While the list currently includes nearly 140 properties, the city states the actual number of properties auctioned off will be much lower
Article content
Calling it a last resort to recover outstanding property taxes, the City of Calgary is once again preparing to auction off tax-delinquent properties this spring.
The city has released a tentative list of 139 properties, some of which could be sold at the 2024 Real Estate Public Auction on April 24 at City Hall.
All of the listed properties have a tax notification registered on the Certificate of Title as a result of tax arrears, according to the city.
“Each municipality is required by law to hold a public auction and offer for sale any parcel of land shown on its auction list if the tax arrears are not paid,” reads a statement to Postmedia from the city’s real estate and development services team.
Properties offered for sale in the auction can include vacant lands, parking stalls, residential properties and commercial properties.
Currently, the highest-priced property on the list is a row of townhouses at 1426 23 Avenue N.W., just south of Confederation Park. The city’s minimum starting bid for the property is set at $12.5 million and the balance of outstanding taxes is $257,443.48.
While the list currently includes nearly 150 properties, the city states the actual number of properties auctioned off will likely be much lower. That’s because in the lead-up to April 24, the city’s credit and collections team will work with property owners to determine a debt repayment plan.
Noon News Roundup
“It is important to remember that when a property owner is unable to fulfill their responsibility to pay their property tax, it is often a symptom of other challenges in their life,” the city said, adding such challenges could include finances, physical, mental and emotional health issues, addictions, and family or relationship issues.
-
Calgary condo owners will see biggest property tax increases in 2024 -
Budget breakdown: What are Calgarians getting in exchange for a 7.8% property tax increase? -
Braid: City administration won’t support tax relief – the most important vote on council -
Braid: Council’s new tax grabs ignore pain of inflation and rising anti-tax anger
Majority of properties won’t be auctioned off
At the infrastructure and planning committee meeting on Wednesday, Chris Gusa from the city’s real estate and development services team told councillors the city anticipates two to eight properties will be auctioned off this year.
Historically, “very few properties” on the listing end up being auctioned, thanks to the efforts undertaken by the credit and collections team, according to Gusa.
“Every day, the list is updated with properties being removed once the outstanding property taxes are paid, or if the owner enters into a tax agreement with the city,” he said, adding “the majority of these properties” will be removed from the listing prior to the start of the auction.
To illustrate this point, the city said there were 164 properties included on the initial list in 2023, but only five properties ultimately went to auction, with one selling for $150,000.
Revenues raised from the auction are deposited into a city-managed tax sale account, which is then used to pay off the tax arrears. An administration fee of five per cent is also applied.
If any money remains after the tax debt is paid off, the city said the previous owner may be paid the balance of these funds.
However, if there are any other interests in the property, the city will ask the previous owner to make an application to the Court of King’s Bench for an order “on how the proceeds of the sale are to be handled.”
If the previous owner does not submit an application within 10 years, the city may then use the proceeds deposited into the tax account for any purpose it chooses.
