What is the Pre-Authorized Payment Plan?
The monthly tax payment plan allows taxpayers to make automatic monthly payments for taxes rather than a single annual payment.
How can I get set up on the Monthly Tax Payment Plan?
You can go to the “Online Services” section and complete an on-line Application Form and sending it in along with a copy of a void cheque or you can also obtain a form at the Town Office.
Why should I use the PAP?
Many people find it difficult to make a single large tax payment that becomes due once a year. Monthly installments break this large payment into smaller payments to make monthly budgeting easier. Participants are not subject to late payment penalties.
Who can use the PAP?
You can join the plan: · If your tax account is paid up to date (eg, if joining in June, taxes
for January to May of the current year must be paid plus any
arrears owing)
· If you have banking privileges at a financial institution; and
· If you currently remit taxes with your mortgage payment, your mortgage company must agree to waive that requirement.
·
How does the Plan work?
The Plan runs from January to December each year with the first payment starting January 31. The first five monthly payments are based on the previous year’s tax levy. Changes to the installment amount as a result of increases or decreases to the annual levy will be effective for the last seven payments of the year. You will be notified on the tax notice of the total amount of installments paid to date and the new installment amount required for the remaining seven payments in that year.
Payments may only be made by automatic withdrawal from your bank account at a financial institution. A direct withdrawal form must be completed before participation in the plan.
The Town of Devon does not charge for this service; however, normal bank service charges may apply.
NOTE: Current participants do not need to reapply.
Withdrawal/non-payment
You may withdraw from the plan at any time by giving written notice at least five days before the next payment date and all outstanding taxes become due and payable and subject to penalties in accordance with the Town By-law. Any payment returned from your financial institution is subject to a service fee and may result in termination of the plan and all outstanding taxes become due and payable and subject to penalties.
Change of account
If you change your bank account number, please advise the Town of Devon by providing a new VOID cheque or fill out an on-line change of banking information form, at least two weeks prior to the next payment date.
What happens if I sell my property during the year?
When your property is sold, participants are requested to inform the Town in writing at least 5 days in advance of the next payment. All installment payments are non-refundable and non-transferable. If you sell your property, we can provide your solicitor with the most recent tax levy and the total installment payments made to date in the current year.
Example
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Prior years taxes
|
$2,500.00
|
|
January through May payments:
|
|
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$2,500/12 months =
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$208.33
|
|
Current Tax Notice (May 31)
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$2,800.00
|
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Less Payments: January - May
|
-$1,041.65
|
|
Balance Owing
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$1,758.35
|
|
|
|
|
|
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June through December
|
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$1,758.35/7 months = $251.19
|
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$251.19 x 7 months =
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$1,758.33
|
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The debit balance will be adjusted into the final payment in December, which, in this example, the December payment will be adjusted to $251.21.