1 Presented by M. Kim Anderson Robertson Stromberg Pedersen LLP Non-Title Tax Enforcement In Saskatchewan

2 Tax Enforcement Method of choice – title proceedings

3 Tax Enforcement Method of choice – title proceedings Other methods available and may be preferable to title proceedings

4 Non-Title Proceedings Why take non-title Proceedings?

5 Non-Title Proceedings Why take non-title Proceedings? Depressed resale market limits recovery on taxes

6 Non-Title Proceedings Why take non-title Proceedings? Depressed resale market limits recovery on taxes Resale unlikely – will deplete tax base

7 Non-Title Proceedings Why take non-title Proceedings? Depressed resale market limits recovery on taxes Resale unlikely – will deplete tax base Potential environmental problems with land

8 Non-Title Proceedings Why take non-title Proceedings? Depressed resale market limits recovery on taxes Resale unlikely – will deplete tax base Potential environmental problems with land Delay involved in taking title proceedings

9 Prerequisites to Enforcement Current taxes or only arrears?

10 Prerequisites to Enforcement Current taxes or only arrears? Some remedies only permit collection of arrears

11 Prerequisites to Enforcement Current taxes or only arrears? Some remedies only permit collection of arrears Some remedies permit collection of current taxes

12 Prerequisites to Enforcement Current taxes or only arrears? Some remedies only permit collection of arrears Some remedies permit collection of current taxes If put to the expense of collecting arrears, why not collect current taxes as well?

13 Prerequisites to Enforcement Taxes Due and Owing?

14 Prerequisites to Enforcement Taxes Due and Owing? If collecting current taxes, be sure they are owing

15 Prerequisites to Enforcement Taxes Due and Owing? If collecting current taxes, be sure they are owing No express provision in Act

16 Prerequisites to Enforcement Taxes Due and Owing? If collecting current taxes, be sure they are owing No express provision in Act Property taxes due upon mailing of notices

17 Prerequisites to Enforcement Taxes Due and Owing? If collecting current taxes, be sure they are owing No express provision in Act Property taxes due upon mailing of notices Ensure you can prove confirmation of assessment roll

18 Prerequisites to Enforcement Taxes Due and Owing? If collecting current taxes, be sure they are owing No express provision in Act Property taxes due upon mailing of notices Ensure you can prove confirmation of assessment roll Appeal pending – must wait appeal and confirmation on appealed properties only

19 Prerequisites to Enforcement Items added to taxes

20 Prerequisites to Enforcement Items added to taxes Be sure you are entitled to collect

21 Prerequisites to Enforcement Items added to taxes Be sure you are entitled to collect Clear statutory authority to add to taxes

22 Prerequisites to Enforcement Items added to taxes Be sure you are entitled to collect Clear statutory authority to add to taxes Enabling bylaws and resolutions all passed

23 Prerequisites to Enforcement Items added to taxes Be sure you are entitled to collect Clear statutory authority to add to taxes Enabling bylaws and resolutions all passed Costs are properly documented

24 Prerequisites to Enforcement Items added to taxes Be sure you are entitled to collect Clear statutory authority to add to taxes Enabling bylaws and resolutions all passed Costs are properly documented Necessary time frame has passed

25 Prerequisites to Enforcement Demand for Payment?

26 Prerequisites to Enforcement Demand for Payment? Not legally required

27 Prerequisites to Enforcement Demand for Payment? Not legally required May result in taxes being paid

28 Prerequisites to Enforcement Demand for Payment? Not legally required May result in taxes being paid Weigh advantage of having demand come from legal counsel

29 Suing the Taxpayer When should we sue?

30 Suing the Taxpayer When should we sue? Taxpayer has funds, but simply won’t pay

31 Suing the Taxpayer When should we sue? Taxpayer has funds, but simply won’t pay Don’t want to deplete dwindling tax base

32 Suing the Taxpayer Authority to Sue

33 Suing the Taxpayer Authority to Sue s taxes due on any property are collectable by action in priority to every claim except that of the Crown s taxes due to a municipality are collectable by action in priority to every claim except that of the Crown

