6. 2012 INTERIM PROPERTY TAXes AND DUE DATES

IMPÔTS FONCIERS PROVISOIRES POUR 2012 ET ÉCHÉANCES

COMMITTEE RECOMMENDATIONS

That Council approve:

1. That the 2012 interim property tax billing be set at 50% of the 2011 Adjusted/Annualized Taxes as permitted by legislation;

2. That the following tax due dates be approved for 2012:

i. Interim: March 15, 2012;

ii. Final: June 21, 2012;

3. 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 2011; and

4. Subject to the approval of the above recommendations, that Council enact a by-law in the form attached as Document 1 to establish the tax due dates, penalty and interest charges.

RECOMMANDATIONS DU COMITÉ

Que le Conseil approuve:

1. que la facture provisoire des taxes foncières pour 2012 soit établie à 50% de la taxation annuelle/rajustés de 2011, comme l’autorise la loi ;

2. que les dates d’échéance des impôts suivantes soient approuvées pour 2012 :

i. Provisoire : le 15 mars 2012;

ii. Finale : le 21 juin 2012;

3. 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 2011; et

4. sous réserve de l’approbation des recommandations énoncées ci-dessus, que le Conseil adopte un règlement sous la forme présentée au Document 1 ci-joint, visant à établir les échéances pour l’impôt, les amendes et les frais d’intérêt.

DOCUMENTATION

1. City Treasurer’s report dated 4 January 2012 (ACS2012-CMR-FIN-0001).

Report to/Rapport au :

Finance and Economic Development Committee

Comité des finances et du développement économique

and Council / et au Conseil

4 January 2012 / le 4 janvier 2012

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

Contact Person/Personne ressource : Ken Hughes,
Deputy City Treasurer – Revenue/ Trésorier Municipal Adjoint

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°: ACS2012-CMR-FIN-0001

SUBJECT:

2012 INTERIM PROPERTY TAXes AND DUE DATES

OBJET :

IMPÔTS FONCIERS PROVISOIRES POUR 2012 ET ÉCHÉANCES

REPORT RECOMMENDATIONS

That the Finance and Economic Development Committee recommend Council approve:

1. That the 2012 interim property tax billing be set at 50% of the 2011 Adjusted/Annualized Taxes as permitted by legislation;

2. That the following tax due dates be approved for 2012:

i. Interim: March 15, 2012;

ii. Final: June 21, 2012;

3. 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 2011; and

4. Subject to the approval of the above recommendations, that Council enact a by-law in the form attached as Document 1 to establish the tax due dates, penalty and interest charges.

RecommandationS du rapport

Que le Comité des finances et du développement économique recommande au Conseil d’approuver :

1. que la facture provisoire des taxes foncières pour 2012 soit établie à 50% de la taxation annuelle/rajustés de 2011, comme l’autorise la loi ;

2. que les dates d’échéance des impôts suivantes soient approuvées pour 2012 :

i. Provisoire : le 15 mars 2012;

ii. Finale : le 21 juin 2012;

3. 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 2011; et

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. The interim and final due dates do not apply to those taxpayers who are registered in the City’s monthly Pre-Authorized Payment Plan.

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 2012 interim tax billing at 50% of the 2011 Adjusted/Annualized Taxation. This rate is consistent with 2011 and prior years.

Recommendation 2

This recommendation sets the 2012 tax due dates at interim March 15, 2012 and final June 21, 2012.

Recommendation 3

The Municipal Act requires that Council set interest and penalty rates. These rates are consistent with 2011 and prior years.

RURAL IMPLICATIONS

The proposed by-law as required does not have any specific implications for the rural areas.

CONSULTATION

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

Comments by the Ward Councillor(s)

N/A

LEGAL IMPLICATIONS

There are no legal impediments to implementing the recommendations of this report. The Municipal Act, 2001 provides that Council may enact by-laws providing for the payment of taxes by instalments and imposing late payment charges.

RISK MANAGEMENT IMPLICATIONS

N/A

FINANCIAL IMPLICATIONS

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

Accessibility Impacts

N/A

Environmental Implications

N/A

Technology Implications

N/A

City Strategic Plan

N/A

SUPPORTING DOCUMENTATION

Document 1 - By-law to set the installment due dates and interest and penalty rates applicable to the collection and property taxes for 2012.

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. 2012-

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 2012.

The Council of the City of Ottawa enacts as follows:

1. In this by-law;

“Treasurer” means the Treasurer or the Deputy Treasurer, Revenue of the Finance Department of the City Manager’s Office of the City of Ottawa.

2. (1) The instalment due date for all real property interim taxes is March 15, 2012.

(2) For the purposes of subsection (1), the amount due for interim taxes shall be 50% of the total amount of adjusted/annualized taxes for municipal and school purposes levied on the property for the previous year.

3. The instalment due date for all real property final taxes is June 21, 2012.

4. Sections 2 and 3 of this by-law do not apply to those taxpayers who participate in the City’s monthly Pre-Authorized Payment Plan.

5. 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.

6. The acceptance of any part payment pursuant to Section 5 shall not affect the collection of any percentage charge imposed and collectable under Sections 8 and 9 in respect of non-payment of any taxes or class of taxes or of any instalments thereof.

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

8. 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, 2011.

9. 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.

10. 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 , 2012.

CITY CLERK MAYOR