Appendix
Attachment 2: Property Tax Penalties Survey and Response Analysis
November 2, 2021Pages 209–2142 sections
Detailed survey results and analysis from 22 BC municipalities regarding their property tax penalty documentation and verification practices.
82% of respondents use EDI transaction dates as proof of payment73% do not accept postmarks as proof of on-time paymentSurvey conducted October 18-22, 2021
Property Tax Penalties
This survey of local governments in BC will help us better understand the specific practices and policies around the payment dates and documentation required when determining whether the 10% penalty on property taxes applies.
If you have any questions, please contact Dawn Christenson, Town of View Royal Director of Finance dchristenson@viewroyal.ca (mailto:dchristenson@viewroyal.ca)
- Required
Name of municipality * [Text box]
For online payments (paid through the taxpayer's financial institution or online/telephone banking), what documentation will you accept as proof of the payment date? * Select all that apply.
- Electronic data interchange (EDI) file transaction date
- Screenshot or print of taxpayer's transaction showing date
- Email from taxpayer's bank confirming date of transaction
- Email from taxpayer stating date of transaction
- Other [Text box]
- For mailed or couriered payments, do you accept the date indicated on a postmark or courier receipt as the payment date? *
- Yes
- No
- Other [Text box]
If you have an after-hours drop box and town/city hall, how do you verify receipt date? * [Text box]
Where is your practice or policy documented? * Select all that apply.
- Tax rates bylaw each year
- Bylaw, other than tax rates bylaw
- Policy
- Internal documentation (procedure manual, etc)
- Other [Text box]
- Would you like the results of this survey emailed to you? *
- Yes
- No
- Enter your email address. * [Text box]
Page 209–214
Property Tax Penalties Survey Results
Survey Period: October 18-22, 2021 Total respondents: 22 % BC municipalities responding: 14% Reporting Entity: Town of View Royal
Q2 Proof of payment documentation
Q2 Other comments
- We use the transaction date specified on the bank notification that we receive, even if the funds don't arrive in our account until later.
- n/a
- effective pay date/transaction date as noted on bank notification received by fax or download
Q3 Postmarks or courier receipt accepted
Q3 Other comments
- Mailed payments have to arrive in our office on or before the due date. Postmarks not accepted.
- Canada post, postmark by July 2. Courier has to be received by due date
Q4 If you have an after-hours drop box and town/city hall, how do you verify receipt date?
| Municipality | Response |
|---|---|
| Central Saanich | We clear the box at night (due date) and that is considered on time. |
| City of Campbell River | Our facility services worker empties the drop box at midnight on the tax due date. Anything found in the drop box the following morning upon opening is recorded as late. |
| City of Enderby | Whatever is collected right in the morning the next day |
| City of Salmon Arm | we empty at close of business each day |
| City of Victoria | We empty the box first thing the day following the due date and everything in the drop box is stamped with the due date. |
| City of White Rock | Enter it first thing the morning after the due date with 2 people. Will come in on the weekend if needed. |
| District of Barriere | We have a drop box within our building, we check it at 4:30 on the due date and have minimum two staff members sign and date stamp it to confirm it was checked and empty upon deadline, same with Canada Post. We have one of their employees sign off confirming out mail box was empty at that time as well. |
| District of Invermere | We accept payments after hours on tax due date up until opening hours the next day after due date, as well as payments made by mail picked up the morning after due date without penalty (so any payments put in the drop box after close of business on tax due date and before 8:30 am on tax due date are processed without penalty as well as any mail picked up at 8:30 am the day after tax due date are processed without penalty). |
| District of Kent | We empty our drop box at 4:30pm(end of business) on due date. Everything that comes after that is considered late. We also advertise that 4:30pm on the specified date is the due date. |
| District of Lillooet | If it is in the drop box before we open in the morning, it is considered received the prior day. |
| District of Mackenzie | We will pick up the morning after the due date and mark it received as of the due date. I am not coming at midnight to check the drop box :-) |
| District of Oak Bay | Drop box is emptied 8am first business day after deadline |
| District of Saanich | Yes - staff do come in at midnight on the July 2 penalty date and collect all payments. Anything received after midnight is deemed late. |
| District of Sooke | We accept anything that comes through the after-hours drop box on the due date. Whatever is the box on the morning after due date we accept. Example- Due date is July 2, before we open the doors to the public on the 3rd, whatever came through the drop box we put through as received July 2. Anyone coming in the door after 8:30 am is considered late. |
| Metchosin | two staff open drop box at 8am penalty day to witness receipt of the payments |
| New Westminster | staff empty box at prescribed times |
| Town of Gibsons | We check the box each morning before the office opens to the public. Any payments that are in the box at that time are considered to be received as of the prior day. (Saves someone coming down to the office at midnight.) We don't advertise this option and it's rare that a payment is in the box the day after the due date. |
| Town of Sidney | Everything in dropbox as of 8:30 am the following morning is considered on time. |
| Town of View Royal | The drop box is emptied each morning and receipted the same day. On the tax due date, the drop box is emptied at the end of the day and ASAP the morning after, and these are accepted as not late. |
| Township of Esquimalt | First person in the office on first business day after due date opens the drop box and stamps all items received as of the due date. |
| Village of Radium Hot Springs | We close our office at 4:30 pm (MST). We have a mail slot in our front door for people to drop off items after hours. Any payments that are dropped off are picked up in the morning and considered a payment of the prior day. If the final due date is a Friday then we have someone drop by the office Saturday morning to date stamp and initial the envelopes received. Anything thereafter is considered late. |
Q5 Where is your practice or policy documented?
Q5 Other comments
| Municipality | Response |
|---|---|
| City of Enderby | Not documented - we follow contracts/legal bulletins |
| City of White Rock | On the tax notice. Says mailed in payments must be received before the due date, we also so for online payments to allow for 2 to 3 days processing. |
| District of Mackenzie | On tax notice |
| District of Sooke | We have the blurb about not excepting post marks and bank cut of times on tax notice and website. |
| Town of Gibsons | We state on the Tax Notice that payments due on due date and that postmarks not accepted |
| Village of Radium Hot Springs | We follow the Community Charter. See section 234: (1)Property taxes due on July 2 (2) The Lieutenant Governor in Council may make regulation establishing penalties ...that MUST be applied... The Regulation (426/2003) states: If...property taxes...in section 234(1) of the CC...remain unpaid...a collector MUST add...penalty. Therefore, the penalty is applied to the unpaid taxes after July 2 because the payment was not actually received by us. We honor the EDI date because we signed an agreement with our bank for online bank payments. The initiated date automatically downloads into our system. Another reason that we honor this versus a cheque-in-the-mail is that the originating bank MUST honor the transaction. Our policy is to clearly state on the tax notice that funds are to be RECEIVED by due date & to allow for mail or banking time. There are court cases to support this and I would be breaking the law if I did not follow said actions. Not going there! |
Page 209–214
Extracted from: 2021 11 02 Council Agenda - Agenda - Pdf