7. TAXES – REMISSIONS – REPORT #2, 2010

IMPÔTS - REMIES - RAPPORT #2, 2010

COMMITTEE RECOMMENDATIONS

1. In accordance with Sections 334, 354, 357 and 358 of the Municipal Act, 2001 that Council approve taxes totalling $400,683.49 be cancelled, reduced or refunded in accordance with the list, entitled as Document 1:

Authority - Sections 334, 354, 357 and 358	Amount

Fire, demolition or otherwise	62,818.18
Mobile Unit Removed As a result of a change event	1,175.88 14,810.22
Property became exempt from taxation	122,045.91
Sickness or Extreme Poverty	4,816.00
Substantially unusable	12,491.57
Gross or manifest error (current year)	39,849.59
Unused due to repairs or renovations Gross or manifest error (prior years)	63,815.73 61,897.18
Cancellations – Section 354.(2)(b) due to previous year 357/358	14,241.68
Somerset Chinatown Street Business Improvement Area	113.51
Somerset/Bank Street Business Improvement Area Manotick Business Improvement Area	141.50 211.55
Capping/Phase-in Adjustments	2,254.99
Tax Adjustments	$400,683.49

2. That Council amend the Delegation of Authority By-law as outlined in Document 2 to delegate the holding of meetings pursuant to Sections 334, 357, 358, 359 and 359.1 to the Deputy Treasurer, Revenue.

RecommandationS du ComitÉ

1. Que le Conseil aprouve, en vertu des articles 334, 354, 357 et 358 de la Loi sur les municipalités, 2001, que les taxes totalisant 400 683,49$ soient annulées, réduites ou remboursées conformément à la liste intitulée Document 1 approuve les taxes totalisant 400 683,49$ soient annulées, réduites ou remboursées conformément à la liste intitulée Document 1 :

Autorité - Articles 334, 354, 357 et 358	Montant

Incendie, démolition ou autre	62 818,18
Unité mobile a été retirée	1 175,88
À la suite d’un changement	14 810,22
Propriété devenue exempte de taxes	122 045,91
Maladie ou pauvreté extrême	4 816,00
Essentiellement inutilisable	12 491,57
Trop-payé par erreur grossière ou manifeste de l’année courante	39 849,59
Propriété désaffectée en raison de renóvations et de réparations	63 815,73
Erreur grossière ou manifeste de l’année précédente	61 897,18
Radiation due à l'année antérieure 357-358 - Article 354. (2)(b)	14 241,68

Zone d'amélioration commerciale rue Somerset/quartier chinois	113,51
Zone d'amélioration commerciale rue Somerset/Bank	141,50
Zone d'amélioration commerciale de Manotick	211,55

Plafonnement/Rajustements progressifs	2 254,99

Rajustements de taxe	400 683,49$

2. Que le Conseil municipal modifié le Règlement sur la délégation de pouvoirs tel qu’il est indiqué au document 2, afin de déléguer, conformément aux articles 334, 357, 358, 359 et 359.1, la tenue des réunions au trésorier adjoint – Recettes.

DOCUMENTATION

1. City Treasurer’s report dated 18 February 2011 (ACS2011-CMR-FIN-0011).

Report to/Rapport au:

Finance and Economic Development Committee

Comité des finances et du développement économique

and Council / et au Conseil

18 February 2011 / le 18 février 2011

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

Contact Person/Personne ressource: Ken Hughes, Deputy Treasurer, Revenue

/Revenus municipaux, Trésorier adjoint, Recettes

Finance Department/ Service des finances

613-580-2424 ext./ poste 13485, Ken.Hughes@ottawa.ca

City Wide/à l'échelle de la Ville

Ref N°: ACS2011-CMR-FIN-0011

SUBJECT:	TAXES – REMISSIONS – REPORT #2, 2010

OBJET :	IMPÔTS - REMIES - RAPPORT #2, 2010

REPORT RECOMMENDATIONS

1. In accordance with Sections 334, 354, 357 and 358 of the Municipal Act, 2001 that the Finance and Economic Development Committee recommend Council approve taxes totalling $400,683.49 be cancelled, reduced or refunded in accordance with the list, entitled as Document 1:

