MAILING OF 2011 TAX NOTICES GENERAL TAX INFORMATION HOW YOUR PROPERTY IS TAXED TAX RATES HOME OWNER GRANTS PROPERTY TAX DEFERMENT PROGRAM EIGHT WAYS TO PAY YOUR PROPERTY TAXES PROPERTY TAX FAQ s MAILING OF 2011 TAX NOTICES 2011 Property Tax Notices have been mailed. If you have not received your tax notice by May 31, please contact the Colwood Finance department at 250-478-5999. GENERAL TAX INFORMATION The City of Colwood sends annual property tax notices to all property owners. Property taxes cover the calendar year and are sent to homeowners in mid May. Property taxes are due the first business day after July 1 st. This year s due date is Monday, July 4, 2011. Each year the BC Assessment Authority produces independent and uniform property assessments for all property owners in the province. BC Assessment provides market value information on properties within the City of Colwood to the municipality as the basis for calculating annual property taxes. Municipal Council uses this information to determine the annual tax rate. The City of Colwood collects over $9 million dollars in property taxation revenue to fund public services such as police and fire protection, street lighting, road and drainage maintenance and operating parks and recreational facilities.
Breakdown of $1 of municipal tax in 2011 General Government Fire Utility and Enterprise Services Debt- principal Westshore Parks & Recreation Greater Victoria Public Library Planning Transfer to Reserve Accounts Recreation Environmental & Health Services 1 2 8 3 9 10 12 13 20 22 Of the $9 million dollars in property taxation revenue, 49% is collected on behalf of other taxing authorities including the Provincial Government (School Taxes), the Capital Regional District, the Capital Regional Hospital District, BC Transit, the BC Assessment Authority and the Municipal Finance Authority. The City of Colwood has no control over the tax rates for these agencies. 4.76% Where are your 2011 tax dollars going? 4.25% 1.09% 4.83% Municipal School Hospital 51.05% Capital Regional District 34.03% BC Assessment Authority & Municipal Finance Authority BC Transit
Your property taxes are due on July 4, 2011. If your payment is received after the due date, a ten percent (10%) late payment penalty will apply and is added to unpaid current year taxes, including unclaimed Home Owner Grants. In order to ensure that you avoid the ten percent (10%) penalty, please remember: File your Home Owner Grant by July 4, 2011. If your Home Owner Grant is received on July 5, 2011, a ten percent (10%) penalty will apply to the outstanding Home Owner Grant; Pay your property taxes, in full, by July 4, 2011. Any outstanding property tax balances on July 5, 2011 will be subject to a ten percent (10%) penalty; It is not necessary to make a property tax payment in order to claim the Home Owner Grant. You can claim your Home Owner Grant as soon as you receive your property tax notice and make your property tax payment later; If your mortgage company or other agent pays your property taxes, it is your responsibility to claim the grant by completing the Home Owner Grant application online or delivering it to Colwood City Hall on or before July 4, 2011. Payments made by telephone or by online banking must be received by July 4, 2011 to avoid penalty. Payments received by the City after July 4, 2011 will be processed with a payment date equal to the date received and will be subject to penalty; Payments mailed within Canada must have a legible post mark dated June 23, 2011 or prior to avoid penalty. Mail lost or delayed by the post office will be subject to penalty If you have not received your property tax notice by May 31, 2011, please contact the Finance Department at 250-478-5999. It is the responsibility of the property owner to pay property taxes. HOW YOUR PROPERTY IS TAXED Each year, the City, the school district, the hospital district and other public agencies must collect revenue to offset the cost of the services they provide to the residents of Colwood.
