Administration Fees, Penalty and Interest

Administration Fees

Under the Tax Deferment Program for age 55+, surviving spouses, persons with a disability there is a one-time administration fee of $60 for a new approved agreement and a $10 annual renewal fee for approved renewals. You do not need to send payment with your application - these fees are added to the deferment account.

There are no fees for the Family with Children Program

Penalty

You will not be required to pay late payment penalty charges if you apply for the Tax Deferment Program or submit your renewal application before the property tax due date and your application is approved.

You will be required to pay late payment penalty charges if:

• you apply for the Tax Deferment Program or submit your renewal application after the property tax due date
• you are found ineligible for the program after the property tax due date
• you fail to provide our office with requested information
• you sell your home before this office pays the taxes on your behalf, or
• you cancel or withdraw your application or renewal for any reason at any time before this office pays the taxes on your behalf

Penalties are not deferrable and must be paid prior to submitting your tax deferment application or renewal application

Interest Rates

Under the Tax Deferment Program for age 55+, surviving spouse, and persons with a disability, simple interest is charged at a rate not greater than 2% below the prime rate of the Province's principal banker.

Under the Family with Children and Financial Hardship Tax Deferment Programs simple interest is charged at a rate not greater than the prime rate of the Province's principal banker.

Note: Taxes were only deferrable under the Financial Hardship Tax Deferment Program for the 2009 and 2010 taxation years.

The interest rates are set every six months by the Minister of Finance.

For the period of April 1, 2012 to September 30, 2012 the interest rate is:

Interest is charged from the date your property tax is due or the date you apply to defer your taxes, whichever is later.

Interest is charged on the amount of the deferred property tax. It is not charged on the initial application fee or on renewal fees under the Property Tax Deferment Program.  Payments on deferment accounts are first applied to fees (if applicable), then interest, and then to the principal.

Interest History Table