Committee - Corporate Services Agenda Preview — May 7, 2026

Summary

One-sentence summary: Council will examine a modernized tax billing policy, winter cost overruns exceeding $500,000, and financial pressures from an exceptionally wet spring at the May 7, 2026, 5:30 PM meeting.

On May 7, 2026, at 5:30 PM, Council will consider the Tax Billing and Collection Policy proposal and the 2026 T1 Financial Update. The policy aims to replace an outdated pre-authorised debit by-law, align with current legislation, and provide flexibility for residents facing economic uncertainty. Current rules require tax bills issued at least 21 days before due dates using MPAC data. Pre-authorised plans allow monthly payments without late charges, though arrears incur interest and two failed withdrawals can trigger removal from these plans. Small balances of $2.50 or less are automatically written off annually, and interest waivers are offered for outstanding amounts under $50 to assist struggling ratepayers. For owners in arrears over two years, the city reviews accounts for potential tax sales using title searches and mediation windows. The system accommodates various payment methods and corrects billing errors, with a shift to a Virtual City Hall platform expected to redirect staff toward higher-value improvements while maintaining equitable treatment. Council will also examine the 2026 T1 Financial Update, noting significant winter control costs exceeding the budget by approximately $500,000.

Top Newsworthy Developments

Key Topics & Sections

Full Transcript

2 CALL FOR ADDITIONAL BUSINESS

CALL FOR ADDITIONAL BUSINESS

3 DECLARATIONS OF INTEREST

DECLARATIONS OF INTEREST

4 CONFIRMATION OF MINUTES

CONFIRMATION OF MINUTES
4.a
Minutes of the Corporate Services Committee meeting held on April 9,

5 DEPUTATIONS AND PRESENTATIONS There are no deputations or presentations.

DEPUTATIONS AND PRESENTATIONS
There are no deputations or presentations.

6 PUBLIC FORUM

PUBLIC FORUM

7 CORRESPONDENCE RECEIVED FOR WHICH DIRECTION IS REQUIRED There are no correspondence items being presented for consideration.

CORRESPONDENCE RECEIVED FOR WHICH DIRECTION IS REQUIRED
There are no correspondence items being presented for consideration.

8 REPORTS OF CITY STAFF

REPORTS OF CITY STAFF
8.a
Accounting

THAT in consideration of Staff Report CR-26-043 respecting the 2026 T1
Financial Update, the Corporate Services Committee recommends that City
Council receive the report for information purposes.

Highlights:






The City is currently tracking generally in line with the approved
budget, with no significant or unexpected variances identified at
this early stage.
Seasonal pressures remain a key driver, with winter control costs
trending over budget and additional impacts anticipated from an
exceptionally wet spring.
Staffing vacancies continue to generate short-term savings but are
creating organization-wide capacity pressures that are affecting
service delivery.

Vision 2050 - Strategic Plan Alignment:
Strategic Plan Priority: The recommendation contributes to core service
delivery or a corporate initiative that enables service delivery for one or more
strategic priorities.

Previous Report/Authority:
N/A
Staff Report CR-26-043: 2026 – T1 Financial Update
Page 1 of 6

Page 9 of 64

Background:
The City of Owen Sound operates on a calendar year budget cycle, meaning
our fiscal year starts in January and ends in December. This report
summarizes the City’s financial position for the first four months of the 2026
fiscal year (January to April) and provides an early indication of our potential
year-end position.
Our analytical approach remains consistent with prior years:
1.

The year-to-date financial results from January to April, including
revenues, expenditures, and variances from budget.

2.

A forecast for the remaining eight months of the fiscal year (May to
December), informed primarily by historical trends, adjusted for
known changes in the current year.

This methodology reflects the cyclical nature of municipal operations, where
many revenues and expenditures follow predictable seasonal patterns. In
developing the forecast, staff consider:





Seasonal variations in expenditures, particularly those associated
with winter operations and infrastructure maintenance;
Regular payroll costs, including collective agreement impacts,
staffing changes, and temporary vacancies;
Known one-time revenues or expenditures that are not expected to
recur; and
Any confirmed contractual, legislative, or program changes
impacting the current year.

It is important to note that, at this early stage in the fiscal year, the City is
estimating outcomes for the remaining eight months, and as such, any yearend forecast carries a high degree of uncertainty. While historical data
provides a reasonable foundation, it cannot fully account for unforeseen
events, including weather variability, economic shifts, or operational
pressures that may arise later in the year.
This report does not include detailed financial analysis of the Owen Sound
Police Service. Financial updates related to Police Services continue to be
provided to Council through the Police Services Board meeting minutes,
consistent with prior reporting practices.
Similarly, this report does not include financial results from the Owen Sound
& North Grey Union Public Library. The Library operates as an independent
board with its own financial systems, bank accounts, and reporting structure.
Staff Report CR-26-043: 2026 – T1 Financial Update
Page 2 of 6

Page 10 of 64

The City’s financial obligation is limited to the annual levy approved through
the budget process, and any surplus or deficit realized by the Library is
managed by the Board. As such, Library financial variances are not
incorporated into the City’s operating forecast.
All other City departments and divisions are consolidated within this report
and contribute to the City’s overall financial position on a consistent basis.

Analysis and Options:
Applying the forecasting methodology previously described, the City is
currently tracking generally in line with budget, with no significant or
unexpected variances identified at this early stage in the fiscal year.
However, several emerging trends and known pressures are noted for
Council’s awareness.
Winter Control and Seasonal Pressures
Winter control operations are currently tracking approximately $500,000
over budget. While this represents a significant pressure, it is less severe
than the same point in 2025, reflecting a heavy winter season that, while
impactful, has been more manageable operationally than the prior year.
As has been the case in recent years, winter-related costs extend beyond
snow clearing and include downstream impacts such as spring clean-up,
infrastructure wear, and facility maintenance. These pressures will continue
to evolve over the coming months.
Wet Spring – Known Pressure Not Yet Reflected
The City is currently experiencing an exceptionally wet spring, which is
expected to have a broad operational and financial impact. At this time,
these impacts are not yet fully reflected in the financial statements, as many
associated costs will be incurred and processed later in the spring and early
summer.
Anticipated impacts include:




Reduced revenues in weather-dependent services, such as
campground bookings;
Increased maintenance costs related to trail repairs, drainage
issues, and erosion;
Higher volumes of leachate at the landfill increasing hauling costs;
and
Staff Report CR-26-043: 2026 – T1 Financial Update
Page 3 of 6

Page 11 of 64



General clean-up costs associated with prolonged runoff and
saturated conditions.

While the financial impact cannot yet be quantified with precision, staff are
confident that these pressures will materialize in future reporting periods. As
a result, the City’s financial position remains sensitive to weather conditions
through the balance of the spring and summer seasons, which will ultimately
influence both revenues and expenditures.
Labour Costs and Fire Arbitration
The financial impact of the Fire interest arbitration award has not yet been
fully reflected in the City’s financial records, as retroactive payments are still
being calculated and processed. Based on current estimates, this is expected
to result in an approximately $90,000 budget pressure within Fire Services
for the 2026 fiscal year.
This remains an estimate at this time and will be refined as final figures are
confirmed and applied.
Gapping and Organizational Capacity
As in prior years, the City is experiencing savings from temporary vacancies
(gapping) across multiple departments. While this represents a positive
financial variance, it continues to present operational challenges.
In 2026, these impacts are being felt more broadly across the organization,
with no single service area isolated from staffing constraints. Prolonged
vacancies are affecting service delivery timelines, internal capacity, and
overall organizational resilience.
This dynamic reinforces that while gapping contributes to short-term
financial performance, it can also create longer-term operational risks if
sustained.
Revenue Trends and Positive Variances
Several areas continue to show positive financial performance, including:




Facility booking revenues, which remain strong and consistent
with recent trends;
Transit ridership revenues, which are trending favourably at this
stage; and
Building permit and control revenues, which are expected to
meet or exceed budget based on current activity levels.

Staff Report CR-26-043: 2026 – T1 Financial Update
Page 4 of 6

Page 12 of 64

These positive variances provide some offset to cost pressures; however,
given the early stage of the fiscal year, they should be viewed as preliminary
indicators rather than confirmed outcomes.
Overall Forecast Position
At this time, and based on the information available, staff expect the City to
track generally in line with the approved budget by year-end.
However, it is important to emphasize that:




A significant portion of the fiscal year remains unobserved;
Known pressures (such as spring weather impacts and arbitration
costs) are not yet fully reflected; and
The City’s financial performance remains highly sensitive to
external factors, particularly weather conditions.

Staff will continue to monitor all trends closely and will report back to Council
through the T2 Financial Update with a more refined and reliable year-end
forecast.

Resource Alignment:
Financial Resources
There are no financial impacts as a result of this report. At this moment in
time there are no indications that the City is in a significant deficit or surplus
position.

Human Resources
N/A

Time and Scheduling
N/A

Technology and Infrastructure
N/A

Climate and Environmental Impacts:
There are no anticipated climate or environmental impacts.

Staff Report CR-26-043: 2026 – T1 Financial Update
Page 5 of 6

Page 13 of 64

Communication and Engagement:
This report has been posted to the City’s website with the agenda in advance
of the meeting. Historic financial statements are available on the City’s
website.

Report Developed in Consultation With:
City staff and department heads.

Attachments:
None
Reviewed by:
Kate Allan, Director of Corporate Services
Submission approved by:
Tim Simmonds, City Manager
For more information on this report, please contact Kate Allan, Director of
Corporate Services at kallan@owensound.ca or 519-376-4440 ext. 1238.

Staff Report CR-26-043: 2026 – T1 Financial Update
Page 6 of 6

Page 14 of 64

Staff Report
Report To:

Corporate Services Committee

Report From:

Crystal Moffatt, Tax Collector

Meeting Date:

Tax Billing and Collection Policy AF020

Report Code:

THAT in consideration of Staff Report CR-26-044 respecting the Revised Tax
Billing and Collection Policy, the Corporate Services Committee recommends
that City Council direct staff to bring forward by-laws to:
1.

Adopt Tax Billing and Collection Policy No. AF020;

2.

Repeal Tax Collection Policy No. FS19;

3.

Repeal Property Tax Pre-Authorized Debit Plans By-law No. 2013094; and

4.

Amend By-law No. 2026-041, “Tax Policy By-law” respecting the
method of pre-authorized tax payments for final billing to reference
Policy AF020.

Highlights:






The Tax Billing and Collection Policy is reviewed every five years to
align with current legislation, municipal best practices, and support
efficient tax administration and continuous improvement in
customer service.
The revised Tax Billing and Collection Policy provides a more
comprehensive and detailed framework for billing and collection
practices.
The updated policy improves transparency and consistency in how
tax billing and collections are administered.

Staff Report CR-26-044: Revised Tax Billing and Collection Policy
Page 1 of 6

Page 15 of 64



Amending the Tax Policy By-Law to reference Policy AF020 will
enhance clarity and consistency in the administration of preauthorized tax payment plans for final billing.

Vision 2050 - Strategic Plan Alignment:
Strategic Plan Priority: The recommendation contributes to core service
delivery or a corporate initiative that enables service delivery for one or more
strategic priorities.

