Property Tax Arrears Take A Dip While Taxes Paid Is Up

It was a bit of good news for the City financially as property tax arrears in the third quarter (July - September) of 2022 took a bit of a dip compared to last year’s totals.

On September 30, 2022 there was $1,649,970 in total property tax arrears compared to $1,786,478 on September 30, 2021 and $1,815,840 on September 30, 2020. (See chart below).

The third quarter is a good indicator of overall tax arrears because property taxes are not due in Moose Jaw until the end of the second quarter - June 30, 2021.

“The overall tax arrears are down somewhat as compared to the previous year and 2020 as well. That really is a result of if you recall during the pandemic we did not actively enforce the tax arrears, the collection of those so we are now caught up on that. You are now seeing a catchup in terms of that,” finance director Brian Acker told Council.

During the pandemic Council of the day suspended late payment penalties for property taxes for a time and allowed properties that did not qualify for property tax payment plans - due to outstanding arrears - to qualify.

On September 30, 2022 the amount of tax arrears being paid off through arrears payment plans dropped to $154,649 from $311,861 on September 30, 2021 and $695,916 on September 30, 2020 - when the City opened the opportunity to get on arrears payment plans as part of pandemic relief measures.

Tax Arrears as of September 30, 2022 - City of Moose Jaw graphic

The City being able to obtain property for non-payment of property taxes in 2022 is also having an effect on the outstanding property taxes total arrears. As a property is taken by the City it goes off of the arrears owing.

“One of the benefits of that as well is we have also taken a number of derelict properties over the last number of months as we go through that process - but again that is a fairly long process it usually takes a couple of years to get those properties - so you are just seeing some of this now coming up being we didn’t pursue any during the middle of the pandemic,” Acker said.

On the property taxes received front the City has $8,064,322 in property taxes current and not in arrears. This compares to the $7,798,854 current on September 30, 2022.

It can also be noted that property taxes in arrears has almost doubled from September 30, 2017 when it was $854,822 to the $1,6449,970 property taxes in arrears on September 30, 2022. (See chart below).