Report Template

3. 2008 INTERIM PROPERTY TAX RATES AND DUE DATEs

taux d'imposition fonciÈre provisoires pour 2008 et ÉchÉances

Committee Recommendations

That Council approve:

1. That the 2008 interim property tax billing be set at 50% of the 2007 Adjusted Annualized Taxation 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 adjusted 2007 taxes);

3. That the following tax due dates be approved for 2008:

i. Interim: March 20, 2008

ii. Final: June 19, 2008;

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 2007; and

5. That the following tax due dates be approved for 2008 for properties that are part of and subject to the Bank St. and Somerset St. BIA’s:

i. Interim: August 21, 2008

ii. Final : December 4, 2008.

Recommandations du comité

Que le Conseil approuve :

1. que la facture provisoire des taxes foncières pour 2008 soit établie à 50 % de la taxation annuelle rajustée de 2007, 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 rajustés des dernières années, comme il est permis par la loi (50 % des impôts rajustés de 2007);

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

i. Provisoire : le 20 mars 2008

ii. Finale : le 19 juin 2008;

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 2007; et

5. que les dates d’échéance suivantes soient approuvées pour le paiement des taxes foncières de 2008 relativement aux propriétés faisant partie des ZAC des rues Bank et Somerset :

i. Facture provisoire : 21 août 2008

ii. Facture finale : 4 décembre 2008.

Documentation

1. City Treasurer’s report dated 3 January 2008 (ACS2008-CMR-FIN-0001).

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

3 January 2008 / le 3 janvier 2008

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°: ACS2008-CMR-FIN-0001

SUBJECT:	2008 INTERIM PROPERTY TAX RATES AND DUE DATEs

OBJET :	taux d'imposition fonciÈre provisoires pour 2008 et ÉchÉances

REPORT RECOMMENDATIONS

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

1. That the 2008 interim property tax billing be set at 50% of the 2007 Adjusted Annualized Taxation as permitted by legislation;

3. That the following tax due dates be approved for 2008:

i. Interim: March 20, 2008

ii. Final: June 19, 2008;

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 2007; and

5. That the following tax due dates be approved for 2008 for properties that are part of and subject to the Bank St. and Somerset St. BIA’s:

i. Interim: August 21, 2008

ii. Final : December 4, 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 2008 soit établie à 50 % de la taxation annuelle rajustée de 2007, comme l’autorise la loi;

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

i. Provisoire : le 20 mars 2008

ii. Finale : le 19 juin 2008;

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 2007; et

5. que les dates d’échéance suivantes soient approuvées pour le paiement des taxes foncières de 2008 relativement aux propriétés faisant partie des ZAC des rues Bank et Somerset :

i. Facture provisoire - 21 août 2008

ii. Facture finale - 4 décembre 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.

Recommendation 1 and 2

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.

Recommendation 3

The Municipal Act requires that Council set tax due dates. The recommended due dates are March 20, 2008 for the interim (50% of 2007 adjusted annualized taxes) and June 19, 2008 for the final (balance of 2008 taxes). This is consistent with last year.

Recommendation 4

The Municipal Act requires that Council set interest and penalty rates. These rates are consistent with 2007.

Recommendation 5

The intersection of Bank and Somerset Streets was closed for some time as a result of unsafe conditions at the old Somerset House property (352 Somerset St.). The property owners of the Bank Street and Somerset Street BIA Associations have requested tax relief for the loss of business associated with the extended street closure. Under the Municipal Act, there are limited options for a municipality wishing to provide relief to a commercial property owner. For example, under the Municipal Act, a lower tax rate or a rebate of taxes because of lost business is not permitted. The Municipal Act also specifically excludes grants to commercial enterprises. Owners of properties that are undergoing demolition or are "substantially unusable" may apply for a reduction or a refund of their taxes. This option is only available to the property at 352 Somerset and possibly the neighbouring property on Bank St. that has been ordered vacated. This application must be filed by February 28, 2008. The staff of the Revenue Division consulted with Legal Services to explore all options for the remaining property owners. Staff have proposed a later tax due date for the properties in the Bank Street and Somerset Street BIA Associations. The interim due date is normally the third Thursday of March and the final due date is normally the third Thursday of June. For property owners in the Bank Street and Somerset Street BIA Associations the due dates will about 5 months later. The interim due date will be August 21, 2008 with the final due date being December 4, 2008.

The requirements for the Bank St. & Somerset St. BIA Relief Program will be as follows:

1. The Deferral will apply to 2008 taxes only therefore the tax account must be up to date.

2. The interim and final tax due dates will be extended.

3. The interim tax due date will be August 21, 2008 versus March 20, 2008.

4. The final tax due date will be December 4, 2008 versus June 19, 2008.

5. Staff will manually reverse the penalty each month.

6. Reminder notices will be suppressed.

7. Staff will send a letter to members of the two BIA's at mailing of each billing and prior to the deferred due dates.

8. Any accounts with billings not paid by the delayed due dates will have penalties applied.

The program will cost about $320,000 ($315,000 in lower interest income and $5,000 in staff time, printing and mailing costs).

CONSULTATION

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

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 $2,500,000 per month. The delayed due dates for the properties within the Bank St. and Somerset BIA's will cost about $320,000. Financial Services staff will monitor the take‑

up on the program and report the effect on lost investment income in the quarterly operating report.

SUPPORTING DOCUMENTATION

Attachment 1 - By-Law to set the instalment due dates and interest and penalty rates applicable to the collection of property taxes for 2008.

DISPOSITION

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

Attachment 1

BY-LAW NO. 2008-

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 2008.

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 20, 2008.

3. The instalment due date for all real property final taxes is June 19, 2008.

4. Despite Section 2, for those properties comprising the Bank Street Business Improvement Area as described in By-law Number 204-77 of the former City of Ottawa and those properties comprising the Somerset Village Business Improvement Area as described in By-law Number 133-86 of the former City of Ottawa, the instalment due date for all real property interim taxes shall be August 21, 2008.

5. Despite Section 3, for those properties comprising the Bank Street Business Improvement Area as described in By-law Number 204-77 of the former City of Ottawa and those properties comprising the Somerset Village Business Improvement Area as described in By-law Number 122-86 of the former City of Ottawa, the instalment due date for all real property final taxes shall be December 4, 2008.

6. 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.

7. 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.

8. The acceptance of any part payment pursuant to Section 7 shall not affect the collection of any percentage charge imposed and collectable under Sections 10 and 11 in respect of non-payment of any taxes or class of taxes or of any instalments thereof.

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

10. 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, 2008.

11. 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.

12. 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 , 2008.

CITY CLERK MAYOR