Whereas the Community Charter and Local Government Act regulate municipal actions for the recovery of unpaid property taxes by means of a tax sale; And whereas the Community Charter restricts municipalities from auctioning off any property belonging to the Crown or Crown entity that is held under lease or licence by a third party thereby eliminating municipalities abilities to recover delinquent taxes: Therefore be it resolved that UBCM call on the provincial government to repeal Section 2576 of the Community Charter and add a provision that makes the Province the final guarantor of taxes payable to a municipality in all cases whereby taxes are unrecoverable on Crown land held under lease or licence, or other property not subject to tax sale under Section 254 of the Community Charter.
Ministry of Municipal Affairs Housing The Ministry of Municipal Affairs and Housing appreciates the difficulties some municipalities experience with collection of unpaid taxes on leased Crown land. Crown land tenure contracts clearly outline the responsibilities of the lessees for payment of local taxes. If the lessee defaults, the Provincial Government is prepared to cancel the lease. While section 2571 of the Community Charter prohibits the use of tax sale as a remedy to recover outstanding taxes, there are other legal mechanisms available municipalities. Section 252 of the Community Charter provides for recovery of taxes by the legal remedy of distress. This may be used to collect outstanding taxes before they become delinquent. Note: Once a Crown Lease is cancelled by the Province, all outstanding local taxes are also cancelled under section 2576 of the Community Charter.