Expert Mortgage Brokers | Tax arrears paid in Guelph
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Tax arrears paid in Guelph

Tax Arrears and Payment Systems

Payment of Taxes in Arrears

In Ontario Canada, if you own property you are required by law to pay taxes on it. This tax is called municipal tax or property tax and the amount varies from one property to another. The amount is assessed by the municipality and based on the present value of the property. Guelph, Ontario similar laws. If property tax remains unpaid it is considered to be ‘in arrears’. It is very important that you get all property tax arrears paid.

Payment Collection System by Taxing Authorities

The arrangement put in place by the tax authorities with regards to the collection of taxes, is that payments are paid in installments. The smartest way to pay your property taxes is in monthly installments through the mortgage lender with your mortgage payment. This ensures that you never get behind and find yourself with property tax arrears. If you do default on paying property taxes penalties and interest will accrue and have to been paid as well.

Determining Amount Owed in Taxes

Tax authorities calculate the property taxes of a property based on the assessed value of the property in the previous year. Typically this is shown on your annual property tax or MPAC statement.

How to Get Your Property Tax Arrears Paid

Tax arrears paid in Guelph can be accomplished by following the following steps;

  • If it can be done online, then all you need to do is visit the municipal’s website
  • Check to see if there is an option to pay past due amounts online.
  • If it is available, then proceed on to pay the amount of the arrears along with any penalties or fees. Once this is done, take the time to call the municipality to confirm that payment has been received and to clarify any issues that may have arisen.

The Process of Arrears Collection

Certain actions may be taken if the property owner fails to make the scheduled installments as agreed. It is the home owners responsibility to make get tax arrears paid in Guelph. If, however, the homeowner does not pay tax arrears there are consequences. These are outlined below:

  • Interest and Penalties

Depending on the local laws, a penalty based on the percentage of the unpaid installment may be incurred after a set period of time. Monthly interest charges on unpaid balances can also be imposed. Outstanding tax arrears can get very expensive!

  • Account Statements of Property Tax

The property owner will be notified by mail of their arrears in tax payments. The mail will typically contain Property Tax Account Statements detailing the tax arrears owed.

  • Contact through Telephone or Letters

Tax authorities may call you or write to you to arrange full payment or restructure of the tax arrears, or may offer a payment schedule.

  • Issuance of Final Notice

In a worst case situation when a home or property owner fails to respond or pay outstanding property taxes, the municipality has the power and may sell the house at auction to re cover the cost of the debt.