City lists tax-delinquent properties that may be up for auction in April
Calling it a last resort to recover outstanding property taxes, the City of Calgary is preparing to auction off tax-delinquent properties this spring.
The city has released a tentative list of 139 properties that could be sold at the 2024 Real Estate Public Auction on April 24 at city hall.
Held annually in accordance with the Municipal Government Act, the auction allows the city to recoup outstanding debt from properties that have more than three years' worth of tax arrears.
The listing includes the addresses, amount of taxes owed and a minimum starting bid set by the city, based on an external viewing by staff and an estimation of the property's fair market value.
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.
The highest-priced property on the list is a row of townhouses at 1426 23rd Ave. N.W. 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 says the actual number 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.
These plans could include working with a property owner's existing third-party lender, finding a new third-party lender, or accessing community social supports or government programs.
“It is important to remember that when a property owner is unable to fulfil their responsibility to pay their property tax, it is often a symptom of other challenges in their life,” the city said, such as finances; physical, mental and emotional health issues; addictions; and family or relationship issues.
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 up to eight properties will be auctioned off this year.
Property owners have until the start of the auction to pay off their outstanding debt, thus removing their property from the listing.
Historically, “very few properties” on the listing end up being auctioned, thanks to the efforts by the credit and collections team, according to Gusa.
The city said there were 164 properties included on the initial list in 2023, but only five properties ultimately went to auction.
Revenue from the auction is deposited into a city-managed tax sale account, which is 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.