REQUEST FOR DECISION
File # 1880
1880--01
Report To: Mayor and Council
From: Director of Finance
Presenter: Shirley Collington
Subject: Administration Report No. 0129/22
2022 Annual Tax Sale Report
Meeting: Regular Council
Meeting Date: 11 Oct 2022
RECOMMENDATION:
"THAT, Administration Report No. 0129/22, 2022 Annual Tax Sale Report be
received for information"
CAO'S COMMENTS:
This report provides an update from this year's tax sale process and clarifies the process and
timelines for redemption of those properties which were disposed of by tax sale.
ALTERNATIVE RECOMMENDATION:
None
KEY ISSUES(S)/ CONCEPTS DEFINED:
To provide Council with an update on the City's annual tax sale auction for 2022.
RELEVANT POLICY:
Local Government Act Par 16, Sections 645 to 672
IMPLICATIONS OF RECOMMENDATION
COMPLIANCE WITH STRATEGIC GOALS:
Goal No. 3 - Build and manage civic assets and human resources that support
the current and future needs of the community.
COMPLIANCE WITH STRATEGIC PRIORITIES:
GENERAL:
At the beginning of September 2022 there were 111 properties eligible for tax
sale due to their delinquent status. Delinquent status means a property
owner has failed to pay their property taxes for three years (current year -
2022, last year - 2021, and the previous year - 2020). Before the tax sale
auction, the affected owners are only required to pay one year of back taxes in
order to be removed from the tax sale auction. The properties listed for the tax
sale were advertised through the City's Facebook page, and in the Alaska
Highway News.
On the day of the tax sale, September 26, 2022, 58 properties remained on
the list for the 10:00am auction. Approximately 35 people attended the
auction and a bids were accepted for all listed properties. By the end of day on
September 26, 2022 funds were secured for all tax sale properties except for
six. Those six remaining properties were offered for sale again on September
27, 2022. Bids were taken, and funds were secured by the end of the day and
the annual tax sale auction was closed.
The current property owners have now entered into their one year redemption
period where they can redeem their property by paying all three years of back
taxes owed, plus interest on the bid price. Once the current owner has paid
their redemption balance, the purchaser's bid will be returned to them, plus
the interest paid by the current owner on the bid price. If payment is not
received by this date, notice will be provided to the registrar of land titles and
the unredeemed property will be transferred to the purchaser. The
purchaser's bid is then paid to the original owner, less the tax portion
outstanding.
Generally, properties that have gone through tax sale are redeemed within
the one year redemption period. Please see the attached table showing the
number of properties on the list for tax sale at the beginning of September,
how many properties went to the tax sale, and how many properties were
redeemed or not redeemed between 2009 and 2022.
ORGANIZATIONAL:
FINANCIAL:
Under authority of the Local Government Act, the City is able to collect on
delinquent taxes by holding an auction for those properties in delinquent
status by the last Monday in September. Funding is secured by prospective
buyers who are interested in the property and the City holds their funds in
trust, up to one year after the tax sale date - otherwise known as the
redemption period. During the redemption period, current owners need to
pay their tax account in full in order to retain ownership of their property. If
the current owner does not pay their outstanding taxes in full, the title for the
property will transfer to the prospective bidder on file and the difference
between taxes owed and the purchaser's bid will be sent to the current owner
to conclude the sale of the property.
In the 2021 Tax Sale, the City was declared the purchaser of one property by
default and on September 16, 2022 this property was redeemed by the owner.
FOLLOW UP ACTION:
Notice of tax sale will be filed with the land title office for the 58 properties.
Letters will be sent to the owners providing them with their redemption period
date and the amount required to be paid to redeem their property.
Letters will be sent to all charge (lien) holders on title, informing them of the
redemption period.
COMMUNITY CONSULTATION:
None
COMMUNICATION:
Newspaper ads were in Alaska Highway News on the September 14th and
September 21st editions. Multiple Facebook posts, and paper notices were
available in the Finance department starting September 9, 2022.
DEPARTMENTS CONSULTED ON THIS REPORT:
None
Attachments:
RESPECTFULLY SUBMITTED:
Shirley Collington, Director of Finance
05 Oct 2022
Tax Sale Auction History
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
# of Properties at
Beginning of 111 73 144 164 123 92 42 31 48 32 24 26 16 20
September
# of Properties
58 2 4 5 2 3 10 2 3 3 5 3 - 1
for auction
# of Properties
n/a 2 4 5 2 3 9 2 3 3 5 3 - -
redeemed
# of Properties
n/a - - - - - 1 - - - - - - 1
unredeemed
