City of Calgary Municipal Tax Payments – Use TIPP – Its easy and convenient
October 14, 2009 10:32 am Book, Employed Persons, First Time Home Buyer, Pre ApprovalWe pay taxes. This should not come a surprise to anyone. All levels of government require that we pay taxes. The city is no exception.
The way that the city of Calgary collects taxes is not through our income or by a tax on goods and services – they do it though the properties that are owned by businesses and home owners. The value of your home as assessed by the city of Calgary lets the them know what your portion of the tax bill will be for the coming year.
Lenders want to make sure you pay your city taxes. They believe that if people pay their taxes once per year (in June) that that tax bill can be hard for some families to pay. They want to make paying your taxes easier for you and this is why they encourage you to pay using a program offered by the city of Calgary called the TIPP program.
The following is an excerpt and link from the City of Calgary explaining the TIPP program.
Property Tax Installment Payment Plan (TIPP)
What is TIPP?
The Tax Installment Payment Plan (TIPP) is a popular program which allows you to pay your property taxes on a monthly basis instead of one payment in June.
Your payment automatically comes out of your chequing account the first day of every month, making budgeting easier and helping you avoid the risk of a 7% penalty.
How does TIPP work?
Each year property taxes are billed in May, due June 30 and cover the period from January 1 to December 31.
If you pay through TIPP you don’t need to worry about the payment deadline or late payment penalties. Your taxes are spread over 12 months, starting January 1, with your account being paid in full after your December 1 installment.
Your installment amount is calculated by dividing your most recent annual tax levy by 12, rounded up to the nearest dollar. This amount is paid through automated withdrawals from your bank account the first day of each month.
When you receive your annual tax bill in May your installment will be adjusted to reflect the actual tax levy, ensuring your account is paid in full by year end.
Your tax bill will show:
- The TIPP credit-to-date.
- The new installment amount for the remainder of the year.
- The date we will start withdrawing the new installment amount.
At year-end:
- TIPP automatically continues from year to year.
- All installment amounts are reviewed in December.
- If an adjustment is made to your installment amount, you will be notified.
