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Property Taxes FAQs
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What is the taxation year?

The taxation year is the calendar year, January 1 – December 31.

 

How does the City calculate the amount of my property taxes?

Your property taxes are calculated by dividing your total property assessment by 1000 and multiplying the result by the applicable tax rate.  Your tax notice also includes requisitions from other bodies as well.

 

What are the current tax rates?

2009 Tax Bylaw

 

 

Why do I have to pay school taxes if I do not have children attending school?

The Municipal Government Act requires all property owners to pay the education tax.  The City of Leduc, on behalf of the school boards, collects and forwards this revenue to them.

 

When will the City mail my tax notice to me?

Your tax notice will be mailed no later than the end of May each year.

 

How do I change the school support designation as shown on my tax notice?

The tax department can mail or fax a Declaration of School Support form to you.  Then simply return the completed form to us.  The school support notice filed by a property owner becomes effective on the taxation year following the year in which the school support notice is filed.

  

How can I pay my property tax bill?

Payments may be made:

· in person at the Civic Centre (48 A Street and 46 Avenue)

· mailed to #1 Alexandra Park, Leduc, Alberta T9E 4C4

· internet banking with your financial institution (your Tax Roll number is your account number)

· tax payments are accepted at all chartered banks and credit unions

· post-dated payments are accepted

· payments may be left in the night deposit box located beside the main doors

· interac payments are accepted, please check with your financial institution as to what your single transaction limit is

· Credit cards are not accepted for payment

 

What are the penalties added to unpaid taxes?

The current year taxes unpaid on July 1 will have the following penalties added:

                        July 1           6%

                         August 1         2%

                        September 1      2%

                        October 1        2%

                        November 1       2%

                        December 1       2%

All taxes unpaid after December 31 of the current year will have an additional 12% penalty applied on January 1.  These penalties are not applicable to taxpayers enrolled in the Tax Installment Payment Plan.

Tax Installment Payment Plan (TIPPS)

City of Leduc offers an installment payment plan that enables you to pay your taxes in 12 equal amounts, instead of one annual payment. There is no charge to join the plan.

TIPPS Form- pdf

For more information or to have an application form mailed/faxed to you, call:

(780) 980-7105

The deadline to enroll in the tax installment payment plan is the 15th of each month. If you are already on the plan, you do not need to re-apply each year.

To enroll in TIPPS:

· Your tax account must be paid in full

· Your monthly payment will be adjusted for the payment that comes out at the end of June to take into account any change to the annual tax levy

Example:

Taxes for the previous year = $2,400

Monthly payment beginning January: $2,400 ÷ 12 months = $200

Total payments from January to May: $200 x 5 months = $1,000

The tax levy for the current year = $2,500

The taxes that remain to be paid from June to December: $2,500 - $1,000 = $1,500

The monthly payment from June to December: $1,500 ÷ 7 months = $214.29

The monthly payment will remain at $214.29 from January to May of the following year, and will be adjusted again in June to take into account any change in the tax levy.

Joining TIPPS Part Way Through the Year:

If you join part way through the year, you must make up any “missed” payments. For example, if you decide to join the plan in April, you need to make up the payments for January, February and March.

Example: Monthly payments from January to March = 3 months. Take last year’s tax levy, divide by 12 months to get the monthly payment amount. Using the above example, we would need $642.87 (which is $214.29 x 3 months) before the 15th of April in order to start TIPPS for April.

The monthly payments are withdrawn from your account on the last working day of each month – FOR that month. Please note that your bank may require additional processing time, and may not show your account being adjusted until the 1st or 2nd of the following month.

Removal from the TIPPS Plan:

If you experience 2 NSF’s during a one year period, you will automatically be removed from the TIPPS plan, and any amount owing at that time will be due immediately and subject to penalties.  There is a $20 charge for all returned payments.

If unpaid Utilities are transferred to your tax roll at any time, you will be removed from the TIPPS plan immediately.

To cancel your TIPPS payment, you must notify the Tax Department at least 10 days prior to the next withdrawal.

Changes to your Banking Information:

New banking information must be provided to the Tax Department 10 days prior to the next withdrawal.