7. 2009 INTERIM PROPERTY TAXES AND DUE DATES

IMPÔTS FONCIERS PROVISOIRES POUR 2009 ET ÉCHÉANCES

Committee Recommendations

That Council approve:

1. That the 2009 interim property tax billing be set at 50% of the 2008 Annualized Taxes as permitted by legislation;

2. That the amount protected classes are billed on the interim tax billing be set at the maximum percent of last years' adjusted taxation, as permitted by legislation (50% of the annualized adjusted 2008 taxes);

3. That the following tax due dates be approved for 2009:

i. Interim: March 30, 2009

ii. Final: June 18, 2009

4. That the penalty and interest percentage charge on overdue and unpaid tax arrears remain at the rate of 1.25% per month (15% per year) unchanged from 2008.

RECOMMENDATIONs DU COMITÉ

Que le Conseil approuve :

1. que la facture provisoire des taxes foncières pour 2009 soit établie à 50 % de la taxation annuelle de 2008, comme l’autorise la loi ;

2. que le montant de la facture d'impôt provisoire des groupes protégés soit établi au pourcentage maximum des impôts annuelle rajustés des dernières années, comme il est permis par la loi (50 % des impôts rajustés de 2008) ;

3. que les dates d'échéance des impôts suivantes soient approuvées pour 2008:

i. Provisoire : le 30 mars 2009

ii. Finale : le 18 juin 2009 ; et

4. que le taux de pénalité et d'intérêt facturé sur les impôts impayés et les arriérés d'impôts demeure au taux de 1,25 % par mois (15 % par année), inchangé par rapport à 2008.

DOCUMENTATION

1. City Treasurer’s report dated 12 February 2009 (ACS2008-CMR-FIN-0004).

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

12 February 2009 / le 12 février 2009

Submitted by/Soumis par : Marian Simulik, City Treasurer / trésorière municipale

Contact Person/Personne ressource : Ken Hughes, Manager of Revenue / Gestionnaire, Recettes

Financial Services/Services financiers

(613) 580-2424 x 13485, Ken.Hughes@ottawa.ca

City Wide/à l'échelle de la Ville

Ref N°: ACS2009-CMR-FIN-0004

SUBJECT:	2009 INTERIM PROPERTY TAXES AND DUE DATES

OBJET :	IMPÔTS FONCIERS PROVISOIRES POUR 2009 ET ÉCHÉANCES

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee recommend Council approve:

1. That the 2009 interim property tax billing be set at 50% of the 2008 Annualized Taxes as permitted by legislation;

2. That the amount protected classes are billed on the interim tax billing be set at the maximum percent of last years' adjusted taxation, as permitted by legislation (50% of the annualized adjusted 2008 taxes);

3. That the following tax due dates be approved for 2009:

i. Interim: March 30, 2009

ii. Final: June 18, 2009

4. That the penalty and interest percentage charge on overdue and unpaid tax arrears remain at the rate of 1.25% per month (15% per year) unchanged from 2008.

RECOMMANDATIONS DU RAPPORT

Que le Comité des services organisationnels et du développement économique recommande au Conseil d'approuver :

1. que la facture provisoire des taxes foncières pour 2009 soit établie à 50 % de la taxation annuelle de 2008, comme l’autorise la loi ;

2. que le montant de la facture d'impôt provisoire des groupes protégés soit établi au pourcentage maximum des impôts annuelle rajustés des dernières années, comme il est permis par la loi (50 % des impôts rajustés de 2008) ;

3. que les dates d'échéance des impôts suivantes soient approuvées pour 2008:

i. Provisoire : le 30 mars 2009

ii. Finale : le 18 juin 2009 ; et

4. que le taux de pénalité et d'intérêt facturé sur les impôts impayés et les arriérés d'impôts demeure au taux de 1,25 % par mois (15 % par année), inchangé par rapport à 2008.

BACKGROUND

Sections 342, 343 and 345 of the Municipal Act, 2001, S.O. c.25 (“Municipal Act”) as amended require that tax due dates, penalty and service charges are approved by City Council.

Section 317 of the Municipal Act, requires Council to establish a by-law which sets interim tax billing for uncapped classes (residential and pipeline) and capped classes (commercial, industrial and multi-residential). The amount raised by the interim bill cannot exceed 50% of last year's adjusted annualized taxation.

DISCUSSION

Recommendation 1

This recommendation sets the 2009 interim tax billing at 50% of the 2008 Adjusted Annualized Taxation.

Recommendation 2

This recommendation sets the 2009 interim tax billing for protected classes at 50% of the adjusted 2008 taxes.

Recommendation 3

This recommendation sets the 2009 tax due dates at interim March 30, 2009 and final June 18, 2009.

