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.
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.
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;
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:
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!
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.
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.
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.