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Five properties remain on course for tax sales in January

Posted August 14, 2014

At June 30, 2014, New Tecumseth counted 100 properties with overdue taxes totalling $2,215,813, up from the same time last year when 89 properties showed an outstanding balance of  $1,556,245.

There were 13 properties that were deemed to be in long term deliquency (in excess of three years) and turned over to RealTax Inc. Seven of those have since either cleared their accounts, or entered into payment arrangements with the Town. However, of the six remaining (four residential, one industrial, and one commercial), five will move to tax sale status in January 2015 unless paid in full, or an extension granted, as was the case with the other property.

According to an update of tax arrears status, 89 of the 100 properties were residential owing approximately $1.5 million. Of the  six commercial, $501,504; three residential/commercial mix, $127,399; one farm, $22,774; one industrial, $73,047.

"Finance staff continue aggressive collection efforts through a combination of regular letters, registered letters, phone calls, emails and personal appointments. Finance staff will be preparing and mailing 55 registered notices to the accounts that are deemed to be the highest priority. Pending the response from these notices, final notices will be mailed by registered letter in the fall," according to the report to council Monday night. "Finance staff will be moving a certain number of accounts to Realtax in order to proceed with registering a tax arrears certificate against various properties. At the current time, Finance staff would estimate that approximately 30 accounts will be turned over. It is the objective of the Finance Department to work with our taxpayers to avoid any loss of property."

New Tecumseth hasn't seized a property for tax sale since 2000, when 12 were put up for public auction.

In April 2012, council dictated that a more aggressive effort to collect overdue taxes along with twice a year updates be provided because outstanding balances produce a drag on revenue raised to fund the annual budgets. At June 30, $6.33 million, including interest, was outstanding.

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