A citizen's committee has developed an ambitious plan to help residents pay property tax arrears.
In July, council agreed to a four month moratorium on tax leins on properties to give the committee a chance to find ways to improve the city's property tax system. After meeting through the summer, the group has produced a report with five recommendations they think will help ease the burden on those people falling behind.
Angela Fitzpatrick pays all of her bills on time, but she can't find work with enough hours and is falling further behind on her tax bill.
“You make monthly payments, adding more when you can, but with compounding effects your balance can keep getting higher,” says Fitzpatrick.
Between penalty and interest, the city currently charges 15 per cent a year on overdue taxes, making it nearly impossible for people like Fitzpatrick to get ahead.
“For 2012 half of what I paid went to penalties and interest fees,” says Fitzpatrick.
Fitzpatrick sits on the citizen's committee looking to improve the property tax system. Ideally, the group wants council to eliminate interest and penalties on arrears, once somebody has entered into a repayment plan.
The group says this isn't about giving opportunities for people to not pay, but rather, an opportunity to pay their taxes with current tax arrears.
“Those individual's deserve a chance,” says committee member Wendy Dupuis. “Those being proactive should be recognized for being able to do that.”
A report before council on Monday will recommend that the moratorium be lifted. Council will then have to come up with its direction in terms of whether or not to provide relief and if so, in what form.
