By Patrick Newhook/February 24, 2022
A motion to approve a deferral of property taxes for a low-income family sparked a discussion of the policy at Mount Pearl city council last week.
Corporate service committee co-chairman Jim Locke made the motion for the deferral in the amount of some $6,200.
Under the City’s tax policy, it can temporarily waive the payment of property taxes owed on homes that are owned by families that earn less than $40,000 per year, collectively.
Mayor Dave Aker asked how long an exemption can last.
Councillor Locke said it can be good for multiple years.
“As our policy permits, we will defer the payment,” he said. “Ultimately when the property is sold, the city will get this back. But in this case it is multiple years. They still have to pay water and sewer taxes every year as well as their garbage fee, we don’t defer that. But we can defer the taxes and the interest on the taxes.”
Councillor Bill Antle followed up on the mayor’s question for more specifics as to duration. “Could we continue this on for 20 years,” he asked. “Is there a limit that we stop deferring taxes?”
Locke reiterated what he had previously said, that the City collects the deferred taxes once the property is sold.
“There is no set time frame, everybody who is eligible for the low income earning tax deferral has to submit annual income statements to the City so that we can validate the income is under $40,00 which is our threshold and we wouldn't let the tax deferred exceed the value of the property,” added Director of Finance, Cassie Pittman. “It really varies based on the amount owed and the value of the property. So, there’s no set timeline, but it is monitored annually.”
Council approved Locke’s motion to allow a deferral in this particular case.