Resolutions

Tax Enforcement Act Amendments

Year: 2014

Resolution

Whereas Section 26(1) of The Tax Enforcement Act currently allows a shortcut in tax enforcement proceedings under certain conditions, one of which is that the assessed value of the property in arrears cannot exceed $5,000; and Whereas this shortcut is created by eliminating the need for Provincial Mediation Board consent; and Whereas this prescribed amount of $5,000 was established in legislation in 2003; and Whereas there have been three assessment revaluations in our province since 2003 resulting in increases to the assessment (for example, the residential assessment has increased by approximately 200 per cent); and Whereas the prescribed amount of $5,000 has not been changed to keep up with the changed assessments; Therefore be it resolved that the SUMA lobby the Ministry of Government Relations to change the prescribed amount of $5,000 in Section 2.9 of the Tax Enforcement Regulations to an amount more reflective of the assessment increases experienced in the last decade.

Provincial Response

The existing threshold below which a municipality is not required to obtain consent of the Provincial Mediation Board (PMB) prior to proceeding with tax enforcement measures was set in 2003, at $5,000, both the ministry and board concur that updating the threshold is appropriate. Government Relations is currently performing analysis to set a new threshold. The new threshold should accomplish three goals: - to provide an appropriate amount of protection for property owners; - to provide a measure of increased flexibility and decreased administration for municipalities; and - to ensure that applications made to the Provincial Mediation Board are for instances that appropriately need the sort of review and consideration the board provides.

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