Save for next year’s property tax bill and flat rate utilities through convenient pre-authorized withdrawals from your bank account. Spread your estimated bill over 12 monthly pre-payments.
Our Property Tax Prepayment Plan acts as a savings account to prepare for your next property tax and utility bill. By starting July 31 and having 12 withdrawals taken from your bank account, you will have money in your tax account ready to apply to the amount due next year. Your property tax bill will show how much you have prepaid and whether there is still a balance owing.
- Easier budgeting for your property taxes and utility tax obligations.
- Your prepayment account earns monthly interest at the rate equal to the prime rate of TD Bank less 4%.
- Interest earned and applied to taxes is not considered personal income, and therefore is not subject to income tax.
- In most cases, penalties are avoided when all payments are met and the homeowner grant is claimed.
- There is no administrative cost.
To register, complete the Pre-Authorized Debit Agreement (download form [PDF/208KB]), and attach a void cheque or Bank PAD and forward your application by mail, fax or in person the Tax Office.
The monthly payment is calculated by using the following formula:
(gross current taxes + total utilities + estimated increase – eligible homeowner grant) divided by 12 = monthly payment.
This amount is recalculated annually by the Tax Office and is shown on your Property Tax Notice.
Once the Plan application is processed, the City will automatically deduct the mutually agreed upon monthly amount from the bank account you have provided. This amount will be credited to your property tax account with the City. Withdrawals are made on the last day of each month.
Two accounts are normally set up for every property taxpayer – Property Tax account and Utility Billing account. The funds withdrawn from your bank account are credited into your property tax account where it earns interest on a monthly basis. In February of each year before utility notices are printed, funds from the property tax account are transferred to the utility account to cover current utilities due. The balance of funds collected is applied to property taxes owing on the account.
In May of each year, your property tax notice will reflect all funds previously withdrawn as well as the May and June withdrawals, and interest earned on the account. If your prepayments are in excess of taxes owing, your notice will show a credit balance indicated by a negative amount. If your prepayments are less than taxes owing, your notice will show a balance due, which will be subject to penalties if not paid by the DUE DATE. Ensure you are reading the correct column on your Property Tax Notice that applies to your status: A: NO GRANT; B: BASIC GRANT (under 65); AND C: ADDITIONAL GRANT (65 Years and Over or Disability).
All credits or overpayments will be allocated to automatically reduce your future monthly payments. The new monthly payment will be shown on the property tax notice.
Important note: If you have a balance owing you must pay the amount by the due date to avoid penalty. To modify your prepayment, written request must be received at least ten (10) business days prior to the last day of any given month, excluding May and June. (See contact information below for written requests.)
The ideal time to start the Prepayment Plan is in July, once all your current year property taxes and water and sewer levies are paid up to date. Applications must be received by July 15th of any given year in order to commence withdrawal on July 31st of the same year.
Presently the only option available on the prepayment plan includes both property taxes, and water and sewer. If your mortgage company will release you from your agreement with them, you may participate in our prepayment plan.
Credits on your property tax account remain on the account. The purchaser assumes that credit. Your legal counsel will reflect this on the Statement of Adjustments upon the sale of your home. Please cancel your prepayment plan as soon as possible if your property is being sold. Written cancellation notice must be received at least ten (10) business days prior to the last day of any given month.
Please be reminded that as per the Terms & Conditions, there can be NO cancellations of May and June instalments. If this property has been sold, please advise us so that we may cancel your plan, effective after the June 30th withdrawal.
To make modifications complete the modification form (download form [PDF/40KB]) attach a VOID CHEQUE, if changing banking information and forward your application by mail, fax or in person the Tax Office. (See contact information below.)
No. The prepayment plan continues to withdraw each month until written authorization is received from the applicant to cancel the prepayment withdrawals.
The automatic withdrawal date is a fixed date on the last day of each month or the next business day and cannot be changed.