February 1, 2000
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 $4,605,140.80 as summarized in Schedules "A" and "B"
attached. The City's share of this total tax reduction is approximately $1,840,000.00. Funding of this deficiency is provided
for in the 2000 operating budget. The balance of the tax cancellation is to be recovered from the school boards.
Recommendation:
It is recommended that:
1) the individual appeal applications made pursuant to Section 442 of the Municipal Act totalling $4,417,294.38 as
summarized in Schedule "A", be approved; and
2) the individual appeal applications made pursuant to Section 443 of the Municipal Act totalling $187,846.42 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, excluding any
phase-in/capping adjustment, 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 (ARB).
The total cancellation or refund of taxes under Section 442 of the Municipal Act as recommended in this report is
$4,417,294.38. The total cancellation or refund of taxes under Section 443 of the Municipal Act as recommended in this
report is $187,846.42. Approximately $2,700,000 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
MLB/sr
Attach.
R:\003\AT22\REPORTS\TAXADJAN00
February 1, 2000
ADJUSTMENT OF TAXES
PURSUANT TO SECTION 442 OF THE MUNICIPAL ACT
S C H E D U L E "A"
REASON FOR APPEAL NO. OF APLICATIONS ADJUSTMENT
Damaged by fire or demolished 460 $1,604,803.37
Commercial to residential conversion 58 $ 171,858.64
Razed by fire or demolition 44 $ 469,562.67
Exempt 107 $1,221,470.40
Gross or manifest clerical error 88 $ 476,286.07
No longer doing business 19 $ 101,319.56
Incorrect Measurement 2 $ 258.68
Unuseable 2 $ 1,876.96
Class change 68 $ 369,858.03
TOTAL ADJUSTMENTS THIS PERIOD 848 $4,417,294.38
Breakdown By Year
1995 1 $ 11,374.52
1996 31 $ 133,597.14
1997 158 $ 366,280.22
1998 375 $1,826,863.45
1999 283 $2,079,179.05
848 $4,417,294.38
Breakdown by Former Municipality
Scarborough 68 $ 568,781.11
Toronto 153 $1,196,474.20
East York 14 $ 65,375.70
North York 440 $ 997,528.21
York 40 $ 325,803.10
Etobicoke 133 $1,263,332.06
848 $4,417,294.38
ADJUSTMENT OF TAXES
PURSUANT TO SECTION 443 OF THE MUNICIPAL ACT
S C H E D U L E "B"
REASON FOR APPEAL NO. OF APLICATIONS ADJUSTMENT
Gross or Manifest Clerical Error 20 $156,032.70
Commercial to Residential Conversion 2 $ 693.41
Damaged by fire or Demolished 4 $ 10,244.18
Exempt 6 $ 20,876.13
TOTAL ADJUSTMENTS THIS PERIOD 32 $187,846.42
Breakdown By Year
1988 4 $ 51,197.21
1989 4 $ 60,671.51
1990 1 $ 2,362.27
1993 1 $ 173.76
1994 1 $ 519.65
1995 1 $ 1,316.02
1996 7 $ 34,098.35
1997 5 $ 15,211.69
1998 6 $ 15,357.17
1999 2 $ 6,938.79
32 $187,846.42
Breakdown by Former Municipality
Scarborough 3 $ 16,991.76
Toronto 13 $ 46,183.55
North York 10 $111,992.40
York 5 $ 10,142.80
Etobicoke 1 $ 2,535.91
32 $187,846.42