Kneehill County council will consider adopting a proposed new bylaw to allow payment arrangements on property tax arrears, with reduced penalties, after it was agreed to in principle during the Tuesday, June 20 Committee of the Whole meeting.
Rising inflation has seen the number of residential and farm properties in arrears increase over the last number of years and, as of March 31 this year, the number of residential properties in arrears was at its highest since 2013.
“Over the past several years, we’ve also seen an increase in residential and farm ratepayers struggling to keep their taxes current. With inflation sitting at over seven per cent, some are struggling to maintain their daily necessities,” shared property tax officer Caroline Siverson during the presentation.
She explained the county currently offers a Tax Installment Payment Plan (TIPP) program, which is available to tax accounts which have not fallen behind. The number of accounts enrolled in the TIPP program has continued to grow annually. As of this year there are a total of 344 farm and residential accounts enrolled in the TIPP program, as well as two oil and gas corporations.
The county also works with accounts which have fallen behind through a repayment schedule; however, Ms. Siverson noted these accounts are still subject to a two per cent penalty per month for the duration of this repayment schedule as outlined in the county’s Tax Penalty Bylaw.
She explained, if council were to adopt the Tax Arrears Payment Plan, this could reduce the amount of penalties, which could help those ratepayers to get their tax bill current faster, and allow them to enroll in the TIPP program.
The proposed bylaw would allow ratepayers whose tax accounts are in arrears to sign a two year agreement, with no rebate or cancellation of penalties prior to the date of agreement. During the term of the agreement, no additional penalties would be imposed, and estimated levies for the current and next year’s would be included in the agreement to ensure the account was paid in full at the end of the two year agreement.
Council agreed to the policy in principle and a draft bylaw, as well as draft agreement forms, will be brought forward to a future council meeting for final consideration and approval.
