New property tax penalties in bylaw update
A calculator, pen and business documents. (File photo)
Lloydminster property owners will see some changes to overdue property taxes. Effective January 1, 2020 property owners who don’t pay their taxes on time will see increased penalties.
The new bylaw sets a new due date for unpaid taxes from the first of the month in January and July to January 10 and July 10. If either day falls on a weekend or holiday the penalties will instead fall on the next business day.
The bylaw also sets new rates for penalties. Penalties will increase on current taxes over the course of the year to incentivize paying on time in the current year. The city believes it will reduce the need to apply monthly penalties and give property owners a chance to catch up on outstanding balances.
The new tax penalties for a bylaw updating property tax penalties. (Photo: City of Lloydminster)
Previously, taxes were penalized at a rate of 1 per cent from July to December, for a total of 6 per cent. Penalties charged on tax arrears in January and July at 5 per cent, for a total of 10 per cent.
Coun. Ken Baker voted against the policy on the second reading and said while most people pay their taxes, the ones that don’t are usually struggling and it does not justify raising the rates.
The previous tax penalty bylaw was last updated in 2012.