HomeMy WebLinkAboutCOVID-19 Property Tax Financing Program Policy COVID-19 Property Tax Financing Program Policy
Title
1. This Policy is entitled the "COVID-19 Property Tax Financing Program Policy."
2. Objective:
The Cape Breton Regional Municipality (CBRM) is concerned about the health and safety of
residents. CBRM recognizes that facilitating the payment of property taxes in installments will
better allow Nova Scotians to follow the public health directives endorsed by the Government of
Nova Scotia. This Policy responds to that need by establishing a one-time property tax installment
payment program (the "Program") for eligible owners of residential and commercial properties
negatively affected by the COVID-19 global pandemic.
3. Authority:
Sections 111 and 112 of the Municipal Government Act give Council the authority to provide for
the payment of taxes by installments.
Section 113 of the Municipal Government Act allows Council to charge interest for non-payment
of taxes when due, at a rate determined by policy.
4. Scope:
4.1 Residential - The following owners of residential property are eligible to participate in the
Program:
4.1.1 An owner of a residential property that is the owner's primary residence including
secondary cottage/summer home , where the owner has experienced financial hardship
through a significant reduction in income due to the State of Emergency declared by the
Government of Nova Scotia in response to COVID-19, demonstrated through receipt of
Provincial or Federal program assistance, a Record of Employment (ROE) demonstrating
layoff from employment after March 15, 2020, or signed affidavit acceptable to the Cape
Breton Regional Municipality that clearly describes financial hardship ;
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4.1.2 An owner of a residential property where the owner was a registered Tourism Operator
with Tourism Nova Scotia for the 2019 tourist season (excluding AirBNBs);
4.1.3 An owner of a residential property that is rented to one or more tenants,where the
owner has experienced a significant reduction in rental income from the property due to
the State of Emergency, demonstrated through the following:
4.1.3.1 Signed affidavit acceptable to the Cape Breton Regional Municipality that
clearly explains financial hardship and relevant provincial/federal and other
documentation.
4.2 Commercial - The following owners of commercial property are eligible to participate in the
Program:
4.2.1 An owner of a taxable commercial property where the property has a total taxable 2020
property assessment value equal to or less than $5,000,000 and where the owner's business or
building located on the property has experienced financial hardship through loss of revenue
related to the State of Emergency, demonstrated through the following:
4.2.1.1 Signed affidavit acceptable to the Cape Breton Regional Municipality that
clearly explains financial hardship and relevant provincial/federal and other
documentation.
4.2.2 An owner of a taxable commercial property who has experienced financial hardship
through loss of revenue related to the State of Emergency,regardless of the assessed value,
where:
4.2.2.1 The owner of the property is a tourism operator registered under the Tourist
Accommodations Registration Act and the property is used for tourist
accommodations (e.g.,hotels, motels,bed and breakfasts);
4.2.2.2 The owner of the property carries on the business of an automotive or
leisure/recreational vehicle dealership on the property;
4.2.2.3 The owner of the property uses the property as a private or non-profit
recreation facility (e.g., golf courses, indoor playgrounds, campgrounds, racing
venues);
4.2.2.4 The owner of the property carries on a business on the property in the
hospitality industry,including bars, cafes, and coffee shops;
4.2.2.5 The owner of the property carries on a business on the property in the service
industry,including hairdressers,nail salons, gyms, tattoo parlours;
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4.2.2.6 The owner of the property carries on a business on the property as a health
care provider (including, but not limited to, dentists, naturopaths, chiropractors,
physiotherapists, physicians and other doctors), where that business has been
required to reduce hours as a result of the State of Emergency.
4.3 Exclusions: Regardless of sections 4.1 and 4.2 of this policy, the following are not eligible to
participate in the Program:
4.3.1 Property owners who have not experienced financial hardship through loss of revenue
related to the State of Emergency;
4.3.2 Property owners who have received compensation from Business Interruption Insurance
towards the payment of property taxes;
4.3.3 Properties occupied by daycare centres in receipt of federal or provincial funding,or those
in receipt of other emergency funding;
4.3.4 Properties used for landfill,pipeline, managed forest,parking, and vacant land;
4.3.5 Properties for which there is an active tax agreement with the Municipality through
legislation or bylaw;
4.3.6 Properties owned by non-profit organizations that are funded by the Municipality or that
are partially exempted from property tax;
4.3.7 All properties managed under payment-in lieu-programs.
4.4 General Requirements
4.4.1 Installments shall be payable by the person, company or other entity assessed for the
property for the current fiscal year.
4.4.2 In order for taxes for a property to qualify for the Program,the taxes for the property must
not be in arrears at the time of application.
4.5 Application
4.5.1 Property owners wishing to apply to participate in the Program for a property must
complete and submit to the Municipality an application in the form attached as Schedule "A"
to this policy.
4.4.3 The application deadline to participate in the Program is December 31, 2020.
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5. Administration
5.1 Tax Installments
5.1.1 For applications meeting the Program criteria set out above, property tax payments
normally issued between April I st,2020 and September 30th,2020 for approved properties may
be paid in installments as follows.
5.1.2 For each property,Program participants will pay tax installments as follows:
5.1.2.1 Payments of$25 per month for six months, payable on or before the last
day of each month,commencing in the month the property tax payment is normally
due.
5.1.2.2 Following these six months at$25 per month, monthly payments equal to
1/24th of the balance of the amount eligible for the Program plus interest as set out
below. These monthly payments are payable on or before the last day of each
month and continue for 24 months.
5.1.4 The rate of interest for the Program will be 1.35%per year.
5.1.5 Interest on amounts owing under the Program will be calculated commencing on the date
the property tax payment is normally due and continuing until all installments have been paid.
5.2 Terms of the Program
5.2.1 The Chief Financial Officer, or his or her designate, shall approve qualifying applicants.
5.2.2 Payments under the Program must remain in good standing with the municipality
throughout the duration of the Program.
5.2.3 Default in payment of an installment when due will result in the following:
5.2.3.1 The balance of outstanding taxes on the applicable property and interest will
become immediately due and payable; and
5.2.3.2 The outstanding taxes and interest then owing will become subject to the
municipality's regular rate of interest for overdue taxes of 10%.
5.2.4 All amounts owing and payable on the property tax account that are not included in the
Program are due on their normal dates and any amounts not paid when due will be subject to
the municipality's regular rate of interest for overdue taxes of 10%
5.2.5 Payments received by the municipality from a property owner will first be applied to any
installments due under the Program, in priority to any other taxes or other amounts owing by
the owner to the municipality.
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6. Responsibilities
6.1 Council will:
7.1.1 Monitor the implementation and administration of this policy and make any
amendments required for the effective and efficient operation of the Program.
7.2 The Chief Administrative Officer will:
7.2.1 Be responsible for the administration and implementation of this policy and the
Program; and
7.2.2 Identify necessary amendments to this policy in consultation with Council and
managerial staff and make recommendations accordingly to Council.
7. General Provisions
Payments received by mail are deemed to be paid on the date received by the Municipality.
Approved by Council May 12,2020
As amended by Council:
➢ November 24,2020