HomeMy WebLinkAboutInterest of Overdue Accounts Policy
Cape Breton Regional Municipality
Interest Rate Policy
(Overdue Accounts)
Background:
The Municipality charges Interest on overdue accounts to raise
revenue and encourage the prompt payment of taxes. The
Municipality recognizes that the prompt payment of taxes
increases cash flow and reduces the cost of borrowing or increases
interest income, which lessens the Tax Levy on all taxpayers.
Interest:
It is not the intention of the Municipality to act as a lending
institution and we encourage any person who wishes to finance
their taxes to use these institutions for that purpose. However for
those who do not pay, the interest charge will be used as a penalty
to reflect the Municipality's cost of not having the funds available
to it. If arrangements are in place to pay current taxes, interest will
not be charged under the following circumstances:
A. Taxes are paid in full before due date on the bills.
B. Arrangements are made to have payments deducted using
automatic monthly deductions where an agreement is
signed agreeing to the following:
o Taxes must be current and paid within the current fiscal
year.
o They must agree to let the municipality adjust their
deductions for any tax increases or adjustments within
the twelve months.
o To cancel deductions, the customer must sign at one of
the Municipality's Citizen Service Centre locations.
Deduction methods that would be considered acceptable are the
following:
o Payroll deductions submitted by the employer;
o Automatic Bank Account Debits
o Automatic Charge Card Debits.
There will be no other reason for interest exemption or write-offs.
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Interest Rate Policy
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Rates of Interest:
A.
Interest will be charged at the rate of 5% above prime on all
outstanding tax balances owed to the Municipality. Interest
rates will be established on April 1 and September 1 of
each year.
B. Interest shall be charged on all outstanding balances.
C. Interest will be applied to all accounts on the first day of
each month immediately thereafter.
Approved by Council: February 24, 1998