City of Powell River has passed its property tax penalty bylaw, which will extend the timeline for paying property taxes without incurring a penalty.
Typically, a 10 per cent penalty is assessed on all unpaid city taxes after July 2. Under the new bylaw, for this year, if all or part of property taxes for the current taxation year remain unpaid after September 30, there will be a penalty of five per cent on the portion that remains unpaid. If all or part of property taxes for the current taxation year remain unpaid after December 3, the city will add another five per cent penalty.
At the April 29 city council meeting, councillor George Doubt, chair of the finance committee, said the tax penalty bylaw simply changes the time when a penalty will apply to unpaid taxes. He said taxes are due on July 2 and on that day, normally, without this bylaw, a penalty of 10 per cent would apply to any unpaid taxes.
“This bylaw postpones the penalty,” said Doubt. “People can pay their taxes later with smaller penalties, which will help people who are challenged with paying their taxes on time.”
Doubt said the city was still trying to convince the provincial government to change the property tax deferral program to include more people.
“We’ll see if that happens,” said Doubt.
Councillor Jim Palm said he wanted to clarify for the public the timeline associated with penalties. He said he wanted to run the matter by the chief financial officer one more time so everyone is fully aware of the penalties.
“After July 1, if you don’t pay your taxes on that date, up until October 1, they can pay their taxes and not have to pay five per cent,” said Palm.
Chief financial officer Adam Langenmaier said that is correct.
Palm said after October 1, and if they pay before December 4, it’s a five per cent penalty. If the pay after December 3, it is 10 per cent.
Councillor Rob Southcott said he wanted to re-emphasize that the city is hoping that people who are able to pay their taxes on time will do so.
Mayor Dave Formosa said that if people can pay, they should pay on time.