ASSESSMENT UNIT - CHARITABLE REBATE PROGRAM - POLICY
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Approved By |
Program Manager
Assessment |
Approval Date |
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Section |
Assessment Unit |
Effective Date |
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Subsection |
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Version No. Revision Date |
1.2 2012-feb-09 |
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Policy Statement The City of Ottawa’s Charitable Rebate policy is to ensure the effective and efficient program delivery of processing the yearly Charitable Rebate Program. This includes all facets of the property tax rebate program administration as well as conducting an annual program review that is made available to City Council. |
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Purpose The City of Ottawa is committed to ensuring the prompt, professional and legal treatment of all organizations that apply for property tax rebates under the Charitable Rebate Program. |
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Application This policy applies to interactions between Revenue Branch staff and organizations that apply for rebates under the Charitable Rebate Program. |
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Policy Requirements The City of Ottawa is required by Section 361 of the Municipal Act, 2001 to rebate at least 40% of the property taxes paid by eligible charities. An organization is eligible if: · It is a registered charity as defined in Subsection 248 (1) of the Income Tax Act (Canada) with a registration number issued by the Canada Revenue Agency · It occupies property in a commercial or industrial class; and · It applies for the rebate by submitting an application form between January 1 of the year for which the rebate is sought and the last day of February of the following year Payment termsThe City shall: ·
Calculate
the taxes or amounts paid on account
of taxes on eligible property an eligible charity occupies based on the
current value assessment, if available, of the space occupied by the charity
as determined by the Municipal Property Assessment Corporation or based on
the charity’s portion of the total square footage of the property ·
Issue at least 50 per cent of the rebate to an eligible charity within 60 days of
receiving the application and property data confirmation · Pay the balance within 120 days of receiving the fully completed application, with adjustments (if any) being made after the issuance of final tax bills for the year · Provide calculation details to the charity · If the City fails to rebate within the required time, pay interest at the rate set under subsection 257.11 (4) of the Education Act on the amount of any rebate to which the eligible charity is entitled Late ApplicationsUnder s. 361(3)(7) of the Municipal Act, 2001, the City may
accept applications for a charitable rebate that arrive after the end of
February deadline if “in the opinion of the municipality, extenuating
circumstances justify the applicant being unable to make the application by
the deadline.” Extenuating circumstances are
unpredictable circumstances that are beyond the control of the applicant. They include situations such
as natural or manmade disasters that cause offices to close for an extended
period of time. They do
not include circumstances involving an organization’s personnel issues or
vacation timing. If an
eligible charity submits an application after the deadline, the Program
Manager Assessment shall determine if extenuating circumstances (as defined
above) justify accepting the
application taking into account whether: · The application was submitted as soon as possible given the circumstances; · The circumstances prevented a timely application; and · The circumstances were unforeseeable and beyond the control of the applicant. Assessment ChangesIf the assessment
of an eligible property for a year changes as a result of a request under
section 39.1 of the Assessment Act, an appeal under section 40 of the act
or an application under section 46 of the act: 1. The rebate shall be redetermined based on
the new assessment. 2. If the redetermined rebate is higher than
the original rebate paid to the charity, the increased amount shall be paid
to the eligible charity if the eligible charity provides documentation
verifying that it paid an increased amount of taxes. 3. If the redetermined rebate is lower than
the original rebate: a.
If the
City has evidence that the eligible charity was or will be reimbursed for
excess tax payments, the City shall take action to collect the excess rebate
paid after providing the charity with 120 days notice of the debt. b.
If the
City has no evidence that the eligible charity was or will be reimbursed for
tax payments, the City shall not take action to collect the excess rebate
paid to avoid placing undue hardship on the eligible charity 4. If the assessment change results in the charity no longer being eligible
for a rebate, any rebate paid becomes a debt due to the City and the City
shall take action to collect the debt after providing the charity with 120
days notice of the debt. |
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Responsibilities The Finance Specialist I is responsible for duties such as processing applications, ensuring eligibility and responding to enquiries. The Finance Specialist II is responsible for analyzing and oversight, preparing reports and being aware of compliance with all legislation. The Coordinator, Finance – Assessment (Assessment Control) is responsible for reviewing and recommending the charitable rebate and corresponding refunds to eligible organizations. The Program Manager Assessment is responsible for approving the charitable rebate and corresponding refunds to eligible organizations. |
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Monitoring/Contraventions Conflict of Interest: If an employee encounters an application or inquiry from an organization where that employee could be perceived to have a conflict of interest, the employee must promptly and fully disclose the possible conflict in writing to their immediate Supervisor and seek direction on the matter. Compliance: The Revenue Branch will monitor the application of this policy. Failure to comply with this policy may result in disciplinary action against an employee up to and including dismissal. |
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References This policy is linked with the following policies and procedures:
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Legislative and Administrative Authorities Federal
Provincial
Municipal
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Definitions For a list of all definitions, refer to the Glossary. |
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Keyword Search Property Tax Relief Registered Charitable Organization Registered Charity CRA Rebate Tax rebate Commercial tax class Industrial tax class |
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Enquiries For more information on this procedure, contact the Program Manager, Assessment at 613-580-2424, extension 13716. |
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Appendices |
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Revision History
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