Enact 2027 Tax Interest By-law
Motion 1 · Special Council, September 10, 2026
Summary
- Sets the interest rate on unpaid property taxes at prime plus 4% for 2027, intended to incentivize timely payment over other borrowing options.
- Approximately $100 million in cumulative arrears currently outstanding across all property types and years; interest collected averages around $5 million annually, reaching $7.2 million last year.
- The number of properties falling into arrears is rising, consistent with broader economic trends reported by other BC municipalities.
- Staff noted the city collects property taxes on behalf of the province and regional taxing authorities, not just for its own revenue.
- Councillor Lucy Maloney asked about the residential versus commercial breakdown of arrears; staff did not have that data available at the meeting.
- Properties that remain in arrears for a number of years can ultimately be sold to recover unpaid taxes.
Vote
Public comments
Read all 1 statements
Transcript
13 segments
So there's one item of business on today's agenda. Bylaw number one, 2027 real property tax interest on arrears for consideration and enactment. Before we begin this agenda item, if anyone believes that they have a conflict of interest, now is the time to declare it. Does anybody have a conflict to declare? Seeing no one's hands up and no one in the queue, would someone like to move the motion to adopt bylaw one? Thank you, Councillor Claston, seconded by Councillor Zhou. Thank you very much. Councillor, is there any discussion?
Seeing no one in the queue. Oh, Councillor Maloney.
I have a couple of questions for staff.
How many properties have delinquent property taxes and what's the total value of the arrears?
It's roughly about $100 million right now, but that includes outstanding amounts associated with all kinds of properties over cumulative over multiple years. The average interest in a year is about $5 million over the last few years, but last year it was about $7.2 million.
Okay. And is there... Can you tell me what the breakdown is between residential and commercial properties?
Sorry, I forgot to introduce myself before. Rob Evans, Director of Revenue Services and Tax Policy. I don't actually have that information with me.
Has the number of properties in arrears been increasing?
Yes, it has been.
And are there circumstances such as estates or financial hardship that might account for a meaningful share of the residential tax arrears?
I think these are just general economic circumstances that are prevailing. We've noticed that there's more properties that are in arrears and it's consistent with messaging that we're hearing from other municipalities as well.
Okay, and what effect is this recommended decision going to have on whether people are more or less likely to use non-payment of property taxes as a preferential investment vehicle?
Well, the interest rate we're recommending, which has been council's practice for over 25 years, is the prime plus 4%. And the idea there is to incentivize people to pay their property taxes as opposed to other forms of loans that they have. And in terms of... the goal there is to get people to pay their property taxes because of course if people don't pay their property taxes after a number of years that will result in the sale of their property to fund their property taxes. Colin did you? Just to also note that the city does collect property taxes on behalf of other governments including the province and regional taxing authorities.
Okay, thanks. That's all my questions. Thanks very much.
Thanks. Thank you very much. Seeing no one else in the queue, I'm going to call the vote. All those in favor say yay. Yay. All those opposed say nay. Great. The motion carries unanimously. The approved bylaw can be found on the...
Statement Watch
Sorry, I forgot to introduce myself before. Rob Evans, Director of Revenue Services and Tax Policy. I don't actually have that information with me.
Has the number of properties in arrears been increasing?
Yes, it has been.
And are there circumstances such as estates or financial hardship that might account for a meaningful share of the residential tax arrears?
I think these are just general economic circumstances that are prevailing. We've noticed that there's more properties that are in arrears and it's consistent with messaging that we're hearing from other municipalities as well.
Okay, and what effect is this recommended decision going to have on whether people are more or less likely to use non-payment of property taxes as a preferential investment vehicle?
Well, the interest rate we're recommending, which has been council's practice for over 25 years, is the prime plus 4%. And the idea there is to incentivize people to pay their property taxes as opposed to other forms of loans that they have. And in terms of... the goal there is to get people to pay their property taxes because of course if people don't pay their property taxes after a number of years that will result in the sale of their property to fund their property taxes. Colin did you? Just to also note that the city does collect property taxes on behalf of other governments including the province and regional taxing authorities.