Each public agency (with the authority to tax) sets a budget for the amount of tax revenue it requires. Tax rates vary amount property classifications and are calculated by dividing the budget needs of the agency by its assessment base. The appropriate tax rate is then applied to individual property assessments and the tax levy is calculated. Municipal property tax rates are set by the City of Colwood. The revenue from these taxes is used for public services such as police and fire protection, street lighting, road and drainage maintenance and operating parks and recreational facilities. Your tax notice may also include local service area levies related to your septic system and/or the sewer system. Some local service area levies are calculated on the basis of land assessed value. Other local service area levies are calculated on a parcel basis. School tax rates applicable to residential properties are set by the Provincial government. Residential school taxes are based, in part, on the number of residences as well as the total assessed value of residential property in the province, creating a different tax rate in each school district. School tax rates applicable to non-residential properties are also set by the provincial government. The rates vary by classification but are uniform throughout the province within each non-residential property class. Other taxes shown on the tax notice are collected to raise revenues for the following local government bodies: the Capital Regional District, the Capital Regional Hospital District, the BC Assessment Authority, BC Transit and the Municipal Finance Authority. TAX RATES Each year, after the adoption of the financial plan, but before May 15 th, Municipal Council must, by bylaw, impose property taxes for the year by establishing tax rates. Tax rates must be established for: The municipal revenue proposed to be raised for the year through property taxes and; The amounts to be collected for the year for other local governments or public bodies (such as the Capital Regional District, the Regional Hospital District, etc.) These tax rates form part of the Tax Rate Bylaw No. 1401, 2011 HOME OWNER GRANTS The Home Owner Grant program is a property tax relief program to assist eligible owners reduce the burden of residential property taxes, firstly school taxes. It is administered by the Home Owner Grant Administration Branch of the Ministry of Small Business and Revenue.
The grant is available to Canadian citizens or holders of permanent residency status in Canada, who live in British Columbia. The homeowner must also occupy the home as his/her principal residence. The Home Owner Grant program includes the following types of grants: Basic, Additional, Retroactive and Multiple. For more information on each type of grant, please click here. The Home Owner Grant must be claimed by July 4, 2011 to avoid penalty. To obtain the grant, you must complete the application form on the front of your property tax notice or claim your grant electronically. If you are eligible for the grant and wish to apply for it, you must tick the box that describes your qualification. If you are 65 or older, you must state your birth date. To claim your Home Owner Grant online you will need two numerical pieces of information in order to access your account and apply for the grant: the roll number of your property and the EHOG PIN number on the top right hand corner of your property tax notice. The roll number of your property will be a five digit number, followed by a decimal and a three digit number. Your roll number will look like this: 00251.181 Your EHOG PIN number will be a six digit number. Your EHOG PIN number will look like this: 578461 Once you have claimed your Home Owner Grant online, you will receive a confirmation email to print for your records. If you do not receive a confirmation email, please contact the Finance Department at 250-478-5999. Only one eligible owner need apply. Unclaimed grants constitute unpaid current taxes and are subject to penalties. A ten percent (10%) penalty will be applied on the amount of the Home Owner Grant. To avoid the penalty on the grant portion of your taxes, please make sure to claim your Home Owner Grant on or before July 4, 2011. It is not necessary to make a property tax payment in order to claim the Home Owner Grant. You can claim your Home Owner Grant as soon as you receive your property tax notice and make your property tax payment later. If your mortgage company or other agent pays your property taxes, it is your responsibility to claim the grant by completing the Home Owner Grant application online or delivering it to Colwood City Hall on or before July 4, 2011. Home owners eligible for the basic grant must pay a minimum tax of $350. Home owners eligible for the additional grant must pay a minimum tax of $100. The grant is reduced by $5 for each $1,000 of assessed value over $1,150,000. As a result, the basic grant is reduced to zero for residential properties valued at $1,264,000 or greater. The additional grant is eliminated on residential properties assessed at $1,319,000 or higher. Did you forget to claim your Home Owner Grant in 2010? For retroactive applications for the Home Owner Grant, please contact the Finance Department at 250-478-5999.
PROPERTY TAX DEFERMENT PROGRAMS Property Tax Deferment is a low-interest loan program that assists qualifying homeowners in British Columbia in paying the annual property taxes on their principal residences. There are two Property Tax Deferment Programs: Regular Deferment Program Families with Children Program For more information, please visit the provincial website for the Property Tax Deferment program or contact the Finance Department at 250-478-5999. If you are already using the Property Tax Deferment program, please submit (to Colwood City Hall) your Deferment Renewal Form and your Home Owner Grant Application together with your payment for user charges before July 4, 2011 to avoid penalty. EIGHT WAYS TO PAY YOUR PROPERTY TAXES 1) Pay online: You can pay your taxes online and avoid a potential wait at City Hall. You will need your folio number to ensure that the payment is applied to your tax account. Remember to submit your completed Home Owner Grant application directly to the City of Colwood, not the bank. 2) Pay in person: Bring your tax notice and payment to Colwood City Hall located at 3300 Wishart Road. City Hall is open from 8:30 am to 4:30 pm, Monday to Friday. Acceptable payment methods include: Personal cheques- payable to City of Colwood Post dated personal cheques. Please note that dishonoured cheques constitute non-payment of taxes and will be subject to penalty, interest and a returned cheque fee. Money orders Bank drafts Cash Interac CREDIT CARDS ARE NOT ACCEPTED FOR PAYMENT OF PROPERTY TAXES 3) 24 Hour mail slot: There is a secure mail slot located at the entrance to the City Hall. Access to the mail slot is available 24 hours a day.
