has the ability to write-off any or all accumulated tax arrears after an unsuccessful tax sale.

The purpose of the tax sale statute is to bring finality to the process of tax collection.

Collection staff have completed the required due diligence following the guiding collection principles as approved by Council and have essentially exhausted all efforts to otherwise collect the debt prior to the point in time where a tax arrears lien is registered.

The purpose of this report is to advise Council of the results of the 2019 tax sales and to provide information with regards to the two (2) planned tax sales for 2020.

Discussion:

2019 Tax Sale Update

A property is deemed eligible for tax sale immediately following one-year from the date of registration. As reported on February 25, 2019 via C 21/2019 there were eighty-four

(84) properties which were deemed eligible to be advertised in 2019 for tax sale. Of the eighty-four (84) eligible properties, forty-two (42) were redeemed by the owner and/or interested parties by making payment in full of the arrears prior to advertisement, nine (9) sold at Tax Sale, five (5) are marked for possible future vesting consideration, four (4) were deferred while under an Extension Agreement repayment plan. Administration had planned for three (3) tax sales through the year taking place in April, July and November. Due to competing priorities, the November tax sale was cancelled before the advertising process began. At that time twenty-four (24) properties were deferred from tax sale in 2019 however collection action continued and a majority have since paid in full.

City Council will be presented with options relating to the five properties under vesting consideration at a later date after Administration has fully vetted the alternatives and assessed the risks associated with ownership.

2020 Tax Sale Plan

As of March 2, 2020, there are thirty-one (31) properties with tax arrears liens registered on title. These properties are not currently on a formalized payment plan or under vesting consideration and therefore are eligible for property tax sale in 2020. Due to the time requirements to undertake a tax sale from start to finish (typically 2-3 months) and the process historically followed for tax sales (typically do not proceed actively through December & January), twenty-six (26) properties have been identified as being reasonable and manageable during 2020. These properties are detailed in a separate memo which has been marked Confidential on the basis that the actual properties will not become known publically until such time as the properties are advertised. Historically, once notification of advertisement is sent to the property owner, it is estimated that at least 30%, and at times upwards to 50%, of those accounts will be paid in full.