Council Report: Refunds of Property Tax Prepayments
Report seeking Council approval to allow one-time refunds of property tax prepayment credit balances for 2020 due to provincial tax reductions.
TOWN OF VIEW ROYAL COUNCIL REPORT
TO: Council DATE: June 8, 2020 FROM: D. Christenson, Director of Finance MEETING DATE: June 16, 2020
Refunds of Property Tax Prepayments
RECOMMENDATION:
THAT the report dated June 8, 2020 from the Director of Finance titled “Refunds of Property Tax Prepayments” be received.
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT:
To consider an exception to the prohibition of refunds on tax prepayment credit balances for 2020 only.
BACKGROUND DISCUSSION:
Monthly property tax prepayment amounts are set nearly a year in advance based on an estimate of the next year’s property taxes. The Province reduced 2020 school taxes for all industrial and commercial classes and the 2020 Capital Regional District sewer levy was eliminated from the tax notice, resulting in credit balances for 264 participants in the Tax Prepayment Plan. Credit balances currently range from $1 to over $10,000 as follows:
| Credit balance | Number of accounts | Total value |
|---|---|---|
| < $200 | 153 | $17,971 |
| $201 to $1,000 | 110 | 37,676 |
| >$1,000 | 1 | 10,729 |
| Total | 264 | $66,376 |
The proposed bylaw amends Bylaw 749 to allow the refund of property tax prepayment credits for 2020 only.
Requests for refunds must be in writing and signed by all property tax owners. If requests are received by July 2, 2020, the monthly amount for participation in the 2021 tax prepayment program will include the effect of the refund in the calculation.
The proposed bylaw restricts refunds to amounts greater than $200 to minimize the total administrative processing burden. The maximum amount that can be refunded is the credit balance available on the property owner’s tax account on July 2, 2020. Credit balances that are not refunded reduce the calculated monthly payment amount for taxpayers who remain on the Tax Prepayment Plan.
RECOMMENDATION:
THAT the report dated June 8, 2020 from the Director of Finance titled “Refunds of Property Tax Prepayments” be received.
SUBMITTED BY: D. Christenson, Director of Finance
REVIEWED BY: K. Anema, Chief Administrative Officer
Attached:
- Proposed Monthly Preauthorized Tax Prepayment Plan Bylaw No. 749, 2010, Amendment Bylaw No. 1051, 2020.
- Monthly Preauthorized Tax Prepayment Plan Bylaw No. 749, 2010.
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