34 Suing the Taxpayer Which Court Under $20, can go to Provincial Court Otherwise go to Queen’s Bench

35 Suing the Taxpayer Why choose Provincial Court?

36 Suing the Taxpayer Why choose Provincial Court? Circuit court location may be nearby

37 Suing the Taxpayer Why choose Provincial Court? Circuit court location may be nearby Can present case without assistance of a lawyer

38 Suing the Taxpayer Why choose Queen’s Bench?

39 Suing the Taxpayer Why choose Queen’s Bench? May be able to obtain default judgment

40 Suing the Taxpayer Why choose Queen’s Bench? May be able to obtain default judgment Use of summary procedure may limit need to attend court

41 Suing the Taxpayer Getting Underway in Provincial Court

42 Suing the Taxpayer Getting Underway in Provincial Court Prepare summary of claim with copies of all supporting documents

43 Suing the Taxpayer Getting Underway in Provincial Court Prepare summary of claim with copies of all supporting documents, and Transmit to nearest Provincial Court with a request to issue a summons at the nearest circuit court location

44 Suing the Taxpayer Getting Underway in Provincial Court Prepare summary of claim with copies of all supporting documents, and Transmit to nearest Provincial Court with a request to issue a summons at the nearest circuit court location, or Take to nearest Provincial Court office and meet with clerk

45 Suing the Taxpayer Getting Underway in Provincial Court Prepare summary of claim with copies of all supporting documents, and Transmit to nearest Provincial Court with a request to issue a summons at the nearest circuit court location, or Take to nearest Provincial Court office and meet with clerk Issue Summons and serve on Defendant

46 Suing the Taxpayer Provincial Court - Service of Documents

47 Suing the Taxpayer Provincial Court - Service of Documents Must serve at least ten days before return date

48 Suing the Taxpayer Provincial Court - Service of Documents Must serve at least ten days before return date May try to serve by registered mail, but taxpayer must sign acknowlegment card and return it

49 Suing the Taxpayer Provincial Court - Service of Documents Must serve at least ten days before return date May try to serve by registered mail, but taxpayer must sign acknowlegment card and return it Best to serve in person (use process server if you prefer)

50 Suing the Taxpayer Provincial Court - Procedure

51 Suing the Taxpayer Provincial Court - Procedure Case management conference usually held

52 Suing the Taxpayer Provincial Court - Procedure Case management conference usually held Defendant does not attend – judgment entered

53 Suing the Taxpayer Provincial Court - Procedure Case management conference usually held Defendant does not attend – judgment entered Defendant does attend – “privileged” settlement discussion with a judge

54 Suing the Taxpayer Provincial Court - Procedure Case management conference usually held Defendant does not attend – judgment entered Defendant does attend – “privileged” settlement discussion with a judge No settlement – trial date set

55 Suing the Taxpayer Provincial Court - Trial Preparation

56 Suing the Taxpayer Provincial Court - Trial Preparation Prepare for possible objections by taxpayer

57 Suing the Taxpayer Provincial Court - Trial Preparation Prepare for possible objections by taxpayer Claiming the wrong amount

58 Suing the Taxpayer Provincial Court - Trial Preparation Prepare for possible objections by taxpayer Claiming the wrong amount Assessment is incorrect

59 Suing the Taxpayer Provincial Court - Trial Preparation Prepare for possible objections by taxpayer Claiming the wrong amount Assessment is incorrect Didn’t get notice

60 Suing the Taxpayer Provincial Court - Document Preparation

61 Suing the Taxpayer Provincial Court - Document Preparation Prepare certified copy of tax roll - s. 277 states it is proof of taxes owing

62 Suing the Taxpayer Provincial Court - Document Preparation Prepare certified copy of tax roll - s. 277 states it is proof of taxes owing Prepare certified copy of any ledger account associated with claim

63 Suing the Taxpayer Provincial Court - Document Preparation Prepare certified copy of tax roll - s. 277 states it is proof of taxes owing Prepare certified copy of any ledger account associated with claim Prepare certified copy of assessment roll and of confirmation

