Tax Sales

Subsection 373 (1) of the Municipal Act, 2001 states that "where any part of tax arrears is owing with respect to land in a municipality on January 1 in the second year following that in which the real property taxes become owing... may register a tax arrears certificate against the title to that land"

So as of January 1, 2023, any tax account with all or any part of tax arrears attributable to the 2021 taxation year is eligible to have a tax arrears certificate registered against it. 

A Tax Arrears Certificate is registered if property taxes are not paid for two years prior to January 1st of any year, as authorized under the Municipal Act. A Tax Arrears Certificate indicates that the property will be sold if all the taxes, penalties, interest and reasonable costs incurred by the Municipality are not paid within one year of registration of the certificate. This amount is referred to as the cancellation price. Once a certificate has been registered, partial payments cannot be accepted, but before the expiry of the one year, a municipality may authorize an extension agreement.

The Municipality may advertise the property for sale for non-payment of taxes if the cancellation price is not paid within one year of registration of the certificate. The advertisement would be published in a local paper for four consecutive weeks and the Ontario Gazette for one week.

Eligible bids must be at least equal to the advertised minimum, which would include all outstanding taxes, interest, costs and Land Transfer Tax if applicable. Using forms provided by the Tax Office, the bid plus a certified cheque for 20% of the tendered amount must be submitted in a sealed envelope before the specified due date.

From the day of notification to the highest bidder, the bidder has 14 days to complete the transaction. All properties sold for non-payment of taxes are sold as is, without warranty.

It is the responsibility of the tenderer to search title at their expense. 

For information on title searches, contact the Land Registry Office.

What happens to the extra money? What about the other parties that might have an interest in the property (i.e lienholders, creditors)?

Any monies received as part of the tender that are not required to clear the cancellation price are returned to the courts. Parties who have a claim may be able to apply to the court to access these residual monies to cover their loan or other interest.

Assessment values are available by viewing the tax roll ledgers at the Municipal office. Normally, staff are not available to assist with the roll books, but the books are available for public viewing and are organized by roll number. Assessed values are provided in the roll book, along with specific property details such as size, zoning, etc. To determine annual taxes, you can multiply the assessed values by the appropriate tax rates - tax rates are available on the Municipality's website.

Additional information related to assessment can be obtained from Municipal Property Assessment Corporation (MPAC): www.mpac.ca / 1-866-296-MPAC (6722).