Lake Country to decide Thursday on relief for taxpayers

Photo: Castanet/file

The District of Lake Country will discuss extending the property tax deadline at a special council meeting Thursday afternoon.

The meeting will take place at 4:30 p.m. via teleconferencing.

At that time, staff will recommend moving the property tax collection date from July to September, and also move dates when penalties kick in to later in the year.

Municipalities across the country are making adjustments to collection of property taxes as more people find themselves out of work, and businesses continue to shut down in the wake of the COVID-19 crisis.

Council will be asked to move the tax due date to Sept. 2 with a five per cent penalty on outstanding taxes applied on that date, and a further five per cent on outstanding taxes Dec. 31.

Further, council will be asked to move the utility bill due date to four months after the end of the billing cycle for 2020, with interest on outstanding utility bills waived until Dec. 31.

Lake Country CFO Tanya Garost says the district is in a good financial position, with strong cash flows, enabling it to assist taxpayers during this crisis.

"The future cash flows have been reviewed under a number of scenarios and the position of the district will not be compromised if the property tax or utility bill due dates are extended," said Garost.

However, he indicates extending the deadline may still not be enough for some residents or businesses within the community, depending on their individual financial situation.

"While moving due dates may provide relief, the district is unable to waive property taxes or run deficits to provide services to the community.

"Deferring the collection of property taxes will also result in some lost interest revenue to the district as well as require the outlay of cash to other governments prior to collection."

Portions of municipal taxation is also funneled to the regional district, regional hospital, BC Assessment and the Municipal Finance Authority.

On Tuesday, West Kelowna council approved a property tax reduction of two per cent, however, it did not move collection dates.

The City of Kelowna moved its tax penalty date to Sept. 1, and is going through internal discussions on a potential lowering of taxes.

That decision is expected later this month or early May.