PROPERTY TAX PRE-PAYMENT PLAN
The City of Nanaimo has a Pre-Authorized Pre-Payment Plan for Property Taxes. As a property owner, you may sign up for monthly automatic deductions from your bank account. Highlights of the plan are:
- The amount of the monthly payment is based on an estimate of next year's taxes
- Twelve monthly payments collected on the 15th of each month, from July through to the following June
- Interest paid is set at prime less 3%
- There is no fee for this service
- You can withdraw at any time
Important Information about Pre-Payments
When you receive your Property Tax Notices in the third, it will show your current year's taxes, less the total of your pre-payments. You are still responsible for paying any unpaid tax, as well as applying for the Home Owner Grant (if eligible) by the due date. Credit balances will automatically be applied to next year’s pre-payment plan. The new estimated pre-payment amount will then be printed on the bottom of your Property Tax Notice.
Cancelling or Changing your Pre-Payment Plan
You must provide written request (preferably via email) 10 business days in advance of the next scheduled pre-payment in order to withdraw from the plan or change any banking information. Contact us if you have any questions about changing or cancelling your plan.
Frequently Asked Questions
When does the plan start/when will the payment come out of my account?
Payments for the Property Tax Pre-Payment Plan are withdrawn on the 15th of each month. You can start payments for any month as long as your application is received by the 5th of the month.
How is the payment amount determined?
The payment will be based on the most recent property taxes plus an estimated increase. This total is divided by the number of months or payments until the property taxes are due. These installments are only an estimate as taxes are not calculated until the end of May each year.
The monthly payment automatically recalculates on July 15 each year, and this new amount will be shown on your property tax notice.
What happens if my payments are more or less than the actual bill?
If your monthly payments were not enough to cover the year’s taxes, the balance due will be clearly shown on your tax notice. It is the homeowner’s responsibility to make payment in full by the due date to avoid penalties. The balance due will not automatically come out of your bank account.
Over-payments for the year will be applied to next year’s taxes. This over-payment will be taken into account on July 15 when your payment is recalculated and your monthly installment may be reduced. Credits are often created after the Home Owner Grant is claimed.
Interest on balances will be paid at the prime rate of the City’s banker less 3%. This interest is non-taxable according to the Canada Revenue Agency.
Can I set my own monthly payment amount?
Yes, you can set your own monthly payment amount to any amount that works with your budget. When the property tax notice comes to you in May, ensure that there is not a balance that needs to be paid to avoid any penalties. The pre-payment plan automatically recalculates these payments on July 15 and is indicated on the property tax notice.
Do I have to sign up each year?
No, you do not need to sign up again each year. If you were previously on the plan, then it will continue each new tax year.
I am on the plan but I sold my house. What do I do?
We will require written notification to cancel your payments. A written refund request must come from the lawyer or notary involved in the property sale. An administration fee will be deducted from the refund cheque. This fee is lesser of $25 or 10%. This cheque takes 4-6 weeks to be issued. A credit can also be transferred to another property within the City of Nanaimo.
What if there are not sufficient funds in my account?
If the payment is rejected due to insufficient funds (or any other reason), a services charge will be applied to your installment account. If you have three consecutive payments returned in one year, you will be removed from the installment plan.
You must contact the Property Tax Department in writing by the 5th of the month under any of these circumstances:
Note: you may not stop your instalment plan between May 1 and June 30. These payments are part of the calculation of the property taxes owing for the current year which will be included in your upcoming tax notice.