March 23, 1998
To: Corporate Services Committee
From: Chief Financial Officer and Treasurer
Subject: Standardization of Tax-Related Administrative Service Charges (All Wards)
Purpose:
This report sets out proposed standardized charges relating to tax-related administrative services provided to taxpayers by the City of Toronto.
Source of Funds/Financial Implications:
The proposed standardized service charges will generate approximately $458,000 in additional revenue in 1998 and is part of the 1998 Finance Department Budget.
Recommendations:
It is recommended that:
- Council adopt the charges for tax-related administrative services as set out in Appendix 1 of this report effective June 1, 1998.
- Authority be granted for the introduction of the necessary bills in Council.
- The appropriate civic officials be authorized and directed to take the necessary actions to give effect to the foregoing.
Comments:
Charges for tax-related administrative services vary among the former area municipalities. In the context of amalgamation, fees for similar services should be harmonized across the new City.
Some of the charges relate to services provided to individual ratepayers upon request, such as the provision of tax certificates for property sale closings. Other charges relate to the recovery of the administrative costs incurred to maintain individual tax accounts, such as the charge for processing a dishonoured cheque.
All existing charges were thoroughly examined by a staff team. The proposed charges for services provided by the new City are set out in APPENDIX 1.
In some cases, service charges, such as charges for current year tax receipts, are being discontinued. Of note is the proposed fee of $50 for tax clearance certificates. The fee proposed is slightly higher than the fees previously charged by most of the former area municipalities and many of the surrounding GTA municipalities. However, the proposed tax certificate fee will include enhanced services for the legal community and is in line with other municipalities, such as Richmond Hill, Vaughan, Nepean and Ottawa, that provide tax certificates through an automated service. This service, which will be available in Toronto later in 1998, will provide the ability to request and receive tax certificates electronically.
In most cases, the former area municipalities have set the current fees to be charged with respect to tax certificates and other revenue-related service charges in by-laws or their municipal codes. To the extent that there is any conflict between the recommendations in this report and by-laws presently in place in the former municipalities, it is proposed that the provisions of the new by-law will apply.
Approximately $458,000 in additional revenue will be realized as a result of these standard fees if implemented on June 1, 1998 and $785,000 on an annualized basis.
Contact Name:
Ed DeSousa
Phone: 397-4226
Fax: 392-3649
Audrey Birt
Phone: 392-7820
Fax: 392-0364
W. A. Liczyk,
Chief Financial Officer and Treasurer
APPENDIX 1
SUMMARY OF 1997 TAX ADMINISTRATION RELATED SERVICES AND FEES
AND PROPOSED CHANGES FOR 1998
|
East York |
York |
Etobicoke |
Scarborough |
North York |
Toronto |
Proposed for 1998 |
Additional Revenue for 1998 (June 1) |
Tax Clearance Certificates |
$35.00 |
$35.00
$50.00 - 24 hour return |
$35.00
$50.00 same day faxed |
$35.00
$60.00 Rush |
$35.00
$60.00 Rush |
$20.00 |
$50.00 |
$425,000 |
Current Year Tax Receipt |
No fee |
$3.00 |
$5.00 |
No fee |
No fee with postage paid envelope |
No fee |
No fee |
($5,250) |
Prior Year Tax Receipt |
No charge for up to 3 years prior.
$3.21 for every year past 3 years |
$3.00 |
$5.00 per year |
$15.00 |
$5.00 |
$5.00 |
$5.00 per tax year excluding current year. |
$120 |
Tax Payment Details |
No fee |
$30.00 / hour |
$10.00 per year |
$15.00 |
$15.00 / hour |
$5.00 if on system
$7.50 if microfiched |
$15.00 per tax year searched |
$9,000 |
Dishonoured Cheque Charge |
$22.00 |
$20.00 |
$20.00 |
$25.00 |
$25.00 |
$22.00 |
$25.00 per cheque |
$66,000 |
Photocopy of Assessment Roll |
No fee |
No fee |
No fee |
No fee |
No fee |
$3.60 / print |
Continue current policies pending realignment of assessment control function. |
$0 |
Section 442 Applications |
No fee |
No fee |
No fee |
$25.00 |
No fee |
No fee |
No fee |
($25,000) |
Tax Bills by Registered Mail |
No fee |
No fee |
No fee |
No fee |
No fee |
$12.00 |
$12.00 |
$0 |
Supplementary Assessments |
No fee |
No fee |
$10.00 |
No fee |
No fee |
No fee |
No fee |
($12,000) |
|
|
|
|
|
|
|
Total |
$457,870 |