taxpayers in January, as prescribed by section 348
of the Municipal Act. Subsequent reminder notices are sent after Interim Levy
second installment due date (June) and after Final Levy second installment due
date (November). Reminder notices for less than $5.00 are not produced.
8.02
Any notice sent by ordinary mail is considered delivered to and received by the
addressee unless the notice is returned by the Post Office or an error in the mailing
address is proven. It is the taxpayer's responsibility to notify the Municipal Office
Township of South Algonquin Property Tax and Collection Policy
6
of any mailing address changes. Section 343 of the Municipal Act identifies that tax
bills shall be sent to the taxpayer's residence or place of business or to the premises
where the taxes are payable for unless the taxpayer directs the municipality
otherwise. The direction for the delivery of tax bills continues until it is revoked in
writing by the taxpayer (343(8)).
8.03
Priority of tax accounts for collection is:
I.
Tax Accounts with three or more previous years outstanding
II.
Tax Accounts with two previous years outstanding
III.
Tax Accounts with one previous year outstanding
IV.
Tax Accounts with current year only outstanding
8.04
For tax accounts which indicate taxes three years in arrears, a collection letter is
sent to the property owner (s) advising of the tax arrears situation and asking for a
minimum payment of the longest outstanding taxes owing as well as all associated
penalty charges in full or satisfactory payment arrangements to be made. Three
years arrears collection letters will be sent by regular mail in January and April. If
acceptable payment arrangements are made, the account is monitored for
compliance and follow-up is done as required.
8.05
Satisfactory payment arrangements would be a commitment to make
payments on prearranged dates via a series of post-dated cheques or in
person.
8.06
If there is no response to prior collection letters and the property legislatively
qualifies, a final collection letter will be sent by registered mail in September
advising of the proposed tax sale date.
8.07
The CAO- Clerk Treasurer have the authority to exercise discretion in the
application of these policies where unusual circumstances are apparent in order
that consistent fairness is provided to the taxpayer and municipal collection
procedures are maintained in principal, in accordance with approved policies
and/or where governed by legislation.
9.0
Minimum Balance Write-off:
9.01
In some circumstances there remains a balance owing on a taxpayers account after
a payment is received, which is often a result of interest being added to the
account after a payment amount was agreed upon and mailed in. When the
remaining amount is small enough that the additional cost of collection would not
be deemed worthwhile, it may be expedient to write off the amount. The
Township authorizes the CAO/Clerk-Treasurer to approve such write-offs for
outstanding amount less than $5.00.
10.0 Late Payment Charge Adjustments:
10.1 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 following an Assessment Review Board Decision
- Taxes are adjusted in accordance with a decision of the Courts
- The interest or penalty was charged as a result of the Township's error or
omission.
11.0 Amount Owing Added to Tax Roll:
11.1 Section 398 of the Municipal Act allows the municipality to place unpaid fees and
charges to the municipality on the property tax roll to which the services were provided
regardless of who was in receipt of the said service.
Township of South Algonquin Property Tax and Collection Policy
7
Mayor, Jane A.E. Dumas
CAO/Clerk-Treasurer, Brian Martin
____________________________ _____________________________
Date
Date