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Home My Public Portal About2018-01-25_Tax Sale Policy_P-01Municipality of the District of Chester Tax Sale Policy Policy P-001 Approval Date: January 25, 2018 Effective Date: January 25, 2018 Sponsor: Director of Finance Tax Sale Policy P-001 (continued) Page 2 of 7 MUNICIPALITY OF THE DISTRICT OF CHESTER POLICY P-001 TAX SALE POLICY TABLE OF CONTENTS PURPOSE............................................................................................................................................. ..........3 POLICYSTATEMENTS.......................................................................................................................................3 GUIDINGPRINCIPLES AND VALUES...........................................................................................................4 PROCEDURES AND PRACTICE GUIDELINES..............................................................................................4 REFERENCES.........................................................................................................................................................4 RELATEDDOCUMENTS....................................................................................................................................5 APPENDICES........................................................................................................................................................5 Notice of Intention to Adopt — Committee of the Whole — January 4, 2018 (2018-006) First Notice —Council — January 11, 2018 (2018-013) Second Notice — Council — January 25, 2018 (2018-030) Effective Date — January 25, 2018 Tax Sale Policy P-001 (continued) Page 3 of 7 PURPOSE 1) The Municipal Government Act (MGA) provides municipalities with the power to sell properties for taxes if the taxes with respect to the property are not paid in full. The tax sale procedures are well documented in the MGA, however there are several sections of the MGA that allow a municipality to choose from available options in the procedures documented in the MGA. This policy addresses those options and provides direction to Municipal staff when putting a property up for tax sale. POLICY STATEMENTS 2) The following MGA sections are addressed in this policy, followed by the Municipality of the District of Chester's (MODC) policy statement. 3) Section 134(1) and 134(2) set a minimum time for arrears before starting a tax sale and maximum time that arrears may be outstanding before starting a tax sale. Therefore, Council may set the time period to be used by MODC within these time frames. Minimum — not paid in full ,for the year immediately preceding the tax sale; Maximum — taxes in arrears the preceding three years. i) Policy statement — Property will be sold for taxes if the taxes with respect to the property are not paid in full for the two taxation years immediately preceding the year in which the tax sale proceedings are commenced. 4) Section 134(4)(a) allows Council to set a collection limit that establishes a dollar limit, below which MODC would not proceed to a tax sale, but would employ other collection methods. i) Policy statement —The collection limit is $500.00 except when: (1) the property owner has other properties over two years in arrears and over $500, then the property under $500 may also be included in tax sale proceedings, if the Treasurer feels that the addition of the property will add to the marketability of the owner's other properties; (2) the property is arrears for the preceding five taxation years, the property will be included in tax sale proceedings. 5) Section 138 The tax sale preliminary notice period, if longer than the fourteen days prescribed in the MGA. i) Policy statement — Council follows the notice period of fourteens days as prescribed in the MGA. Notice of Intention to Adopt — Committee of the Whole — January 4, 2018 (2018-006) First Notice —Council —January 11, 2018 (2018-013) Second Notice — Council — January 25, 2018 (2018-030) Effective Date — January 25, 2018 Tax Sale Policy P-001 (continued) Page 4 of 7 GUIDING PRINCIPLES AND VALUES 6) MODC's goals include maintaining a high level of fiscal responsibility. This requires timely collection of amounts owing to the municipality. This must be balanced with fair treatment of residents and property owners, reinforcement of a positive image of the municipality and a desire to foster economic opportunities. PROCEDURES AND PRACTICE GUIDELINES 7) Various other decisions by Council, allowed by the MGA, will be made at the time of the tax sale versus prescribed by this policy. These decision at the time of tax sale would include: a) S. 134(3) - defer tax sale proceedings for a property up to two years b) S. 141(2) -call tenders for property rather than put the property up for sale at public auction. C) S. 141(3) and 143(4) -Give direction as to what constitutes an acceptable minimum tender or bid in circumstances where property might not realize sufficient funds to cover the outstanding amount owing. d) S. 141 (1) -Give direction on properties up for tax sale that council want the Treasurer to bid for and purchase land at a tax sale for any municipal purpose. e) S. 149 - Where a municipality calls tenders for land to be sold for taxes, the municipality may reject all tenders where council considers that the best price offered is inadequate. 8) Section 140(1) of the MGA requires that those with an interest in the property shall be served with a "notice of intent to sell". The procedure to serve the "notice of intent to sell" shall be by regular mail. An additional procedure to serve the notice shall include posting of the notice on the property, where reasonable and safe to do so. The employee assigned to post the notice on the property would perform a site hazard assessment based upon safe work practices and consult with their supervisor on known risks. The Treasurer would review the cost to post the notice due to factors such as inaccessibility and consider whether or not the cost was reasonable. REFERENCES 9) Legislative Acts/References: a) Municipal Government Act Sections 134-167 Notice of Intention to Adopt — Committee of the Whole — January 4, 2018 (2018-006) First Notice —Council — January 11, 2018 (2018-013) Second Notice — Council — January 25, 2018 (2018-030) Effective Date — January 25, 2018 Tax Sale Policv P-001 (continued)- _ Page 5 of 7 RELATED DOCUMENTS 10) Policies/By-Laws a) Municipal Policy P-02 Tax Collection Policy (re: tax arrears payment arrangements). APPENDICES 11) Appendix A - Definitions Notice of Intention to Adopt — Committee of the Whole — January 4, 2018 (2018-006) First Notice —Council —January 11, 2018 (2018-013) Second Notice — Council — January 25, 2018 (2018-030) Effective Date — January 25, 2018 Tax Sale Policy P-001 (continued) Page 6 of 7 Appendix A Definitions Council — the council of the Municipality. Taxation year — means the period from April 1 St in one year to March 31St in the following year. Taxes — includes municipal rates, area rates, change in use tax, forest property tax, recreational property tax, capital charges, one-time charges, local improvement charges, and any rates, charges or debts prescribes, by the enactment authorizing them, to be a lien on the property. Tax sale — includes a sale by public auction or a sale by tender, for the purposes of collecting taxes. Treasurer - means the Treasurer for the Municipality as designated by the Chief Administrative Officer. Notice of Intention to Adopt — Committee of the Whole — January 4, 2018 (2018-006) First Notice —Council — January 11, 2018 (2018-013) Second Notice — Council — January 25, 2018 (2018-030) Effective Date — January 25, 2018 Tax Sale Policy P-001 (continued) Page 7 of 7 Municipality of the District of Chester Policies Being Replaced P-05 Policy for Fees for Tax Sale Proceedings (deals with notices, advertising, etc., which are detailed in the MGA) Version History Major Revisions Minor Revisions P-01 repealed by Council — Motion 2017-483 Sept. 14, 2017 Re -written via this policy Date of First Notice at Council January 11, 2018 (2018-013) Date of Second Notice at Council January 25, 2018 (2018-030) Effective Date January 25, 2018 1 certify that this Policy was amended by Council as indicated above. Annotation for Official Policy Book Notice of Intention to Adopt/Amend Committee of the Whole January 4, 2018 (2018-006) Date of First Notice at Council January 11, 2018 (2018-013) Date of Second Notice at Council January 25, 2018 (2018-030) Effective Date January 25, 2018 1 certify that this Policy was amended by Council as indicated above. January 31, 2018 Pamela M. N4ra, M�Icipal Clerk Date Notice of Intention to Adopt — Committee of the Whole — January 4, 2018 (2018-006) First Notice—Council —January 11, 2018 (2018-013) Second Notice — Council — January 25, 2018 (2018-030) Effective Date — January 25, 2018