Authority - Sections 334, 354, 357 and 358	Amount

Fire, demolition or otherwise	62,818.18
Mobile Unit Removed As a result of a change event	1,175.88 14,810.22
Property became exempt from taxation	122,045.91
Sickness or Extreme Poverty	4,816.00
Substantially unusable	12,491.57
Gross or manifest error (current year)	39,849.59
Unused due to repairs or renovations Gross or manifest error (prior years)	63,815.73 61,897.18
Cancellations – Section 354.(2)(b) due to previous year 357/358	14,241.68
Somerset Chinatown Street Business Improvement Area	113.51
Somerset/Bank Street Business Improvement Area Manotick Business Improvement Area	141.50 211.55
Capping/Phase-in Adjustments	2,254.99
Tax Adjustments	$400,683.49

2. That the Finance and Economic Development Committee recommend that Council amend the Delegation of Authority By-law as outlined in Document 2 to delegate the holding of meetings pursuant to Sections 334, 357, 358, 359 and 359.1 to the Deputy Treasurer, Revenue.

RECOMMANDATIONS DU RAPPORT

1. Que le Comité des finances et du développement économique recommandent l'approbation par le Conseil qu'en vertu des articles 334, 354, 357 et 358 de la Loi sur les municipalités, 2001 les taxes totalisant 400 683,49$ soient annulées, réduites ou remboursées conformément à la liste intitulée Document 1 :

Autorité - Articles 334, 354, 357 et 358	Montant

Incendie, démolition ou autre	62 818,18
Unité mobile a été retirée	1 175,88
À la suite d’un changement	14 810,22
Propriété devenue exempte de taxes	122 045,91
Maladie ou pauvreté extrême	4 816,00
Essentiellement inutilisable	12 491,57
Trop-payé par erreur grossière ou manifeste de l’année courante	39 849,59
Propriété désaffectée en raison de renóvations et de réparations	63 815,73
Erreur grossière ou manifeste de l’année précédente	61 897,18
Radiation due à l'année antérieure 357-358 - Article 354. (2)(b)	14 241,68

Zone d'amélioration commerciale rue Somerset/quartier chinois	113,51
Zone d'amélioration commerciale rue Somerset/Bank	141,50
Zone d'amélioration commerciale de Manotick	211,55

Plafonnement/Rajustements progressifs	2 254,99

Rajustements de taxe	400 683,49$

2. Que le Comité des finances et du développement économique recommande au Conseil municipal de modifier le Règlement sur la délégation de pouvoirs tel qu’il est indiqué au document 2, afin de déléguer, conformément aux articles 334, 357, 358, 359 et 359.1, la tenue des réunions au trésorier adjoint – Recettes.

BACKGROUND

Sections 334, 354, 357 and 358 of the Municipal Act, 2001 provide the authority to Council to cancel, reduce or refund all or part of taxes levied under specific circumstances. Adjustments are applied to BIA rates levied from member properties granted relief under sections 334, 354, 357 and 358.

Sections 334, 357, 358, 359 and 359.1 require that Council hold a meeting to determine whether the municipality should cancel, reduce, refund or increase all or part of taxes levied on land in a particular year. In an effort to relieve the administrative burden on Council and to improve operational efficiency, this report also recommends that the responsibility to hold these types of meetings be delegated to the Deputy Treasurer, Revenue.

Section 23.5 of the Municipal Act, 2001 allows the municipality to delegate the holding of a hearing or a meeting to a person or body under certain circumstances.

DISCUSSION

1. Sections 334, 354, 357 and 358 provide for relief under the conditions listed below:

Section 334

An application to Council for the cancellation reduction or refund of taxes levied in the year in respect of which the application is made may be made by a person who was overcharged by reason of a gross or manifest error that is a clerical error, the transposition of figures, a typographical error or similar type of error in calculation of the taxes under Part IX of the Municipal Act, 2001.

Section 354

The treasurer can remove taxes from the tax roll as a result of a prior tax relief under section 357 or 358.

Section 357

(1) An application to the Council for cancellation, reduction or refund of taxes levied in the year in respect of which the application is made may be made by any person if,

(a) as a result of a change event, during the taxation year, the property is eligible to be reclassified in a different class of real property, as defined in regulations made under that Act, and that class has a lower tax ratio for the taxation year than the class the property or portion of the property is in before the change event, and no supplementary assessment is made in respect of the change event under subsection 34(2) of the Assessment Act;

(b) the land has become vacant land or excess land during the year or during the preceding year after the return of the assessment roll for the preceding year;

(c) the land has become exempt from taxation during the year or during the preceding year after the return of the assessment roll for the preceding year;

(d) during the year or during the preceding year after the return of the assessment roll, a building on the land,

(i) was razed by fire, demolition or otherwise, or

(ii) was damaged by fire, demolition or otherwise so as to render it substantially

unusable for the purposes for which it was used immediately prior to the

damage;

(e) a mobile unit on the land was removed during the year or during the preceding year after the return of the assessment roll for the preceding year;

(f) a person who was overcharged due to a gross or manifest error that is clerical or factual in nature, including transposition of figures, a typographical error or similar error but not an error in judgment in assessing the property; or

(g) repairs or renovations to the land prevented the normal use of the land for a period of at least three months during the year.

