Pandemic got you feeling strapped for cash?
The town of Oakville is offering property owners a chance to defer property tax payments until the end of the year.
Open to residential and business property owners, the deferral program will allow those experiencing financial hardship to wait until Dec. 15 to pay 2021 taxes, without incurring interest or late fees.
Applications for the deferral program will be available on the town’s website this week.
“The town recognizes this has been a difficult time for many of our taxpayers and we are doing what we can to alleviate some of the financial pressures some families and business owners are facing right now due to the pandemic,” said Mayor Rob Burton.
To be eligible for the deferral, property owners must attest that COVID has caused them financial hardship, cannot have any pre-pandemic tax debt, and must pay taxes directly to the town and not through a mortgage company.
Payments may be made at any point during the year, but 2021 taxes will need to be paid in full by Dec. 15 or late payment charges will be applied.
Town council approved the deferral program at its Feb. 22 meeting.
Most taxes paid on time in 2020
Last year, the town offered tax deferrals and waived penalties and fees on post-pandemic property taxes, at a cost of about $2.89 million to town coffers. According to a staff report, most property owners paid earlier than the extended due dates, with the town forecast to collect 95.5 per cent of 2020 property taxes.
That is slightly lower than the average collection rate of 96.22 per cent for the years from 2017 to 2019.
“The 2020 relief measures were a blanket assistance to help the community as a whole, while not knowing who required true assistance at that time,” noted the staff report.
This year’s program is intended to offer more targeted relief.
"We want to support our property owners by deferring taxes for those who need it most,” said Burton.
Emergency funding covers town costs
A report presented to councillors on Feb. 22 pegs the 2020 COVID-19 impact on the town at $11.4 million. But thanks to provincial and federal relief programs, Oakville may come out slightly ahead on the pandemic front.
Funding through the federal-provincial Safe Restart Agreement has provided $11.8 million to cover 2020 costs, and so far an additional $1.9 million for continued impacts in 2021.