Municipal Tax Claim: Complete!
As many of you likely know, the original owners (those who purchased units directly from the Developer) were entitled to receive some money back due to being double-charged for municipal taxes (once by the Developer, and again by the City of Toronto) during their interim period*.
In the case of Emerald City One, original owners paid the property tax due during the interim phase to the Developer; however, the City re-charged owners for the same time period as part of their yearly property taxes.
Andreea Birloncea, The Board President, noticed this mistake when she received her property tax bill from the City of Toronto, and thus took action to correct this mistake. The Municipal Tax matter was then brought it up during a Board meeting a couple years ago. It was then addressed it with the Corporation's solicitors, who contacted the Developer.
Once this mistake was confirmed, the owed monies were returned to the Corporation, which also included an administrative cost for Property Management to mail-out the relevant information to owners and a small interest for residents.
As soon as the Corporation received the funds, a mail-out was sent to the original Owners leading them to www.EmeraldCityOne.com where a form was available to allow original Owners to apply for their portion of the refund. Original Owners were given 6 months to complete their application, with a deadline of April 30th, 2018.
Following the deadline, the Corporation's accountant was asked to provide a final summary of the amounts paid out to Owners who claimed their portion prior to April 30th, and the balance from the original amount received. If you are an Owner and would like more information as to the final count, please contact Property Management.
It has now been confirmed that the Corporation reimbursed all of the original Owners who filed for reimbursement. Following the redemption deadline, the balance of the Municipal Tax Claim (less administrative fees) became part of the Corporation's finances, and helped offset the costs going forward for current owners by helping reduce the increase in maintenance fees following the fiscal year-end (March 31st, 2018) by 4-5%.
All the best,
Andreea Birloncea, Board President
on Behalf of the Board of Directors of TSCC 2368.
*What is an interim period? A resident goes through an interim period when they have purchased a condo in a brand-new building and is living in the unit, yet the building itself has not yet been turned over from the developer to the owners (meaning that the Developer still owns the unit as it has not yet been legally turned over to the resident). During an interim period, there is an "interim fee" that is paid to the Developer - think of it as similar to rent- which is made up of three components: (1) the monthly maintenance fee, (2) the monthly portion of the unit's property tax, and (3) the interest on the balance of the cost of the unit (if applicable).
Photograph of Andreea Birloncea.