Property Tax Arrears
Guiding Principles as Adopted by Council (CR362/2009, as Amended
CR160/2011)
Guiding Principle #1 – THAT Administration employ a tax collection strategy aimed at those accounts falling 1 –2 years in arrears (Category A) based upon the following criteria:
- By oldest year outstanding
- By material amount outstanding
- By multiple property ownership
and further THAT the strategy allow for property owners in this category to enter into a recommended payment plan with a payment that will bring the account current within 24 months or less or a payment that at a minimum will at least address some principle portion of the debt (no stated number of months required).
Guiding Principle #2 – THAT no further City initiated collection activity be taken against a property owner within Category A who refuses a payment plan or has defaulted on a payment plan until such time as the property becomes eligible (in the fourth year with three prior years outstanding) for the registration of a tax arrears certificate.
Guiding Principle #3 – THAT for Category B (accounts in their fourth year or older), property tax accounts be targeted for collection based upon oldest year outstanding and balance outstanding inclusive of multiple account ownership.
Guiding Principle #4 – THAT property owners within Category B in arrears must enter into a payment plan that will bring their account current in a reasonable time frame. The recommended acceptable payment would bring the account current within 24 months with the minimum acceptable payment extending no more that 60 months.
Guiding Principle #5 – THAT once enrolled in a payment plan, property owners within Category B are entitled to two-missed payments without corrective action after which the registration process will commence.
Guiding Principle #6 – THAT following unsuccessful attempts to get the property owner to enter and maintain a payment plan, Administration continue to notify those parties with a registered interest in a property in Category B tax arrears and allow for the negotiation of a payment plan on behalf of the property owner as governed by Guiding Principle #4 and further THAT the following fee structure (which could be avoided if the taxpayer enters into a payment plan) be approved for said notification:
Registered Interest Party Notice - $225 (covers notification of 2 interested parties)
Additional Notification as Required - $50 per letter