Property Tax Model - Sales/Arrears Process
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, in contrast to Southern Ontario, property values in small Northern and Rural municipalities have been on the decline rather than increasing in value, resulting in higher tax levies; and
WHEREAS many properties that are in tax arrears end up becoming derelict and unsaleable through tax sale procedures due to the amount of time required to pass prior to tax sale; and
WHEREAS many properties hold no value and are not practical to be vested in the municipality following an unsuccessful tax sale process due to lack of maintenance, vandalism, environmental or climactic damage.
THEREFORE BE IT RESOLVED THAT the Northwestern Ontario Municipal Association call on the Provincial Government, through changes in tax arrears legislation, to reduce this gap in the system that allows properties to sit so long in arrears and fall into disrepair resulting in the erosion of desperately needed taxation revenue and perpetuating vacant, decaying communities;
AND FURTHER THAT the Provincial Government make changes to legislation governing the tax sale process so as to limit the arrears period to two years instead of three, especially in the case of commercial properties;
AND FURTHER THAT a copy of this resolution be forwarded to the Premier, the Minister of Finance, the Minister of Municipal Affairs & Housing and all Northwestern Ontario MPP’s for their action and support.
Adopted by the membership: April 2011
