TAMRMS#: B06
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Property Tax Relief Requests
Presented by: Diane McMordie, Diane McMordie, Director, Finance & Assessment/CFO
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RECOMMENDED MOTION
recommendation
That Council go in camera to consider outstanding 2020 requests for property tax relief, pursuant to s. 17 of the Freedom of Information and Protection of Privacy Act (requirement to maintain confidentiality of personal information)
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PURPOSE OF REPORT
To present in summary format, the outstanding 2020 requests for property tax relief, for Council’s consideration pursuant to the discretion given to Council under s. 347 of the Municipal Government Act. Section 203(2)(d) of the Municipal Government Act stipulates that Council must directly exercise its discretion under MGA 347, this cannot be delegated to the CAO or to a Council committee.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
N/A
ALIGNMENT TO LEVELS OF 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
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
As per Section 347(1) of the Municipal Government Act, requests for property tax reductions, cancellations, refunds, or deferrals, must be referred to Council.
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 Council 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. Policy C-FS-15 has been established to provide clarity and guidance as to how requests for property tax relief may be deliberated at the Council level.
Requests for property tax relief to Council are rare, but the Municipal Government Act does give 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. The challenge is in determining what latitude exists in cancelling or reducing such penalties or tax arrears. 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.
Because such requests require the taxpayer to disclose personal information, Council considers them in camera to ensure that personal information is kept private. If Council wishes to grant relief in any case, that would be done by a motion in the open portion of the meeting, referencing the legal description of the property in question but not including any personal information.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
Property owners first communicate with the Finance and Assessment Department about their tax penalty or outstanding tax arrears. Cancellations of penalties can only be made by the Finance and Assessment department, if it is ascertained that a clerical, mathematical or administrative error was made in respect 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 in section 347(1) of the Municipal Government Act.
IMPLICATIONS OF RECOMMENDATION(S)
Financial:
Any request for property tax relief, has a potential financial implication to property tax revenues. For the 2020 tax year, total property tax relief requests total approximately $5,000.
Legal / Risk:
Decisions by Council to allow tax refunds, cancellations, reductions, or deferrals, are typically rare. However, any decision in this area may imply an unintended precedent; which could be construed as a risk. Conversely, allowing property owners the opportunity to make a request for tax relief is a legislative right within the Municipal Government Act, and serves to enhance fairness and equity with the property taxation process.
Program or Service:
It is anticipated that continued use of C-FS-15 will bring greater clarity, transparency, and fairness & 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.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
None
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Report Date: December 21, 2020
Author: Diane McMordie, Chief Financial Officer
Department: Finance & Assessment
Deputy Chief Administrative Officer: Kerry Hilts
Chief Administrative Officer: Kevin Scoble