September 1, 1999
To:Administration Committee
From:W. A. Liczyk
Chief Financial Officer & Treasurer
Subject:Tax Adjustment - Municipal Act Section 442 & 443
Purpose:
To recommend the approval of the cancellation, reduction or refund of taxes pursuant to the provisions of sections 442 and
443 of the Municipal Act.
Financial Implications:
This report recommends cancellation of taxes in the amount of $2,134,941.15 as summarized in Schedules "A" and "B"
attached. The City's share of this total tax reduction is $860,000.00. Funding of this deficiency is provided for in the 1999
operating budget. The balance of the tax cancellation is to be recovered from the school boards.
Recommendation:
It is recommended that:
the individual appeal applications made pursuant to Section 442 of the Municipal Act totalling $1,883,371.69 as
summarized in Schedule "A", be approved; and
the individual appeal applications made pursuant to Section 443 of the Municipal Act totalling $251,569.46 as summarized
in Schedule "B", be approved.
Discussion:
Council of the City of Toronto on December 16th, and 17th, 1998 adopted a report authorizing the Administration
Committee to hear and make recommendations on tax appeals, other than poverty appeals, pursuant to sections 442 and
443 of the Municipal Act for cancellation, reduction or refund of taxes due to vacancy, out of business, demolition etc.
Sections 442 of the Municipal Act allows Council to cancel, reduce or refund taxes levied for the following reasons:
(a) property that has ceased to be liable to be taxed at the rate it was taxed on the returned roll;
(b) property become exempt from taxation;
(c) property razed by fire or demolished;
(d) mobile until that has been removed from the municipality during the year;
(e) taxpayer unable to pay taxes due to sickness or extreme poverty;
(f) overcharged by gross or manifest clerical error; or
(g) property could not be used for at least three months due to repairs or renovations.
Section 443 of the Municipal Act allows Council to make decisions relating to errors of fact on supplementary and omitted
assessments. This section permits correction of these types of errors for the current and previous two years.
As applications for cancellation of taxes are received, Finance staff forward the applications to the Ontario Property
Assessment Corporation (OPAC) for review. Upon receiving comments from OPAC, the Finance Department prepares its
recommendation, calculates the tax cancellation, advises the applicant of the tax amount to be cancelled, and schedules
hearings before the Administration Committee, if required. Within twenty-one days after a decision is rendered by the
Administration Committee, the City issues notices of decision to the applicants and process the tax adjustments
accordingly. The twenty-one day period allows the applicant the right to appeal the decision to the Assessment Review
Board.
The total cancellation or refund of taxes under Section 442 of the Municipal Act as recommended in this report is
$1,883,371.59. The total cancellation or refund of taxes under Section 443 of the Municipal Act as recommended in this
report is $251,569.46. Approximately $1,280,000 will be recovered from the school board.
Schedules "A" and "B" summarize by category the number of applications and tax dollars recommended for adjustment. A
confidential detailed report will be distributed to Members at the time of the committee hearing.
Contact Name:
Margo L. Brunning
Manager, Collections/Receivables, Payments
& Regional Customer Services
at (416) 395-6789
Fax Number (416) 395-6703
Internet Email Address:mbrunnin@toronto.on.ca
W. A. Liczyk
Chief Financial Officer & Treasurer
ADJUSTMENT OF TAXES
PURSUANT TO SECTION 442 OF THE MUNICIPAL ACT
S C H E D U L E "A"
REASON FOR APPEALNO. OF APPLICATIONSADJUSTMENT
Gross or Manifest Clerical Error 35$ 229,227.22
Damaged by fire or demolished 38$ 244,680.09
Reduced Space 3$ 4,932.00
Commercial to Residential Conversion 18 $ 107,221.74
Exempt 379$1,044,716.86
No longer doing business 10$ 24,873.24
Duplication 6$ 227,702.54
TOTAL ADJUSTMENTS THIS PERIOD 489 $1,883,371.69
Breakdown By Year
1994 1$ 73,084.41
1995 2$ 12,194.56
1996169$ 316,546.39
1997250 $ 438,588.50
1998 52$ 608,842.45
1999 15$ 434,115.38
489 $1,883,371.69
Breakdown By Former Municipality
Scarborough 29$ 59,945.30
Toronto400$1,327,897.52
North York 26$ 150,740.80
East York 23$ 157,772.66
York 1$ 84.96
Etobicoke 10$ 186,930.45
489$1,883,371.69
