Distressed property owners are getting some extra time to pay off their delinquent taxes before the city takes action.
Council has approved a staff recommendation to delay the statutory date of the 2019 property tax sale by one year. A staff report states the Local Government Act requires the city to hold an annual property tax sale on the last Monday of every September, when the municipal collector conducts an annual tax sale by offering for sale, by public auction, each parcel of property with delinquent taxes.
This year’s tax sale would have been schedule for Sept. 28, but the provincial government has issued a ministerial order allowing local governments to delay the 2020 property tax sale and redemption period by one year.
“By extending the tax sale date until 2021, the city will provide financially distressed property owners an additional year to pay their delinquent property taxes,” said the report. “Delinquent taxes are defined as any taxes remaining unpaid on Dec. 31 two years after the year the tax was imposed. For example, taxes imposed in 2018 and still unpaid become delinquent on Jan. 1, 2020.”
According to the report, all properties have a minimum bid price which is equal to the amount of the outstanding property taxes, plus 5% and the land title registration fees. If there is no bid, or no bid equal to the “upset” price (the minimum price for which the property can be sold), the city is declared the purchaser.
“Once sold, the current property owner has one year to redeem the property by paying the outstanding property taxes plus any interest that has been charged,” said the report. “In 2019, one property was auctioned and subsequently redeemed by the owners. In 2018, no properties were auctioned. It is rare for a property owner to not redeem the property, and since 2004 no taxpayer has lost their home due to this process.”
