TAMRMS#: B06
9.2
REQUEST FOR DECISION
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Property Tax Relief Requests
Presented by: Stephen Bannerman, City Assessor, Financial and Strategic Services
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RECOMMENDED MOTION(S)
recommendation
1. That Council move in camera pursuant to section 17(1) of the Freedom of Information and Protection of Privacy Act to consider outstanding 2024 requests for property tax relief.
2. That the details of the in camera discussion remain confidential pursuant to section 153(e) of the Municipal Government Act.
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SUMMARY
To present for Council’s consideration, in summary format, the outstanding 2024 requests for property tax relief. Section 203(2) of the Municipal Government Act provides that a Council may not delegate its powers under section 347 of the Municipal Government Act regarding property tax relief to any person or council committee.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
Section 347(1) of the Municipal Government Act.
BACKGROUND AND DISCUSSION
Section 347(1) of the Municipal Government Act permits Council the discretion to cancel or reduce tax arrears, cancel or refund all or part of a tax, or defer the collection of a tax, for a particular taxable property, or class of taxable property, if it considers it equitable to do so.
Council must exercise this discretion in an equitable and transparent manner, as any cancellation, reduction, or deferral has a financial consequence to the City. Council Policy C-FS-15 has been established to provide clarity and guidance regarding how requests for property tax relief may be deliberated at the Council level.
The City of St. Albert communicates property tax deadlines to ratepayers through a variety of methods to avoid late payments. Deadline dates are provided on the tax notice itself, the City of St. Albert website, social media posts, and in advertisements in the local paper.
Several options are available for paying taxes. They include the Pre-Authorized Tax Payment Plan, in-person, by mail, at participating financial institutions, and by telephone or internet banking. Despite these options, there may be circumstances where a ratepayer feels they were unable to attend to the deadline.
Requests for property tax relief to Council are rare, but the Municipal Government Act does afford a property owner the ability to make such a request. Typically, the property owner feels that extenuating circumstances existed, which resulted in the tax penalty or tax arrears being incurred. Again, the challenge is in determining what latitude exists in cancelling or reducing such penalties or tax arrears and when it would be equitable to cancel or reduce tax arrears, cancel or refund all or part of a tax, or defer the collection of a tax. To this end, C-FS-15 was approved by Council to provide a framework by which decision criteria would be established for dealing with these requests.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
Property owners first communicate with the Financial and Strategic Services Department about their tax penalty or outstanding tax arrears. Cancellations of penalties can only be made by the Financial and Strategic Services department if it is ascertained that an administrative error was made in the administration of the tax account.
If no error was made on the part of the City, then the property owner has the ability to make a request for tax relief to Council, as referenced to in section 347(1) of the Municipal Government Act.
IMPACTS OF RECOMMENDATION(S)
Financial:
Any request for property tax relief has a potential financial implication to property tax revenues. For the 2024 tax year, total property tax relief requests total approximately $32,000.
Compliance & Legal:
Section 347(1) of the Municipal Government Act allows Council to cancel or refund tax arrears, cancel or refund all or part of a tax, or defer the collection of a tax if it considers it equitable to do so, with or without conditions.
Program or Service:
It is anticipated that continued use of C-FS-15 will bring greater clarity, transparency, fairness and equity in the administration of property tax accounts. By providing a more formalized mechanism for property owners to request tax relief, customer service is enhanced.
Organizational:
None at this time.
Risks
Decisions by Council to allow tax refunds, cancellations, reductions, or deferrals are typically rare. However, any decision in this area to allow a tax refund, cancellation, reductions, or deferral may imply an unintended precedent. This may be considered a risk.
Fairness and equity are legislated within the assessment and taxation process in Alberta. A ratepayer being treated in a different way may result in the perception of inequity within the taxation base. Conversely, allowing property owners the opportunity to make a request for tax relief is a legislated right within the Municipal Government Act.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Not applicable.
Initiative aligned with Strategic Plan:
Not Applicable
ALIGNMENT TO SERVICE DELIVERY
Service Name: Tax Account Administration
Service Definition: Administration of the annual and supplementary tax levy, pre-authorized payment system, schools support declarations, property tax collection process, and land title office changes.
Service Component: Not applicable
Current Service Level: Not applicable
IMPACTS OF ALTERNATIVES CONSIDERED
ALTERNATIVE 1: Council wishes to support all or part of an application.
Council will consider each tax relief request in camera in accordance with section 17(1) of the Freedom of Information and Protection of Privacy Act. Should Council review Policy C-FS-15 and find a “Permissible” category in which to apply property tax forgiveness to one or more applicants, Council may make a motion, or multiple motions, upon returning to the public meeting, to cancel, refund, or defer property taxes. The following motion may be used for this purpose:
“That Administration provides tax cancellation, refund, or deferral in the amount of $____ for property tax roll #_____ per section __ of policy C-FS-15 and as outlined in Confidential Attachment 3 of the November 19, 2024 agenda report entitled “Property Tax Relief Requests”, with funding to come from the Stabilization Reserve.”
Financial:
2024 applications will not have a significant impact on the City’s overall financial activities. The total potential revenue impact considering all applications totals $32,000, which may be funded through the Stabilization Reserve. All decisions should take into consideration the fairness and equity to taxpayers within the City of St. Albert.
Compliance & Legal:
Section 347(1) of the Municipal Government Act allows Council to cancel or refund tax arrears, cancel or refund all or part of a tax, or defer the collection of a tax if it considers it equitable to do so, with or without conditions.
Program or Service:
All applicants have complied with Policy C-FS-15 and completed a Property Tax Relief Request Form. They have been provided a detailed description of penalties/arrears applied to their tax accounts. Applicants are also afforded an opportunity to address Council directly regarding the specific nature of their request.
Organizational:
None at this time.
Risks
As stated previously cancellations, cancellations, reductions, or deferrals, are typically rare. Any decision in this area may imply an unintended precedent, which could be construed as a risk
ALTERNATIVE 2: Council does not wish to support applications for Property Tax Forgiveness.
Return to public meeting. No further action is required. Ratepayer(s) will be notified of Council’s decision.
Financial:
Not applicable.
Compliance & Legal:
Council’s decision on a request for Tax Relief is considered final. There is no further recourse available, and the matter is considered closed.
Program or Service:
Not applicable.
Organizational:
Not applicable.
Risks
Not applicable.
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Report Date: November 19, 2024
Author(s): Stephen Bannerman
Department: Financial and Strategic Services
Department Director: Anne Victoor
Managing Director: Diane McMordie
Chief Administrative Officer: Bill Fletcher