Provincial & Municipal Property Tax Developments during the COVID-19 Pandemic

Updated: April 23, 2020.

Colliers is committed to keeping all Property Tax clients apprised of all provincial and municipal initiatives during this unparalleled period of socio and economic uncertainty. Below is a provincial breakdown of all programs that have been put in place in response to the COVID-19 pandemic; these updates include property tax deferrals, property tax extensions and the removal of property tax late payment penalties.

Due to the fluid nature of this situation, Colliers will continue to update this page as information becomes available.

British Columbia:

Vancouver –The City of Vancouver is allowing a 60-day grace period for all property tax payments. Taxes will be due September 1 (Source: Global News).

Building on B.C.’s COVID-19 Action Plan, the Province is making temporary changes to B.C.’s property tax framework to provide financial support for businesses and local governments.

Property tax measures for local governments:

• Local governments will have the ability to borrow, interest-free, from their capital reserve funds, freeing up billions in assets to cover temporary revenue shortfalls. They will have up to five years to build back the reserve funds.
• Municipalities will be able to access school tax revenue collected for the Province until the end of the year. If a local government chooses to hold onto the school property tax, it must first be used to pay other taxing authorities, including regional districts.
• Working closely with the Municipal Financing Authority (MFA), local governments will be able to extend their revenue anticipation borrowing for a second year past the current limit of one year. To minimize impacts on the MFA, the Province is asking local governments to first use the delayed school property tax payment and their own capital reserve funds before seeking short-term borrowing through the MFA.
• Municipalities will still be required to make all their required remittances to other taxing authorities. Additionally, municipalities will be required to make the full annual payment to TransLink and BC Assessment in August 2020, rather than August and December.

Property tax measures for B.C. businesses:

• Late payment penalties for commercial properties (classes 4, 5, 6, 7 and 8) will be postponed to Oct. 1, 2020.
• The school property tax rates for classes 4, 5, and 6 were reduced by 50% in the Province’s initial economic response to COVID-19. Further reducing the provincial school property tax and introducing an equivalent tax reduction for classes 7 and 8 will lower the overall commercial property tax bill for most businesses by an average of 25%.  

Breakdown of tax relief for B.C. businesses:

• Major industry (property class 4)
  • Budget 2020 mill rate: 3.72
  • March 23 mill rate: 1.86
  • April 16 mill rate: effectively zero
  • Tax cut as a per cent of total tax bill: 4%
• Light industry (property class 5)
  • Budget 2020 mill rate: 3.72
  • March 23 mill rate: 1.86
  • April 16 mill rate: 1.0561
  • Tax cut as a per cent of total tax bill: 25%
• Business/other (property class 6)
  • Budget 2020 mill rate: 3.72
  • March 23 mill rate: 1.86
  • April 16 mill rate: 1.1070
  • Tax cut as a per cent of total tax bill: 25%
• Managed forest (property class 7)
  • Budget 2020 mill rate: 1.87
  • March 23 mill rate: 1.87
  • April 16 mill rate: effectively zero
  • Tax cut as a per cent of total tax bill: 20%
• Recreation and non-profit (property class 8)
  • Budget 2020 mill rate: 2.29
  • March 23 mill rate: 2.29
  • April 16 mill rate: 0.7844
  • Tax cut as a per cent of total tax bill: 25%

Changes to British Columbia’s property tax framework are in addition to measures announced as part of B.C.’s Action Plan to support businesses, including:

• Effective immediately, many provincial tax filing and payment deadlines are deferred to Sept. 30, 2020.
• Businesses with a payroll over $500,000 can defer their employer health tax payments until Sept. 30, 2020. Businesses with a payroll under this threshold are already exempt.
• Payments for provincial sales tax (PST), employer health tax, municipal and regional district tax on short-term accommodation, carbon tax, motor fuel tax and tobacco tax are also deferred.
• The scheduled increase to the carbon tax rate, and application of PST to e-commerce transactions and sweetened and carbonated drinks, will be delayed.

Alberta:

The Alberta government is reversing the 3.4% increase to the education tax announced in the 2020 budget – this move will save households $55 million and businesses $32 million a year. They are also deferring the provincial portion of the property tax bill six months. The provincial portion makes up roughly 20% to 40% of the property tax bill depending on the municipality.

Calgary – On April 6th, City Council approved a three month tax payment extension, from June 30th to September 30th without penalty. City Council has also approved the cancellation of any Business Improvement Area (BIA) tax penalties between April and June 30. That means a penalty of seven per cent will still apply for taxes outstanding on July 1 (Source: CTV News).

Calgary TIPP (monthly) payments have had the following calculation applied:

• January through March 2020 – Installments were calculated from the levy applied in 2019.
• April through June 2020 – Installments are being calculate on the 2020 assessment and the municipal tax rate. The provincial portion has been removed.
• July through October – Installments are going to be calculated with the 2020 assessment and the municipal tax rate.50% of the provincial portion is applied. The other 50% is applied as a credit to defer months’ worth of the education amount until after October 1st.
• November and December – Installments  continue to be calculated with the 2020 assessment and the municipal tax rate. The credit for the 50% of the provincial portion is removed and the remaining portion is applied to the calculations.
• Cancel participation in TIPP and re-join again in 2020 with no filing fee. However, at time of re-joining any missed instalments must be paid in full. If you delay re-joining TIPP after September 30 and you haven’t paid your 2020 tax bill in full the October 1 late payment penalty of 7% will apply.

