Property tax accounts are considered to be in arrears if a tax installment is not paid by the due date as established on the tax bill. It is important to make sure that your property taxes are paid up to date to avoid unwanted collection measures. There are many payment options available to property owners.
If your property taxes are in arrears, the tax department uses the following collection measures to encourage payment.
Tax Arrears Statement
Tax arrears statements are sent out on the first business day of each month after penalty and interest has been applied. The purpose of these notices are to remind property owners to pay any outstanding taxes.
Failure to receive a tax bill or tax arrears statement does not excuse the property owner from the payment of taxes or interest and penalty. It is the responsibility of the property owner to ensure that the municipality has the proper mailing address on file and inform us of any changes.
Penalty/Interest
Penalty and interest is charged at a rate of 1.25% and is applied on the date following when a tax installment is due and/or on the first day of each month. The purpose of penalty is to persuade ratepayers to pay on time.
The rate at which penalty and interest is charged is set by By-Law. Currently the rate is established under the provisions of the Municipal Act Section 345. The Township may review this rate each year, but cannot exceed the maximum percentage established at 1.25%. The purpose of penalty is to persuade ratepayers to pay on time. Penalty and interest shall be charged as set out in the legislation and By-Law.
Bailiff Action
Section 349 of the Municipal Act provides that taxes may be recovered with costs as a debt is due to the Township from the taxpayer originally assessed for them and from any subsequent owner of the assessed land or any part of it.
The Township may issue a warrant to distain for property taxes if the taxes remain unpaid for a period of fourteen (14) days after the installment due date.
Any costs associated with the use of the bailiff is added the property tax account.
Collection Agency
Section 304 of the Municipal Act provides that if a municipality uses a registered collection agency under the Collection Agencies Act to recover a debt including taxes, the collection agency may recover its costs as long as the costs do not exceed the amount approved by the municipality.
Any costs associated with the use of a collection agency is added the property tax account.
Rent Attornment
Under Sections 350 of the Municipal Act, the municipality may seize the rents of an income producing commercial property upon giving proper notice. It is a severe action and should only be initiated after adequate notice. Further information regarding Rent Attornment is provided within the tax collection policy.
Tax Sale Registration/Tax Sale
Properties that are in arrears for two years are eligible for tax registration under the Municipal Act. The property owner or interested party has one year from the date of registration in which to redeem the property for all taxes, interest and penalty outstanding, including any associated costs.
A contracted tax registration firm may be used to process the required statutory notices/declarations. The administration fee associated with this process is in addition to charges by the third party firm.