Commercial properties in Cranbrook, including light industrial, business, and recreational or non-profit will have an additional three months to pay their 2020 property tax without penalty, extending to October 1st.
The tax deadline for all property owners remains July 2nd, with late penalties to be applied on unpaid balances as of July 3rd for residential, utility, and farm properties.
“As about 62.5% of the City’s operating costs are paid for by tax revenue, the timing of the receipt of that revenue is very important. The City has several large contractual obligations including remittances to other public authorities, that have been structured for payment after July 2nd,” explained Charlotte Osborne, Chief Financial Officer for the City of Cranbrook. “The City needs to ensure that adequate cashflow is available to meet those obligations and to continue to fund operations for, not only the next six months to December 31, but also to fund operations for the first six months of 2021.”
Read: Cranbrook Council Proposes 2.88% Tax Increase in 2020 (April 29, 2020)
Back on April 16th, the B.C. Government announced temporary changes to the property tax framework. The Province postponed applying late payment penalties for property taxes on commercial properties to October 1st. As well, the B.C. Government reduced the school tax rate for commercial properties, leading to an approximate 11% tax savings fo commercial properties in Cranbrook.
Reviewing the temporary changes to the framework, Cranbrook City Council endorsed the July 2nd property tax due date for all properties, the with the additional three months for commercial properties to pay without penalty.
“Keeping with a property tax due date of July 2nd and penalty date of July 3 for non-commercial property owners and incorporating the Province’s October 1st penalty date for commercial property owners, will help to minimize risks to the City’s cash position and ensure its financial sustainability,” added Osborne.
Anyone with questions or concerns is asked to contact the Finance department at the City of Cranbrook by phoning 250-489-0233 or 311.
The B.C. Government indicated that the adjustments are just the first steps and will continue to monitor the situation closely, to potentially make further adjustments.
The City of Cranbrook will be emailing out all 2020 property tax notices in mid-May.