3. Annualized tax adjustments under section 359.1 of the Municipal act

RedresseMENTS fiscaux CALCULÉs SUR UNE ANNÉE EN VERTU DE L’ARTICLE 359.1 DE LA lOI SUR LES MUNICIPALITÉS

COMMITTEE RECOMMENDATIONS

In accordance with Section 359.1 of the Municipal Act, 2001 that Council approve property taxes adjustments as follows:

a) that the previous year (2008) annualized taxes, used to calculate 2009 taxes, be set to $117,993 for commercial and $1,126,308 for office tax classes with respect to property “A” as listed in Document 1;

b) that the previous year (2008) annualized taxes, used to calculate 2009 taxes, be set to $166,734 for commercial and $2,036,593 for shopping centre tax classes with respect to property “B” as listed in Document 1;

c) that the previous year (2007) annualized taxes, used to calculate 2008 taxes, be set to $165,749 for commercial and $2,120,813 for shopping centre tax classes with respect to property “B” as listed in Document 1.

RecommandationS du Comité

Que le Conseil approuve qu'en vertu de l’article 359.1 de la Loi de 2001 sur les municipalités:

a) le montant des impôts calculés sur une année de l’année précédente (2008), utilisé pour calculer le montant des impôts de 2009, soit fixé à 117 993 $ pour la catégorie de les taxes sur les entreprises commerciaux et à 1 126 308 $ pour la catégorie de taxes sur les bureaux en ce qui concerne le bien « A » tel qu'il est indiqué dans le document 1;

b) le montant des impôts calculés sur une année de l’année précédente (2008), utilisé pour calculer le montant des impôts de 2009, soit fixé à 166 734 $ pour la catégorie de taxes sur les entreprises commerciaux et à 2 036 593 $ pour la catégorie de taxes sur les centres commerciaux en ce qui concerne le bien « B » tel qu’il est indiqué dans le document 1;

c) le montant des impôts calculés sur une année de l’année précédente (2007), utilisé pour calculer le montant des impôts de 2008, soit fixé à 165 749 $ pour la catégorie de taxes sur les entreprises commerciaux et à 2 120 813 pour la catégorie de taxes sur les centres commerciaux en ce qui concerne le bien « B » tel qu’il est indiqué dans le document 1.

DOCUMENTATION

1. City Treasurer’s report dated 22 October 2009 (ACS2009-CMR-FIN-0047)

Report to/Rapport au:

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

22 October 2009 / le 22 octobre 2009

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

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

/Revenus municipaux, Trésorier municipal adjoint - Recettes

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

City Wide/à l’échelle de la Ville

Ref N°: ACS2009-CMR-FIN-0047

SUBJECT:	Annualized tax adjustments under section 359.1 of the Municipal act

OBJET:	RedresseMENTS fiscaux CALCULÉs SUR UNE ANNÉE EN VERTU DE L’ARTICLE 359.1 DE LA lOI SUR LES MUNICIPALITÉS

REPORT RECOMMENDATION

In accordance with Section 359.1 of the Municipal Act, 2001 that the Corporate Services and Economic Development Committee recommend Council approve property taxes adjustments as follows:

RECOMMANDATION DU RAPPORT

Que les Services généraux et le Comité du développement économique recommandent l'approbation par le Conseil qu'en vertu de l’article 359.1 de la Loi de 2001 sur les municipalités :

BACKGROUND

Pursuant to section 359.1 of the Municipal Act, 2001, if there was an error in the calculation of taxes on land under Part IX or under Part XXII.1, XXII.2 or XXII.3 of the old Act, upon application of the treasurer, Council may authorize the use of an amount of taxes (annualized taxes) referred to in paragraph 1 of subsection 329(2) which reflects what the taxes would have been on the land for the previous year if the error had not been made for the year in which the application is made thereby potentially resulting in a tax adjustment.

DISCUSSION

For the protected classes (such as commercial, industrial and multi-residential) the Municipal Act prescribes a maximum tax liability that can be attributed for each tax class assessed on a property. Annualized tax is a term used in reference to the previous year’s taxes, to which any changes or events (such as assessment, tax class, demolition, construction, etc.) have to be applied as if it happened for the whole year. The current year’s tax calculation for these protected classes starts by using the previous year taxes (annualized) and by applying the approved capping/claw back options.

Properties “A” and “B” as listed in Document 1 were identified as requiring an adjustment to the 2009 final taxes, due to an error in the 2008 annualized taxes used in the 2009 calculation of the final tax liability. A request to review Property “B”’s 2007 annualized taxes used in calculating the 2008 final tax amount was received in 2008. The current report therefore also deals with adjusting the 2008 taxes for that specific property.

The properties and the resulting tax adjustments are listed in the document entitled as Document 1.

CONSULTATION

Consultation with the property owners or their representatives has occurred and notification has been served in accordance with the provisions of Section 359.1 of the Municipal Act, 2001. No public consultation of the recommendation took place, as the Municipal Act, 2001 Section 359.1 provides Council with authority to approve the recommended 2008 annualized taxes and the corresponding tax adjustments to the 2009 final taxes.

LEGAL/RISK MANAGEMENT IMPLICATIONS:

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

FINANCIAL IMPLICATIONS

The recommended corrections to the 2007 and 2008 annualized taxes will result in a net tax adjustment of $902,384. Individual tax accounts for properties “A” and “B” would be adjusted to reflect the “Net Tax Adjustment” as shown in Document I.

SUPPORTING DOCUMENTATION

This document is Confidential as it contains information relative to personal matters about an identifiable individual.

Document 1

2009 – Annualized Tax Adjustments Under Section 359.1 of the Municipal Act, 2001 (On file with the Deputy City Treasurer Revenue Branch)

DISPOSITION

Originating Department to advise the property owners, by notice of decision, of the adjustments approved by City Council. On-Line Property Tax Analysis (OPTA) which is the provincial repository for tax calculations for all protected tax classes, will also be advised of City Council’s decision and requested to make necessary updates to the database.