64 Suing the Taxpayer Provincial Court - Document Preparation Prepare certified copy of tax roll - s. 277 states it is proof of taxes owing Prepare certified copy of any ledger account associated with claim Prepare certified copy of assessment roll and of confirmation Prepare certified copy of tax notice and certificate of mailing under s. 258

65 Suing the Taxpayer Provincial Court - Document Preparation

66 Suing the Taxpayer Provincial Court - Document Preparation Prepare copy of any relevant correspondence

67 Suing the Taxpayer Provincial Court - Document Preparation Prepare copy of any relevant correspondence Review documents so you are fully familiar

68 Suing the Taxpayer Provincial Court - Document Preparation Prepare copy of any relevant correspondence Review documents so you are fully familiar Prepare three copies of each – one for each party and one for the Court

69 Suing the Taxpayer Provincial Court - Trial Procedure

70 Suing the Taxpayer Provincial Court - Trial Procedure Appear early – advise the clerk you are present

71 Suing the Taxpayer Provincial Court - Trial Procedure Appear early – advise the clerk you are present Tell the judge the nature of your claim and the amount claimed

72 Suing the Taxpayer Provincial Court - Trial Procedure Appear early – advise the clerk you are present Tell the judge the nature of your claim and the amount claimed Take the stand and present the certified copy of the tax roll and any associated ledger account.

73 Suing the Taxpayer Provincial Court - Trial Procedure Appear early – advise the clerk you are present Tell the judge the nature of your claim and the amount claimed Take the stand and present the certified copy of the tax roll and any associated ledger account. Testify positively as to the amount owing

74 Suing the Taxpayer Provincial Court - Resources

75 Suing the Taxpayer Provincial Court - Resources Review the information at

76 Suing the Taxpayer Provincial Court - Resources Review the information at Consider having legal counsel prepare and instruct you the first time you sue for taxes with a view to learning the “how- tos”

77 Suing the Taxpayer Provincial Court - Resources Review the information at Consider having legal counsel prepare and instruct you the first time you sue for taxes with a view to learning the “how- tos” If your comfort level requires – use your legal counsel

78 Suing the Taxpayer Queen’ Bench - Procedure

79 Suing the Taxpayer Queen’ Bench - Procedure No Defence filed within 20 days – enter default judgment

80 Suing the Taxpayer Queen’ Bench - Procedure No Defence filed within 20 days – enter default judgment Defence entered – proceed to meditation session

81 Suing the Taxpayer Queen’ Bench - Procedure No Defence filed within 20 days – enter default judgment Defence entered – proceed to meditation session Apply for summary judgment

82 Suing the Taxpayer Queen’ Bench - Procedure No Defence filed within 20 days – enter default judgment Defence entered – proceed to meditation session Apply for summary judgment If summary judgment not granted, prepare documents and move to trial

83 Suing the Taxpayer Judgment

84 Suing the Taxpayer Judgment 30 days after judgment granted in Provincial Court – present to Queen’s Bench for Registration

85 Suing the Taxpayer Judgment 30 days after judgment granted in Provincial Court – present to Queen’s Bench for Registration No registration required if judgment granted in Queen’s Bench

86 Suing the Taxpayer Judgment 30 days after judgment granted in Provincial Court – present to Queen’s Bench for Registration No registration required if judgment granted in Queen’s Bench Appeal will Stay Judgment

87 Suing the Taxpayer Enforcement

88 Suing the Taxpayer Enforcement Garnishee Summons – attach debt owing or wages

89 Suing the Taxpayer Enforcement Garnishee Summons – attach debt owing or wages Seizure under Writ of Execution

90 Suing the Taxpayer Enforcement Garnishee Summons – attach debt owing or wages Seizure under Writ of Execution Process may change soon – The Enforcement of Money Judgments Act

91 Direct Collection from Tenant s. 321(1) – Tenant occupies property on which taxes are owing – direct collection permitted

92 Direct Collection from Tenant s. 321(1) – Tenant occupies property on which taxes are owing – direct collection permitted Send notice to owner of intention to proceed

93 Direct Collection from Tenant s. 321(1) – Tenant occupies property on which taxes are owing – direct collection permitted Send notice to owner of intention to proceed After 14 days, send notice to tenant

94 Direct Collection from Tenant s. 321(1) – Tenant occupies property on which taxes are owing – direct collection permitted Send notice to owner of intention to proceed After 14 days, send notice to tenant Municipality may pay for heat, insurance and other items.

