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A Beginner's Guide: Don't Let Property Taxes Sneak Up On You!
May 3, 2023 | Posted by: Barb Pinsent - Trusted Fort McMurray Mortgage Associate
Are you a new homeowner, wondering what all this fuss about property taxes is? Look no further! Property taxes are a necessary part of owning a property and understanding them can save you from unexpected fees and penalties down the line.
Here, I'll break down everything you need to know about property taxes in Canada, including how they're calculated, when they're due, and what happens if you don't pay them. Plus, if you're a new homeowner, we have some important information to make sure you don't miss any important deadlines. Let's dive in!
HOW ARE PROPERTY TAXES CALCULATED?
Property taxes are a form of taxation imposed on owners of real estate, including residential, commercial, and industrial properties. The amount of property tax that a property owners pay is based on the assessed value of their property, which is determined by the local government. Property taxes are a major source of revenue for municipal governments in Canada and are used to fund a wide range of services, including schools, police and fire departments, parks and recreation facilities, and infrastructure.
In Canada, each province and territory has its own laws and regulations governing property taxes, and property tax rates can vary widely depending on the location of the property. Typically, property taxes are calculated based on the assessed value of the property, multiplied by the local tax rate. The tax rate is usually expressed as a percentage, and may be different for residential, commercial, and industrial properties.
DUE DATES AND PENALTIES FOR LATE PAYMENTS
Property taxes are usually paid in instalments throughout the year, with due dates varying depending on the municipality.
It's important to note that property taxes are a recurring expense for property owners, and failure to pay property taxes can result in penalties and interest charges. In some cases, the local government may even place a lien on the property, which can make it difficult to sell or refinance the property in the future.
Overall, property taxes are an important aspect of property ownership, and it's important for property owners to be aware of their obligations and stay up-to-date on their payments.
A REMINDER FOR NEW HOMEOWNERS
With the delay of title change at the land titles office these days, it's important to ensure that new property owners are aware of their property tax obligations. If you've recently purchased a property, please note that the transfer of ownership from the seller may not have been fully processed by the land titles office yet. As a result, you may not receive a tax bill from the municipality of Wood Buffalo by the usual deadline. We recommend that you follow up with the municipality if you do not receive your tax bill by June 10th to avoid any penalties. You can contact them at 780-743-7000 to make arrangements for the payment of your property taxes.
In conclusion, property taxes may not be the most exciting topic, but they're a crucial part of property ownership that should not be overlooked. As a responsible property owner, it's important to understand your tax obligations and stay up-to-date on your payments to avoid any unnecessary penalties or liens.
Now, I encourage you to take action and check if you're up-to-date with your property tax payments. If you're a new homeowner, make sure to follow up with your municipality if you haven't received a tax bill yet. Remember, being informed and proactive can save you from costly mistakes in the future.
If you have any questions relating to property taxes, reach out to me at 780-370-1490 and I will be happy to assist with directing you to the correct resources.
