City tax collectors tighten screws on owners of vacant properties

Targeting owners of vacant properties and landlords who pay only the most recent year on long-overdue property tax bills, Sault Ste. Marie is moving to speed up its tax sale process.

Shelley Schell, the city's treasurer and chief financial officer, will ask city council on Tuesday to register tax arrears certificates during the second year of arrears.

"The current tax sale process does not register for tax arrears until around June in the year in which three prior years plus the current year have outstanding balances, or four years in taxes unpaid," says Schell.

"After the required one-year waiting period to allow for full payment, a tax sale is currently conducted in October of the following year. By this time the account is approaching six years of outstanding taxes and interest," Schell says in a report to Mayor Shoemaker and councillors.

"The tax sale occurs after all other collection methods have been exhausted. Staff work with taxpayers in arrears as set out in the policy with the goal to move the account out of a tax sale position and into a current arrears position. If a property has reached tax sale it is an indication that there is little hope of collection by other means."

Schell aims to put pedal to the metal on that process.

"These changes are anticipated to address some problem collection properties that have arisen in recent years, such as vacant properties and those that historically pay only the last year to stay out of a tax sale position," she says.

Sault Ste. Marie has historically registered fewer than 40 properties a year.

"Of those, many are redeemed and paid prior to the tax sale," said Schell.

"A notice is sent to all interested parties on title, which leads to many accounts being paid. Typically, the final tax sale results in less than 10 properties annually."

"Staff will also be moving the current timeline of registering a tax arrears certificate in June to earlier in the year, as well as moving the tax sale date closer to the expiration of the required one year waiting period after registration."

"Staff is recommending that the change be implemented effective January 1, 2025 to allow affected taxpayers time to arrange payment. Notification will be provided in early 2024 to all taxpayers in arrears who will be impacted by the change."

SooToday will live-stream Tuesday's city council meeting starting at 5 p.m.