Property owners who have fallen into property tax arrears may also have entered into ratepayer defined payment plans and pre-authorized payment plans.
Also consistent with previous tax billings, City Council established the following parameters as it relates to late payment charges
- 1 ¼% of the amount of tax due and unpaid as a penalty for non-payment on the first day of default and:
- 1 ¼% of the amount of tax due and unpaid as interest for non-payment on the first day of each month
Property taxes are the primary source of revenue for municipalities to fund expenditures to provide services and as such collection is deemed an essential responsibility. From a cash flow perspective, where property taxes are not received, other sources of funds such as reserves and potentially lines of credit must be used to meet payment obligations.
As a result of the Covid-19 pandemic that we are currently facing there have been many requests for financial assistance and an identified need to provide property tax relief to property owners who are facing loss of income due to layoffs and temporary business closures. These taxpayers are in need of cash resources to address their immediate individual needs. It is important to recognize that Section 106 of the Act prohibits assistance to manufacturing, industrial or commercial enterprises through the granting of bonuses for that purpose. As such, Administration is recommending any short-term tax relief measures should be applied consistently to all taxpayers and all classes.
Administration has reviewed recent measures adopted by other Ontario municipalities and in conjunction with municipal finance groups has looked to best practices for shortterm relief. While property taxes cannot be waived indefinitely, Administration recommends the following property tax relief measures could be put into place on an interim basis.
- That the deadline date for the 3rd Instalment of the 2020 Interim Property Taxes be changed from April 15, 2020 to June 30, 2020. This will provide property owners with an additional 91 days from April 1, 2020 to pay the 3rd instalment of taxes in full.
- That all remaining pre-authorized payments withdrawals scheduled in the months of April, May and June be taken on the scheduled dates unless otherwise cancelled by