Previous Report/Authority:
The Municipal Act, 2001

Background:
The COVID-19 pandemic and subsequent staffing changes delayed the
formal review of Policy FS19. During this period, more flexible and informal
collection practices were implemented to better support ratepayers. These
measures included increased discretion in payment arrangements, enhanced
communication efforts, and a more responsive approach to individual
financial circumstances, ensuring residents were supported during a time of
economic uncertainty while maintaining the integrity of the City’s tax
collection processes.
With the introduction of a formal five-year review cycle, the Tax Billing and
Collection Policy is now regularly reviewed to ensure alignment with current
legislative requirements, reflect operational practices, and support effective,
equitable, and transparent tax administration. Procedures are in place to
manage billing, arrears, and enforcement, and are administered in
accordance with the provisions of the Municipal Act.
This policy was developed in accordance with current municipal legislation
under the Municipal Act and incorporates research and benchmarking from
similarly sized municipalities to align with established best practices. A
review of internal processes and operational requirements was also
undertaken to ensure the policy reflects current practices, meets service
delivery expectations, and provides a consistent and defensible framework
for tax billing and collection activities, ultimately supporting clarity,
accountability, and confidence in the City’s administration of property
taxation.
Staff Report CR-26-044: Revised Tax Billing and Collection Policy
Page 2 of 6

Page 16 of 64

Analysis and Options:
The revised Tax Billing and Collection Policy will continue to support the
prompt, effective, and efficient collection of all property taxes due to the
City, while promoting fair and equitable treatment of all ratepayers.
Key elements of the policy include:













Comprehensive property tax collection processes, including payment
methods, pre-authorized payment plans, application of payments,
interest and penalty administration, and other measures necessary for
the effective enforcement of tax collection.
Clear direction for the billing and issuance of property tax notices,
including interim and final billings, supplementary and omitted
assessments, and associated timelines.
Standardized processes for managing tax arrears, including the
issuance of reminders and notices, and the escalation of collection
actions in accordance with applicable legislation.
Provisions outlining enforcement mechanisms, including tax
registration, tax sale proceedings, and other recovery actions as
permitted under the Municipal Act.
Defined roles and responsibilities to support the consistent and
equitable administration of property tax billing and collection activities.
Provides staff with clear direction and authority to act within an
established framework, establishing consistent procedures for billing,
collection, and enforcement so that decisions are applied fairly and in
accordance with legislation. This clarity supports efficient operations,
reduces uncertainty, and enables staff to respond confidently to
ratepayer inquiries and complex situations.
From a ratepayer perspective, the policy enhances transparency and
accountability in the City’s billing and collection practices, establishes
clear expectations for service delivery, and improves access to
information.

2026 Tax Policy Impact
The Tax Policy By-law outlines the permitted methods of pre-authorized tax
payment for final tax billing through By-law No. 2013-094; however, the Tax
Policy By-law does not reference Policy AF020, which now provides the
detailed administrative framework for the City’s pre-authorized payment

Staff Report CR-26-044: Revised Tax Billing and Collection Policy
Page 3 of 6

Page 17 of 64

plans. As such, By-law No. 2013-094 should be repealed, as Policy AF020 will
serve as the authority for administering pre-authorized tax payment plans.
Amending the Tax Policy By-law to reference Policy AF020 will improve
clarity, ensure alignment between legislative and administrative documents,
and support transparency.
Alternatively, the City could continue administering payment plans under
Policy AF020 without updating the recent changes to the Tax Policy By-law;
however, this may create a lack of clarity where the two are not formally
linked. Aligning the by-law and policy is considered best practice and reduces
the risk of inconsistency.

Resource Alignment:
Financial Resources
N/A

Human Resources
It is anticipated that a brief annual review of the Tax Billing and Collection
Policy will be undertaken by the Deputy Treasurer and Tax Collector to
ensure compliance with the Municipal Act, and to incorporate any legislative
changes. Staff will also continue to engage with similarly sized municipalities
and professional networks to align the policy with current best practices and
implement any necessary updates, as required.
A comprehensive review will be conducted every five (5) years by the Deputy
Treasurer, Manager of Legislative Services, and Tax Collector to ensure the
policy remains aligned with changes in legislation and the evolving municipal
and property tax landscape.
It is estimated that the annual review will require approximately 2–4 hours
of combined staff time, while the comprehensive five-year review will require
approximately 10–15 hours of combined staff time, depending on the extent
of legislative or procedural changes required.

Time and Scheduling
The new Tax Billing and Collection Policy will take effect immediately upon
approval and enactment of the enabling by-law.

Staff Report CR-26-044: Revised Tax Billing and Collection Policy
Page 4 of 6

Page 18 of 64

Technology and Infrastructure
With the implementation of Virtual City Hall (VCH), ratepayers can now easily
access tax and water account information, including account balances,
previously issued billings, the ability to make payments by credit card, and
more, anywhere, at any time. This increased accessibility provides greater
flexibility for ratepayers and reduces the need for routine counter and
telephone inquiries.
As staff continue to encourage ratepayers to create a profile on VCH, it is
envisioned that staff capacity will be redirected from routine transactional
service delivery to higher-value work, including process improvements,
policy development, and service enhancements that support high-quality
customer service.
To date, approximately 520 ratepayers have created profiles on VCH, with
continued uptake expected as awareness increases.

Climate and Environmental Impacts:
There are no anticipated climate or environmental impacts.

Communication and Engagement:
This report and policy has been posted to the City’s website with the agenda
in advance of this meeting.
The policy will be available on the City’s website under By-laws and Policies,
and upon request at City Hall.

Report Developed in Consultation With:
Manager of Legislative Services
Director of Corporate Services
Peter Frise, Frise Policy & Finance Inc.

Attachments:
1.

Attachment 1 - Tax Billing and Collection Policy AF020

2.

Attachment 2 – FS19 – Previous Tax Collection and Billing Policy

Staff Report CR-26-044: Revised Tax Billing and Collection Policy
Page 5 of 6

Page 19 of 64

Reviewed by:
Kristen Van Alphen, Manager of Legislative Services
Kate Allan, Director of Corporate Services
Submission approved by:
Tim Simmonds, City Manager
For more information on this report, please contact Crystal Moffatt, Tax
Collector at cmoffatt@owensound.ca or 519-376-4440 ex. 1249.

Staff Report CR-26-044: Revised Tax Billing and Collection Policy
Page 6 of 6

Page 20 of 64

Policy AF020
Tax Collection & Billing
Topic: Administration & Finance
Lead Division: Finance
Next Scheduled Review: 2030
Table of contents
Policy Statement .......................................................................................... 2
Purpose ....................................................................................................... 2
Scope .......................................................................................................... 2
Policy .......................................................................................................... 3
Definitions ................................................................................................ 3
Legislative authority & discretion ................................................................. 5
Responsibilities .......................................................................................... 5
Mandatory requirements – Tax billing ........................................................... 6
Property Tax Collection ............................................................................... 9
Property Tax Administration ...................................................................... 16
Property Tax Arrears – Collection ............................................................... 18
Tax Sale Process ...................................................................................... 22
Extension Agreements .............................................................................. 24
Tax Sale Tender Process ........................................................................... 25
Handling of Tender Deposits and Highest Bidder Notifications ........................ 27
No Successful Tax Sale Purchaser .............................................................. 28
Write-Offs and Rebates ............................................................................. 29
Property Tax Write-Offs ............................................................................ 30
Assessment Review Board Applications ....................................................... 31
Request for Reconsideration (RfR) .............................................................. 31
Post Roll Assessment Notices (PRAN) ......................................................... 32
Advisory Notice of Adjustment (ANA) ......................................................... 32
Vacant Commercial & Industrial Unit Tax Rebates ........................................ 32
Property Tax Rebates ............................................................................... 32
Non-Tax Debt .......................................................................................... 33
AF020 Tax Billing and Collection Policy

Page 1 of 35
Page 21 of 64

Bankruptcy ............................................................................................. 33
Contaminated Property ............................................................................. 33
Sharing of Information ............................................................................. 33
Policy review .............................................................................................. 34
Related Information and Resources ............................................................... 34
Internal .................................................................................................. 34
External .................................................................................................. 34
Appendices ................................................................................................ 34
Revision History ......................................................................................... 34
Appendix A to Policy AF020 - Property Tax Mail Cycle* .................................... 35

Policy Statement
1.

The City recognizes the importance of fair, consistent, and accountable
property tax billing and collection processes that align with the authority
under section 286 of the Municipal Act, which states that the Treasurer is
responsible for invoicing, collection, and reconciliation of all accounts
receivable. This policy supports financial sustainability, ensures ratepayer
transparency, and balances responsible revenue management with customer
service.

Purpose
2.

The purpose of this policy is to ensure the effective and equitable
management of the City of Owen Sound’s property tax receivables. It aims
to support taxpayers in fulfilling their payment obligations while establishing
clear responsibilities, internal controls, authorizations, and procedures to
guarantee the timely, accurate, and efficient preparation and collection of
property taxes.

Scope
3.

The Tax Collection & Billing policy applies to all taxpayers within the
jurisdiction of the City. Municipal staff assigned to the administration and
collection of tax accounts shall adhere to the policies and procedures
detailed below.

4.

This policy excludes the collection of payments-in-lieu of taxes as this form
of revenue is collected subject to applicable provincial legislation under
various Acts and Regulations.

AF020 Tax Billing and Collection Policy

Page 2 of 35
Page 22 of 64

Policy
Definitions
5.