95 Direct Collection from Tenant s. 321(1) – Tenant occupies property on which taxes are owing – direct collection permitted Send notice to owner of intention to proceed After 14 days, send notice to tenant Municipality may pay for heat, insurance and other items. Tenant does not pay – municipality may distrain on tenant (does not apply to residential tenancy)

96 Recovery from Insurance Proceeds s. 322(1) – improvements are damaged or destroyed and taxes unpaid – may collect from insurer

97 Recovery from Insurance Proceeds s. 322(1) – improvements are damaged or destroyed and taxes unpaid – may collect from insurer Send notice to insurer and preserve proof of service

98 Recovery from Insurance Proceeds s. 322(1) – improvements are damaged or destroyed and taxes unpaid – may collect from insurer Send notice to insurer and preserve proof of service Payment not made – may bring lawsuit against insurer

99 Recovery from Insurance Proceeds s. 322(1) – improvements are damaged or destroyed and taxes unpaid – may collect from insurer Send notice to insurer and preserve proof of service Payment not made – may bring lawsuit against insurer Claim only sustainable for amount not used to rebuild or repair

100 Recovery from Insurance Proceeds s. 322(1) – improvements are damaged or destroyed and taxes unpaid – may collect from insurer Send notice to insurer and preserve proof of service Payment not made – may bring lawsuit against insurer Claim only sustainable for amount not used to rebuild or repair Claim likely not sustainable against contents insurance, and likely cannot be made for taxes on land (only improvements)

101 Distress s. 325 – taxes unpaid for 30 days after mailing of tax notice – municipality may issue warrant to bailiff S. 333 – may distrain for licence fees if unpaid for 14 days If there is reason to believe the goods to be seized will be removed from the municipality before 30/14 days expire, may apply to a justice of the peace for an order authorizing earlier seizure

102 Distress Under s. 324 – the municipality may distrain on the following:

103 Distress Under s. 324 – the municipality may distrain on the following: Goods belonging to the taxpayer, wherever those goods may be found within the municipality;

104 Distress Under s. 324 – the municipality may distrain on the following: Goods belonging to the taxpayer, wherever those goods may be found within the municipality; Goods in the possession of the taxpayer, wherever those goods may be found within the municipality; and

105 Distress Under s. 324 – the municipality may distrain on the following: Goods belonging to the taxpayer, wherever those goods may be found within the municipality; Goods in the possession of the taxpayer, wherever those goods may be found within the municipality; and Goods found on the property with respect to which the tax has been levied and that are owned by or in the possession of any occupant of the premises, other than a tenant.

106 Distress The municipality may not distrain on the following:

107 Distress The municipality may not distrain on the following: Goods that are the subject of a valid and subsisting lien in favor of a vendor (the interest of the taxpayer, or other occupant may still be seized subject to the vendor's interest)

108 Distress The municipality may not distrain on the following: Goods that are the subject of a valid and subsisting lien in favor of a vendor (the interest of the taxpayer, or other occupant may still be seized subject to the vendor's interest) The vendor's or lessor's share of a crop

109 Distress The municipality may not distrain on the following: Goods that are the subject of a valid and subsisting lien in favor of a vendor (the interest of the taxpayer, or other occupant may still be seized subject to the vendor's interest) The vendor's or lessor's share of a crop An animal not belonging to the taxpayer or to any occupant of the premises (unless the person is related)

110 Distress The municipality may not distrain on the following: Goods that are the subject of a valid and subsisting lien in favor of a vendor (the interest of the taxpayer, or other occupant may still be seized subject to the vendor's interest) The vendor's or lessor's share of a crop An animal not belonging to the taxpayer or to any occupant of the premises (unless the person is related) Goods in the possession of the taxpayer only for storing and warehousing, or for sale on commission

