Ongoing grace period on Toronto property taxes may be coming for those in need

Thestar.com
May 27, 2020
Jennifer Pagliaro

City council will consider a program to provide further relief on property taxes for those in need.

A report from city staff to be debated at a council meeting May 28 recommends a new, needs-based program to defer full payment of property taxes on residential and commercial properties. Owners would have to apply and be approved.

Those who are eligible would be allowed to make late payments without penalties for up to six months between June 1 and November 30, a report from city staff outlines. Interest and late payment fees are typically 1.25 per cent of the outstanding balance, with the penalty applied immediately after the due date and then monthly interest charged after that.

The program would follow a 60-day grace period for all property owners that ended May 15.

“Although these measures provided property taxpayers with much needed relief during this unprecedented time, it is clear that the economic uncertainty that businesses and residential property owners are faced with may extend well beyond the May 15, 2020 end date of the current grace period,” the staff report says.

The criteria to be eligible recommended by staff includes proof of “severe” financial hardship, such as loss of employment or business closure, and that there were no outstanding taxes prior to March.

If council approves the program this week, owners could apply starting June 1.

The program will cost the city between $7.8 million and $39.3 million depending on how many people qualify, staff say.