By Sam Borsato - @BorsatoSam on Twitter

Lowered Overdue Tax Penalties to Take Effect for 2016

Mar 21, 2016 | 4:34 PM

LETHBRIDGE – City Council has recognized challenges residents face while paying property taxes.

On Monday, they agreed to lower the interest rate on late tax payments from 18-per cent down to 12-per cent.

The rate was set back in the 1980’s to encourage residents to complete their payments before the June 30th deadline.

“Thirty-years ago the tax rates were a lot higher. It made more sense back then to have a higher tax rate as well, to compensate for the interest rates. Now our interest rates are fairly low, and let’s give these people a chance to get back on their feet,” noted Councillor Rob Miyashiro.

The City’s Tax Arrears Payment Plan (TAPP) will decrease its penalties from 10-per cent to six-per cent. TAPP is available as an option for those who have overdue taxes.

Week-in-review: Federal Budget, water agreements and success for tourism industry

Apr 20, 2024

What's Happening in Lethbridge this weekend: April 19, 2024

Apr 19, 2024

What's Happening in Lethbridge this week: April 15, 2024

Apr 15, 2024

It’s set to take effect for the 2016 tax season, as soon as council can change the bylaw. More than 2,000 property owners will be affected by the decision each year.

The City could see a nearly $190,000 reduction in revenues.

Councillor Miyashiro added that while it’s the property owner’s responsibility to pay their taxes, council is also concerned about residents going into tax debt or having to lose their properties.