Penalty and Interest

Penalty and interest under the Provincial Land Tax Act, 2006 are calculated in accordance with Ontario Regulation 229/09.

Interest on Refunds

The Provincial Land Tax Act, 2006 does not authorize interest payments on refunds.

Penalties on Taxes You Owe

Penalties are payable on unpaid tax in the year in which the tax is due. Taxes are due on the date specified on the tax bill.

A penalty is charged on unpaid tax on the day after the tax was due. Further penalties are charged on the first day of each month for the remainder of the year, or until the property tax is paid, whichever is earlier. If tax remains unpaid at year end, the unpaid tax is subject to interest until it is paid.

The first penalty charge is calculated by multiplying the amount of property tax that is unpaid at the end of the due date by 1.25 per cent. On the first day of each month for the remainder of the year, subsequent penalties are calculated by multiplying the amount of property tax that remains unpaid at the end of the previous month by 1.25 per cent.

Interest on Taxes You Owe

Interest is not payable on unpaid tax during the year in which the tax was due.

Interest is charged on unpaid tax beginning the year following the year in which the tax was due. Interest is payable on the first day of each month, commencing January 1, until the property tax is paid. It is calculated by multiplying the amount of property tax that remains unpaid at the end of the previous month by 1.25 per cent.

Partial Payments

Partial payments are applied as follows:

  1. First, to penalties and interest in the order in which the penalties and interest became payable.
  2. Second, to taxes, fees and charges, in the order in which they became payable, and if they became payable at the same time, in the following order:
    1. Local Roads Boards taxes
    2. Local Services Boards charges
    3. Education taxes
    4. Taxes, fees and charges and any other amount imposed by any other Act except the Provincial Land Tax Act, 2006
    5. Provincial land tax
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