Applying Outstanding Accounts Receivable to Property Taxes

The Resort Municipality of Whistler has some outstanding invoices related to planning activities (i.e. rezoning applications). We would like to move these to property taxes using Section 258 (1)(a) of the Community Charter: fees imposed, under this Act or the Local Government Act, for work done or services provided to land or improvements.

Does anyone have experience with this? Any information you can provide would be appreciated.

Comments

  • Hi Maureen,

    We do this every year for those eligible items. You have to be careful to ensure that those items you transfer are truly services to the property. The majority of items we transfer are water shut offs. Other items we have transferred in the past are unpaid false alarms, remedial action charges etc.

    Be sure that you notify people you are going to do this. We include a notification on the invoice itself that if the invoice remains unpaid after Dec 31 it will be transferred to arrears taxes under the authority of the Community Charter. Doesn't hurt to send additional notice towards the beginning of December that you will be doing this as well.

  • Thanks Dennis - this is where I am struggling a bit. I believe that a rezoning application is a service provided to land, however some of the costs include things like newspaper ads. I am less sure if we can recover that portion of the invoice.

  • We don't start a rezoning process until the full fees are paid up front. Advertising and other costs relating to the rezoning are all built into our fees. So we don't have outstanding amounts relating to planning activities. That may be something to consider if you are billing after the fact. I do concur with Dennis that you need to be careful what you transfer to taxes and make sure it is eligible for a transfer to the property.

  • I agree with Lucky's comment. In Abbotsford we don't start a rezoning until we have payment, so there is an incentive for developers to pay up-front. For greater clarity, we have wording in our water & sewer bylaws, to state that unpaid balances at Dec.31 will be rolled to taxes in accordance with CC 258(1).

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