4) Pay at your bank: You can pay your property taxes at most financial institutions. For your payment to be considered on time, it must be received by Colwood City Hall by July 4, 2011. Please check with your financial institution regarding bank cut off times to avoid penalty. 5) Pay by mail: Mailed payments must be received by City Hall on or before the property tax deadline of July 4, 2011 to avoid penalty. Payments mailed within Canada must have a legible post mark dated June 23, 2011. Remember to submit your completed Home Owner Grant application, or apply online for the grant. Send your payment to: Colwood City Hall Finance Department 3300 Wishart Road Victoria, BC V9C 1R1 6) Prepayments: Taxes may be prepaid but no interest is paid on these payments. Monthly postdated cheques for the 1 st or 15 th of the month may be provided to the City for property tax prepayments. The City does not currently offer a direct debit pre-authorized payment plan. 7) With your mortgage payment: Your financial institution can pay your taxes on your behalf if you have made such an arrangement through your mortgage agreement. Contact your mortgage company for further information. Make sure to submit your completed Home Owner Grant directly to the City of Colwood. Your mortgage company will not complete your Home Owner Grant on your behalf. 8) Tax Deferment: You may be eligible to defer your current property taxes. For detailed information on the program, visit the Property Tax Deferment program website or contact the Finance Department at 250-478-5999 Frequently Asked Questions Q: I haven t received my tax notice. What should I do? A: Tax notices were mailed to homeowners on May 18, 2011. If you have not received your notice by May 31, 2011 please contact the Finance department at 250-478-5999, or visit Colwood City Hall, located at 3300 Wishart Rd in person. Copies of Tax Notices can be mailed, faxed or emailed to home owners.
Q: When is payment of my property taxes due? A: Payment of property taxes is due the first business day after July 1 st. In 2011, the property tax due date is Monday, July 4, 2011. Q: What happens if I don t pay my property taxes by the due date? A: Failure to pay property taxes in full by the due date, including failure to claim the Home Owner Grant, will result in a ten percent (10%) penalty on the outstanding balance owing. Interest is charged on taxes in arrears as of January 1 of the following year. The rate of interest is adjusted every four months. Q: I think that my property taxes are too high. Can I appeal them? A: Each year the tax rates are set by Municipal Council and other taxing authorities in May. They are based on their respective budgets and the total municipal assessment. All residential properties in Colwood are taxed with the same tax rate. If you would like to appeal your assessment, you must do so through the BC Assessment office. You must appeal your assessment by the end of January in the year to which the assessment relates. Q: Can I pay my property taxes with a credit card? A: No. The City accepts cash, cheque, interact or money order payments only. Q: I can t pay my taxes this year. What should I do? A: Make sure to claim your Home Owner Grant (if eligible) and send it in with a partial payment, or no payment, by July 4, 2011. You will receive a penalty on the outstanding balance as of the penalty date. From the penalty date, July 4, 2011, to the end of the calendar year (December 31, 2011) the outstanding balance won t accrue further charged. This will give your some time to pay off the balance. On January 1 st, outstanding balances are charged daily interest. You can also explore Property Tax Deferment programs. There is a regular deferment program and a deferment program for families with children. Please visit the provincial website for further information on these low interest loan options: http://www.sbr.gov.bc.ca/individuals/property_taxes/property_tax_deferment/ptd.htm Q: My mortgage company pays my property taxes. Is there anything else that I need to do? A: Even if your mortgage company pays your property taxes, you must ensure that you claim your Home Owner Grant. Your mortgage company will not claim the Home Owner Grant on your behalf. If you do not claim your Home Owner Grant by July 4, 2011, the outstanding balance on your tax account, equal to your unclaimed Home Owner Grant, will incur a ten percent (10%) penalty. Q: Can I access my property tax information online? A: Not at this time. The City is working towards an online property tax information system which will be made available to residents in the next few years.
