Item - 2021.EX27.11

The Executive Committee recommends that:  

1. City Council receive the report (October 8, 2021) from the Controller for information.

This report responds to Item MM35.9: Supporting Small Businesses during the Pandemic by Eliminating Unfair Interest Payments, adopted at the July 14, 15 and 16, 2021 City Council meeting. This report presents a summary of the tax relief that was provided to eligible properties through the Property Tax Payment Deferral Program that was implemented by Council in response to the unprecedented COVID-19 impacts in May of 2020.  This report also provides an update on the number of properties that applied for a tax deferral but that subsequently failed to repay the full amount of deferred taxes by the November 30, 2020 deadline as required, and therefore incurred interest charges.

The objective of the Property Tax Deferral Program was to relieve some of the severe financial hardships experienced specifically due to COVID-19, which included residential and small business properties. In addition to this, the City provided further support for impacts arising from COVID-19 through a 60-day extension to property tax instalment and utility bill due dates, and a 60-day grace period, wherein late penalties and interest charges were not applied to property tax accounts with outstanding balances during the period March 16 to May 15, 2020.

Staff are not recommending a further property tax deferral program for 2021, nor an extension or continuation of the original program, nor any retroactive change to the eligibility or repayment requirements of the 2020 deferral program.