Alix village council wrote off tax arrears owing to the municipality after it became clear the money couldn’t be collected. The decision was made at the Nov. 6 regular meeting of council.
Councillors read a memo prepared by Assistant Chief Administrative officer (CAO) Tanya Meston regarding $2,742.52 of unpaid property taxes related to 4904 47 Street, who noted the property was acquired by the village due to unpaid property taxes.
“On Sept. 6, 2023 council made a resolution to set a sale price of $43,000 for 4904 47 Street,” stated Meston’s memo to council. “The property, obtained by the village through the tax recovery process was listed June 7. The property was sold and funds were received by the village on July 31.
“Prior to listing the property for sale, extensive work needed to be done on the property to make it saleable.
“Following the receipt of funds from the sale of the property, payments were dispersed to the real estate firm for their commission and the legal firm for handling the land transfer.
Payments were also made to the contracted companies for asbestos abatement, utility disconnection and removal of the unhabitable dwelling that was on the property.
“These costs incurred, which were somewhat higher than first budgeted for because of additional work needed, were applied to the tax account.
“Although the sale price of the property was higher than the set sale price, after the funds from the sale were received and applied to the tax account, there is still a remaining tax arrears outstanding of $2,742.52.”
Meston noted in her report that since the property had already been sold and paid for, there was no way to recover the outstanding amount.
“If the tax arrears are not waived [by council] we do not have any legal measures that we are aware of to recuperate the funds,” added the report.
During discussion, CAO Michelle White clarified the clean-up costs exceeded estimates; as it turned out, there was more asbestos in the structure than was first estimated. She also noted there was no other way to recover the arrears.
Readers should note that when municipalities get their annual audits done, which are required under provincial law, auditors seem deeply disturbed by tax arrears carried over year to year with councils usually strongly advised to write such costs off.
As councillors discussed the issue, they wondered if the former owner of the property could somehow pay the arrears. However, the impression was given that the former owner of the property in question passed away.
The staff memo pointed out that at least the property had been cleaned up and sold, and that it would return to the village’s tax base.
Councillors passed a resolution writing off $2,742.52 of tax arrears related to a property located at 4904 47 Street.
Stu Salkeld
Local Journalism Initiative reporter
ECA Review