For the purposes of this policy,
“Aged Trial Balance” means a financial statement that details all outstanding
receivables owed to the City by its taxpayers.
“Articles of Incorporation" means a legal document filed with a government
authority that establishes a corporation as a separate legal entity. The
Articles of Incorporation set out basic information about the corporation,
such as its name, purpose, share structure, and registered office address.
“Assessment Act” means the Assessment Act, R.S.O. 1990, c. A.31;
“Assessment Roll” is the official record prepared by MPAC that lists all
properties in a municipality along with their assessed values, property
classes and any exemptions;
“Assessment Review Board” is an independent tribunal in Ontario that hears
appeals and resolves disputes between property owners and the Municipal
Property Assessment Corporation (MPAC) regarding property assessments;
“City” means the City of Owen Sound, and a reference to the City is a
reference to the geographical area or The Corporation of the City of Owen
Sound as the context requires;
“City Hall” means the municipal office of the Corporation of the City of Owen
Sound at 808 2nd Ave E., Owen Sound ON;
“Collection Costs” means the total costs incurred by the City to obtain
further information for collection purposes in compliance with the regulations
during the tax sale registration process. This includes, and is not limited to,
title search fees, corporate search fees, registered mail, administrative
charges, legal costs, registration fees, and tax sale administration fees;
“Cancellation Price” is the amount equal to all the tax arrears owing at a
given point in time in respect of land, together with all current real property
taxes owing, including all penalties and interest and all levy and collection
costs incurred by the City after the registration of a tax arrears certificate
under section 373 of the Municipal Act;
“Collector’s Roll” is the official record of all taxable properties and changes
for a taxation year, prepared after receiving the returned annual assessment
roll from MPAC;

AF020 Tax Billing and Collection Policy

Page 3 of 35
Page 23 of 64

“Deputy Treasurer” means a senior official that supports the Treasurer by
overseeing daily financial operations, assisting with statutory duties like tax
collection and financial reporting;
“Director” means the City Manager, the Director of Community Services, the
Director of Corporate Services, the Director of Public Works & Engineering,
the Fire Chief, the Chief Curator, or any one of the above, and any
designates thereof;
“Due Date” means the date that property tax bill installments are due to be
paid to the City. Due dates may also include pre-authorized tax payment
plan due dates as outlined on the tax bills and pre-authorized enrolment
notices of property owners that have opted into those payment programs;
“Extension Agreement” means an agreement between the City and the
ratepayer (or party of interest) to extend the period of time in which the
cancellation price is to expire.
“Farm Debt Mediation Act” means the Canadian Farm Debt Mediation Act
(FDMA), S.C. 1997, c.21;
“Interest” means the amount added to the unpaid levies in current or
previous years in accordance with section 345 of the Municipal Act;
“Letter of Authorization” means a written document, signed and dated by the
registered property owner(s), that grants permission to the City to release
property tax information or allow a designated third party to act on the
property owner’s behalf in matters relating to property taxation. Letters of
Authorization must clearly identify the authorized individual or organization
and remain in effect until revoked in writing by the property owner or
superseded by a new authorization;
“Municipal Act” means the Municipal Act, 2001, S.O. 2001, c. 25;
“Planning Act” means the Planning Act, R.S.O. 1990, c. P.13;
“Penalties” are the amount added to the unpaid levies from current year in
accordance with section 345 of the Municipal Act;
“Property Taxes” are the total amount of levies calculated for the City,
County of Grey, and education purposes and includes all amounts added to
the tax roll as permitted by the Municipal Act. Property taxes are calculated
based on the current value assessment (‘C.V.A’) determined by MPAC
multiplied by the tax rate as determined by the City, County of Grey, and
the Minister of Finance in relation to education;
“Tax Arrears” are the unpaid property taxes that remain unpaid after the
due date has passed;
AF020 Tax Billing and Collection Policy

Page 4 of 35
Page 24 of 64

“Tax Collector” means a designated member of staff, who is appointed per
the Municipal Act, and supervised by the Deputy Treasurer and Treasurer
and is responsible for the billing and collection of property taxes;
“Taxpayer” means the current registered owner or owners of a property, as
identified on the deed of the land;
“Treasurer” means a senior official responsible for managing the
municipality’s finances, including overseeing revenue collection,
investments, debt issuance, budgeting, and financial reporting;
“Manager” means an employee who is responsible for a City division and
includes employees who supervise and manage other employees;
“MPAC” means Municipal Property Assessment Corporation. An independent
nonprofit corporation accountable to the province, funded by municipalities
to administer property assessments and appeals;
“Vesting” means the point at which a person or entity obtains full legal rights
or ownership of a property or asset. Once a right or interest is vested, it
cannot be taken away except under specific legal circumstances; and
“Write-Off” refers to the removal of uncollectable tax arrears from the
Collector’s Roll and the discontinuance of collection activity.
Legislative authority & discretion
6.

This policy is written in compliance with the Municipal Act, related
regulations made under the Municipal Act and applicable City by-laws, as
amended from time to time.

7.

To ensure that all taxpayers are treated fairly and equitably, the Treasurer,
or his/her designate, has authority to exercise discretion in the application of
this policy where unusual circumstances are apparent, provided such
discretion is in accordance with all legislation.

Responsibilities
8.

The Treasurer, Deputy Treasurer, Tax Collector, and Finance Department are
responsible for ensuring that outstanding property tax collections are
performed in accordance with this policy and all applicable legislation.

9.

The Treasurer, Deputy Treasurer, and/or Tax Collector are responsible for:
a.

ensuring this policy remains consistent with current legislation;

b.

ensuring applicable staff are aware and trained on this policy;

c.

communicating any policy revisions to applicable staff; and

AF020 Tax Billing and Collection Policy

Page 5 of 35
Page 25 of 64

d.

reviewing property tax accounts to ensure tax collection processes are
performed in accordance with this policy.

Mandatory requirements – Tax billing
10.

11.

12.

Tax billings
a.

Consistent with subsection 343 (1) of the Municipal Act, tax bills must
be sent to every taxpayer at least twenty-one (21) days before taxes
are due. The tax bill must comply with the standardized tax bill format
as required under sections 343 and 344 of the Municipal Act.

b.

Tax amounts billed are based on the assessments per the assessment
roll provided to the City by MPAC.

c.

In accordance with subsections 343(6), (6.1), and (8) of the Municipal
Act, the City will issue property tax bills and notices to the current
owner(s) of the property as described in the City’s records.

d.

It is the taxpayer’s responsibility to notify the City of Owen Sound in
writing of any mailing address changes. Subsection 343(6) of the
Municipal Act identifies that property tax bills shall be sent to the
taxpayer’s last known residence or place of business or to the
premises in respect of which the taxes are payable, unless the
taxpayer or the taxpayer’s lawyer directs the Treasurer in writing to
send the bill to another address. This direction continues until revoked
in writing.

Deemed received
a.

Any tax bill, arrears notice, or other related correspondence sent by
ordinary mail, is considered delivered to and received by the
addressee unless the notice is returned by the post office or an error in
the mailing address is proven by the taxpayer.

b.

Any tax bill, arrears notice, or other related correspondence sent by
email is considered delivered to and received by the addressee unless
the notice is returned by the mail server (delivery status notification)
or an error in email address is proven by the taxpayer.

c.

Failure to receive a tax bill does not exempt a taxpayer from paying
the taxes. Penalty and interest will be added as a result for the nonpayment of taxes or any instalments by the due date.

d.

It is the responsibility of the property owner to be aware of and
understand the due dates for property tax payments.

Interim property tax billings

AF020 Tax Billing and Collection Policy

Page 6 of 35
Page 26 of 64

13.

a.

To comply with the required statutory notice, interim property tax bills
are issued in or around the end of January of each year for all
properties, except those that are entirely assessed in the exempt
property tax class as of January 1st of any year, as identified by
sections 3, 4, 6, and 6.1 of the Assessment Act.

b.

Existing tax accounts will be calculated to produce a tax bill of no more
than fifty per cent (50%) of the previous year’s total taxes billed for
each property in accordance with section 317 of the Municipal Act.

c.

For accounts that did not exist in the previous year or existed for only
a portion of the previous year, interim taxes levied will not exceed fifty
per cent (50%) of the total amount of taxes that would have been
levied on the assessment in the previous year.

d.

The interim tax bill is payable in two installments.

e.

All participants in any preauthorized payment program will receive an
interim tax bill with a note on the bill that they are enrolled in a
preauthorized payment plan and that the bill is for information
purposes only.

f.

Section 348 of the Municipal Act requires the Treasurer to send a
statement on or before the last day of February each year to any
property owner with arrears on their tax account. The interim tax bill
fulfils this statutory requirement.

Final property tax billings
a.

Final tax billings are produced after the approval of City and County
budgets, no later than May 31st, and are based on tax rates
established by by-law from the budget requirements from the City, the
County of Grey, and the Ministry of Finance (in relation to the
education tax rate).

b.

The bill amount will be calculated by multiplying the assessed value by
the appropriate tax rate and will include all local improvement charges
and any special charges levied by the City, where applicable.

c.

The interim tax bill amount will be deducted from the total yearly
amount calculated in order to produce final billing instalment amounts.

d.

The final tax bill is payable in two installments

e.

All participants in any preauthorized payment program will receive a
final tax bill with a note on the bill that they are enrolled in a
preauthorized payment plan and that the bill is for information
purposes only.

AF020 Tax Billing and Collection Policy

Page 7 of 35
Page 27 of 64

14.

15.

Supplementary property tax billings
a.

Omissions – section 33 of the Assessment Act allows for the taxation
of real property that has been omitted from the returned assessment
roll. This provision allows for taxation in the current year, plus an
additional two preceding years. The applicable tax rates for the
effective years will be applied.

b.

Additions – section 34 of the Assessment Act allows for the taxation of
new assessment that has increased the value of the property since the
return of the last revised assessment roll. These taxes apply only to
the current taxation year.

c.

Supplementary property taxes will be generated by using the
applicable assessment data from MPAC and will be processed and
mailed in the same manner as interim and final tax bills. Installment
due date(s) for supplementary property taxes will be set by the
Treasurer and will provide the taxpayers at least twenty-one (21)
calendar days prior to the due date.

d.

Supplementary tax billings are standalone tax bills and do not
participate in the City’s pre-authorized payment program. Payments
must be made on or prior to the due date to avoid penalty and
interest.

e.

The supplemental tax bill is payable in two installments.

f.

Copies of all supplemental tax bills will be sent to the mortgage holder
on title for payment and to the property owner for recordkeeping.

g.

Penalties and interest charges will be assessed on supplementary
taxes that are owing past their due date, consistent with other City
due dates.

Severances/consolidations
a.

Property owners may apply for severances of their property under the
authority of the Planning Act. If granted by the City‘s Planning
Division, the assessment values must be split between all parcels of
land. As part of their legislated services, MPAC divides the assessment
information.

b.

Under the authority of section 356 of the Municipal Act, upon
application to the Treasurer, the Treasurer may divide the assessment
roll into the parcels being severed and direct the property taxes
accordingly.

AF020 Tax Billing and Collection Policy

Page 8 of 35
Page 28 of 64

c.

As severed portions of the land are often sold, the City will not
recalculate the property taxes for a part year. It is understood that the
seller’s and purchaser’s lawyers would allocate the levies accordingly
during the sale process. The allocation of levies will be shown on the
“Statement of Adjustments” provided to the property owners by the
law office completing the title transfer.

d.

Consolidations are processed by MPAC at the written request of the
property owner. Property owners should contact MPAC directly.

e.

A severance or consolidation of a Land Registry Office parcel (contains
parcel identification number) does not constitute a consolidation or
severance of a tax roll.

Property Tax Collection
16.

Payment of property taxes
a.

Property tax payments will be accepted in the form of cash, cheques,
debit, bank drafts, pre-authorized payment plans, electronic and
telephone banking payments made payable to ‘The Corporation of the
City of Owen Sound’. All payments from a recognized Canadian
financial institution shall be applied to individual tax accounts in
accordance with the provisions contained in the Municipal Act.
Taxpayers are responsible for any fees and charges that may be
imposed when making payments through a source outside City Hall.

b.

Payments may be received in person during regular business hours at
City Hall, or after hours at the City Hall drop box located at 808 2nd
Ave E., Owen Sound.

c.

Payments from financial institutions through telephone or electronic
banking are processed by the municipality on the day they are
received by the municipality. This is typically three to five (3-5)
business days later than the day individuals make payments. The
payment date outlined on the file received from the bank is accepted
as the effective payment date.

d.

Payments made by credit card through the City’s online self-serve
platform are subject to a convenience fee as determined by the City’s
third-party service provider.

e.

