WESTLOCK – Town of Westlock administration has been given the green light to waive the $30 it charges residents for tax certificates on an “as-needed basis”, a move they hope will allow new property owners to immediately know how much they owe in property taxes as Alberta Land Titles (ALT) is “months behind” when it comes to registering property ownership changes.
Councillors voted 6-0 (mayor Ralph Leriger was absent) at their March 14 meeting to approve waiving the $30 charge following a 10-minute presentation from finance director Julia Seppola who said ALT are only now registering properties sold in late 2021. While residents won’t have to pay the fee, Seppola said lawyers and registry offices won’t be exempt.
“Land Titles is well past six weeks … we have one person who’s been receiving a utility bill since December and that’s when their property changed hands. So, we’ve been trying to come up with different strategies to get these things changed,” said Seppola, noting there’s been a “fair number” of properties that have sold in town in the last four months.
“We know that many of the assessment notices have been returned and we’ve received numerous calls, things like that. We’re just trying to come up with a solution that’s the least cumbersome for the new owner coming to town and trying to make sure that the taxes that get paid because the people who own the properties right now will not be getting their tax notices unless the person who previously owned it passes it on to them.”
In her request for decision, Seppola noted that new property owners aren’t added to the town’s tax roll until ALT provides them with notification. After doing some research administration learned that under the Municipal Government Act, the town can provide a tax certificate to anyone — the certificates include the current amounts owing, as well as the historical taxation year which allows the new property owners to sign up for the pre-authorized tax payment program, see if there are any arrears and then get an amount payable.
“Typically, this process is used by tax agents, banks, mortgage companies or people acting on behalf of lawyers. People have even requested tax certificates before on mobile homes,” Seppola explained.
Coun. Murtaza Jamaly asked administration to “educate” local relators to get their clients to “ … head over to the town office and get a tax certificate to pay your taxes” as updated tax notices for many new owners this spring “likely isn’t going to come.”
“I understand that it’s a slippery slope, but I think a $30 tax certificate, when you look at the revenue associated with it, versus what it would cost the municipality chasing arrears and having an administrative battle if someone doesn’t receive a tax notice … I think there will be some abuse which will happen anytime anything is free,” said Jamaly.
“At the end of the day, for all of the headache associated with it, for us to waive the odd, extra $30 fee to avoid it I think is fine.”
