BristolUK

I'm just curious whether this happens in other provinces.

For the first few years I was in NB, there was no monthly option. Property Tax had to be paid up front or you were subject to penalties on outstanding amounts. So this issue I'm about to describe may just be because it's relatively recent.

Every year I get my new bill and every year it includes the debit or credit balance from the previous year. Because the bill is produced just before the 12th payment it always shows arrears equal to the monthly payment from the old bill.

Does anyone else get this in other provinces?

Sometimes I wonder if this apparent 'arrears situation' has any bearing on a credit check. I keep getting offered increases in credit limits so perhaps not. But that might be because everything else is good and it's not enough to adversely affect me. But perhaps it's enough to tip a balance against someone else.

Anyway, is this another example of outdated NB practice or does it happen in other places?

Almost Canadian

In Alberta, property taxes are a municipal thing. I have lived in two municipalities (Calgary and Foothills) and they both operate in the same way if paying taxes monthly.

You pay depending upon the previous period's payment. When the new tax amount comes out, typically, you have already paid 6 months based upon the previous period's amount. If taxes have gone up/gone down the next 6 months' payments will be adjusted so that, by the end of the year, your account balance is zero. You then continue with the adjusted amount until the next year's review and so on...

The only time I believe it is possible to be in arrears is if, for whatever reason, one or more of the monthly payments has not been paid or if one did not elect for the monthly option and the full amount was not paid when due.

BristolUK

Ah yes, my bill is municipal but there are two elements.
There's the City tax and then the Provincial tax which is the same amount (doubling it) but then you get the Provincial tax rebated if it's your residence. That's the double tax that you may have seen mentioned for landlords or others with 'the cottage'

My bill shows the new monthly payment from 15 March and there's a box that says "any transactions made after Jan 20 are not reflected on this bill."
So the February payment is the one that carries forward to the new bill as if it's unpaid.

But now that you've mentioned the municipal aspect, it may be this municipality rather than NB as a whole.

scilly

I don't know if monthly payments are available here.

Ever since we bought a house in 1972 we have paid our taxes twice a year ................ an estimated amount based on half of what the total was the previous year by February 4th, and then the adjusted second "half" by July 2nd.

The second payment is always more than the February payment because both municipal and provincial budgets have come out.

Actually we get amounts on the tax bill from Vancouver, Metro Vancouver and the Province, so we pay taxes to 3 entities.

Gozit

Monthly payments are available here (ON), I think it varies by municipality though, so it may just be where I live. I just pay it 2x a year to keep it simple, I try to minimize monthly direct debits where I can.

BristolUK

You're on the property ladder?

jeremy brewer

Hi
I thought there is a mark up for paying monthly, a few % added onto the amount of property tax owed
cheers J

BristolUK

Not here. Before monthly payments were allowed there was a % added on balances "owing" as I mentioned in the OP but if you're paying monthly as is allowed now it's not owed.

shelley748

I pay twice a year- I just put by into a savings account each month what the monthly payment would be and pay the bill when it arrives.

scilly

We've had a savings account for about 50 years, with a Standing Order for a certain amount to be transferred at the beginning of every month. It accrues enough for us to be able to pay our property taxes in February and July, as well as house insurance, car insurance, and any other such bills, with a small amount left over as a "slush" fund.

The amount of the SO hasn't changed in about 15-20 years, but I will be watching it very carefully since we're told that the city taxes will be going up 10.7% this year, and we haven't yet heard how much of an increase the Metro Board will be looking at.

JGK

Alberta here, While I had a mortgage, the bank used to take care of the property tax payments for me automatically. Then, when the mortgage ended i just pay the monthly installments direct to the town.