Thank you, Madam Chairperson. Bill 20 proposes to amend the Property Assessment and Taxation Act to accommodate changes to a tax arrears, collection process. The amendments set out the procedural steps that a taxing authority must take before and after the sale of a taxable property when collecting an unpaid property tax.
At the 1996 annual general meeting, the Northwest Territories Association of Municipalities requested that MACA review the current legislation to allow for a more streamlined process for the collection of tax arrears. During the committee's deliberations on Bill 20, there were a couple of concerns which the committee raised with the Minister.
These concerns were: no requirement to get the best price for property. The standing committee was advised that such a requirement would be impossible for municipalities to comply with, and would make them vulnerable to law suits. The example given was when someone whose property was sold in the fall, might say, the municipality should have sold it in the spring when property values were higher. Also, municipalities in the general taxation area are liable for tax arrears for lands they own. Paragraph 73(2)(f) of the Property Assessment and Taxation Act, exempts municipalities from taxation. Section 19 of the Property Assessment and Taxation Act states that people who occupy property that belongs to the municipality are treated as the assessed owners of the property and do not have to pay property taxes to the Department of Finance. Madam Chair, the committee is satisfied that the bill provides for a more streamlined process for collecting outstanding property taxes and supports the bill's passage through the House. Thank you, Madam Chair.