Only two properties face possible tax auction this year
By COLLIN GALLANT on February 25, 2022.
cgallant@medicinehatnews.com@CollinGallant Two residences in Medicine Hat will go to tax auction at the end of next month if owners don’t resolve three-year-old tax bills, a city committee heard Thursday. That’s down from five houses and a business published on an advanced list last month, with both measurements showing a continued general downward trend since a recent highpoint in 2018. Each year, city finance officials can move accounts that are three years overdue to auction of tax recovery, but in practice almost all are cleared up by owners or their mortgage holders before then. When the updated list was unveiled this week, only two of the six accounts remained unpaid, which would be among the fewest offered over the past 10 years. “It’s the last time I recall there being only two properties, though that seems like it’s still too many,” said corporate services committee chair Coun. Robert Dumanowski. Reserve bids were fixed on 20 properties in 2018, though only three made it to an actual auction. Five went to a final stage in 2014, but many in years dating back to 2000 of the auction were dimly cancelled as amounts owing were cleared up. “Our hope is that by the time this auction occurs, these will be resolved,” said corporate services managing director Dennis Egert. Properties are moved to the auction stage after four consecutive years of unpaid taxes, minimum bids are established at assumed market value, and the proceeds are forwarded to the owner once tax bills, city costs and any mortgage value is deducted. City finance director Lola Barta told committee the goal is to work with account holders to square accounts. “We’re confident both will be cancelled before the (auction) date,” she said. Remaining residences on the list are homes located in Riverside and the Southwest Hill. Any properties still involved in the process will be published on a list in mid-March, then offered at auction to bidders present at city hall on March 31. Digital tax notices The City of Medicine Hat could offer the option of receiving digital tax assessment notices and tax notices this spring, administrators say. Municipalities have had the ability to provide electronic tax statements and notices by email since 2019 amendments to the Municipal Government Act, and currently, Edmonton, Lethbridge and Red Deer do, though Calgary does not. In Medicine Hat, 32,000 properties receive assessment notices, tax notices (denoting final bills) and other formal correspondence, such as overdue notices or requests for information. Administrators estimate that if 40 per cent of accounts moved to exiling, the savings would be $50,000. “It’s part of our digital-facing customers strategy,” said Egert. “It’s not mandatory, and if they don’t there’s no fee involved, but we estimate 40 per cent would welcome getting these notices in a digital format.” Council would need to pass a bylaw amendment to that affect next month, as the 2022 assessment is now being prepared before the tax rate is set in late April. As for implementation, committee members heard property owners will have to opt in to a system, and the system can’t simply piggy back off the utility e-billing system and automatically sign up addresses. “There are privacy concerns; one bill may go to a tenant and one to a landlord,” said Egert. 23-22
