WHEREAS the Community Charter and Local Government Act are restrictive in allowing methods for municipalities to collect property taxes; AND WHEREAS small communities that depend on tax collection for budgeting needs are often forced into a borrowing position when residents fail to pay property taxes by the due date; AND WHEREAS local government legislation allows for taxes to lapse for two years before enacting any authority to collect on taxes; AND WHEREAS collecting on taxes through a tax sale does not allow municipalities to work with a balanced budget, nor redeem the amount of taxes owed: THEREFORE BE IT RESOLVED that UBCM lobby the provincial government to revise its legislation to allow for collection of property taxes in a timely manner to satisfy budgetary requirements and circumvent a municipalitys need to borrow money to cover delinquent and arrears taxes.
Ministry of Community, Sport and Cultural Development Late payment of some taxes is a normal part of municipal operations and should be anticipated as part of good financial management. Tax sale is one of the last steps in dealing with non-payment of taxes and should be viewed as an authority of last resort. The authority to appropriate and confiscate property is one of the most extensive powers that local governments possess. Thus, this power must be used judiciously and in a fair and transparent manner. The current tax collection system in British Columbia must balance the need for timely municipal revenue with a prudent restriction on confiscating property. Provincial legislation attempts to achieve this balance by setting penalties and interest on taxes at a sufficiently high rate to encourage timely payment, but also providing property owners sufficient time and opportunity to pay their taxes before their property goes to tax sale. Also note that the penalty and interest on late payment of taxes is additional municipal revenue that partially compensates for delayed tax payment.