Property Tax Instalment Plan
- for monthly pre-payments toward your property taxes
The Property Tax Instalment Plan gives you another way to pay their City of Nanaimo property taxes.
With the Property Tax Instalment Plan you will pay your next year’s taxes in advance through equal monthly payments.
The application form must be completed, signed and accompanied by a blank cheque marked VOID in order for us to set you up on the program. Current property taxes must be paid in full at the time of application. The best time to start is in July so that you have 12 equal payments. If you wish to sign up in the middle of the year, the monthly amount will be adjusted to reflect the number of months until the tax due date.
- The same amount is automatically withdrawn each month (July to June)
- No administration charges
- No more mailing cheques or waiting in line
Frequently Asked Questions
When does the plan start/when will the payment come out of my account?
Payments for the Property Tax Instalment Plan are withdrawn on the 15th of each month.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 instalments 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.
Overpayments for the year will be applied to next year’s taxes. This overpayment will be taken into account on July 15 when your payment is recalculated and your monthly instalment 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% (0% as at January 1, 2015). 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 as long as it is equal to or lower than the suggested monthly payment indicated on your property tax notice. The plan automatically recalculates these payments on July 15.
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 instalment account. If you have three consecutive payments returned in one year, you will be removed from the instalment 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.