Everything You Need to Know about City of Calgary Property Taxes (Due June 30)

As homeowners, one of the responsibilities that we have is to pay our property taxes on time. It’s an annual expense that we can’t ignore, and it’s essential that we understand what we’re paying for and when it’s due. In this blog post, we’ll explore essential information about City of Calgary property taxes due. We’ll talk about what property taxes are, where your tax money goes, how much you need to pay, and when the deadline is. By the end of this post, we hope that you’ll have a better understanding of your property taxes and feel confident about paying them on time.

What are Property Taxes?

To understand what property taxes are, we need to determine the value of our property, which is assessed by the City of Calgary. The assessed value of your property determines how much you will pay in property taxes each year. Property taxes are used to fund the services provided by the city, such as waste and recycling collection, police services, fire services, and more. The amount that you pay in property taxes each year is based on the assessed value of your property and the tax rate in your area.

City of Calgary landscape

Where does your Tax Money Go?

When you pay your property taxes, it goes towards funding various programs and services provided by the city. These funds are used to enhance the beauty of Calgary city, maintain Calgary’s streets, keep neighborhoods clean and safe and promote economic development in the city. Additionally, your tax money goes towards funding essential services such as police, fire, and emergency services.

How much do you need to pay in Property Taxes?

The amount that you pay in property taxes each year is calculated by multiplying your assessed property value by the tax rate in your area. To find out how much you owe, you can use the tax calculator available on the City of Calgary’s website. It’s important to note that property taxes are due annually, and you can choose to pay in one lump sum or through installments.

When is the Property Tax Due Date?

The property tax due date is at the end of June each year. However, the Province of Alberta Land Titles Office (LTO) is experiencing delays in processing ownership and mailing address changes. As a result of this, some new owners will not receive their 2023 annual property tax bills.

Non-receipt of the property tax bill does not exempt owners from late penalty fees.

Property owners who have not received their property tax bill by the end of May must call 311 (or 403-268-2489 if outside of Calgary) to obtain an up-to-date statement of account.

Tax Instalment Payment Plan (TIPPS)

If you have joined the Tax Instalment Payment Plan (TIPPS), then you can avoid delays and potential penalties by making smaller monthly payments instead of one large sum.

If you have not joined TIPPS, please ensure you pay the balance in full by June 30, 2023 to avoid penalties.

What happens if you don’t pay your Property Taxes?

If you don’t pay your property taxes, the City of Calgary will charge you a penalty and interest on the outstanding balance. Furthermore, if you’re unable to pay your taxes by the deadline, you can enroll in one of two city programs – the Tax Instalment Payment Plan (TIPP) or the Property Tax Assistance Program (PTAP).

Paying your property taxes on time is an essential responsibility of homeowners. It is essential to understand your property taxes, where your money is going, and how much you need to pay so you can meet your obligation. Property owners in Calgary have an additional three months to pay their taxes, allowing them to plan with their budget. Remember, if you’re unable to pay your taxes on time, you can enroll in the TIPP or PTAP payment plans to avoid penalties and interest charges. With these tips, paying your property taxes on time will be an easy feat.

Completing Your New Home Purchase

Congratulations on your recent Real Estate purchase! Buying a home is an exciting time, to ensure closing your property goes smoothly there are some important matters to attend to prior to your possession date.

MORTGAGE FINANCING
 

If you are placing a new mortgage on your newly purchased home, it is important to ensure that all conditions of the mortgage are satisfied promptly. In the event these conditions are not met in a timely manner, interest costs may be incurred or possession may be delayed until all conditions are met to the satisfaction of the lender. 

If you are purchasing your new home with proceeds sourced from the sale of an existing property, and the possession of your new home is on or before the date for the possession of the property that you are selling, it may be necessary to arrange “bridge” financing. Your mortgage broker will be able to arrange this for you. 

Don’t forget to book your appointment 1-2 weeks prior to your closing date.

LEGAL FEES

It is important to properly budget for legal fees as part of your closing costs. Ensure your lawyer is open with you about what fees are, and are not, included in the fee quoted, as well as what ‘surprise’ charges you may incur

At Summit Legal Group we strive to deliver the best possible legal service for reasonable and competitive fees. To avoid any unpleasant ‘surprise’ charges, we offer flat rate legal fees for Real Estate transactions which are inclusive of all regular disbursements and GST where applicable.

Included in our basic fees are the following:

  • Receipt of conveyancing and mortgage instructions;

  • Order Title and Tax searches;

  • Comprehensive review of existing Land Title;

  • Preparation of relevant transfer and mortgage documents;

  • Contact and meet with you to review and execute all documents;

  • Submission of executed documents to Land Titles office for registration;

  • Receipt and review of registered documents;

  • Receipt and forwarding of trust funds;

  • Forwarding of reports to you and your mortgage company.

If your transaction poses unexpected and extra time consuming difficulties, additional costs may result. Usually, such difficulties include Real Property Report non-compliance issues, such as encroachments or development permit applications. Title insurance may be required by your lender with associated costs.

YOUR APPOINTMENT (1-2 Weeks Prior to Close)

Once your lawyer has received all necessary documentation from you, your realtor and mortgage company, they will schedule your signing appointment. Any cash shortfall, funds required in addition to your initial deposit and mortgage proceeds will be due at this time.

POSSESSION DETAILS 

Release of Keys:

On the day of possession, your real estate agent may offer a walk-through of your new home to ensure it is in good condition. Keys will be provided to you at this time. If you discover any significant damage to the property, I strongly recommend that you contact your lawyer immediately to discuss legal remedies.

Utilities:

You will need to arrange connection of the various utilities and related services by contacting the relevant providers of cable, electricity, gas, telephone, television, water and sewer. You may also wish to have your mail redirected to your new address.

Insurance:

To arrange for the appropriate insurance to be placed on the home your insurance company will require the date of possession, legal description of your property and an ownership description.

Property Taxes and Community Association Fees:

Your lawyer will adjust all real property taxes, community association fees and condo fees (if any), as of your possession date. If you wish to register for the monthly Tax Instalment Payment Plan (T.I.P.P.) with the City of Calgary, you may do so by calling 311 or 403.234.7480 or by requesting a T.I.P.P. application online via calgary.ca.

REAL PROPERTY REPORT

It is likely that the purchase contract required the seller to provide a current Real Property Report to the buyer. The Real Property Report is a one-page survey of the lands, indicating the legal boundaries and any improvements on the land including the home, decks, air conditioning units and fences. We strongly recommend that you store this document in a safe place, as you may need it in the future should you decide to sell or refinance your home.