Cheques may be mailed, but they must be received at City Hall on or
before the instalment due dates to avoid penalty and interest.

f.

Cheques issued to the City for payment of taxes that are returned
from the bank as non-negotiable will be subject to a fee determined by

AF020 Tax Billing and Collection Policy

Page 9 of 35
Page 29 of 64

the City’s fees and charges by-law. The additional charge will be
applied to the property tax roll, the payment of taxes will be reversed,
and interest and penalty will be applied where applicable. If the
returned cheque applied to more than one property, the applicable
user fee will be charged at a full rate for the first property and ten
dollars ($10.00) for each subsequent property.

17.

g.

Cheques issued to the municipality where the author has issued a ‘stop
payment’ and has not provided the required written notice, will be
subject to a fee determined by the City’s fees and charges by-law. The
additional charge will be applied to the property tax roll, and the
payment of taxes will be reversed.

h.

Cheques that are post-dated will be accepted and held by the City until
the date indicated on the cheque. If the taxpayer does not want the
post-dated cheque processed, they must notify the municipality, in
writing, at least 5 business days prior to the date indicated on the
cheque. If proper notice is not received, the taxpayer is encouraged to
issue a stop payment on their cheque; however, applicable return
cheque fees will apply.

i.

“Third Party” cheques will not be accepted. A cheque payable to the
property owner and the City is not considered to be a third-party
cheque and is to be accepted as payment.

j.

Payments in U.S. Funds that are negotiable in Canada are accepted.
Payments received in U.S. Funds will be credited to the applicable tax
account at the current rate of exchange offered by the City.

Pre-authorized payment plans – Current taxes
a.

b.

The City currently offers two (2) pre-authorized tax payment plans
(PAD) and one (1) obsolete pre-authorized tax payment plan.
i.

I-Tax: Installment due dates as indicated on the interim and
final bills.

ii.

12-Tax: Monthly – fifteenth (15) of each month.

iii.

10-Tax: (obsolete) Monthly from January to October on the 30th
or 31st of each month.
Taxpayers whose property tax account is not in arrears are eligible to
pay current taxes through either a monthly pre-authorized electronic
payment from January through to December or pre-authorized
electronic payments on the tax installment dates as indicated on the
interim and final bills.

AF020 Tax Billing and Collection Policy

Page 10 of 35
Page 30 of 64

c.

All payment plan applications must be received at least ten (10) days
prior to the next withdrawal date to have payment withdrawals start
the first available withdrawal date.

d.

Monthly and Installment pre-authorized payments for current year’s
taxes are not subject to any late payment charges, or penalties for the
non-payment of taxes on the due dates.

e.

Monthly pre-authorized payments are processed on the 15th day of the
month for the 12-tax plan, or the 30th/31st day of the month for the
10-tax plan. If the date falls on a non-business day or bank holiday,
the payments will be processed on the next business day.

f.

Taxpayers may not defer or skip monthly withdrawals. All approved
plan participants must ensure sufficient funds are available to cover
the required amount so that the tax account is paid in full by
December 31st of the current year.

g.

Under the pre-authorized payment plans, all approved taxpayers agree
to pay the required amount that is necessary for their tax account to
be paid in full by year end, December 31st.

h.

It is the taxpayer’s responsibility to ensure that property tax
withdrawals are processed in accordance with the notices confirming
the monthly withdrawal amount. If an error occurs due to misapplied
payments that result in either a reduction or increase of the monthly
withdrawal, the property owner remains responsible for paying any
outstanding property tax amounts.

i.

If a pre-authorized payment is returned by the bank for the first time
in a calendar year, the taxpayer will be notified in writing of the
returned payment.

j.

Taxpayers are required to pay the outstanding amount prior to the
next withdrawal date, or their withdrawal amount will be recalculated.

k.

If a second pre-authorized payment on a property tax account is
returned by the bank within a 12-month period, a dishonoured
payment fee will be added to the tax roll, in addition to the returned
payment amount, as set out in the City’s fees and charges by-law.

l.

If a third pre-authorized payment within a 12-month period is returned
by the bank on a property tax account, enrollment in the preauthorized payment plan will be terminated immediately with notice
being sent to the property owner advising of the returned payment,
applicable fee and suspension from the pre-authorized payment plan.

AF020 Tax Billing and Collection Policy

Page 11 of 35
Page 31 of 64

18.

m.

The property owner may re-apply after a period of 1 year if all
eligibility criteria are met. If there is a recurrence of 2 pre-authorized
payments returned thereafter, enrollment in the pre-authorized
payment plan will be terminated indefinitely.

n.

Taxpayers who are eligible to sign up for a pre-authorized payment
plan can do so by completing the application form on the City’s
website, visiting the finance department at City Hall during normal
business hours, or by emailing the property tax department at
tax@owensound.ca.

o.

Changes or removal requests must be received in writing at least ten
(10) days prior to the withdrawal date. Failure to remit notice within
ten (10) days does not guarantee the request will be processed prior
to the withdrawal. Payments returned as a result will be subject to
applicable fees as set out in the City’s fees and charges by-law.

Pre-Authorized payment plan – Arrears
a.

Taxpayers with outstanding balances, but without a tax arrears
certificate registered on the property title, may participate in a
monthly pre-authorized electronic payment plan, running from January
to December.

b.

Monthly pre-authorized payments for tax arrears are subject to late
payment charges and interest.

c.

Monthly pre-authorized payments for tax arrears are processed on the
15th day of each month. If the 15th falls on a non-business day, or
bank holiday, the payments will be processed on the next business
day.

d.

Taxpayers may not defer or skip monthly withdrawals. All approved
plan participants must ensure sufficient funds are available to cover
the required amount.

e.

Under the arrears pre-authorized payment plan, all approved
taxpayers agree to pay the required amount that is necessary for their
tax account to be current within a 12-month period, as confirmed by
signing the Collections Arrears PAP agreement.

f.

Taxpayers who are in tax arrears shall contact the Tax Collector
directly to sign up for the Arrears Pre-authorized Payment Plan. Please
allow a minimum of ten (10) business days for processing lead time.

g.

The Tax Collector will determine a monthly pre-authorized payment
amount designed to fully repay all outstanding property tax arrears,

AF020 Tax Billing and Collection Policy

Page 12 of 35
Page 32 of 64

along with past due, current and future property taxes, within a 12month period.

19.

20.

h.

If any two pre-authorized payments are returned by the bank on a
property tax account, a notice will be sent to the property owner
advising them of the returned payment and the applicable fee as set
out in the City’s fees and charges by-law. Taxpayers will be removed
from the Arrears Pre-authorized Payment Plan and subject to tax sale
proceedings.

i.

Changes or removal requests must be received in writing at least ten
(10) days prior to the withdrawal date. Failure to remit notice within
ten (10) days does not guarantee the request will be processed prior
to the withdrawal. Payments returned as a result will be subject to
applicable fees as set out in the City’s fees and charges by-law.

Mortgage companies
a.

A mortgage listing of roll numbers, taxes and due dates, in electronic
format, is provided to each mortgage company who has given
notification to the municipality that they hold interest in a particular
property. All property owners who have their property taxes paid by
the mortgage holder will receive a tax bill, with a note on the bill that
their taxes are paid by the mortgage company and the bill is for
information purposes only.

b.

It is the responsibility of the mortgage company to notify the City that
they no longer hold interest in the property.

c.

A notice will be issued to the property owner advising that the
mortgage company is no longer responsible for the property taxes,
and that payment of property taxes is now the owner’s responsibility.

d.

Properties with a mortgage company listed on title are not exempt
from penalties and interest.

Receipts/Proof of payment
a.

Cash receipts may be provided, in person or via email, at the
taxpayer’s request, free of charge upon payment of property taxes.

b.

Reproduction of documents supporting all other payments and levy
amounts will be charged an administrative fee as set out in the City’s
fees and charges by-law.

c.

When payments are made by post-dated cheque, a self-addressed,
stamped envelope must be included, and a receipt will be issued and
mailed to the property owner.

AF020 Tax Billing and Collection Policy

Page 13 of 35
Page 33 of 64

21.

22.

d.

In the year of a purchase/sale of a property, the City does not provide
documentation as the law office overseeing the transfer completes the
property tax allocation on the taxpayer’s behalf. The City is not
involved in the allocation and is not privy to the details of the transfer.
The property owner should use the statement of adjustments provided
by the law office retained for the purchase/sale of the property.

e.

Copies of supporting tax payment records for property owners who no
longer hold an interest in the property or have made payment on
behalf of the registered owner on title will only be provided through
the submission of a Freedom of Information request to the Clerk’s
Department.

Application of payments
a.

Property tax payments are applied in accordance with section 347 of
the Municipal Act.

b.

The payment is first applied against any late payment charges
according to the length of time the charges have been outstanding,
with the charges that have been outstanding the longest being
discharged first. The payment is then applied in the same manner
against the property taxes owing, with the property taxes that have
been outstanding the longest being discharged first.

c.

In accordance with Section 347(1) of the Municipal Act, and subject to
the Treasurer’s approval, a part payment on account of taxes may, at
the request of the taxpayer, be applied in a manner different from the
standard allocation set out above.

Interest and penalty
a.

In accordance with section 345 of the Municipal Act, penalties and
interest shall be applied on the first day of each month, or as close as
administratively possible, at a rate of 1.25% per month (15% per
annum) to all outstanding property taxes.

b.

Penalties are applied to the current year’s taxes, while interest is
applied to taxes outstanding from previous years.

c.

Penalties and interest charges cannot be waived.

d.

Property tax levies are due on or before the installment dates indicated
on the interim, final, and supplemental tax bills. Failure to make
payment or claims that the tax bill was not received or was sent to an
incorrect address or email address, do not exempt the taxpayer from
applicable interest and penalty charges.

AF020 Tax Billing and Collection Policy

Page 14 of 35
Page 34 of 64

23.

24.

25.

e.

It is the responsibility of the taxpayer to be aware of and understand
the due dates for property tax payments.

f.

Property taxes are a charge on the land and run with the property. If a
property is sold while any property taxes remain outstanding,
applicable penalties and interest will be applied in accordance with this
policy and cannot be waived.

g.

The Treasurer has the right, in accordance with ss. 345(7) of Municipal
Act, to cancel or refund late payment charges on tax overcharges
resulting from errors or assessment changes, provided that the
overcharges were not paid when due and are no longer owed.

h.

Penalty and interest charges will be waived as a result of the City’s
error or omission.

Refunds/Overpayments
a.

Tax account refund requests must be submitted to the Tax Collector by
the payee, providing proof of payment. Tax accounts with a balance
owing will not be eligible for refunds. Refunds will be issued to the
current owner of the property. Property owners are encouraged to
review their tax account prior to real estate transactions.

b.

All levy adjustments and tax rebates processed during the year will be
applied to outstanding levies. A refund may be requested on property
tax accounts with credit balances only.

Misapplied payments
a.

Erroneous payments made to a tax account require a written request
to correct the payment application. These corrections are subject to an
administrative fee as set out in the City’s fees and charges by-law.

b.

