Property Lienholder Status
WHEREAS Northern and Rural municipalities characteristically do not have diversified economies and are typically one industry towns; and
WHEREAS Northern and Rural municipalities have suffered a significant economic downturn and dramatic losses of tax revenue; and
WHEREAS the population has been on the decline in many small Northern and Rural municipalities for a number of years, resulting in a corresponding declining tax base; and
WHEREAS property values in small Northern and Rural municipalities have been on the decline rather than increasing in value similar to Southern Ontario, resulting in higher tax levies; and
WHEREAS many properties that are in arrears have outstanding liens securing amounts owing to the provincial and federal governments; and
WHEREAS the Province of Ontario has enacted amendments to the Municipal Act to provide:
- that the Municipality can vest tax sale properties free and clear of the Provincial lien;
- that the lien is waived on subsequent sales to third parties where the cancellation price is less than $10,000.00 or where the sale takes place seven years or more after the registration of the notice of vesting; and
- that when not waived, the proceeds of subsequent sales are shared with the Municipality pursuant to a statutory formula rather than giving the Province first priority to claim against them;
AND WHEREAS no similar relief has been provided in respect of Federal liens;
AND WHEREAS, as a result, the existence of the Federal lien frustrates the tax sale process to the disadvantage of both Municipality and the Federal government itself and results in tax write offs and abandoned properties;
THEREFORE BE IT RESOLVED that the Northwestern Ontario Municipal Association urge the Government of Canada to provide relief in respect of its liens at least to the same extent as the Province of Ontario has done.
Adopted by the membership: April 2011
