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Property Taxes, HALP ME!

starr

TRIBE Member
I bought a condo years ago and I received my omit/supplemental bill from last year as well as a bunch of other blue bills that I paid right away on time. Then in February I got a green bill in the mail and I paid the first installment on time. From what I understood there are 5 more installments to go unless you contact them and make other arrangements.

But then on Friday I got a purple/pink "Statement of Tax Account" bill in the mail and it says I'm overdue for a 2007 amount and that I missed a random 2008 payment (that does not match my March 2008) amount....WHAT?

I've been trying to call the number but it's busy. So I checked their website and it says the following:

[FONT=Arial,Helvetica,sans-serif]The City takes progressive action to collect overdue property taxes.[/FONT]
And also this about the purple/pink thing:
[FONT=Arial,Helvetica,sans-serif]Statements of Tax Account are mailed to property owners in arrears advising that their property taxes are overdue.

These statements are mailed: [FONT=Arial,Helvetica,sans-serif] At the beginning of each year
(on tax accounts with an overdue amount as at December 31st)
[/FONT] [FONT=Arial,Helvetica,sans-serif] After the 1st Instalment due date of the Interim Tax Bill (March)
After the 3rd Instalment Due Date of the Interim Tax Bill (May)
After the 1st Instalment Due Date of the Final Tax Bill (July)
After the 3rd Instalment Due Date of the Final Tax Bill (September)
[/FONT]
[/FONT][FONT=Arial,Helvetica,sans-serif]Administrative Fee: $16.00 each statement[/FONT]
Now if I was reassessed by MPAC for 2007 shouldn't I have received a statement? I can somewhat, but barely, understand the 2008 charge as I paid on the actual due date instead of the day before so it could have not registered when the thing was printed...any thoughts. Has this happened to anyone else before?
 
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starr

TRIBE Member
because it's my money?



i talked to my bank and i have to set that up in october or something...can't remember exactly, but i had a reason at the time...regardless. wtf?
 

justin surdit

TRIBE Member
Please do not have your mortgage lender collect property taxes. They will always collect extra to ensure that you have a surplus in your account. Then they take everyone's surpluses and go into the open market and use your money in short term investments.

99% of all municipalities have a PAC plan for property taxes. Please do that instead.

That is all
 

madnezz

TRIBE Member
starr, no one here can really help you in terms of your present situation without talking to the city about your account I think.

Anyway, our property taxes are debited from our bank account 11 times a year (every month except January) which make the payments as easy as possible imo. You have to set this up in the fall.
 
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starr

TRIBE Member
yeah madnezz, it's just that i know a number of tribers have bought new condos and was wondering if anything like this was going on with them as well.

the only thing i can think of is if MPAC reassessed me and forget to tell me. anyhow, i've finally got through after an hour of trying, now i'm on hold waiting for a representative. oh the joy of home ownership.

edit: my co-worker is in a similar situation, but she's just decided to overpay...i just want to know what's going on before i pony up the dough :)
 

starr

TRIBE Member
i'm now on the phone with them, but so far it seems that the city actually owes me $20 for 2007.

*waits*
 

kyfe

TRIBE Member
justin surdit said:
Please do not have your mortgage lender collect property taxes. They will always collect extra to ensure that you have a surplus in your account. Then they take everyone's surpluses and go into the open market and use your money in short term investments.

99% of all municipalities have a PAC plan for property taxes. Please do that instead.

That is all

are you a mortgage broker?
because really the difference is negligible in comparison to having to worry about these types of things happening. +/- $100, after 3.5 years I have about an $80 credit in my property tax account
 

screamy

TRIBE Member
I'm really careful with my bills. I have my bank pay mine (collected with my mortgage payment) and never worried about it, until this year they showed a *decrease* in the amount they were going to have to collect.

I live in downtown Toronto, and the one thing I am certain David Miller has not done during his term is decrease my property taxes.