(Source:  City of Calgary’s Finance/Tax, Receivable and Payable Chief Financial Office).

Edmonton – The city voted to eliminate the July 1, 2020 penalty for failure to pay current property taxes for both residential and non-residential owners and extended the deadline by two months to August 31. The city also canceled penalties on previous years' taxes on residential and non-residential properties between July 1 and August 31 (Source: CTV News).

Edmonton deferred property taxes from June 30^th until Sept. 30, as well as Business Improvement Area Tax Levy payment penalties until at least Aug. 31 (Source: CTV News).

Strathcona County - Strathcona County voted to push back the Property Tax payment deadline to September 30 from June 30th.  Also the 1.2% property tax increase has been dropped to 0.0%.

Wood Buffalo (Fort McMurray)  – The regional municipality of wood buffalo has extended their complaint deadline from March 30^th to October 1^st by by Ministerial Order MSD:022/20

Saskatchewan:

Regina – The city voted to suspend payment collection on overdue utility and property tax accounts (Source: CBC News).

Saskatoon – The 2020 property tax notices will be delivered by the end of May 2020 and the due date has been extended from June 30 to Sept. 30 (Source: Global News).

Manitoba:

Winnipeg –Winnipeg city council has approved a plan to defer property and business taxes for three months. Business and property taxes were originally due May 29^th and June 30^th and now they will be due at the end of August and September (Source: CTV News)

Ontario:

The Ontario government has extended the deadline by 90 days, to September 30, 2020, for municipalities to submit moneys owing to school boards. This extension will provide over $1.8 billion in property tax deferrals to residents and businesses in Ontario. 

ONTARIO 2020 ASSESSMENT/APPEAL EXTENSIONS DUE TO COVID-19

Appeal Deadline Extension – Due to the COVID-19 shutdown, the 2020 Appeal deadline had been extended From March 31, 2020 to May 29, 2020. If you were unable to meet the March 31 deadline, you are permitted to file your appeal by May 29, 2020.

2020 Reassessment Extension – The 2020 reassessment effective for 2021-2024 taxation years has been postponed. For 2021 taxation year, realty taxes will be based on the 2020 phased-in assessment values.

CURRENT MUNICIPAL PROPERTY TAX DEFERRAL PROGRAMS – SEE BELOW

(Deferral of late penalties & Interest charges only – Please inquire with Municipalities to cancel Pre Authorized Payments)

Toronto – Toronto announced a 2-month deferral grace period for property tax for bills dated as of March 16 (Source City News).

Mississauga – Mississauga announced a 3-month deferral period from April 1 to July 1 (Source City News)

Brampton – Brampton announced a 5-month deferral period  from March 18 to Aug 19 (Source InBrampton)

Vaughan – Vaughan announced a 2-month deferral from March 20 to June 1 (Source Vaughan.ca)

Caledon – Caledon announced a 3-month deferral from March 24 to July 2 (Source Caledon.ca)

Burlington – Burlington approved a 2-month deferral from for the months of April and May. This deferral period is for the April 21 installment for all property owners. Taxpayers have until June 30, 2020 to pay without incurring late payment charges and interest. (Source Burlington.ca)

Oakville – The Town has announced a 2-month deferral period from April 24 to June 30 (Source Oakville.ca)

Milton – Milton announced a 3-month deferral period from April 1 to June 30 (Source InHalton)

Markham – Markham announced a 3-month deferral period (Oct 1 to Dec 31) for businesses properties and a 9-month deferral period (April 1 to Dec 31) for residential properties (Source markham.ca)

London – London announced a 2-month deferral period beginning March 31 (Source London.ca)

Kitchener – Kitchener announced a 2-month deferral period ending May 31 (Source Kitchener.ca)

Pickering – Pickering announced a 2-month deferral period from April 28 to June 30 (Source Pickering.ca)

Oshawa – Oshawa announced a 2-month deferral period from April 27 to June 30 (Source Oshawa.ca)

Ottawa - Council approved a deferral period for payment of interim taxes to Wednesday, April 15; the initial due date was Thursday, March 19. Council has also approved the creation of the 2020 Property Tax Hardship Deferral program for residents and businesses that have an assessed property value of up to $7.5 million. The program extends both the interim property tax deadline and the final property tax deadline to Friday, October 30 (Source: CTV News).

Quebec:

Montreal - The City of Montreal is postponing by a month this year’s second instalment in property taxes for both residential and commercial properties; the new deadline for property taxes is July 2 (Source: Montreal Gazette).

Quebec City - announced they have differed property tax for businesses by up to three months. The May 4^th deadline has been extended three months to August 4^th. The July 3^rd and September 3^rd tax payment deadlines have been extended two months to September 3^rd and November 3^rd respectively.

Maritimes:

Halifax - on April 14th, Halifax Regional Council voted unanimously to implement financial relief measures to help alleviate the effects of COVID-19. Halifax will be deferring the property tax due date from April 30th until June 1st, as well as lowering the arrears fees for overdue accounts from 15 per cent to 10 per cent, and eliminating non-sufficient funds (NSF) fees which were $40 each. (Source: Halifax Today).

Newfoundland/Labrador - The City of St. John's says residents can hold off on paying their taxes and not incur any interest until August 31. Commercial tax bills for the second quarter are also being pushed back; the city said they will now be sent out in early June (Source: CBC News).

If you have any additional questions, please do not hesitate to contact any one of Colliers’ Property Tax Experts.