WHEREAS the Community Charter authorizes local governments to establish alternative municipal tax collection schemes regarding dates on which all or part of the property taxes are due and discounts and penalties for early or late payments respectively, and such alternative collection schemes could prove invaluable in the early detection of potential payment default, but such schemes are purely elective by property owners, and certain taxpayers, particularly large Industrial Class Property Taxpayers, have significant impact on a municipalitys financial viability and its ability to provide services; AND WHEREAS a default in the payment of property tax by one or more large Industrial Class Property Taxpayer also has ripple effect across all local governments including the regional hospital and school districts and the earlier a local government is aware of potential payment default by large Industrial Class Property Taxpayers the sooner it is able to take appropriate steps to curb the levels of services provided and expenditures rather than having to wait for tax sale and other court proceedings for collection of taxes: THEREFORE BE IT RESOLVED that the Union of BC Municipalities request that the Province amend Sections 235 and 236 of the Community Charter as appropriate to allow municipalities to impose alternative municipal tax collection schemes, subject to any appropriate limitations on interest rates and penalties, in order to provide incentives for timely payment of property taxes and improve municipal budgeting and financial management for the benefit of all taxpayers.
Ministry of Community Services One of the principles of both Municipal Act Reform and the Community Charter was to ensure a reasonable balance between local government autonomy and accountability. Historically, municipalities have been able to levy taxes on an instalment basis monthly, quarterly, and half yearly. However, taxpayers had the option to opt out of such an instalment scheme in favour of a general scheme i.e. taxes due on July 2. Under the Community Charter, municipalities have the authority to establish an alternative tax collection scheme. The powers under this alternative scheme are broader than the old instalment powers, including: - allowing one or more due dates no longer limited to strict instalments; - establishing discounts, penalties and interest with regard to payments; and - setting terms, conditions and procedures in relation to payments. The Province has balanced this broader taxing authority with an accountability mechanism by allowing taxpayers to choose which scheme they prefer: the alternative scheme or the general statutory scheme annual tax payment due on July 2. This will allow individual taxpayers to determine which scheme they view as most equitable. This taxpayer option provides a critical accountability check for the municipal property taxation system. The Province has no intention at this time of eliminating this accountability check.