111 Distress Priorities –

112 Distress Priorities - Municipal distress appears to have priority over a “chattel mortgage”

113 Distress Priorities - Municipal distress appears to have priority over a “chattel mortgage” Municipal distress appears to be subject to the priority of a “conditional sale”

114 Distress Priorities - Municipal distress appears to have priority over a “chattel mortgage” Municipal distress appears to be subject to the priority of a “conditional sale” Municipal distress has priority over distress by the landlord

115 Distress Priorities - Municipal distress appears to have priority over a “chattel mortgage” Municipal distress appears to be subject to the priority of a “conditional sale” Municipal distress has priority over distress by the landlord Search the PPR prior to seizing

116 Distress Notice and Sale

117 Distress Notice and Sale Must provide written notice of sale

118 Distress Notice and Sale Must provide written notice of sale Sale governed by s. 330

119 Distress Notice and Sale: Must provide written notice of sale Sale governed by s. 330 Costs recoverable only on tariff under The Distress Act

120 Distress Notice and Sale: Must provide written notice of sale Sale governed by s. 330 Costs recoverable only on tariff under The Distress Act May release part of goods without compromising claim

121 Distress Following Hidden Goods: If goods have been fraudulently and clandstinely removed, may follow, break and enter in order to seize. Very technical remedy – get legal advice

122 Goods in Hands of Others s. 355 – applies where goods have been seized by sheriff, bailiff, liquidator, receiver, trustee in bankruptcy

123 Goods in Hands of Others s. 355 – applies where goods have been seized by sheriff, bailiff, liquidator, receiver, trustee in bankruptcy applies where goods or proceeds still in hands of third party

124 Goods in Hands of Others s. 355 – applies where goods have been seized by sheriff, bailiff, liquidator, receiver, trustee in bankruptcy applies where goods or proceeds still in hands of third party Municipality may serve written notice

125 Goods in Hands of Others s. 355 – applies where goods have been seized by sheriff, bailiff, liquidator, receiver, trustee in bankruptcy applies where goods or proceeds still in hands of third party Municipality may serve written notice Notice binds goods and proceeds – amount of taxes to be paid in priority to other claims except for fees of sheriff or bailiff, and amounts owing to the Crown

126 Collection – Oil or Gas Wells s. 355 – tax unpaid after year end on resource production equipment of an oil or gas well – can collect from anyone who purchases oil or gas originating on that well Send written notice to purchaser and preserve proof of service

127 Removed Improvements s. 356 – tax unpaid on land or improvements located thereon – improvements not to be removed from the municipality or demolished

128 Removed Improvements s. 356 – tax unpaid on land or improvements located thereon – improvements not to be removed from the municipality or demolished If removed, may locate the improvement, sever from land and restore to its former location

129 Removed Improvements s. 356 – tax unpaid on land or improvements located thereon – improvements not to be removed from the municipality or demolished If removed, may locate the improvement, sever from land and restore to its former location Alternatively, may distrain on improvement and sell for unpaid taxes and costs

130 Sharing Expenses Subject to express limitations, may recover costs

131 Sharing Expenses Subject to express limitations, may recover costs s. 309– if costs are not recoverable in full, reasonable costs may be apportioned between municipality and other taxing authorities

132 Sharing Expenses Subject to express limitations, may recover costs s. 309– if costs are not recoverable in full, reasonable costs may be apportioned between municipality and other taxing authorities Apportionment to be on a pro-rata basis

133 Sharing Expenses Subject to express limitations, may recover costs s. 309– if costs are not recoverable in full, reasonable costs may be apportioned between municipality and other taxing authorities Apportionment to be on a pro-rata basis Cannot include amounts paid to compensate municipal employee

134 Non-Title Enforcement Select your remedy carefully

135 Non-Title Enforcement Select your remedy carefully Ensure that the sum sought is accurate

136 Non-Title Enforcement Select your remedy carefully Ensure that the sum sought is accurate Satisfy pre-conditions

137 Non-Title Enforcement Select your remedy carefully Ensure that the sum sought is accurate Satisfy pre-conditions Prepare necessary documentation

138 For information on non-title proceedings or other muncipal matters, contact M. Kim Anderson at