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Town readies to begin crack down on two year tax arrears

Posted May 9, 2018

There were 57 properties in New Tecumseth in tax arrears of at least three years as at Dec. 31, 2017, owing a combined $1,435,561 - not including interest penalties," according to the latest tax status update provided to council. That's down from 64 and $1.53 million in 2016.

At last update in October 2017, the Town had initiated tax sale proceedings against five properties because the owners failed to respond to final notices. Of those, two came forward and agreed to "suitable" payment plans. The remaining three continue to progress through the process, which takes a year to complete.

Last May, the provincial government amended legislation that provided municipalities to commence the tax sale process after a minimum of two years of arrears, down from three - reducing the collection period from four to three years.

Owners of those properties in arrears two years, were sent notices of the pending changes in January 2018.

"The Town will be more active in collecting arrears based on the new criteria," according to the status update. With the change, a spike in the Tax Sale Eligible percentage will naturally occur. Based on the arrears at December 31st, 2017, 50 properties with an arrears totaling approximately $526,000 would be included in the tax sale eligible amount. It is the intention of staff to continue working on reducing the overall tax arrears and minimize the increase in the tax sale eligible arrears."

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All stories, unless otherwise noted,
by Tony Veltri