Tax Penalty Deferrals

In recognition of the significant impact the coronavirus (COVID-19) is having on the economy, the City of Spruce Grove, through direction of Spruce Grove City Council, is providing taxpayers with the ability to apply to have penalties on tax balances deferred until Sept. 30, 2020.

It is important to emphasize that a deferral is not a cancellation or forgiveness of these costs. A deferral simply means that payments can be delayed for a specific timeframe, but the total amount owed will still be due after the end of the pre-determined time period.

Please see below for several examples how this deferral would impact tax payments and balances, as well as some frequently asked questions.

Tax penalty deferral application form

To apply for the tax penalty deferral, please complete the form below. Applications will be accepted up to and including Sept. 30, 2020. Please note that taxpayers who are already in tax recovery are not eligible for the deferral program.




One grant application must be submitted per property tax roll.



Your personal information is being collected under the authority of Section 33 (c) of the FOIP Act, and will be used for the purpose of administration of the tax penalty deferral program. It will be treated in accordance with the privacy provisions of Part 2 of the FOIP Act. Collected personal information is protected from unauthorized access, collection, use, and disclosure in accordance with the FOIP Act and can be reviewed upon request subject to the provisions under the Act. Should you have any questions about the collection, use and disclosure of personal information, please contact the FOIP Coordinator at 780-962-2611.

Examples

Example A:
A customer has a total tax billing of $3,300 and is approved to defer all payment on that account for July, August, and September. While no payments are due each month, and no penalties are being applied, the deferred amount will remain on the account and be due at the end of the deferral period. Penalties will be applied on unpaid balances at October 1.

Month Tax bill Payment Penalty Balance owing
July $3,300 $    - $    -       $3,300
August   $    - $    -       $3,300
September   $    - $    -       $3,300

 

Example B:
A customer has a total tax billing of $3,300 and chooses to make partial payments on that account for July, August, and September. While no payments are due each month, and no penalties are being applied, the deferred amount will be reduced by their payments with a remaining balance owing at the end of the deferral period. Penalties will be applied on unpaid balances at October 1.

Month Tax bill Payment Penalty Balance owing
July $3,300    $500 $    -       $2,800
August      $500 $    -       $2,300
September      $500 $    -       $1,800

 

Example C:
A customer has a total tax billing of $3,300 and chooses to join the pre-authorized payment plan and thereby avoid penalty on an ongoing basis. If the customer chooses to join the pre-authorized payment plan prior to July 1, their outstanding amount would be divided into six equal payments for the balance of the year. In the subsequent year, their monthly payment would be reduced to 1/12 of their estimated annual tax bill (in this example, approximately $275).

Month Tax bill Pre-auth. payment Penalty Balance owing
July $3,300           $550 $    -       $2,750
August             $550 $    -       $2,200
September             $550 $    -       $1,650
October             $550 $    -        $1,100
November             $550 $    -         $550
December             $550 $    -         $  -

 

Example D:
A customer has a total tax billing of $3,300 and is approved for the penalty deferral from July – September and then chooses to join the pre-authorized payment plan prior to October 1 and thereby avoid penalty on an ongoing basis. Their outstanding amount would be divided into three equal monthly payments for the balance of the year. In the subsequent year, their monthly pre-authorized payment would be reduced to 1/12 of the estimated annual tax bill (in this example, approximately $275).

Month Tax bill Pre-auth. payment Penalty Balance owing
July $3,300           $   -  $    -       $3,300
August             $   - $    -       $3,300
September             $   - $    -       $3,300
October             $1,100 $    -        $2,200
November             $1,100 $    -        $1,100
December             $1,100 $    -        $   -

 

Frequently asked questions

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Taxpayers will receive their tax bill in May and taxes are due by June 30, 2020. Taxpayers who can make their payments are asked to use one of the City’s tax payment options, which include monthly installments or payment in full, as this will help to fund the City’s operations during this challenging time.

No. Customers will need to demonstrate that they have been financially impacted by COVID-19 to apply for the deferral. For qualifying customers, penalties will not be charged on July 1, August 1, and September 1. Penalties will resume October 1.

A 0% tax increase does not mean 2020 property taxes will be the same amount as they were in 2019 as the amount on your bill is related to overall differences in assessed value of property in the community. If you have questions regarding your property taxes or would like to discuss your particular situation, please call 780-962-7634 ext. 119.

If you have signed up for pre-authorized payments for your tax payments, the amount will continue to be withdrawn as usual. If you would like to cancel your pre-authorized payment plan, please call 780-962-7597 or send us an email for assistance.

Please note that any NSF charges will be waived during the deferral period.

The Province of Alberta has extended the 2020 assessment complains deadline for all properties to July 1, 2020. Please refer to the back of your annual assessment notice for the complaints process, or visit the Alberta Municipal Affairs website for more information.

Please call 780-962-7634 ext. 119 or send us an email for assistance.