The Tax Installment Plan Service (TIPS) is an optional payment plan for taxpayers to make monthly prepayments towards their next year's property taxes. Property Taxes are billed annually in the middle of the year for taxes for the current calendar year (Jan 1st to Dec 31st).
Prepayments can be made from July 15th to May 15th by authorizing automatic withdrawal payments from a chequing account at any Canadian financial institution. The City pays interest on taxpayer deposits at an interest rate of 3 per cent below the prime lending rate of the City's bank.
As TIPS is a prepayment (or savings) plan for next years property taxes, the current year's property taxes must already be paid in full at the time of application and the applicant must have chequing privileges at a financial institution in Canada.
Calculated on the previous year's gross taxes less the Home Owner Grant (if claimed) divided by a maximum of 11 monthly installments. The calculated monthly installment is an estimate and is not a guarantee of the amount of taxes that may be levied. The calculated monthly installment will be recalculated every year.
Note: If any installment payments are returned by the taxpayers bank (for any reason), their tax account will be charged a returned item fee of $25. The taxpayer's Plan will be cancelled after 3 consecutive returned installment payments.
TIPS payments will be debited on the first business day on or after the 15th of each month.
Authorized prepayments start July 15th and continue to May 15th, for a maximum of 11 consecutive automatic withdrawals. No prepayments will be withdrawn in the month of June.