A temporary plan to postpone penalties for late property taxes is going well, according to City of Terrace officials.
The plan was introduced earlier this year as one of several changes made to the City’s 2020 financial plan designed to mitigate economic consequences of the pandemic.
Property taxes were still due July 2, as usual, but this year no penalty was immediately applied to unpaid taxes, allowing taxpayers more flexibility during uncertain economic circumstances. Instead, a second deadline of Sept. 30 was established, after which a 10 per cent penalty will apply to unpaid taxes.
Approximately 79 per cent of all 2020 property taxes had been paid as of Aug. 4, and payments continue to come in gradually, according to Khalie Genereaux, the City’s deputy finance director.
“All things considered, we are pleased with this percentage and have no cash flow concerns,” she said in an email statement. “We still have plans to do more analysis of our overall financial situation later this month.”
Of the 2020 property taxes yet to be paid, 29 per cent are residential and 71 per cent are business (and a small number of other categories), Genereaux said.
“We know that COVID-19 has made this a challenging year for many residents and business owners in our community,” she said.