Property Tax Arrears Payment Plans Drop - Tax Liens Increase Year Over Year
It is a bit of a mixed bag when it comes to year over year the amount of property tax arrears owed to the City on September 30th.
Although the total property tax arrears owing in 2021 may have dipped slightly from September 30, 2020 to September 30, 2021 the total amount of arrears payment plans took a major decrease.
At the same time the City has managed to collect more property taxes by September 30th this year compared to September 30th 2021.
“The good news in 2021 our taxation is up $600,000,” finance director Brian Acker told Council, adding “we are winning those (property tax appeals) and receiving that revenue.”
Outstanding property tax arrears on September 30th dipped by $29,362 from 2020 when $1,815,840 was owing to the $1,786,478 owed in 2021 the amount of property tax liens grew year over year.
Acker said the reduction in tax arrears was tied to the amount of property owners who took advantage of the special tax payment plans offered in 2020 as a pandemic assistance measure. But at the same time the City now had to work on getting those who were behind on payment plans.
In 2020 the City allowed people to enter into tax repayment plans which would eliminate the need to be caught up on outstanding property taxes. In 2021 people behind on their taxes do not qualify to enter into a property tax payment program. The tax payment program allows property owners to pay off their taxes over 12 months without any penalties.
On September 30,2021 the amount of property tax liens rose by $354,639 to $1,474,617 compared to $1,119,924 on September 30, 2020.
The amount of Arrears Payment Plans dropped 56 percent from September 30, 2020 when it was $695,916 to $311,861 on September 30, 2021 (See Chart Below).
Although not an exact matching amount the property tax liens rose by $345,639 compared to the drop of $384,055 in arrears payment plans.
Property Tax Arrears September 30th For 2019, 2020 and 2021 - SOURCE City of Moose Jaw
It should be noted in 2020 the City had a moratorium on charging interest on all outstanding property taxes until September 30, 2020 as a means of helping out property owners during the COVID - 19 pandemic.
At the same time by relaxing the rules to get on Arrears Payment Plans the amount increased.
Despite their efforts the tax arrears owing at the end of 2020 was at a record high of $1,510,021. The massive spike in arrears owing was attributed to the impact the COVID - 19 pandemic had upon the local economy.
Despite the drop in arrears the current amount of taxes owing has increased from September 30, 2020, when current taxes owing were $7,452,016 and on September 30, 2021 when current (2021) taxes owing were $7,798,854.
Adding the arrears to the current amount owing shows how much outstanding property taxes have yet to be collected.
Property Taxes Current Versus Property Tax Arrears - SOURCE City of Moose Jaw
The statistics also show the City’s coffers grew by $778,472 from the last report of outstanding property taxes in the June 30th quarterly reports.
It should be noted normally property taxes are payable on June 30th annually.
MAYOR’S POST COUNCIL RESPONSE
In the post Council media scrum MJ Independent asked Mayor Clive Tolley questions about the property tax arrears. The question to Mayor Tolley was he worried about people unable to pay their property taxes due to the effects of the COVID - 19 pandemic.
“I wouldn’t say I am worried there is always some tax arrears and there are always people who have to make arrangements to pay over time. Eventually most people are able to do that,” Mayor Tolley said. “So it is a sign of the times it has been difficult over the last two years for people.”
“But it is encouraging, it is encouraging it is not worse than it is. ”
Asked if he would favour the Mayor said he could see the City considering measures to help people meet their property tax obligations.
“I think that Administration would look at anything that would help people accommodate their taxes. So I think payment plans would be looked at favourably. I am not sure about the program that was in place and what we have now.”
Mayor Tolley, who was not in office at the time the pandemic tax re-payment measures were instituted, was assisted by city manager Jim Puffalt during the scrum.
“We haven’t discussed that this year at all that was really a pandemic measure that was put into place to try and give people a hand…as you correctly note you have to be up to date (on your property taxes in 2021) before you can get onto that (property tax payment plans in 2021),” Puffalt said when asked by the Mayor if the question from MJ Independent that the 2020 pandemic tax payment plans differed from what is offered in 2021.
City manager Puffalt went on to state there was a positive note to the tax arrears up to September 30th, 2021 and if someone had property tax payment problems to contact the City to see if something could be worked out.
“Certainly as his worship said seeing a decrease in overall property taxes (owing) is a positive sign for us we haven’t seen one for awhile so that is good to see. But obviously we will have to play it by ear but if people have (property tax re-payment) issues please talk to us and we will see if we can give you a hand,” Puffalt said.