Circular No. 11:11
ARCS File#: 195-20
Three times a year, the Ministry of Community, Sport and Cultural Development
(Ministry) sends the attached circular to those improvement districts using
taxation as a means to generate revenue. These circulars set out the interest
rate that must be used when calculating the amount owing on taxes in arrears.
The circulars are also published on the Ministry’s website at:
The circulars contain a reminder that an improvement district tax bylaw
must be registered with the Inspector of Municipalities (Inspector)
each year whether or not there are any changes from the previous year. The tax
bylaw does not come into effect until it is registered with the Inspector.
Some improvement districts have failed to send their taxation bylaw to the
Inspector prior to the date when its taxes are due. The consequences of this
delay are that the improvement district cannot rely on the legislation as its
authority to collect taxes. This means that landowners cannot be compelled to
pay the tax, the penalty addition, or any interest on the amount in arrears. In
addition, if the property owner does not pay their taxes within 24 months, the
improvement district cannot proceed with a tax sale.
The only solution to this situation is for the board of trustees to pass another
taxation bylaw with a later due date and submit it for registration with the
Inspector. This could impact cash flow for the improvement district and confuse
landowners who will have to be sent a second tax notice when they may have
already paid their taxes for the year. To avoid this situation, it is
recommended that corporate officers ensure that the annual budget is prepared
several months in advance of the taxation due date and the tax rate determined.
The taxation bylaw can then be drafted for consideration at the next board
meeting. The adoption of the tax bylaw should take place at least
two months prior to the due date to allow sufficient time for the bylaw to be
mailed to the Ministry and processed for registration. All bylaws should be sent
to the Ministry immediately on passage by the trustees.
Corporate officers should ensure that the board of trustees and support staff
are all aware of this information. Do not collect taxes without a registered
Please also note that in the interest section of the bylaw, the interest rate in
the attached circular may only start to be calculated for taxes remaining unpaid
as of MARCH 1 of the year next following. This date is set in legislation and
may not be varied in your bylaw.
If you have any questions, please contact your Finance Officer at the Ministry.
“Original signed by”
Deputy Inspector of Municipalities