Kelowna considering one-time 10 per cent late tax penalty

Plans to update the city of Kelowna’s property tax penalty bylaw to a one-time 10 per cent late fee will be going through a final review at a future council meeting.

Under B.C legislation, a 10 per cent fine for unpaid taxes after the deadline exists every year. The city historically splits the fine into two parts with a five percent penalty after the July due date and a five percent penalty after the August deadline for any remaining unpaid taxes.

The city believes making the switch to a one-time late tax penalty will spur efficiencies.

“Kelowna taxpayers have a proven track-record of paying on time with 90 per cent submitting payment by the July due date each year,” said Angie Schumacher, City of Kelowna Revenue Supervisor. “Moving to a one-time penalty would offer efficiencies in staff time, reduces mailing costs and also aligns us with all other similar sized Okanagan and Interior BC municipalities who apply the one-time penalty structure.”

Property tax notices will be mailed to Kelowna property owners in late May 2020. In addition to the municipal portion of taxes, the City of Kelowna collects amounts on behalf of other taxing authorities including the Province (e.g. school tax and BC Assessment), the Regional District, library and the hospital which are reflected on the property tax notice. This year’s property taxes are due on July 2, 2020.

Residential property owners in Kelowna can use the online property tax estimator tool at kelowna.ca/propertytax to estimate what their 2020 property taxes will be. You will need your 2019 and 2020 property assessment value (can be found on the BC Assessment website at bcassessment.ca by typing in your address) to use the estimator tool.

On Dec. 12, 2019 Kelowna City Council approved a provisional overall taxation demand increase of 4.15 per cent for 2020. The increase translates to a $86 increase, or $7.17 per month, for the City portion on an average single-detached home tax bill in Kelowna. Council will review the final budget and set the City’s tax demand increase in late April 2020.