WHITEWATER REGION (Cobden) — Last night, there was a special Council meeting of the Township of Whitewater Region where by-law number 20-02-1268 was read and passed. Motioned by Councillor Dave MacKay and seconded by Councillor Charlene Jackson, the by-law authorizes the Assessment Review Board (ARB) to exercise certain powers and functions, with respect to tax applications, due to sickness and extreme poverty. This includes cancelling or reducing taxes in events of this nature. It was a popular opinion that the third party, ARB, handle the process.
Councillor MacKay asked if someone cannot afford to pay their taxes, does someone else? Treasurer Sean Crozier stated the County has a by-law where the taxes would be deferred with no increase. Upon sale of the house or transfer of ownership is when the Township would able to recoup the taxes. Mr. Crozier believes if there is a cancellation of taxes under Section 357 of the Municipal Act, 2001, the amount would be written off as is similar when a flood or fire is experienced.
Section 357 (1) of the Municipal Act, 2001, states “Upon application to the treasurer of a local municipality made in accordance with this section, the local municipality may cancel, reduce or refund all or part of taxes levied on land in the year in respect of which the application is made if” and lists in subsections (a) to (g) the parameters in which a tax payer may apply. Subsection (d.1) states, “the applicant is unable to pay taxes because of sickness or extreme poverty”. Mr. Crozier said while the County by-law and the proposed by-law are similar, they pertain to two different sections of the Municipal Act, 2001. He explained the County by-law relates to section 319 while the proposed by-law relates to section 357.
The County of Renfrew by-law number 35-12 details certain elderly and disabled persons who are owners of real property in the County of Renfrew, can apply to the lower tier municipality for deferrals or cancellations of, or other relief in respect of, all or part of a tax increase for 1998 and subsequent years on property in the residential property class for persons assessed as owners who are, or whose spouses are, a) low income seniors; or b) low-income persons with disabilities. Section 18 of the by-law states, “The amount of tax relief in the form of tax deferral granted pursuant to this By-law shall be a lien upon the eligible property in accordance with the provisions of s.319(14) and 349 of the Act.”
The financial implications are unknown at this time, as it depends on how many applications the ARB receives and the amount of the cancellation, reduction or refund of taxes, if there are any. Councillor Jackson stressed any relief given through this application for County and school taxes would be recovered annually from the County of Renfrew and the various school boards. The Township was recommended to utilize the expertise of the ARB, enabling tax payers to apply under subsection (d.1) the same way they are able to apply under any other subsection of section 357. The Township said it has not received any formal applications for the County program. Due to the tax sale parameters changing to two-plus years in arrears, and the tax billing and collection policy that was updated in 2019, staff were told they should be prepared for applications made under section 319 and 357 before the deadline on Friday, February 28 for the 2019 tax year.
