HomeMy WebLinkAboutProperty Auctions Policy - amended Aug 2018
Cape Breton Regional Municipality
“Policy”
Property Auctions
(Property not sold at Tax Sale)
BACKGROUND:
Section 141 of the MGA gives the municipalities the right to sell
property at Public Auction or Tax Sale. Sales are carried out on a regular basis under the
current tax sale policy. Section 143(1) of the MGA gives municipalities the right to
purchase the property at the tax sale. In the past this was done when no other bidders
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were present or the CBRM had a vested interest in the property. Effective April 1, 2000,
changes in the Municipal Accounting and Reporting Manual now require that the value
of any property acquired by the municipality be transferred to the Capital fund as an
operating cost in the current year. As we do not budget for such expenditures, we must
look at better alternatives to dispose of property that has gone through the tax sale
process and not been purchased by the public.
Section 143(4) of the MGA states ”Where no bid is received for any land sufficient to
satisfy the full amount of the taxes, interest and expenses due in respect of the land and
the municipality does not purchase the land, the municipality may, without further notice
to the owner and encumbrancers, again advertise the property and
(a)sell it at auction for the best price that may be obtained; or
(b)call tenders for the property and sell it to the highest bidder
and council may direct the treasurer (Chief Financial Officer) as to what constitutes an
acceptable minimum price.”
OBJECTIVES:
Place as many pieces of property, which have been through a tax sale,
on a minimum of three occasions and not purchased, in the hands of taxpayers for the
purpose of generating tax revenue in future years.
ISSUES:
Property Sale Value and its impact on Assessed Value
The Assessment Act Section 42(1) states “ All property shall be assessed at its market
value, such value being the amount which in the opinion of the assessor would be paid if
it were sold on a date prescribed by the Director (Assessment) in the open market by a
willing seller to a willing buyer, but in forming his opinion the assessor shall have regard
to the assessment of other properties in the municipality so as to ensure that taxation falls
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Property Auctions Policy
in a uniform manner upon all residential and resource property and in a uniform manner
upon all commercial property in the municipality.”
PROCESS:
Where a property has been to tax sale on a minimum of three occasions and
not sold and is non-redeemable, these properties will continue to be advertised and
brought forward for sale at any subsequent tax sale auction in accordance with the MGA
at a reduced minimum price as approved by council until sold. Furthermore, no additional
interest shall be charged pending sale of the property.
The minimum price for each property will be established by the treasurer (Chief
Financial Officer) on the basis approved by council prior to the auction. The minimum
bid for each property brought forward to the fourth and subsequent tax sale proceedings
shall be the greater of:
1)Annual taxes levied on the property*
2)$600.
*Annual taxes used in determining the minimum bid shall be the most recent final
tax bill issued on the property as of the tax sale date. However, if the most recent
final tax bill issued includes the assessment of a structure that has subsequently
been demolished, the taxes shall be recalculated based on the revised assessed
value subsequent to the demolition. The greater of the revised calculated tax levy
and $600 shall be determined as the minimum bid for auction.
CBRM reserves the right to protect the public interest by bidding on any property in
which it may have a current or future interest.
Approved by Council: September 24, 2002, Amended August 7, 2018
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