Cancellation, Reduction or Refund of Taxes June 30, 2015

Section 357 of the Municipal Act, 2001 provides the authority for a local municipality to cancel, reduce or refund all or part of the taxes levied if one of the following events occurs:

  • As a result of a change event, the property is eligible to be reclassified in a different class of real property.
  • The property has become vacant land during the year.
  • The property has become exempt because it has been acquired by the Crown or a municipality.
  • A building on the land has been destroyed or damaged during the year.
  • A mobile unit on the land has been removed from the municipality.
  • An owner has been overcharged due to a gross or manifest error that is clerical or factual in nature.
  • Repairs or renovations to the property prevented the normal use of the property for a period of at least three months during the year.

In addition, Ontario Regulation 325/01 provides for a rebate of property taxes for vacancies in Commercial and Industrial Buildings when the entire building or a portion thereof has been vacant and unused for a period of at least 90 consecutive days during the year.

Taxpayers may also appeal the assessment of their properties which can lead to a reduction in their tax liabilities. These appeals may be settled on an informal basis as Minutes of Settlement or on a formal basis to the Assessment Review Board. When the Town is notified of these decisions, a tax adjustment is made either by way of a credit or a refund.

Section 361 of the Municipal Act, 2001 provides that every municipality shall have a tax rebate program for eligible charities for the purposes of giving them relief from taxes on eligible property that they occupy. The rebate is calculated based on 40% of the total taxes on that portion of the property occupied by the eligible charity.

The Town of Cobourg also provides a Heritage Tax Incentive for properties within the Commercial Core Heritage District to encourage the renovation and restoration of these properties. The amount of the grant is equal to the amount of the annual increase in the municipal portion of the taxes for such properties that is a direct result of a reassessment due to an approved restoration project.

Included with this report is a spreadsheet providing the background calculations to support tax adjustments for several properties. The net result of these changes is a reduction in taxes in the amount of $250,408.60.

The net reduction in taxes included with this report amounts to $250,408.60. This balance is shared with the County, and School Boards on the following basis:

 June 30, 2015 Year To Date 2015 Budget
Town of Cobourg$(95,495.92)$(95,495.92)$(225,000)
County of Northumberland$(53,034.40)$(53,034.40) 

That council pass a motion to approve the reduction of property taxes in the amount of $250,408.60

Cancellation, Reduction or Refund of Taxes June 30, 2015