Executive Summary:
N/A
Background:
In response to recent events as a result of the Covid-19 pandemic, Administration has been asked to look at options to assist property owners with the financial burden as it relates to property taxes. When assessing options for property tax relief, it is important to ensure that the objective for the relief is clearly articulated so as to match the noted objective with the specific policy tools that are available through legislation. There are short-term options, which are more appropriate to provide immediate relief when required and there are other longer-term options through rebates, grants and tax deferral programs which are considered more appropriate for long-term tax relief measures.
This reports serves to advise City Council of those options for consideration to address providing property owners with property tax relief on a short-term basis. Longer-term options will be considered at a later date with a full report being developed for City Council's consideration.
Discussion:
On December 17, 2019, City Council approved the preparation and mailing of the 2020 Interim Property Tax Billing as allowed by Section 317 of the Ontario Municipal Act, 2001 (the Act). The purpose of an Interim Property Tax bill is to provide the municipality with sufficient cash flow to meet expenditures until such time as the current year budget can be approved and final property tax rates can be set. A significant majority of property owners received their 2020 Interim Tax Bill in January of 2020. Property owners who have opted to have property taxes collected (i.e. through separate monthly withdrawals or in conjunction with their mortgage payment) and remitted to the City by a designated financial institution did not receive a tax bill. Each designated financial institution receives an electronic request for payment of taxes and are required to remit the amount directly to the City. The 2020 Interim property tax bills was expected to generate an amount equivalent to 50% of the annualized 2019 property taxes. Consistent with prior years, the 2020 Interim Property Tax bill was due in three instalments. For 2020 the due dates were set for February 19, March 18 and April 15, 2020.
Property owners can normally make payment directly to the City through the mailing or drop off of a cheque, telephone or internet banking. Property owners may also have their property taxes paid through one of three pre-authorized payment plans with automatic withdrawals taken as follows:
- Due Date Plan – February 19, March 18 and April 15, 2020
- Mid-Month Plan – February 18, March 16, April 15, May 15, June 15, 2020
- End of Month Plan – February 28, March 31, April 30, May 29 and June 30, 2020