The estimated municipal share of the tax relief, estimated $263,171 will be charged to the current year’s provision for tax write-offs. There are sufficient funds available for this purpose. The education share estimated at $100,471 will be recovered by way of a charge back to the Province.
The property would also be eligible for a refund of property taxes as it relates to the BIA levy. Based upon the estimated levy for 2020, a total of $24,654 would be billed as part of the Final 2020 Tax bill. The property owner would be responsible for the first 91 days of the year, being January 1 to March 31, or $6,146. The remainder, as estimated $18,508 would be recovered as a charge back to the DWBIA. This amount could be offset be additional revenue that the DWBIA may receive in the year due to assessment growth from new development in the downtown area.
Given that the lease termination date is March 31, 2021 and in the event that the declared emergency extends into 2021, Administration is further recommending that the CFO & City Treasurer be provided with authority to proceed on the same basis as noted for the 2020 taxation year upon receipt of an application for 2021 property tax relief as submitted by the property owner. A report to City Council would be required to meet the legislative authority however this matter would be reported as part of the regular reporting of tax applications brought forward later in the year.
Consultations:
- Peter Frise, Municipal Tax Equity (MTE) Consultants
- Wira Vendrasco, Deputy City Solicitor
- Josh Meloche, Legal Counsel
Conclusion:
Administration recommends approval of this application for the reasons stated in this report.