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Overdue Taxes
Overdue and delinquent taxes on rural property are subject to a number of collection actions for recovery of outstanding taxes.
Rural Property Taxes become overdue if they remain unpaid after the due date. The annual due date is July 2. If July 2 falls on a Saturday, Sunday or holiday, the due date is the next business day.
A penalty of 5% is applied to the outstanding balance. If you have not claimed your Home Owner Grant (if eligible), this amount is included in the account balance. A further 5% penalty is charged if taxes remain unpaid after October 31. |
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Unpaid taxes become delinquent after December 31 of the current tax year. Compound interest will be applied at the end of each month to delinquent accounts. The interest rate is prime plus 3%.
Delinquent accounts are subject to collection actions. |
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Collection actions on delinquent accounts may include: |
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notifying the Canada Revenue Agency to set aside money owing to you |
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registering a lien against your property or personal belongings |
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requiring your employer to deduct money from your paycheque |
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issuing a demand notice to your bank, credit union or trust company to pay money from your account |
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seizing your personal belongings |
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forfeiture of your property to the Crown (privately owned property only)
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Property becomes subject to forfeiture on December 1 of the third year in which the taxes remain unpaid. For example, a property with unpaid 2008 and 2009 taxes will forfeit to the Crown on December 1, 2010 unless all outstanding taxes are paid before this date.
In the final 12-month period, only full payment of all taxes owing will prevent forfeiture. Partial payments can be made but will not prevent forfeiture action if any balance remains outstanding on December 1. Notification will be given to anyone with a registered interest in the property, such as your mortgage holder, to provide them with an opportunity to protect their equity in the property.
When a property forfeits, a Certificate of Forfeiture is registered on the title to the property at the Land Title Office, transferring ownership to the Crown. |
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Immediately following forfeiture, a one-year period is provided in which the former owner can redeem their title by paying all outstanding property taxes.
A redemption fee of $250 plus HST applies, and any costs incurred by the Ministry of Natural Resource Operations to secure or maintain the property are also payable. |
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Following the redemption period, there is a further two-year period in which the former owner, or someone with a registered interest such as a mortgage holder, can apply to have the property title returned. Revestment requests must be accompanied by a notarized statement.
The decision to revest a property is at the discretion of the Surveyor of Taxes. A revestment fee of $500 plus HST applies. If the request is approved, payment of all outstanding taxes and fees is required within 35 days.
Costs incurred by Ministry of Natural Resource Operations to secure or maintain the property must also be paid to revest a property.
Please see the Surveyor of Taxes Forfeiture Cycle (pdf) for a diagram of the complete collections process.
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