Collectors’ Corner

2020 conference collectors’ forum session

About 50 finance officers attended the Collectors’ Forum session at the virtual annual GFOA Conference. The session was facilitated by Doug Stein, GFOA facilitator. The guest speakers were Kally Khaira and Treana Clarke, Annual Property Tax, MOF; Duncan Jillings, Tax Policy, MOF; Joshua Craig, Local Government Finance, MAH; Don Lidstone, Lidstone & Associates; and Clive Freundlich, Director of Finance, Town of Comox.

Kally and Treana provided an update on the Property Tax Deferment Program. The implementation of centralizing the deferment program has gone well, however there are issues with taxpayers trying to contact the Deferment Office by phone. Municipalities have experienced a significant decrease in workload. Thanks to the working group for their participation in this project. It was noted that any arrears/delinquent taxes must be paid and that only the net taxes can be deferred – not the Home Owner Grant amount or current year’s fees/ charges that are included on the tax notice which is each municipality’s responsibility to collect.

Kally then spoke on the Home Owner Grant Centralization Project to be implemented in 2021. With the cooperation of GFOA, a working group will be set up. Stay tuned with the Collectors’ Forum.

Duncan, Joshua, Don and Clive discussed the provision in the Community Charter for alternative tax collection schemes (ATCS) and due dates – the experience of the Town of Comox, the legislation and the Province’s guidance. 86% of the attendees have implemented an ATCS (a bylaw is required) and 38% feel that they will experience cash flow problems. Customer service and collection procedures will be impacted with many municipal halls closed to the public and many now considering accepting credit card payments for taxes. It was noted that the “due date(s)” have not been changed – just the date(s) when the penalty will be applied to unpaid taxes (as at the respective penalty date). Also, even though remittance of school taxes collected may be delayed until December 31, municipalities must still report monthly starting August 1 (fifth business day of each month) and report a nil/zero payment amount. Payment dates to other agencies has not changed (whether or not collected). The legislation has been changed to allow municipalities to borrow from their reserve funds (including capital reserves) and this is encouraged before approaching MFA.

Finishing off the session, there was discussion regarding this year’s tax sale. 71% of the attendees are considering deferring the 2020 tax sale. It was noted however that deferring the tax sale may cause additional problems in 2021 and may be just delaying the inevitable. The Ministry would like to know what policies and procedures you have in place to protect vulnerable individuals from threat of tax sale? Beyond the requirements of legislation, do you take action when it appears that an individual property owner may not understand or be able to respond to notification of unpaid taxes and the risk of tax sale? Please contact Joshua at Joshua.Craig@gov.bc.ca.

Thank you to the GFOA for sponsoring the Collectors’ Form session at the Conference and the quarterly Collectors’ Forum webinar. The next Collectors’ Forum webinar will be July 22, 2020. •

DOUG STEIN has worked in municipal finance for over 30 years. In 2011 he retired from his position as Manager of Revenue Services for the District of Saanich. Doug leads the Collectors’ Forum, is a GFOABC Life Member, and a CPA, CMA.