No tax penalties on 2020 business & residential property taxes
Lacombe, Alberta (June 9, 2020) – Yesterday Council adopted Bylaw 379.1, the penalty tax and payment bylaw amendment, which allow taxes to be paid in installments at the option of the taxpayer and for the City to be able to impose penalties on unpaid taxes.
“With the prior passage of Bylaw 379, Council deferred the 2020 property tax deadline from June 30 to December 31 to help minimize the economic impact of the coronavirus pandemic on residents and businesses,” said Mayor Grant Creasey. “This means that there will be no late penalties charged on current taxes.”
In 2019, penalty on taxes revenue was approximately $235,000. In 2020, this revenue is expected to be approximately $124,000 resulting in a loss revenue of approximately $111,000.
“Administration has adjusted the 2020 budget for the total penalty revenue to accommodate for this adjustment while considering the amount to be generated from penalties on taxes on arrears and supplementary taxes,” said Chief Administrative Officer Matthew Goudy. “We do not see major issues with the timing of cash receipts as the City has sufficient liquid financial assets accessible.”
In prior years, penalties on taxes has been a contributor to the operating surplus. In 2020, this revenue line is projected to be on budget.