THE CORPORATION OF THE CITY OF PORT COQUITLAM

MEMO

TO: Alderman W. Stewart DATE: June 27, 1986

FROM: J. Maitland, ; c.c. + Mayor & Aldermen

City Treasurer.
y ~ - F. Paters,

SUBJECT: ‘Tax Payment By Monthly Acting City Administrator

Installments. - J. Fraser,
Deputy Treasurer/Collector

You have requested information on the possibility of the City setting up
a plan such as outlined in the attached information sheet from Richmond.

The prepayment system on property taxes is permitted under section 439 of
the Municipal Act and Council may, by by-law set “*he terms for accepting
and holding the money including interest on it and its rate".

The system that Richmond has set up operates as follows:

1) The plan is only open to those taxpayers whose accounts are up to date.

2) The plan allows the taxpayer te pay all property taxes in equal monthly

installments. Payments towards 1987 property taxes start on July 31 of
1986 and intrest is paid monthly on the prepayments at a rate equal to
bank prime rate less 2h

Payments are automatically charged to a taxpayez's bank account or credit

union on the last day of each month, July through May, so that eleven

monthly payments are made. The payments are intentionally set 30 that
the taxpayer will have to pay a small balance. This accomplisnaes two
things, firstly, it helps to ensure that the taxpayer claims his home~
owners grant and secondly it tries to keep the municipality from having
to make numerous refund cheques which is administratively difficult. as

well as costly.

£ the plan at any time but if they require a refund
of their payments to date a reduced rate of interest applies.

4) Persons may opt out 0

The interest paid by the municipality is treated as a discount by Revenue
Canada and the municipality is therefore not in the position of having to
produce income tax information forms (T5s) for the taxpayer.

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