Has anyone thought of changing their property tax due date to something later than July 2nd this year, or spreading out the late payment penalty?
We are definitely looking at moving our property tax due date to sometime later. Depends on how this plays out but it could be September.
Our tax deadline has always been July 31, but we're waiting to see if anything comes out of the province in the next month or two on the subject. Although we're in a good cash flow situation, I want to keep it that way. We've already pushed our utility billing discount deadline ahead 6 weeks.
I've been trying to do a little research on this and I'm getting stuck on how to deal with Section 235(2). It sounds like we have to do the 10% penalty on July 2nd unless owners elect to use the alternative scheme, which says the election is a "must". I've read a lot of bylaws that don't have this and I'm wondering how people are getting around it. Thanks!
Other way around. People can opt into whatever scheme they want at any time, but they will be defaulted into the municipal scheme if the tax date is better for them, the penalty is better for them and the interest rate is better for them. See section 236.
I agree with James. Section 236 (2) specifically.
On another note - our counterparts across the country are grappling with the same issues and many are pushing out to the end of September for due dates.
Wonder if it would work better if the Province declares a tax due date (Dec. 31st) for all of us for consistency and less confusion for all property owners; cancels the property tax sale for 2020...
Karen Sharp, Village of Radium Hot Springs
I agree with you Karen!
The Province does need to standardize our legislative requirements and push to a Dec 2020 deadline for all but it seems like the Province is pushing for Sept 2020.
Can anyone confirm based on the Minister of Finance's new update today (Mar 23, 2020)?
Deputy Finance Officer
Village of Hazelton
Email: [email protected] | Ph: 250.842.5991 | Fax: 250.842.5152
December 2020 deadline may cause cash flow issues for many communities. I would support the Sept 2020 deadline with staggered penalty dates - 5% on the due date and 5% on December 31?
I would support a Sept 30 deadline with the 5% on due date and 5% on December 31st too! The Province would also have to waive the tax sale for 2020...
I note Carole James sent out a press release stating the municipal and RD taxes due dates being extended to Sept 30 and that school taxes for businesses and light industry will be reduced by 50%.
Does anyone have any further details on the municipal tax due dates? Penalty dates? Tax Sale?
Reading over that release, I'm pretty sure that would be Municipal and Regional District Tax called MRDT, that's a part of PST for the hotel/tourism industry, not municipal property tax. This pdf bulletin from the Ministry of Finance explains the MRDT well:
As far as I can tell, there hasn't been any guidance on municipal property tax ... yet.
I'm assuming the class 4 abatement is in addition to the usual abatement Class 4 usually receive on property tax through the Provincial industrial credit. It would be counterproductive to axe a 60% abatement and replace it with a 50% abatement. It would push the Class 4 abatement to 80% of the total rates published by the ministry. Again, just an assumption.
In the absence of any hard and fast rules, I'm still advising council and the CAO here in Princeton to wait for a little while to see where this all pans out. If there's one thing that's lacking in this whole emergency, it's certainty. If this lasts for several months, or years, we'll need a different set of reactions than if this something that will run its course over until the fall. Let the province and the feds come up with short term solutions for citizens (which they're doing a pretty good job at so far) and make the decision in May/June regarding property tax. We'll pass the property tax bylaw by May 15 as we usually do. We have a tax collection due date of July 31 which we write into our tax rate bylaw to cover Section 235(1) of the Charter. After we pass that, I don't see anything that prevents us from amending the bylaw to keep pushing that date forward if the current emergency situation warrants us to do so. Comments?
I agree that it looks like it is only PST and MRDT so far that has been deferred. No guidance yet on Property Tax deadlines.
Does Princeton have a method of holding regular Council meetings for the public? If so how? We are trying to figure out this component to be able to pass the bylaws...
Two pronged approach:
Send me an email at [email protected] if you need specifics of what works for us.
As of our next council meeting (April 6), we are doing council meetings with social distancing. No public is physically allowed into council chambers; however, the public is encouraged to use the youtube stream to view proceedings and submit written submissions through email or drop box and email submissions which will be read into the minutes.
