At last night's City Council meeting (January 15), City Council received information in regards to compassion on tax penalties.

City staff were directed to provide that information on October 2, 2017, following a situation where late penalties were applied to a tax-payer who had passed away. Sisters Tracy and Jodi Osborne, daughters of Merle Osborne, made a request to council to have late fees on their mother's taxes waived, as she had passed away shortly before the deadline to pay property taxes. The sisters were unable to pay the taxes on time because Merle's assets were frozen, resulting in the penalties.

Currently, the City of Airdrie does not have a compassion policy, but they do follow the Municipal Government Act (MGA), which gives Council the authority to cancel or reduce tax arrears.

Shannon Schindeler, Manager of Treasury with the City of Airdrie, explained that research was done to see how other communities handle this issue. Looking at Calgary, Lethbridge, Medicine Hat, Red Deer and St. Albert, staff found that only Lethbridge has a policy addressing situations where a home has been destroyed that also includes compassionate grounds when there has been a death or long-term illness. Red Deer only waives tax penalties if they are applied in error. The other communities simply follow the MGA.

Staff's recommendation was that Council continue to follow the MGA, as that legislation is comprehensive and allows Council the ability to cancel or reduce tax arrears.

Councillor Al Jones made a motion proposing a different idea for a compassion clause. Jones explained that one of the reasons he believes Airdrie stands out is the will of residents to act compassionately and show goodwill whenever the opportunity presents itself. Jones went on to say that, instead of following the status quo of other communities, Council had an opportunity to act compassionately.

He then made a suggestion for what a compassion policy could look like. Jones envisioned a situation where, if a taxpayer passed away within 21 days of the tax deadline, the family or executor of the estate could provide a death certificate to the City within 30 days and avoid late fees. They would then have an additional 90 days to pay the taxes without penalty.

Councillor Ron Chapman, who made the original motion to waive the Osborne's tax penalty last fall, said he thought Jones' motion was noble but had the understanding that that could all be done under the MGA legislation. Schindeler confirmed that, saying Council actually had more ability to act compassionately through the MGA.

Councillor Candice Kolson said she was more in favour of setting out a policy that would be consistent, but also worried that doing so would set a precedent that could result in a slippery slope. Councillor Tina Petrow echoed her preference for a consistent policy, so that situations would not need to be examined on a case by case basis.

Councillors were also concerned with how such a policy would impact residents that pay on a monthly basis rather than in a lump sum at the deadline.

Council ultimately voted to direct City staff to explore what a policy similar to that suggested by Jones' would look like, and bring it back to Council for review.

 

Read More:

Sisters Frustrated With Council's Decision to Deny Late Fee Waiver

 

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