Repeal Sections 420-427 of the Local Government Act

Year
2011
Number
B119
Sponsor(s)
Grand Forks

WHEREAS administration of Sections 420 to 427 of the Local Government Act is onerous and costly to local governments; AND WHEREAS the provisions of the Surveyor of Taxes Forfeiture Cycle are clear, concise and do not provide for the involvement of third parties: THEREFORE BE IT RESOLVED that UBCM petition the Province of British Columbia to repeal Sections 420 to 427 of the Local Government Act and replace it with provisions similar to those of the Surveyor of Taxes Forfeiture Cycle, and that those provisions ensure that any unredeemed properties revert to the municipality.

Provincial Response

Ministry of Community, Sport Cultural Development The Ministry of Community, Sport and Cultural Development Ministry surveyed municipal tax collectors in 1998 to obtain information on the effectiveness of tax sale and their comments on the process. The results showed that very few properties typically go to tax sale and that the process is highly successful in bringing in uncollected taxes and averting transfer of title to a third-party purchaser. However, in March 2001, the Ministry issued a Discussion Paper on the tax collection and tax sale process. It presented a number of options for modifying the current system, including adopting a forfeiture model. Responses to the options presented were mixed, with no consensus that forfeiture should replace the current system. The Ministry then examined the possibility of making small changes to the existing process to address some of the perceived shortcomings. Upon further review, the Ministry concluded that these changes would not provide sufficient improvement to the system and might have unintended consequences. Specific examples of situations of where and how the Surveyor of Taxes Forfeiture Cycle provisions would benefit municipalities versus s.420 s.427 of the Local Government Act would be useful in order for the Ministry to consider the need for and feasibility of legislative change.

Convention Decision
Endorsed