Thanks James. I never even equated the Municipal and Regional District Tax to MRDT. In my previous lives it was referred to as a Hotel Room Tax or HRT. Also I only saw in CJ's press release that the school tax relief was for Class 5 and 6 not Class 4. You are correct that there is already relief for school taxes for Class 4 properties. I am getting to old for this!!!
Osoyoos has changed their Property Tax due date to September 18.
Cranbrook will consider an alternative collection scheme bylaw at the April 27th meeting - due date Sept 2, 2002; 5% penalty sept 2, 5% dec 31.
Council wants to consider the bylaw in light of what comes from the province between now and then.
Invermere is changing our tax due date to September 30th, with a 5% penalty on October 1 and a further 5% penalty on November 2. We have also extended our spring Utility billing deadline from April 30th to November 2nd.
District of Invermere
Powell River is waiting to hear what the province is doing. If nothing occurs soon I will recommend a July 2 due date with the normal 10% penalty being applied in early December.
We've proposed to Council in Princeton to have a tax deadline of July 2 with a 1% penalty and a further 9% penalty on September 30. If necessary, we will review the September 30 deadline through the summer and alter the second tax penalty deadline as necessary.
We are proposing keeping the July 2nd as the tax due date, but changing the penalty to 2% July 2nd and a further 8% September 1st or 2nd.
For those looking at a due date September 30th, what would you do for Tax Sale?
Current taxes would be due on September 30th to avoid penalty, but the tax sale date of September 28, 2020 would still stand for delinquent.
Because of the 9% penalty we have planned for September 30, the upset price would be calculated with only the 1% penalty we have coming in on July 2 (assuming Council is ok with the scheme we came up with! ) The 9% penalty on September 30 wouldn't apply to anyone with delinquent taxes if the property was sold at tax sale as the purchaser has to pay off all the taxes at the time of purchase (on the 28th, according to our policy). I suppose a little bit of a bonus for those with delinquent taxes for this year, but a big price to pay for a little benefit IMHO.
Village of Hazelton will be keeping our tax due date of July 2, 2020, with a 10% penalty on July 3, 2020, and keep the Tax Sale date of Sept 28, 2020, per our Administrator or until the Province releases a statement for LGs.
Here's an interesting question: would it pass muster of the inspector of municipalities to set a different due date for those who owe delinquent tax? The Community Charter says:
"A council may, by bylaw, establish one or more dates on which all or part of the property taxes under this Part are due." Community Charter 235(1)
So, Council could set the due date at September 30 for those without delinquent tax and September 25 (last business day before tax sale) for those with delinquent tax. I don't see anything in the charter that would block financial discrimination in this way.
For the record: that's way too complicated and I'm just recommending to council the 1% on July 2 and 9% on September 30 like I originally posted, but it's a fun what-if type question!
As I understand the CC, the 10% penalty only applies to current year taxes (July 2nd-1%, Sept 30-9%). Taxes in arrears or delinquent have a daily interest applied to the account at a prescribed rate from the Province (next circular is July 1st). Anyone with delinquent taxes wouldn't benefit. If they want to avoid the tax sale, they must pay the outstanding delinquent taxes and delinquent interest on or before the tax sale date. If the current taxes are still outstanding as of the Sept 30 due date then the additional 9% penalty applies. Correct me if I'm wrong
I have my alternate tax scheme tax rate bylaw drafted if anyone is interested . . . please email me at [email protected]
Just when we were figuring this out, this comes up: https://news.gov.bc.ca/releases/2020FIN0020-000703
So.... what's the due date for a mixed business and residential property?
If you have a mixed business and residential property - the Province says to apply the penalty on the complete folio on Oct. 1st...
The news release is super hard to read (at least for me) and at first blush doesn't offer any real cash-flow relief to municipalities. I guess the partial exemption for penalties can be covered with an alternate tax due date bylaw?