Municipal Tax Measures in Canada Aimed at COVID-19 Relief

| 5 minutes

Starting on March 19, 2020, certain municipalities in Canada have been implementing tax relief measures to address the economic impact of COVID-19. The information below is current as of March 20, 2020.

For the latest information, please visit our COVID-19 hub.

To discuss how you or your organization might benefit from one of these programs, or if you have questions about the impact of COVID-19 on your business, please contact your McCarthy Tétrault trusted advisor or one of the authors.

What follows is a summary of the principal proposed tax measures announced by the City of Toronto, Montreal and its environs, Quebec City and its environs, the City of Vancouver and the City of Calgary. These measures are intended to assist both individuals and businesses through tax deferrals, deferred payment methods, and to ensure that businesses continue to have access to credit.


City of Toronto Tax Measures

The mayor of Toronto, John Tory, announced on March 20, 2020, the following municipal tax relief measures.

Measures for businesses

  • Businesses will benefit from a 60-day grace period on their City of Toronto property tax, Toronto Water, and Solid Waste bill payments, as of March 16, 2020.
  • For property owners on the 11-instalment pre-authorized payment plan, interim 2020 instalment due dates will be extended by 60 days.
  • Late payment penalties business properties will be waived for 60 days, starting March 16, 2020.

Measures for individuals

  • Property owners will benefit from a 60-day grace period on their City of Toronto property tax, Toronto Water, and Solid Waste bill payments, as of March 16, 2020.
  • For property owners on the 11-instalment pre-authorized payment plan, interim 2020 instalment due dates will be extended by 60 days.
  • Late payment penalties for residential properties will be waived for 60 days, starting March 16, 2020.

Other measures

The City will suspend any pending automatic withdraws that have been scheduled within the next 60 days and which have not yet been withdrawn.


City of Montreal Tax Measures

On March 19, 2020, the mayor of Montreal Valérie Plante announced municipal tax relief measures.

Measures for businesses

  • Owners of residential and commercial properties will have an extra month to make their second instalment of property taxes. The deadline has been postponed from June 1, 2020, to July 2, 2020.
  • Effective March 19, 2020, private and social economy businesses who have received a loan through the PME MTL fund, Fonds Locaux de Solidarité, and Fonds de commercialisation des innovations will benefit from an automatic, six-month moratorium on capital and interest. The city will pay the interest during this period.

Measures for individuals

  • Owners of residential and commercial properties will have an extra month to make their second instalment of property taxes. The deadline has been postponed from June 1, 2020, to July 2, 2020.

The City of Laval has issued municipal tax relief measures as follows:

  • The deadline for municipal tax payments for home and business owners has been postponed to April 16, 2020.

The City of Longueuil has issued municipal tax relief measures as follows:

Measures for businesses

  • The second instalment of municipal tax payments is postponed to May 6, 2020.
  • The third instalment of municipal tax payments is postponed to July 6, 2020.
  • The fourth instalment of municipal tax payments is postponed to September 8, 2020.

Measures for individuals

  • The second instalment of municipal tax payments is postponed to May 6, 2020.
  • The third instalment of municipal tax payments is postponed to July 6, 2020.
  • The fourth instalment of municipal tax payments is postponed to September 8, 2020.

Other measures

To give effect to the relief measures, postdated cheques will be processed one month after the inscribed date. Automatic withdrawals may be likewise adjusted by taxpayers via their online accounts with their financial institutions. In-person service counters are effectively closed until further notice.

The City of Westmount has issued municipal tax relief measures as follows:

Measures for businesses

  • The second instalment of municipal taxes will be postponed to a date that will be announced in the coming days.

Measures for individuals

  • The second instalment of municipal taxes will be postponed to a date that will be announced in the coming days.


Quebec City Tax Measures

Quebec City announced the following measures:

Measures for businesses

  • The May 4, 2020, municipal tax payment has been postponed to August 4, 2020.
  • The July 3, 2020, municipal tax payment has been postponed to September 3, 2020.
  • The September 3, 2020, municipal tax payment has been postponed to November 3, 2020.

Measures for individuals

  • The May 4, 2020, municipal tax payment has been postponed to August 4, 2020.
  • The July 3, 2020, municipal tax payment has been postponed to September 3, 2020.
  • The September 3, 2020, municipal tax payment has been postponed to November 3, 2020.

Other measures

To give effect to the relief measures, the City will process all cheques on the appropriate date enumerated above. Taxpayers should adjust their pre-authorized online payments to correspond to the above dates. For taxpayers who have agreed to pre-authorized payments over 12 months with interest, the City will hold to the agreed direct debit and will adjust the costs downward for the last payment in February 2021.

The City of Lévis has issued municipal tax relief measures as follows:

Measures for businesses

  • Effective March 19, 2020, interest on late payments of municipal taxes has been suspended until May 30, 2020.
  • Businesses will benefit from a 3-month moratorium for capital and interest on the repayment of loans by Développement économique Lévis.


City of Vancouver Tax Measures

Vancouver Mayor Kennedy Stewart announced on March 20, 2020, the following measures:

Measures for businesses

  • Property tax payments will be deferred for 60 days.
  • The City has asked the province of British Columbia to ban evictions.

Measures for individuals

  • Property tax payments will be deferred for 60 days.
  • The City has asked the province of British Columbia to ban evictions.


City of Calgary Tax Measures

The City of Calgary announced the following measures:

Measures for businesses

  • City water, waste and recycling customers will have the option to defer payments of their utility bill for three months, with no penalties or interest.
  • Outstanding amounts will be divided up so that you can pay it off on the last six bills of 2020.

Measures for individuals

  • City water, waste and recycling customers will have the option to defer payments of their utility bill for three months, with no penalties or interest.
  • Outstanding amounts will be divided up so that you can pay it off on the last six bills of 2020.

Authors

Subscribe

Stay Connected

Get the latest posts from this blog

Please enter a valid email address