Q: If I can t pay my taxes, will you sell my house by public auction? A: Properties that have current, arrears and delinquent taxes as of the last Monday in September will be offered for public auction with the starting bid being the outstanding taxes. All three years of taxes must be outstanding before the property is offered for tax sale. All properties subject to the tax sale must be advertised in the newspaper before the public auction occurs. You do not have to pay all three years worth of taxes to keep your property from being sold, but the delinquent taxes (the oldest) must be cleared up before the Property Tax Sale. Please contact the Finance Department at 250-478-5999 for more information. Q: I received a tax notice for my property but it s not my name. What should I do? A: If your name does not appear on the tax notice but you are a registered owner and you are eligible for the Home Owner Grant, you may apply for the grant. Please ensure that you attach a copy of your Certificate of Title document to your Home Owner Grant application. IMPORTANT: It is an offence to make a false application or a home owner grant, subject to a penalty of up to $10,000. Claimants can be audited for up to six years after they claim the grant and will be asked to prove their eligibility. For further information, please contact the Finance Department at 250-478-5999. Q: I received a property tax notice for a property that I no longer own. What should I do? A: If you have the information for the new owner, you should forward the tax notice to them. Alternatively, you can notify Colwood City Hall. Q: What is the Home Owner Grant? A: The Home Owner Grant is designed to help reduce the amount of residential property tax homeowners pay. There are two types of Home Owner Grants: the basic grant and the additional grant. The basic grant may reduce your property taxes by as much as $570. The additional grant may reduce your taxes by as much as $845. Homeowners may only apply for one grant in the calendar year. The Home Owner Grant does not apply to delinquent taxes or penalties, interest or fees. Q: If I am selling my home, who should apply for the Home Owner Grant and pay the taxes? A: If you have not yet sold the property and are eligible for the grant, then you should apply for it. If you have already sold the property and the new owner(s) live at the property, then the new owner(s) should apply for it, assuming that they have not claimed a grant for any other property in this calendar year. Lawyers for buyers and sellers of property normally adjust the purchase/sale price to account for property taxes. If you are unable to see how the taxes were adjusted on your Statement of Adjustments, then you should contact your lawyer or realtor who closed your sale for further clarification. Q: The property taxes were paid by the lawyer. What should I do?
A: Ask your lawyer if you are responsible for claiming the Home Owner Grant. If you are the new owner and you are to apply for the grant, ensure that you submit the grant application to Colwood City Hall by July 4, 2011 to avoid penalty. Q: I didn t claim my Home Owner Grant last year. Can I still claim it? A: The Provincial Government allows an extension of time in which to claim a grant for the prior year. You must be the homeowner or eligible occupant and you must meet all residency qualifications up to December 31 of that year. Retroactive grant applications are available at City Hall. Please contact the Finance Department: 250-478-5999. Retroactive applications are applicable for the preceding year only. Q: Can I apply for the Home Owner Grant even if I don t make a tax payment? A: Yes. You may apply for the Home Owner Grant without making a payment. Make sure to apply for the Home Owner Grant on or by the deadline of July 4, 2011 to avoid penalty. Q: My spouse is away until after the tax due date. Can I sign the Home Owner Grant on his/her behalf? A: If a registered owner is unavailable to sign the Home Owner Grant, he or she may appoint a committee or another person providing that: the registered owner qualifies for the grant; you are in possession of a notarized power of attorney. Please note that some power of attorney forms could be restrictive in nature and may not be applicable for purposes of claiming a grant. Q: The property is in my name but my child is living in it. Can he/she claim the grant? A: No. Only the registered owner can claim a Home Owner Grant if they are eligible. Only one grant can be claimed per year, even if you own multiple properties. If the child s name appears on title, then they can claim the grant if they also meet the other eligibility criteria. Q: What if I don t agree with my property s assessment? A: Property owners have the option of appealing their property tax assessment by the end of January in the year it relates to. Please visit BC Assessment for more information on the appeal process.