Tax Arrears Take Year Over Year 36.5 Percent Jump
By Robert Thomas
Continuing a post COVID 19 trend property tax arrears have once again taken a year over year massive jump.
Property tax arrears from December 31, 2023 to December 31, 2024 rose $699,433 from $1,915,622 to $2,615,055.
This represents a 36.5 percent increase in tax arrears from December 31, 2023 and December 31, 2024.
Graph of Tax Arrears December 31, 2022 - December 31, 2024
Arrears payment plans took over a 90 percent drop from $328,694 on December 31, 2023 to $30,352 on December 31, 2024.
The increase in total arrears has for the first time in five years resulted in a situation where property tax arrears owing are higher than the current year’s property taxes owing.
There was $2,615,055 in property tax arrears versus $2,433,683 in current property taxes owing for 2024 on December 31, 2024.
Current taxes owing versus arrears in property taxes on December 31st 2020 - 2024
It should be noted that 2021 and 2022 lower property tax arrears was a result of a COVID-19 interest lifeline the City extended to assist property taxpayers to catch up on tax arrears. It was picked up by many commercial property owners to catch up on their property tax arrears.
That COVID-19 lifeline no longer exists and the rise in property tax arrears for the most part mirrors the phasing out of the program.
The post COVID-19 trend of residential properties owing the most tax arrears continues from 2023.
On December 31st, 2023 residential properties owed $725,210.12 an improvement over the $928,963.10 in property tax arrears on December 31, 2022.
Chart showing which property class owes the most in tax arrears - City of Moose Jaw report
In the past city officials have attributed the increase of tax rears for residential properties on the economic conditions and higher inflation that homeowner’s face.
Meanwhile there has been an erosion of property tax arrears in the commercial class.
The City is looking at a 5.17 percent property tax increase, a new storm sewer utility, higher garbage collection plus higher and water and sewer rates.
The local Consumer Price Index (CPI) has been hovering at 1.8 - 2.0 percent while food prices remain high.