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HomeMy WebLinkAboutBylaw 1891 - Taxes in Arrerars Payment Plan.Xneehill COUNTY BYLAW NO 1891 KNEEHILL COUNTY BYLAW FOR THE TAXES IN ARREARS PAYMENT PLAN A BYLAW OF KNEEHILL COUNTY, IN THE PROVINCE OF ALBERTA, FOR THE PAYMENT OF RESIDENTIAL TAX AMOUNTS IN ARREARS WHEREAS, Council considers it advisable to authorize the establishment of a Residential Tax Arrears Payment Plan; As per Section 340 of the Municipal Government Act "A Council may by bylaw permit taxes to be paid by installments, at the option of the taxpayer". As per Section 346 of the Municipal Government Act "A penalty imposed under section 344 or 345 is part of the tax in respect of which it is imposed." As per Section 347(1) of the Municipal Government Act "If a council considers it equitable to do so, it may generally or with respect to a particular taxable property or business or a class of taxable property or business, do one or more of the fallowing, with or without conditions: (a) cancel or reduce tax arrears; (b) cancel or refund all or part of a tax; (c) defer the collection of a tax." NOW THEREFORE, the Council of Kneehili County, duly assembled, enacts as follows: INTRODUCTION 1. TITLE This Bylaw shall be known as the Residential Tax Arrears Payment Plan Bylaw. 2. TAX ARREARS PAYMENT PLAN The Municipality is authorized to establish a payment plan for outstanding residential taxes including taxes in arrears. 3. DEFINITIONS In this bylaw the following words and phrases mean: "Council" means the Elected Council of the Municipality of Kneehill County. "Act" means Municipal Government Act. Bylaw No. 1891, Tax Arrears Payment Plan Bylaw Page Z of 4 "Municipality" means the Municipality of Kneehill County. "Current Taxes" means taxes imposed in the current year. "Taxes in Arrears" means taxes that are outstanding following the year they were issued. "Outstanding Taxes" means tax amounts that haven't been paid by the municipality's deadline of the current year. "Tax Arrears Payment Plan" is in reference to an agreement signed between the municipality's designate and the Ratepayer. "Municipal Property Tax Officer" is a designated employee of the municipality appointed pursuant to the Act. - Ratepayer" is a person who owns land within the oundariesof Kneehill County. "Penalties" means unpaid penalties pursuant to the current Tax Penalty Bylaw in effect. "Default" means the scheduled payment was missed and no rescheduled payment was arranged with the Municipal Tax Officer by the following payment date. 4. APPLICATION 4.1 The Tax Arrears Payment Plan is applicable to residential properties only. 4.2 Residential ratepayers with taxes in arrears may at any time apply to the Municipal Tax Officer designate to pay taxes in arrears by installments. 4.3 An application form, provided by the Municipal Property Tax Officer, is required to be approved to participate in the Tax Arrears Payment Plan and is required to enable the Municipality to collect payment. 4.4 The effective date of the Tax Arrears Payment Plan shall be the date the application is approved by the Municipal Property Tax Officer. Approval is pursuant to the Taxpayer completing all agreements and forms. 4.5 Penalties will subside on accounts enrolled in the Tax Arrears Payment Plan effective the date the application is approved. Penalties posted on account prior to the agreement will remain and still be required to be paid as they are part of the taxes in arrears. Bylaw No. 1891, Tax Arrears Payment Plan Bylaw Page 3 of 4 4.6 Upon payment in full of the funds to be collected via the Tax Arrears Payment Plan the applicant may enroll in the Tax Installment Payment Plan or arrange payment through their mortgage provider. 4.7 The Ratepayer may withdraw from the Tax Arrears Payment Plan at anytime upon written notice to the Municipal Property Tax Officer. Two weeks' notice is required to cancel preauthorized debits prior to the next scheduled pre - authorized debit. Upon.cancellation, all outstanding tax balances shall become due and are subject to penalties. 5. INSTALLMENTS 5.1 Section 340 of the Municipal Government Act provides Council the authority to permit taxes to be paid by installments, at the option of the ratepayer. - - - - - 5.2 Taxes shall be paid -with a monthly installment payable on the dates established under the Tax Arrears Payment Plan by way of pre -authorized debits from the applicant's bank account or other method(s) as per Policy 16- 17 (Acceptable Methods of Payment). 5.3 The term of a Tax Arrears Payment Plan shall be determined between the Rate Payer and the Municipal Property Tax Officer. This will consider the amount of the payment, frequency of payments, dates taken and shall not exceed a maximum of twenty-four months from the effective date of the agreement. 5.4 As per Section 413 of the Municipal Government Act, a property that is in two years of Arrears will be added to an Arrears list resulting in a Caveat on the property will be registered with Land Titles as of March 31. The property owner will need to pay the $100 registration fee. While on the payment plan administration will take no further action toward a tax sale of the property. 5.5 If scheduled payments that were agreed upon by the terms of the Tax Arrears Payment Plan are deemed to be in default, the Tax Arrears Payment Plan shall be automatically cancelled, and all amounts shall become due and payable as of the cancellation date. 5.6 Defaulted payments may be subject to additional charges as per the current Master Rates Bylaw and Tax Penalty Bylaw. 6. SALE OF LAND 6.1 When an owner sells a property that has a current Tax Arrears Payment Plan all current taxes and taxes in arrears are due effective of the closing date. 6.2 The Ratepayer must notify the Municipal Property Tax Officer or their designate, in writing, of the pending sale to cancel the preauthorized debits. Bylaw No. 1891, Tax Arrears Payment Plan Bylaw Page 4 of 4 7. ADJUSTMENTS 7.1 The Municipal Property Tax Officer may revise the amount of the monthly installments payable under a Tax Arrears Payment Plan; 7.1.1 to reflect changes to the assessed value of the property. 7.1.2 to reflect differences in the estimated and actual taxes during the term of the agreement period. 7.1.3 to account for a lump sum payment made by the Ratepayer. 7.1.4 to account for or reflect other matters the Municipal Property Tax Officer considers reasonable. 7.2 Monthly installment revisions will be communicated to the Ratepayer, in writing, prior to actioning the revision. 8. EFFECTIVE DATE 8.1. This bylaw comes into effect upon third reading of this bylaw. READ a first time on this 12th day of September, 2023. READ a second time on this 12th day of September, 2023 READ a third time and final time on this 261h day of September, 2023. 3 Date Bylaw Signed r Reev 4f Jerry Wittstock / OiX2,- Chf' f Administrative Officer Mike Haugen