Pursuant to recent changes, the City Treasurer may register a tax arrears certificate against a property where there are taxes owing in the second year following the year the taxes are due (that is in the third year of outstanding taxes). This change effectively shortens the time frame in which a tax arrears certificate can be registered by one year. Although the Act was recently amended, to date, Administration has continued to address collections in a systematic approach following the Guiding Principles which results in the registering of tax arrears certificates in the fourth year of outstanding taxes.

Historically the number of accounts in arrears under active collection has remained around 4,000; the reason being that as accounts are brought to conclusion (i.e. paid in full) a similar number of new accounts are falling into arrears. On average however and in more recent years there have been approximately 100 files that proceed to registrations (properties where all other collection efforts have been exhausted) each year. In 2019, this number fell to 61 registrations. This trend supports the process of early intervention to address the arrears in addition to the improving economic circumstances. Should the current situation change, properties will be registered in the earlier time frames as allowed.

After a tax arrears certificate has been registered, the property owner has one year in which to pay the cancellation price (defined as the total amount of tax arrears, including any other charges which have been added and considered a priority lien, plus an administrative fee) to have the lien discharged. Alternatively, the property owner may enter into an extension agreement with formal repayment terms (up to a maximum of 5-years or 60 months) for the payment of the cancellation price.

If payment of the cancellation price does not occur within the period of time under either of the above two options noted above, the City Treasurer has the right to place the property up for public sale using either the auction or tender method. Typically Administration has used a tender method. Sealed bids, which remain closed until time of sale, often result in a tender price closer to the current assessment value of the property. Since the City only retains the amount necessary to collect the outstanding property taxes, any excess amount is placed with the Provincial Courts for distribution, by way of official application by either the property owner or those with a registered interest. It should be noted that until such time as the closing of the tenders (3 o’clock pm on Tax Sale day) property owners can come forward with payment in full to redeem their property. A property which does not sell (deemed unsuccessful) may be re-advertised once again in a subsequent tax sale.

Advertising commences approximately 6 weeks prior to each tax sale running for four consecutive weeks in the Windsor Star and once in the Ontario Gazette. Any person(s) wanting to place a tender on a property are allowed to do so up until 3:00 p.m. on the date of sale. A fee of $25 is charged to all persons who place a bid. This fee assists with the Administrative costs associated with the receipt and safekeeping of bids until the tender is opened.

Should a tax sale, or subsequent resale, not result in a successful purchase, the City has two (2) years upon which to make a decision to vest in the property or return the property to the registered owner. Regardless of its decision to vest, City Council also