Municipalities in Alberta distribute property tax notices in late May every year and ask property owners to pay their taxes in full by the due date of June 30th to avoid late-payment penalties. As the deadline falls on a Sunday this year, ensure your payments are made beforehand. Here are a few tips and reminders to assist you with your property taxes.
Lenders can include property taxes in your mortgage payment, or you can pay them directly to your municipality.
When your mortgage payment includes property taxes
Your property tax notice will state on the bottom that a copy went to the lender. The lender will take care of the bill payment on your behalf from the tax money collected with each mortgage payment. The money goes into your tax account and accumulates over the year. If you are unsure if your lender has been collecting your property taxes, make sure to find out.
The lender doesn’t always have enough money to cover the tax bill
For those who purchased a new property after June 30th last year, the tax account sometimes will go into a deficit to cover the balance owed to the municipality. Most lenders will allow this and increase the tax portion on your mortgage payments. This lets you get caught up and on track for the following year. Lenders charge a small amount of interest each month on the deficit amount. You can also arrange to pay a lump sum payment into your tax account to avoid this scenario.
When your mortgage payment does not include property taxes
You are responsible for making arrangements to pay the tax balance owed. Some homeowners set up a tax account with the municipality and contribute to it monthly. Other homeowners pay the full amount on June 30th from the money they saved.
Apply to have your property taxes collected directly through the municipality
Contact your local TIPPs Program. Submit your application before June 15th to start paying monthly on July 1st.
Resources
Edmonton Spruce Grove Stony Plain St. Albert Strathcona Parkland County Devon Lac Ste Anne County Leduc County Beaumont
Property taxes, collected from both residential and non-residential properties, are one of the various revenue sources available to municipalities. These funds are crucial for the provision of essential municipal services. If you have questions regarding your property taxes, contact your lender or municipality directly for answers.