Erroneous payments made to a non-existent tax account that can’t be
located through standard administrative procedures will be recorded in
the City’s suspense general ledger (GL). These payments will remain in
the suspense GL until the property owner or the property owner’s
financial institution provides the necessary information to have the
payment applied or corrected.

Recalculation of property taxes at time of sale
a.

The Municipality will not recalculate the property taxes for a part year
on the date of sale of a property. The property taxes for a property
being sold are included on the Statement of Adjustments prepared by
the seller’s/purchaser’s lawyer. Any questions regarding the property

AF020 Tax Billing and Collection Policy

Page 15 of 35
Page 35 of 64

tax split on the sale/purchase of a property should be directed to the
lawyers involved in the transaction.
26.

Write-off of property taxes
a.

27.

Balances equal to $2.50 or less on accounts, where all instalments for
the year have been paid, will be automatically written off on December
31 of each year.

Taxes Deemed Uncollectable
a.

City Council, through the recommendation from the Treasurer or
Deputy Treasurer, may write off property taxes in accordance with
section 354 of the Municipal Act, in its entirety. Events where taxes
are deemed uncollectable include:
i.

an unsuccessful tax sale;

ii.

where a tax sale would not be effective or appropriate; or

iii.

where taxes are no longer payable due to tax relief.

Property Tax Administration
28.

Ownership Changes
a.

The provincial Land Registry System legally determines the ownership
of land. The names of the owners on the property tax account are to
agree with the ownership registered at the Land Registry Office on the
parcel register.

b.

The City requires the instrument (deed/transfer of land) registered at
the Land Registry Office to be submitted to the Property Tax Division
for processing. This includes removing a name from ownership
(whether that be from a separation or death), changing a name on
title or adding a name to ownership for all tax accounts.

c.

The City will process ownership changes as contained on the
instrument registered at the Land Registry Office.

d.

Property owners are responsible for ensuring that the registered
instrument accurately reflects their names and mailing address when
completing the transfer documents with their lawyer.

e.

Property owners are also responsible for maintaining current and
accurate mailing and/or email addresses to their property tax account
to ensure proper delivery of all correspondence and notices.

f.

The City will send correspondence to the registered property owner(s)
at the mailing address listed on the registered deed. If an alternative

AF020 Tax Billing and Collection Policy

Page 16 of 35
Page 36 of 64

mailing or email address is provided, correspondence will be sent to
that alternative address instead.
29.

Release of tax information to third parties
a.

A taxpayer may submit a Letter of Authorization (LOA) to permit the
City to release property tax information to a designated third party. An
LOA must be provided in writing, signed by the property owner(s), and
must clearly identify the authorized representative.

b.

Examples of when an LOA may be required include, but are not limited
to:

c.
30.

i.

Corporations with no direct owner information on title, wishing to
appoint a representative to request property tax information or
make changes to the property tax roll. In such cases, the
corporation must also provide a copy of its Articles of
Incorporation or other proof of corporate existence to verify
authority.

ii.

Property owners wishing to authorize their financial institution or
bank to act on their behalf (does not include financial institutions
with a registered interest in the property).

iii.

A living property owner wishing to designate a relative or other
representative to handle billing or property tax matters.
No property tax information will be released to any third party unless a
valid LOA is on file with the City.

Request for tax information
a.

A tax certificate will be issued by the Tax Collector or other delegated
staff upon request and upon payment of the fee set out in the City’s
fees and charges by-law.

b.

Verbal updates following the issuance of a Tax Certificate will be
available for three (3) months to the law office to which the Tax
Certificate was issued.

c.

The Tax Collector or assigned staff will only respond to verbal requests
for tax information from the owners of the subject property or a
mortgage company responsible for payment of the subject taxes.

d.

The Tax Collector or other delegated staff will give information as
required and in accordance with the Municipal Freedom of Information
and Protection Privacy Act (MFIPPA).

AF020 Tax Billing and Collection Policy

Page 17 of 35
Page 37 of 64

e.

31.

32.

Due dates
a.

Specific due dates will be identified in both the City’s interim and final
levy by-laws.

b.

Supplemental tax bills are standalone bills, and the specific due dates
will be determined at the time of issuance, in accordance with
applicable legislation.

Tax due date reminder notice
a.

33.

Property owners may request a Property Tax History Statement upon
payment of the fee set out in the City’s Fees and
Charges By-law, which shows a summary of property taxes paid.

Tax due date notices will be published on the City’s website and social
media one (1) week prior to the due date, reminding ratepayers of
instalment dates.

Alteration of due date
a.

The Tax Collector may, on occasion, find it necessary to alter an
installment due date on a tax bill when the property has changed
ownership and records have not been updated in time for correct
mailing. It is the new owners’ responsibility to ensure the correct
information is provided by the City in a timely basis. The tax bill may
go to the former owners and often be returned to the City with much
delay. The installment due date may be adjusted at the discretion of
the Tax Collector to allow the legislated length of time for payment by
the new owner.

Property Tax Arrears – Collection
34.

Special lien
a.

Property taxes are a secured special lien on land in priority to any
other claim, except a claim by the Crown. Taxes may be recovered
with costs as a debt due to the City from the original owner and/or any
subsequent owner of the property.

AF020 Tax Billing and Collection Policy

Page 18 of 35
Page 38 of 64

35.

Collection methods
a.

36.

38.

i.

verbal communication;

ii.

issuing overdue notices and final notices;

iii.

sending the taxpayer a form or personalized letter(s);

iv.

arranging terms of payment; and

v.

municipal tax sale.

Verbal communication
a.

37.

The City will primarily use the following methods to collect tax arrears:

Verbal communication may be used as a primary method for
contacting taxpayers regarding outstanding property taxes. The Tax
Collector will first attempt to reach the taxpayer using the phone
number listed on the property tax roll. If the phone number is not
recorded or is not in service, the Tax Collector will follow up by
sending a letter to the property address and/or any alternative mailing
address in an effort to establish contact with the taxpayer.

Overdue notices
a.

The City will issue overdue notices of outstanding property taxes on
accounts five (5) times per year, using the delivery method authorized
by the property owner.

b.

Additional overdue notices/statements may be sent as deemed
necessary by the Tax Collector, Deputy Treasurer, or Treasurer.

c.

A surcharge notice fee as set out in the City’s fees and charges by-law
will be added to the property tax roll each time an overdue notice is
sent.

Payment arrangements
a.

Payment arrangements must include all tax arrears, current taxes,
accruing estimates of future taxes and late payment charges and be
sufficient to ensure payment in full is made within a reasonable period.
Late payment charges will continue to accrue during all such payment
arrangements until full payment is achieved on the account.

AF020 Tax Billing and Collection Policy

Page 19 of 35
Page 39 of 64

b.

Authorization for extending payment terms is as follows:
Maximum Negotiable Payment Arrangement Term

Staff Level

Residential

Non-Residential

Crown Tenant

Treasurer

>24 Months

>24 Months

>24 Months

Deputy Treasurer

18 Months

18 Months

18 Months

Tax Collector

12 Months

12 Months

9 Months

NOTE: Minimum authorization per property type and staff level
c.

Notwithstanding any payment arrangements, no third-party payments
will be refused for payment on account (e.g. payment from a
mortgagee), as long as the third party has sufficient information
regarding the property. Confidential account information will not be
released to unauthorized parties.

d.

If an acceptable payment arrangement is negotiated, the taxpayer will
enter into a formal payment plan with the City and must sign a notice
confirming their agreement to the City’s terms. Once signed and
approved by the Tax Collector and either the Deputy Treasurer or
Treasurer, the account will be monitored for compliance. Follow-up
with the taxpayer will be conducted by telephone or in writing, as
necessary.

e.

Property owners with multiple tax rolls in arrears shall be limited to a
maximum 12-month payment arrangement. Any extension beyond 12
months may only be granted in exceptional circumstances and
requires approval of the Deputy Treasurer or Treasurer.

f.

Payment arrangements will document the payment schedule, method,
and amount and may not exceed a period of twenty-four (24) months,
without approval from the Treasurer.

g.

Once a payment arrangement has been established, the arrangement
will be deemed void if:
i.

two consecutive payments are returned;

ii.

two payments are returned within a six-month period;

iii.

two consecutive payments are missed; or

iv.

two payments are missed within a six-month period.

AF020 Tax Billing and Collection Policy

Page 20 of 35
Page 40 of 64

h.

39.

40.

41.

Where an arrangement is deemed void, the taxpayer will be advised
that full payment by certified funds is required or the next steps in the
City’s collection process will be taken.

Collection steps for accounts with two (2) or more year’s arrears
a.

If acceptable payment arrangements are not negotiated, then all
properties with two (2) or more years of arrears may be subject to the
municipal tax sale process, as set out in Part XI of the Municipal Act.

b.

At least once per calendar year, the City will review its property tax
Aged Trial Balance for property owners whose taxes are at or
approaching two (2) years in arrears. All properties with taxes that are
two or more years in arrears may have the municipal tax sale process
enacted.

c.

In addition to issuing the interim tax bill, final tax bill, and overdue
notices as outlined above, the following actions will be taken once a
property is identified for tax sale:
i.

early warning notice;

ii.

final notice;

iii.

notice to interested parties; and

iv.

tax arrears certificate.

Early warning notice – prior to final warning letter
a.

Early warning letters are sent by registered mail to property owners
with property tax arrears of two years or more. The letters advise that
property owners have twenty-one (21) days to either pay the
outstanding taxes in full or enter into a firm, suitable payment
arrangement with the City.

b.

Upon sending an early warning letter, the associated costs as set out
in the City’s fees and charges by-law will be added to the property tax
roll for collection.

Final notice – prior to tax sale proceedings
a.

Final warning letters are hand-delivered or sent by registered mail as a
final attempt to contact property owners with property tax arrears of
two (2) years or more. The letter advises that the property owner(s)
have twenty-one (21) days to either pay the outstanding taxes in full
or enter into a firm, suitable payment arrangement with the City.

AF020 Tax Billing and Collection Policy

Page 21 of 35
Page 41 of 64

b.

Upon sending a final notice, the associated costs as set out in the
City’s fees and charges by-law will be added to the property tax roll for
collection.

Tax Sale Process
42.

Failure to make contact with the City at the final notice stage will result in
the property tax account being referred to the City’s tax sale consultant to
initiate a tax arrears certificate and proceed with further tax sale actions in
accordance with O.Reg 181/03 Municipal Tax Sale Rules. No further
communication beyond what is legislatively required will be sent from the
City.

43.

Notice to Interested Parties
a.

44.

45.

If a registered property owner fails to respond to the final notice, the
files are transferred to the City’s tax sale consultant to conduct tax
sale proceedings on behalf of the City.

Farm Debt Mediation Notice:
a.

It is legislated that every property listed for tax sale receives a farm
debt notice. The purpose of the farm debt notice is to inform farmers
of their rights under Section 5 of the Farm Debt Mediation Act that
they are entitled to make application for a review of their financial
affairs.

b.

A Farm Debt Mediation Notice is the first official communication issued
on the Municipality’s behalf by the tax sale company which notifies the
taxpayer that the tax sale registration will take place after a fifteen
(15) business day period should the arrears not be paid.