Recommendation 4

The Municipal Act requires that Council set interest and penalty rates. These rates are consistent with 2008.

CONSULTATION

The staff of the Revenue Division consulted with Legal Services. Due dates will be advertised.

LEGAL/RISK MANAGEMENT IMPLICATIONS:

The setting of the tax due dates, penalty and service charges is an administrative matter required under the Municipal Act. A by-law has been prepared by Legal Services and is attached to this report. There are no adverse legal or risk management implications.

FINANCIAL IMPLICATIONS

There is no impact on the budget if the recommendations for the interim and final tax due dates in this report are accepted. If City Council were to delay the tax due dates, the impact is approximately $1,500,000 per month.

SUPPORTING DOCUMENTATION

Document 1 – By-Law to set the instalment due dates and interest and penalty rates applicable to the collection of property taxes for 2009.

DISPOSITION

Originating Department to take appropriate action. Legal Services to submit the attached By-law to a subsequent meeting of full Council for approval.

DOCUMENT 1

BY-LAW NO. 2009-

A by-law of the City of Ottawa to set the instalment due dates and the interest and penalty rates applicable to the collection of property taxes for 2009.

The Council of the City of Ottawa enacts as follows:

1. In this by-law;

“Treasurer” means the Treasurer or the Manager of Revenue of the Financial Services Branch of the City Manager’s Office of the City of Ottawa.

2. The instalment due date for all real property interim taxes is March 30, 2009.

3. The instalment due date for all real property final taxes is June 18, 2009.

4. The Treasurer is hereby authorized to accept part payment from time to time on account of any taxes due pursuant to Sections 2 and 3 and to give a receipt for such part payment.

5. The acceptance of any part payment pursuant to Section 4 shall not affect the collection of any percentage charge imposed and collectable under Sections 7 and 8 in respect of non-payment of any taxes or class of taxes or of any instalments thereof.

6. Payments received by mail are deemed to be paid on the date of the postmark of the payment.

7. In default of payment of the full amount of any instalment of real property taxes by the due dates set out in Sections 2 and 3, a percentage charge of one and one-quarter percent (1 ¼ %) is hereby imposed as a penalty of non-payment and may be added to any taxes or any instalment or part thereof remaining unpaid at the due date and shall be added on the first day of each calendar month thereafter in which the default continues but not after December 31, 2009.

8. The Treasurer shall add to the amount of the taxes due and unpaid interest at the rate of one and one-quarter percent (1 ¼ %) per month for each month or fraction thereof from the 31^st day of December in the year in which the taxes were levied until the taxes are paid.

9. Nothing contained herein shall prevent the Treasurer from proceeding at any time with the collection of any rate, tax or assessment or any part thereof, in accordance with the provisions of the statutes and by-laws governing the collection of taxes.

ENACTED AND PASSED this day of , 2009.

CITY CLERK MAYOR

Committee Recommendations

That Council approve:

1. That the 2009 interim property tax billing be set at 50% of the 2008 Annualized Taxes as permitted by legislation;

2. That the amount protected classes are billed on the interim tax billing be set at the maximum percent of last years' adjusted taxation, as permitted by legislation (50% of the annualized adjusted 2008 taxes);

3. That the following tax due dates be approved for 2009:

i. Interim: March 30, 2009

ii. Final: June 18, 2009

4. That the penalty and interest percentage charge on overdue and unpaid tax arrears remain at the rate of 1.25% per month (15% per year) unchanged from 2008.

RECOMMENDATIONs DU COMITÉ

Que le Conseil approuve :

1. que la facture provisoire des taxes foncières pour 2009 soit établie à 50 % de la taxation annuelle de 2008, comme l’autorise la loi ;

2. que le montant de la facture d'impôt provisoire des groupes protégés soit établi au pourcentage maximum des impôts annuelle rajustés des dernières années, comme il est permis par la loi (50 % des impôts rajustés de 2008) ;

3. que les dates d'échéance des impôts suivantes soient approuvées pour 2008:

i. Provisoire : le 30 mars 2009

ii. Finale : le 18 juin 2009 ; et

4. que le taux de pénalité et d'intérêt facturé sur les impôts impayés et les arriérés d'impôts demeure au taux de 1,25 % par mois (15 % par année), inchangé par rapport à 2008.

Report to/Rapport au :

SUBJECT:

OBJET :

REPORT RECOMMENDATIONS

RECOMMANDATIONS DU RAPPORT

BACKGROUND

DISCUSSION

CONSULTATION

LEGAL/RISK MANAGEMENT IMPLICATIONS:

FINANCIAL IMPLICATIONS

SUPPORTING DOCUMENTATION

DISPOSITION