Hope your situation worked out starr - and thanks for posting, I'm going to make sure I call the city now, I had forgotten all about wanting to confirm with them (in keeping with the careful with my bills part, I had stuck an extra couple hundred bucks into the "condo disaster fund"...I'd like to be able to spend it if I don't need it!! :p)
 

Hi i'm God

TRIBE Member
kyfe said:
are you a mortgage broker?
because really the difference is negligible in comparison to having to worry about these types of things happening. +/- $100, after 3.5 years I have about an $80 credit in my property tax account
Agreed. Never had an issue with my lender doing this.
 
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vinder

TRIBE Member
kyfe said:
are you a mortgage broker?
because really the difference is negligible in comparison to having to worry about these types of things happening. +/- $100, after 3.5 years I have about an $80 credit in my property tax account
they have collected an extra $500/yr from me, wtf.

can i get this money back from them?
 

justin surdit

TRIBE Member
kyfe said:
are you a mortgage broker?
because really the difference is negligible in comparison to having to worry about these types of things happening. +/- $100, after 3.5 years I have about an $80 credit in my property tax account
As a matter of fact, I am.

Some times it's not a big deal, but I have seen on more than a few occasions a thousand or two in surplus. Not only that, but most of the municipalities (including all of the GTA) bill mortgage lenders twice per year, usually at the end of February and the end of July. If your lender is just taking is taking 1/12 (on monthly, 1/26 bi weekly, 1/52 weekly etc) and lets say you close in March, there is no way they will have enough money in your tax account to pay out the final bill of 6 months worth of takes in July, so what happens? Your tax account now runs in a deficit. The solution here is to either allow that deficit to carry forward (for which you are charged interest) or they will upwardly adjust your tax portion to flush out the deficit by the final bill of the following year. I have seen on more then several occasions deficits of a thousand or two as well.

You are always best served to set up a PAC on the monthly structure with your municipality to avoid them not only taking too much and keeping your money in reserve so they can go out and invest it, or to have a shortfall that you either pay interest on, or have a spike to your tax portion of your payment..........

If you do have a surplus, call your lender and first find out how much is in the account. Then ask them when and how much they last paid towards your account so you can establish how much is still owing. Ask them when the final bill is due, and see if between now and then your tax portion will cover that amount with the existing balance on the tax account. Should there be a surplus the easiest way to get your money back is to ask them to credit the extra towards your next payments. Or just find out when they expect to pay out the final bill, wait until that time and flush your surplus. If you have a deficit they will usually work out a plan with you to catch that up over the next year, either by increasing your installments, or you could make a lump sum, or a combination of both.

In any case should you sell or refinance your home, shortfalls will need to be paid out and surpluses will be credited back to you.

From my standpoint it's a principle thing...why should they have your money and use it to invest for themselves when they are already generating interest off you on your mortgage??
 

kyfe

TRIBE Member
^^^^
I see what you're saying and I agree, money is always better in your pocket. for me I guess I'm lucky I haven't had those kind of issues. Looking at vinders post above, I could understand this being an issue given those circumstances.
 

AdRiaN

TRIBE Member
screamy said:
I live in downtown Toronto, and the one thing I am certain David Miller has not done during his term is decrease my property taxes.
When the City announces a property tax increase, it does not mean every homeowner will face the same increase or any increase at all.

If your assessment value decreases, you may pay less property tax despite the higher property tax rate. The assessments are formula-based and it's not uncommon for your assessed value to decrease.
 

screamy

TRIBE Member
AdRiaN said:
When the City announces a property tax increase, it does not mean every homeowner will face the same increase or any increase at all.

If your assessment value decreases, you may pay less property tax despite the higher property tax rate. The assessments are formula-based and it's not uncommon for your assessed value to decrease.
:) I know they're formula-based (having heard people argue the merits of the formulae past and present ad nauseam). Everyone else in the entire building (to whom I've spoken) had theirs go up though.

One of these days, I will find time to call!!
 
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erika

TRIBE Member
madnezz said:
Anyway, our property taxes are debited from our bank account 11 times a year (every month except January) which make the payments as easy as possible imo. You have to set this up in the fall.
Yes, this is the most painless way to do it. Depending on who your councillor is (hopefully not Rob Ford ;)), you could email their office to ask them for help in getting you sorted out.
 
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