Property Title Search Prior to Registration of Tax Arrears Certificate:
a.

Every property, prior to a tax arrears certificate being issued, must
have a title search performed to ensure that the proper information is
on file including registered owners, interested parties and proper land
details.

b.

Should any anomalies be encountered such as ownership or MPAC
related data conflicts, the process on that property will be put on hold
until the issues have been resolved.

c.

All parties with an interest in the property must receive notice of the
registering of a tax arrears certificate.

AF020 Tax Billing and Collection Policy

Page 22 of 35
Page 42 of 64

46.

47.

48.

Registration of a Tax Arrears Certificate:
a.

If the taxes remain unpaid or an agreement has not been entered into
within fifteen (15) business days of the farm debt notice, a Tax Arrears
Certificate is registered on title.

b.

Once a Tax Arrears Certificate has been registered, only full payment
of the Cancellation Price will be accepted unless Council has approved
an Extension Agreement.

c.

Partial payments are not allowed once the Tax Arrears Certificate has
been registered. Any partial payments that are applied to the tax
account in error shall be removed from the tax account and the
payment will be refunded without exception.

d.

Within 60 days of registration of the Tax Arrears Certificate, a Notice
of Registration of Tax Arrears Certificate is sent to the property owner
and all interest parties.

Final Notices
a.

A final notice advises the interested parties that unless the
Cancellation Price is paid in full, or an Extension Agreement is entered
into the property will be sold by public sale.

b.

The Final Notice is sent to all interested parties within thirty (30) days
after two hundred and eighty (280) days have passed since the
registration of the Tax Arrears Certificate.

c.

Following the issuance of the Final Notice, Section 379(2) of the Act
requires that a statutory declaration regarding the sending of the final
notice be made. This declaration should be notarized by a
Commissioner of Oaths but does not need to be registered on title

Cancelling the Tax Sale Process
a.

At any time when the cancellation price is paid during the one-year
period from the date of registration of the Tax Arrears Certificate, a
Cancellation Certificate will be issued on the property. This may occur
when the City receives payment in full of the cancellation price, the
Extension Agreement has been fulfilled and the tax account is no
longer in arrears, or the Treasurer deems that the tax sale is not in the
best financial interest of the City due to neglect, error, omission or it is
not desirable to proceed.

AF020 Tax Billing and Collection Policy

Page 23 of 35
Page 43 of 64

49.

50.

Cancellation Price
a.

The cancellation price represents an amount owing at a specific point
in time. This means that the cancellation price changes every time a
new charge is added to the tax account.

b.

In accordance with subsection 375(1) of the Municipal Act any person
may pay the cancellation price to the municipality to cancel the tax
arrears certificate.

c.

A person who pays the cancellation price may request an itemized
breakdown of the cancellation price that has been paid with a written
request to the Treasurer within thirty (30) days of the payment.

d.

The cancellation price may be paid by the former owner any time
before title has been transferred from a tax sale, even in a case where
there has been a successful tax sale transaction by tender or by
auction.

Registration of a Tax Arrears Certificate
a.

If the taxes remain unpaid or an agreement has not been entered into
within fifteen (15) business days of the farm debt notice, a Tax Arrears
Certificate is registered on title.

b.

Once a Tax Arrears Certificate has been registered, only full payment
of the Cancellation Price will be accepted, unless Council has approved
an Extension Agreement.

c.

Partial payments are not allowed once the Tax Arrears Certificate has
been registered. Any partial payments that are applied to the tax
account in error will be removed from the tax account and the
payment will be refunded without exception. Within sixty (60) days of
registration of the Tax Arrears Certificate, a Notice of Registration of
Tax Arrears Certificate is sent to the property owner and all interest
parties.

Extension Agreements
51.

To be eligible for consideration, the extension agreement must include that
all current taxes will be paid within the required due dates and that the
existing arrears on the account will be paid off within a one or two-year
period.

52.

An extension agreement (as defined by section 378 of the Municipal Act)
must be requested by the property owner, their spouse, the mortgage holder
or their legal agent, prior to the one-year period of the registration of the
tax arrears certificate.

AF020 Tax Billing and Collection Policy

Page 24 of 35
Page 44 of 64

53.

If no agreement is reached or the agreement is denied by the Treasurer, the
tax sale process resumes returning to the point where the stop in the tax
sale process was at immediately prior to the extension agreement being
requested.

54.

An extension agreement may be entered into with the property owner prior
to the expiration of the one-year period from the date of registering the tax
arrears certificate.

55.

When an extension agreement is entered into, a copy shall be kept by the
City and the sale process is suspended or placed on hold until all the terms
of the agreement have been fulfilled.

56.

If there is a breach of the extension agreement, the tax sale process
recommences by returning to that step in the tax sale procedure
immediately prior to the extension agreement being entered into.

57.

When the terms of the agreement have been fulfilled, the Treasurer shall
register a cancellation certificate on the land title, thus signifying that the
tax sale has been averted, and the process stops.

Tax Sale Tender Process
58.

59.

Public tender – sale of land process
a.

Municipalities are authorized under the Municipal Act and Ontario
Regulation 181/03 – Municipal Tax Sales Rules to sell properties by
public auction or sealed tender to recover property tax arrears. The
City carries out tax sales by sealed tender as its preferred method.

b.

If taxes remain unpaid after the one (1) year period has passed and
no extension agreement has been entered into, the land will be
advertised for tax sale in accordance with the regulations under the
Municipal Act

Tender Process
a.

Tenders must be submitted on the prescribed Form 7 which can be
found in Ontario Regulation 181/03.

b.

A Form 7 can only contain the tender/bid for one parcel of land.

c.

Tenders must be submitted in a sealed envelope addressed to the
Treasurer and clearly labelled “Tax Sale” and include a property
description and/or municipal address, and be submitted prior to the
deadline.

d.

Tenders must be typewritten or legibly handwritten in ink.

AF020 Tax Billing and Collection Policy

Page 25 of 35
Page 45 of 64

e.

Tenders received should be dated and time stamped immediately
when received.

f.

Tenders/bids should be retained unopened in a safe place as required
in subsection 7(1) of Ontario Regulation 181/03 made under the Act.

g.

In accordance with subsection 7(2) Ontario Regulation 181/03 made
under the Act, in the event that there is a tie, the tender/bid that was
submitted the earliest and meets all of the other criteria is determined
as being the highest.

h.

A tender will be withdrawn if the tender’s/bidder’s written request to
have the tender withdrawn is received by the Treasurer before 3:00
p.m. local time on the last day for receiving tenders.

i.

Tenders are opened in an open forum, recorded as received, and then
reviewed to ensure completeness of the tenders submitted. (Note:
they must have a public purpose for the property.)

j.

The tenders shall close at 3:00 p.m. local time on the last day for
receiving tenders in accordance with Ontario Regulation 181/03 made
under the Municipal Act.

k.

Tenders shall be opened with at least two persons in attendance. One
person must be the Treasurer or designate, and the second person
must be a person who did not submit a tender and may be a municipal
employee.

l.

The Treasurer or designate will open all of the tender documents and
examine for completeness and will reject every tender that:
i.

is not equal to or greater than the Cancellation Price/minimum
tender amount as shown in the advertisement;

ii.

is not addressed to the Treasurer;

iii.

relates to more than one parcel of land ;

iv.

has been withdrawn;

v.

is not typewritten or legibly handwritten in ink;

vi.

places any condition on the acceptance of the tender;

vii.

is not accompanied by a deposit of at least 20 percent of the
tender amount, which deposit shall be made by way of money
order, bank draft or cheque certified by bank or trust company;
or

AF020 Tax Billing and Collection Policy

Page 26 of 35
Page 46 of 64

viii.
m.

is not one of the two highest remaining tenders.
Once the successful tender has been declared, the tender deposits of
the two highest tenders/bids are retained.

Handling of Tender Deposits and Highest Bidder Notifications
60.

61.

Deposit Management
a.

The deposit submitted by the highest bidder shall be deposited
immediately into the Municipality’s bank account and shall not be
applied to the corresponding tax account.

b.

The deposit submitted by the second-highest bidder shall be held in a
secure location until the highest bidder has either completed the sale
or defaulted.

c.

All remaining bidder deposits shall be returned to the respective
bidders. If a tender is rejected and the bidder is not present at the
opening, a written explanation outlining the reason for rejection shall
be provided as soon as possible.

Notification to Highest Bidder
a.

62.

Payment Requirements
a.

63.

The Treasurer shall notify the highest tenderer immediately, by regular
mail sent to the address provided in the tender, advising that their
tender was the highest and that they will be declared the successful
purchaser upon full payment.

Payment in full must be received from the highest bidder within
fourteen (14) calendar days from the date the notice of highest
bidder is mailed by the Treasurer. Upon receipt of full payment, the
Treasurer shall issue a receipt and confirm the bidder as the successful
purchaser.

Default and Forfeiture
a.

If full payment is not received within the fourteen (14) day period, the
highest bidder’s deposit is forfeited.

b.

The Treasurer shall then notify the second-highest bidder, and the
same process shall apply.

c.

If the second-highest bidder defaults, their deposit is also forfeited.

d.

If both the highest and second-highest tenderers default, the
Treasurer shall declare that there is no successful purchaser and may
proceed to register a notice of vesting in the name of the Municipality.

AF020 Tax Billing and Collection Policy

Page 27 of 35
Page 47 of 64

64.

Cancellation of a tax sale
a.

65.

66.

The Treasurer has the discretion to cancel a tax sale under section
382(6) of the Municipal Act at any time up to the registration of a tax
deed or notice of vesting.

Payment of Surplus Funds into Court
a.

Sale proceeds less than the cancellation price are paid to the Superior
Court of Justice together with a statement of facts.

b.

All tax sale costs are added to the Collector’s Roll before declaring the
surplus funds.

c.

Surplus funds are not the property of the City.

d.

Registered parties on title at the time of the sale may apply to the
Superior Court of Justice to access these funds.

Tax Deeds
a.

When there is a successful purchaser, the Treasurer, through the tax
sale consultant, will prepare and register a tax deed in the name of the
successful purchaser once all legislated requirements have been met.
Note: The cancellation price may be paid by the former owner any
time before title has been transferred, including when there has been
a successful purchaser by tender or by auction.

No Successful Tax Sale Purchaser
67.

Vesting
a.

Where there is no successful purchase, the City may issue a Notice of
Vesting to begin assuming ownership of the parcel.

b.

This would be a decision of Council and a report from the Treasurer
would be prepared for Council’s consideration of this or any other
options.

c.

Should Council pursue this option, upon Council approval the Treasurer
will register a declaration to this effect at the local land registry office.

d.

Council has up to two (2) years to decide whether to vest a property.

e.

If Council decides to vest the property, then all taxes are written off as
uncollectible and the property is then owned by the Municipality.

f.

The Municipal Act allows for inspection of the property including an
environmental assessment.

AF020 Tax Billing and Collection Policy

Page 28 of 35
Page 48 of 64

g.

68.