Section 358

An application to the council for the cancellation, reduction or refund of taxes levied in the years indicated in subsection (1) may be made by any person who was overcharged by reason of any gross or manifest error in the preparation of the assessment roll that was an error of fact, which may include but is not limited to, clerical errors, the transposition of figures or typographical errors, but not an error in judgment in making the assessment upon which the taxes have been levied.

2. Delegating the Authority to hold a Meeting pursuant to Sections 334, 357, 358, 359 and 359.1

Typically applications pursuant to Sections 334, 357, 358, 359 and 359.1 are brought to correct certain errors or changes effecting property taxes. These applications are not for a write-off for bad or uncollectible debts, but are corrections, cancellations, reductions and increases primarily due to physical changes and changes in the use of property and are therefore generally administrative in nature. Over the past few years there have been approximately 700 applications brought annually.

These sections all require the holding of a meeting regarding these applications.

Section 23.5 of the Municipal Act, 2001, allows the municipality to delegate the holding of a hearing or a meeting to a person or body under certain circumstances.

This report recommends that the duty to hold these meetings pursuant to Sections 334, 357, 358, 359 and 359.1 be delegated to the Deputy Treasurer, Revenue in an effort to streamline and facilitate these processes as well as to be consitent with Council’s direction regarding other administrative bodies such as the Licence Committee and the Aminal Control Tribunal. The details of the delegated authority is outlined in Document 2.

RURAL IMPLICATIONS

There are no rural implications for either recommendation.

CONSULTATION

The accounts included under Recommendation 1 are not write-offs for bad or uncollectible debts, but are cancellations and reductions primarily due to physical changes and changes in the use of property. No public consultation of the recommendations took place, as the Municipal Act, S.O. 2001, C.25, Sections 334, 354, 357 and 358 provide Council with authority to approve these remissions.

No public consultation is required as this is an administrative matter which Council has the authority to delegate under the Municipal Act, 2001 to its staff.

LEGAL/RISK MANAGEMENT IMPLICATIONS:

There are no legal or risk management impediments to approving the recommendations in this report.

FINANCIAL IMPLICATIONS

With regards to the first recommendation, the City's share, estimated at $281,657.39 is available in the Provision for Allowances, Tax Remissions and Exemptions. The capping/ phase-in adjustment of $2,254.99 is available in the Tax Mitigation Adjustment Accounts.

There are no financial implications with regards to the second recommendation. The meetings to be held by the Deputy Treasurer, Revenue will not be too onerous and the work load will be handled by existing staff.

SUPPORTING DOCUMENTATION

Document 1 is Confidential as it contains information relative to personal matters about an identifiable individual. Document 2 is not confidential as it is a draft by-law to amend an existing by-law

Document 1 – Recommendation to City Council under Sections 334, 354, 357 and 358 of the Municipal Act, 2001

2010 – Report #2 (Held on file with the Deputy Treasurer, Revenue).

Document 2 – By-law to amend the Delegation of Authority By-law 2011-28

DISPOSITION

Originating Department to advise the appellants by notice of decision of the adjustments approved by City Council. Decisions may be appealed to the Assessment Review Board.

City Clerk and Solicitor Department to submit the by-law to Council for enactment.

Document 2

BY-LAW NO. 2011-

A by-law of the City of Ottawa to amend By-law No. 2011-28 respecting delegation of authority to various officers of the City.

The Council of the City of Ottawa enacts as follows:

1. Schedule “A” of By-law No. 2011-28 of the City of Ottawa entitled “A by-law of the City of Ottawa respecting delegation of authority to various officers of the City” is amended by adding the following section immediately after Section 18 where it occurs therein:

18A. (1) The Deputy Treasurer, Revenue is delegated the authority to hold meetings and make decisions pursuant to Sections 334, 357, 358, 359 and 359.1 of the Municipal Act, 2001 provided that the Deputy Treasurer, Revenue complies with all provisions of the applicable section.

(2) The exercise of delegated authority pursuant to subsection (1) shall be reported to the appropriate Standing Committee at least once in a calendar year.

ENACTED AND PASSED this day of , 2011.

CITY CLERK MAYOR