ERIN – Town staff will take a closer look at the cost of extending the penalty-free period for taxpayers in Erin who are late on their property tax payments.
Councillor John Brennan introduced a motion at the July 21 Erin council meeting to extend the grace period for another month or two in an effort to help residents still economically hard hit by emergency measures due to COVID-19.
His motion carries the proviso that residents would have to make a partial payment to benefit from the extension. He suggested 50 per cent.
“By now we’re getting to the people with the most difficulty,” Brennan said.
Treasurer Ursula D’Angelo said the town sent out 830 past-due notices in June on payments due in May and on July 1 interest was applied to outstanding accounts.
She said 497 residents responded to the notices and paid their bills.
Still outstanding are 333 accounts, comparable to last year when 336 accounts were overdue.
Councillor Rob Smith wanted to know whether it is commercial or residential ratepayers in arrears, but the town doesn’t track that information.
“I have a sneaky suspicion it is commercial,” Smith said.
“Then it’s almost like a business deferral. But I support giving people a break – I’m on the fence on this.”
Smith suggested that with the region entering stage three of the province’s re-opening plan, revenues and salaries might start to flow and residents might not need the help.
Councillor Michael Robins wasn’t convinced of the need.
“That’s only a 4% difference from last year – not great enough to lift penalties,” he said.
“It doesn’t appear to be a compelling argument.”
Council agreed with Mayor Allan Alls’ suggestion to refer the matter to staff to report back on the costs and other impacts of waiving penalties and interest for another month or two.
“The economy is picking up,” Brennan said.
The timing of “offering an incentive to pay 50% might be appropriate.”