If Council decides not to vest, the decision or whether to write off the
taxes and issue a tax cancellation certificate and leave the property in
the original owner’s name is also an option, but this course of action
would not likely be utilized except in specific circumstances.

Re-Advertising for Tender
a.

The Treasurer may, within two years after the date of the public sale,
offer the land for public sale by public auction or public tender a
second time in accordance with the prescribed rules.

b.

In order to proceed in this manner, the following requirements must
be met:
i.

At least 30 days before the land is re-advertised for public sale,
the Treasurer must send to the persons entitled to receive notice
under Subsection 379(1) of the Municipal Act notice that the
land will be re-advertised for public sale using the prescribed
Form 10 as per O. Regulation 181/03 made under the Municipal
Act.

ii.

The same rules apply to the process in regard to conducting the
second public sale as they did for the first public sale.

iii.

Council may also decide to write off all or part of the taxes with
the purpose of re-registration of the tax arrears and repeating
the tax sale process from the beginning.

iv.

A report will be presented to Council identifying a recommended
course of action for either of these steps from the Treasurer.

Write-Offs and Rebates
69.

Change in assessment or tax class
a.

From time to time the City will receive, via various modes discussed
below, notifications of change in assessment or tax class. Upon receipt
of the notification, the City will process the calculation ‘as soon as
practical’, which will depend on whether or not the final billing for the
affected tax year has been calculated and mailed.

b.

Processing assessment changes, as directed by MPAC, will facilitate the
City by maintaining a balanced Collector’s Roll as it relates to the
amended Assessment Roll. Some of the types of assessment
notifications that may affect the assessment value on a property which
may, in turn, result in a write-off or reduction in taxes are:

AF020 Tax Billing and Collection Policy

Page 29 of 35
Page 49 of 64

i.

Applications for reduction in assessment - under sections 357 &
358 of the Municipal Act;

ii.

Assessment Review Board (ARB) decision – under the
Assessment Act;

iii.

Minutes of Settlement (MOS) – under section 40 of the
Assessment Act;

iv.

Request for Reconsideration (RFR) – under section 39.1 of the
Assessment Act ;

v.

Post Roll Assessment Notice (PRAN) – under the Assessment
Act;

vi.

Advisory Notice of Adjustment (ANA) – under the Assessment
Act ;

vii.

Charity rebates – under section 361 of the Municipal Act;

viii.

Legion rebates – under section 6.1 of the Assessment Act; and
Grant rebates of the municipal portion of taxes only.

Property Tax Write-Offs
70.

Applications for reductions in property assessment value (Section 357 and
358)
a.

Under section 357 and 358 of the Municipal Act, applications may be
made to the City for a reduction in assessment by the property owner,
or their agent, for the following reasons:
i.

the result of a change event;

ii.

the land has become vacant land or excess land;

iii.

the land has become exempt;

iv.

a building on the land was razed by fire, demolition or otherwise;

v.

a building on the land was damaged by fire, demolition or
otherwise so as to render it substantially unusable for which it
was used immediately prior to the damage;

vi.

a mobile unit is removed and the applicant is unable to pay
taxes because of sickness or extreme poverty;

vii.

a gross or manifest clerical or factual error; or

viii.

the property is under repairs or renovations that prevent normal
use for a minimum of ninety (90) days.

AF020 Tax Billing and Collection Policy

Page 30 of 35
Page 50 of 64

71.

b.

The prescribed form must be completed and returned to the City by
the last day of February of the year following the year in which the
application is made. The form may be obtained from the
www.owensound.ca or City Hall.

c.

The form must be completed in accordance with the City’s Property
Tax Cancellation, Reduction and Refund Policy, if applicable. For more
details, please review the policy on the City’s website.

Penalty and interest reversal on write-offs
a.

As set out in subsections 345(6) & 345(7) of the Municipal Act, where
penalty and interest has accrued on a property tax account as the
result of non-payment, and a write off of taxes has occurred as the
result of one of the legislated tax reduction methods, the penalty and
interest will be reversed as though the taxes had originally been billed
correctly.

b.

The amount of penalties and interest cancelled is limited to the
amount related to the tax reduction associated with a tax adjustment,
change in assessment or the City’s error or omission.

Assessment Review Board Applications
72.

Property owners may apply to the Assessment Review Board (ARB), on the
prescribed form to appeal their assessment. The deadline for these types of
appeals is March 31st of the current year, for the current year`s taxation
assessment. Applications, fees, and deadlines are available on the ARB web
site at www.arb.gov.on.ca.

73.

After receipt of an ARB decision, or minutes of settlement, the City shall
recalculate the taxes for the affected year or years within one hundred and
twenty (120) days of receipt and notify the property owner accordingly.

Request for Reconsideration (RfR)
74.

Requests for Reconsideration are issued by MPAC after negotiating a
settlement with the property owner prior to a property owner making
application to the ARB.

75.

An RfR will be processed as soon as possible the following month after
receiving the notice from MPAC or after final billing, or a notice of decision
from MPAC.

AF020 Tax Billing and Collection Policy

Page 31 of 35
Page 51 of 64

Post Roll Assessment Notices (PRAN)
76.

These are notices that are issued by MPAC advising the property owner and
the City that a change in assessment has occurred after the return of the
assessment roll.

77.

This type of request will be processed as soon as possible in the following
month after receiving the notice from MPAC, or a notice of decision from
MPAC.

Advisory Notice of Adjustment (ANA)
78.

These notices are required by the Assessment Act to adjust the Current
Value Assessment (CVA) starting point and phased-in assessments following
a change to a property’s assessment, when no other notice is otherwise
required to be sent to the property owner. Most often ANA’s are sent
following an Assessment Review Board decision.

Vacant Commercial & Industrial Unit Tax Rebates
79.

Under By-law No. 2021-054, the City has deemed it appropriate to end the
application of Section 364 Tax Rebate for Vacancies.

Property Tax Rebates
80.

81.

Tax Rebates for Charities and Similar Organizations
a.

Section 361 of the Municipal Act requires that a municipality provide
relief from property tax for charities and similar non-profit organizations.

b.

Upon application, qualifying charities and organizations are provided with
a rebate of forty percent (40%) of taxes paid.

c.

The applicant must be a registered charity as defined in section 248(1) of
the Income Tax Act and have a registration number issued by the
Canada Revenue Agency.

d.

The property must be in one of the commercial or industrial property tax
classes.

e.

Applications will be accepted between January 01 and February 28 of the
following year when the tax relief rebate is sought.

f.

This program is administered by the City.

Low-Income Seniors or Low-Income Persons with Disabilities Property Tax
Relief Rebate
a.

The City provides property tax relief for low-income seniors or lowincome persons with disabilities in accordance with the County of Grey
by-law 5112-21.

AF020 Tax Billing and Collection Policy

Page 32 of 35
Page 52 of 64

82.

b.

Upon application to the City, eligible candidates may receive property tax
relief of up to $500.00.

c.

Tax relief may be granted when the difference between the base year
taxes and the current year taxes for the property does not exceed
$500.00 and all eligibility requirements are met.

d.

Applications must be received by December 31 annually to qualify for the
rebate.

Tax Rebate for Heritage Properties
a.

Section 365.2 of the Municipal Act authorizes municipalities to
establish a heritage tax rebate program for properties designated
under the Ontario Heritage Act.

b.

Upon application, qualifying properties may receive between ten
(10%) and forty percent (40%) of the taxes for municipal and school
purposes levied on eligible residential and commercial tax class
properties.

c.

The City’s Heritage Property Tax Relief Program By-law establishes this
program and delegates administration and enforcement of the rebate
to the City.

Non-Tax Debt
83.

Outstanding fees and charges imposed by the municipality may be added to
the property tax roll and collected in the same manner as property taxes, in
accordance with Sections 398(1) and 398(2) of the Municipal Act, 2001.

Bankruptcy
84.

When a property owner files for bankruptcy, the City is a secured creditor,
as the tax debt is a charge against the real property. The City ranks in
preference and priority to any other claims, except those of the Provincial
and Federal government. A letter is forwarded to the trustee advising them
of the City’s claim and that it is assumed Property Taxes will be paid once
the property is sold.

Contaminated Property
85.

Council shall approve any tax sale proceedings where it is suspected that a
property is environmentally contaminated.

Sharing of Information
86.

The City is subject to the Municipal Freedom of Information and Protection of
Privacy Act. Departments must comply with the City’s obligations under this
Act.

AF020 Tax Billing and Collection Policy

Page 33 of 35
Page 53 of 64

87.

The City must protect the privacy of individuals with respect to personal
information about themselves held by the City and to provide individuals
with a right to access that information.

Policy review
88.

The Deputy Treasurer/Manager of Revenue, or Director of Corporate
Services will review this policy:
a.

every five (5) years to ensure effectiveness and compliance with
current business processes; or
a. sooner, if required, based on legislative changes.

89.

The Deputy Treasurer/Manager of Revenue, or Director of Corporate
Services, is authorized to make such administrative changes to this policy as
appropriate to keep the policy current. Any revision to the policy’s intent
must be presented to Council for consideration.

Related Information and Resources
Internal
90.

Records and Information Management Policy

External
91.

Municipal Act, 2001, S.O. 2001, c. 25

Appendices
92.

Appendix A - Property Tax Mail Cycle

Revision History
Authority
Council
Choose an item.
Choose an item.

Date
Click or tap to
enter a date.
Click or tap to
enter a date.
Click or tap to
enter a date.

AF020 Tax Billing and Collection Policy

Approval
By-law

Description of
Amendment
New policy, formerly
Policy FS19

Choose an item.
Choose an item.

Page 34 of 35
Page 54 of 64

Appendix A to Policy AF020 - Property Tax Mail Cycle*
January

Interim Billing
Early Warning Letters for those in tax arrears 2 or more years
(Notifying of Tax Arrears Certificate Registration Proceedings)

February

1st interim tax installment due
Final Warning Letters for those in tax arrears 2 or more years
(Notifying of Tax Arrears Certificate Registration Proceedings)

March

Past Due Reminder Notices

April

2nd interim tax instalment due

May

Final Billing
Past Due Reminder Notices

June

1st Final Tax Levy Instalment due
Supplemental/Omitted Tax Notices
12-Tax Pre-Authorized Recalculation letters (July-Dec)

July

Past Due Reminder Notices
Supplemental/Omitted Tax Notices
10-Tax Pre-authorized Recalculation Letters (July-Oct)

August

Supplemental/Omitted Tax Notices

September

2nd Final Tax Levy Instalment due
Supplemental/Omitted Tax Notices

October

Past Due Reminder Notices
Supplemental/Omitted Tax Notices

November

Supplemental/Omitted Tax Notices

December

Past Due Reminder Notices
12-Tax & 10-Tax Pre-authorized Recalculation Letters
(for the first six months of the new year)

*Dates subject to change based on departmental demand

AF020 Tax Billing and Collection Policy

Page 35 of 35
Page 55 of 64

Policy: FS19
Title: Tax Collection and Billing Policy
Department/Division: Corporate Services
Purpose:
1.

The City of Owen Sound recognizes the importance of having a written billing
and collection policy for tax accounts, incorporating good and acceptable
business practices and efficiencies, which are consistent and fair to its
customers and the Municipality.

Scope:
2.

The Tax Collection and Billing policy applies to all customers within the
geographic boundaries of the Municipality. Municipal staff assigned to the
administration and collection of tax accounts shall adhere to the policy and
procedures detailed below.

Definitions:
3.

For the purposes of this policy:
“Extension Agreement” means a contract between the Municipality and the
owner, spouse of the owner, a mortgagee or a tenant in occupation to
extend the period of time in which the Cancellation Price is to be paid. The
contract is entered into after the registration of a Tax Arrears Certificate and
before the expiry of the one-year period following the registration date.
“Property Taxes” means the total amount of taxes for Municipal, County and
School purposes levied on a property and includes other amounts added to
the tax roll as may be permitted by applicable Provincial legislation, including
but not limited to outstanding fines under the Provincial Offences Act, fees
and charges authorized under the Building Code Act; and fees and charges
related to fire department false alarms and calls to illegal burns.
“Receipt Date” means the date the Municipality received the money.
Page 1 of 9
Page 56 of 64

Policy: FS19
Title: Tax Collection and Billing Policy
“Tax Arrears” means any portion of Property Taxes that remain unpaid after
the date on which they are due.
“Tax Arrears Certificate means a document that is registered on title,
indicating the described property will be sold by public sale if all Property
Taxes are not paid to the Municipality within one year of the registration of
the certificate.

Roles & Responsibilities:
4.

Municipal staff assigned to the administration and collection of tax accounts
shall adhere to the policy and procedures detailed below

Policy:
5.

Tax Notices and Tax Instalments
Upon receipt of the Collector’s roll, the Collector is charged with the
responsibility of collecting the taxes. The Collector shall prepare two tax
notices annually, an interim notice and a final notice for taxpayers in the
Municipality. Each notice shall state two installment due dates to facilitate a
quarterly payment system. The Municipality requires a minimum of twentyone days between the issuance and the due date. Failure to receive a tax
bill will still result in penalty and interest charges being applied if the bill is
not paid by the due date.
A levying by-law passed by Council is required in advance of either an
interim or final tax billing. Interim and final tax bills will be due and payable
in two installments each year and the specific due dates will be identified in
both the interim and final by-laws passed by the Municipality.

Page 2 of 9
Page 57 of 64

Policy: FS19
Title: Tax Collection and Billing Policy
Alteration of Due Date
The Tax Collector may on occasion find it necessary to alter an instalment
due date on a tax notice when property has changed ownership and records
have not been updated in time for correct mailing. It is the new property
owners’ responsibility to ensure correct information is provided to the
Municipality on a timely basis. The notice may go to the former owner and
often be returned to the Municipality with much delay. The instalment due
date may then be adjusted at the discretion of the Tax Collector to allow the
legislated length of time for payment by the new property owner.
Interim Tax Levy
The interim tax levy shall be levied upon all taxable assessments according
to the last revised assessment roll and not more than the maximum
allowable by statue or regulation.
Final Tax Levy
The final tax levy shall be based on the current year tax rates as set out in
the final levying by-law passed by Council and applied to all properties
according to the last revised assessment roll.
Local Improvement Charges and Special Area Rates
Where local improvement charges are to be placed on the tax notice they
may be placed on either the interim or final notice determined by the
Treasurer and the Tax Collector. Local improvements shall include tile and
municipal drainage loan payments as well as tile and municipal drain onetime charges; garbage bin collection fee and other similar charges. When
such charges are placed on the tax notices they become part of the total
taxes due and shall be collected in like manner as property taxes.
Special area rates will be levied on interim and final notices as set out in the
Interim and Final Tax Levy above.
Page 3 of 9
Page 58 of 64

Policy: FS19
Title: Tax Collection and Billing Policy
Supplementary Tax Notices
Supplementary tax notices will be billed at various times throughout the year
as assessment information is received from MPAC (Municipal Property
Assessment Corporation). Due dates will be set at the discretion of the Tax
Collector with an effort to have them coincide with the regular tax
installment due dates.
Mailing Tax Notices
Tax notices shall be mailed or electronically delivered to each ratepayer no
later than twenty-one days prior to the first installment due date for interim,
final and supplementary notice
Where a mortgage company is required to pay taxes on behalf of the
ratepayer the Tax Collector may forward tax notices directly to the mortgage
company upon receiving a request from the company.
Payment of Taxes
Taxes are payable as follows:
1. Mailing cheque payment directly to the Municipal office.
2. Cheque payment at the Muncipal office during regular
office hours or using the drop box.
3. Cash or debit payment at the Municipal office during
regular office hours.
4. Payment by telephone or internet banking.
5. Payment at a recognized bank or trust company.
6. One of the three offered Pre-Authorized payment plans
offered by the Municipality.
Page 4 of 9
Page 59 of 64

Policy: FS19
Title: Tax Collection and Billing Policy
Ratepayers shall be advised of methods of payment with each tax notice.
The receipt date will be the official date of payment.
Part payment of instalments will be accepted by the Tax Collector when
necessary to assist taxpayers in the payment of their accounts. A monthly
payment system can be arranged to ease the burden of four large tax
payments per year. Penalty charges will still apply on any outstanding
balances.
Penalty and Interest Charges
In the event of default of payment of installments by the due date a penalty
charge shall be imposed on the first day of default following a due date and
the first day of every calendar month thereafter until paid.
The Treasurer has the authority to waive or alter penalty and/or interest
charges if the outstanding amount does not exceed $50.00. If a credit on a
tax account does not exceed $5.00, the Tax Collector can adjust the account
to a zero balance.
If paying by mail, telephone banking, at a recognized bank or trust company
or online the taxpayer assumes responsibility for late arrival.
A request for relief of penalty will be first considered by the Tax Collector. A
penalty charge as a result of an error made by the Municipality shall be
credited back to the ratepayer equal to the amount of the charge. All other
requests for relief of penalty must be in writing to the Treasurer, who shall
make a recommendation to Council.
The amount of penalty charges imposed will be in accordance with legislative
requirements.

Page 5 of 9
Page 60 of 64

Policy: FS19
Title: Tax Collection and Billing Policy
Returned Cheques
In the event a cheque is returned from the bank, i.e. “Insufficient Funds”,
“Closed Account’ or “Staledated”, the ratepayer shall pay applicable late
payment penalty and interest charges and an additional fee designated by
Municipal by-law.
In the event a cheque is returned from the bank “Post-dated” no charges will
be made.
Request for Tax Information
A Tax Certificate will be issued by the Collector or assigned staff upon
request and upon payment of the fee designated by Municipal by-law.
The Tax Collector or assigned staff will only respond to verbal requests for
tax information from the owners of the property or a mortgage company
responsible for payment taxes.
The Tax Collector will give information as required and with regard to the
Freedom of Information and Privacy legislation.
Tax Reminder Notice
Taxes are considered in arrears after the due date for the interim and final
tax bills. Notices will be sent every other month by mail or electronic
means, with a detailed summary until such time as all the taxes are paid in
full.
In the event of an arrears notice and additional fee designated by Municipal
by-law will be added.

Page 6 of 9
Page 61 of 64

Policy: FS19
Title: Tax Collection and Billing Policy
Recovery of Arrears Through Monies Owed to Taxpayer
If the City of Owen Sound is holding any monies owing to the customer,
such as accounts payable cheques, tax adjustments, refunds or rebates,
these amounts will be applied to the customer’s tax arrears, with notification
to the taxpayer.
Collection of Tenants Rent (Landlord in Tax Arrears)
After the taxes have been in arrears for one year, a notice may be sent to
the landlord informing him of the Municipality’s intention to collect the rent.
This will allow the landlord the opportunity to make payment arrangements
with the Tax Collector. If within fourteen days of sending the notice no reply
is received, the Municipality will inform the tenants to pay the rent directly to
the Municipality until all interest, penalty and taxes have been collected.
Under section 350(1) of the Municipal Act, the Municipality may give a
tenant notice, in writing, requiring the tenant to pay the rent as it becomes
due until taxes are paid.
Tax Registration
Arrears of two years may be subject to the Tax Registration process
commencing on the first day of the following year. The Tax Collector
authorizes accounts with two years arrears to be registered for Tax
Registration and Sale proceeding.
Fees will be added to the account as established by Municipal by-law from
time to time, throughout the tax registration process to cover all costs
associated with registration of the property.
Extension Agreement
A taxpayer in Tax Registration may request and Extension Agreement, which
will extend the period of time in which the balance outstanding is to be paid.
The Tax Collector may enter into an agreement with the Owner before the
Page 7 of 9
Page 62 of 64

Policy: FS19
Title: Tax Collection and Billing Policy
registered. After the property is registered, the Treasurer must approve the
request within one year of the date that the property was registered for Tax
Sale. Extension agreements are subject to terms and conditions set out in
the agreement and are established on a property by property basis using the
following guidelines:


Maximum term of the agreement is 12 months to clear all outstanding
balances; and



Monthly payment(s) required over term of extension agreement.

In the event of default, a registered letter will notify the taxpayer as such,
and the agreement is thereby terminated, putting the property in the same
position in Tax Registration and Sale proceedings as it was prior to entering
into the Extension Agreement.
Tax Sale
Properties that meet one of the following criteria will be advertised for Tax
Sale:


Tax arrears are not paid in full within one year of the date of
registration; or



Taxpayer has defaulted on an Extension Agreement.

Successful Purchaser
Where there is a successful purchaser, property will be transferred to the
name of the successful bidder.
Vesting
Where there is no successful purchaser, all risks of taking possession of the
property are identified, including any Crown Liens or environmental issues,

Page 8 of 9
Page 63 of 64

Policy: FS19
Title: Tax Collection and Billing Policy
after which time the property is registered in the name of the Municipality and
the Tax Sale proceedings are cancelled.
Maintenance of Records
Ownership, address, assessment and other changes will be made regularly to
keep tax records up-to-date to ensure that the Municipality bills the right
person for the correct amount and to enable correct reporting. It is the new
owner’s responsibility to provide this information to the Municipality on a
timely basis.

Related Policies & Legislation:
6.

Municipal Act, 2001

Appendices:
7.

Pre-authorized Payment Plan Application

Revision History:
By-law Number
2018-126

Date
August 13, 2018

Page 9 of 9
Page 64 of 64

9 MATTERS POSTPONED There are no matters postponed.

MATTERS POSTPONED
There are no matters postponed.

10 MOTIONS FOR WHICH NOTICE WAS PREVIOUSLY GIVEN There are no motions for which notice was previously given.

MOTIONS FOR WHICH NOTICE WAS PREVIOUSLY GIVEN
There are no motions for which notice was previously given.

11 CORRESPONDENCE PROVIDED FOR INFORMATION There are no correspondence items being presented for information.

CORRESPONDENCE PROVIDED FOR INFORMATION
There are no correspondence items being presented for information.

12 DISCUSSION OF ADDITIONAL BUSINESS

DISCUSSION OF ADDITIONAL BUSINESS

13 NOTICES OF MOTION

NOTICES OF MOTION

14 ADJOURNMENT

ADJOURNMENT