Property Tax Prepayment Plan
The Property Tax Prepayment Plan is an optional payment plan which provides an opportunity for taxpayers to make 10 equal monthly prepayments for the following year's estimated property taxes. The prepayments can be made from August 15 of the preceding year to May 15 of the year in which current taxes are due. Any balance remaining, which is the difference between the current year taxes and the total amount of the prepayments, is due on the tax due date of the current year.
Applicants must authorize automatic transfer of payments from a chequing account at any Canadian Financial Institution to your property tax account. Final payments will not be automatically withdrawn.
Participating in the Property Tax Prepayment Plan
- View a printable Property Tax Prepayment Plan Application Form (PDF)
- Complete and sign the application form and return it with a void blank cheque to the following address: City of Salmon Arm
PO Box 40
Salmon Arm, BC V1E 4N2
Important: The authorization form cannot be sent online or faxed as original signatures are required along with a void blank cheque.
- Your tax account must be paid in full at the time of application;
- You will require a bank account with cheque writing privileges at a Canadian Financial Institution; and
- An authorization form must be completed and submitted with a void cheque.
Note: If your Mortgage Company is paying your property taxes, this prepayment plan will not apply to you.
Your monthly payment amount is an estimate, based on 1/11 of your prior year's net tax payable or, at your request, a lesser amount. The City withdraws 10 payments; any difference between the prepayments shown on your property tax notice and current year's taxes are due on the tax due date to avoid a penalty. The final payment is not withdrawn from your bank account; you must pay this amount yourself. The minimum monthly instalment is $25.
You must renew your prepayment plan each year. Property tax prepayment plans that are not renewed by the tax due date are cancelled. Once you have been set up on the property tax prepayment plan, a renewal only requires the completion of the application; a void cheque in not required unless your banking information has changed.
Each year a property tax prepayment plan information sheet and application form is included with your annual property tax notice. The application form outlines your tax prepayment options. You must indicate the tax prepayment amount that reflects your situation with respect to the Home Owner Grant you are entitled to claim next year.
- Pre-authorized payments will be taken out of your bank account on or after the 15 day of each month
- Authorized prepayments start August 15 and continue to May 15 for a maximum of 10 consecutive automatic withdrawals
- There are no tax prepayments withdrawn from your bank account for the months of June and July of each year
- The difference between the current year's taxes and prepayments is the amount that is still due from you and must be paid by the tax due date to avoid a penalty. The final payment is not withdrawn from your bank account
- Any over-payments will be applied to the following year's taxes
- Payments are credited to the tax account on the 15 of each month;
- The interest rate is 3.5% below the City Banker's prime rate; and
- Interest will be paid on your tax account each month based on the prepayment amount.
Annual Property Tax Notice
When you receive your property tax notice in mid-May, it will show the total of the accumulated prepayments made plus the interest earned. If this amount is less than the total amount of the property taxes due, you must pay the outstanding amount by the due date to avoid a 10% penalty. The due date is the close of business on the first working day of July.
Home Owner Grant
Even if you prepay your property taxes, you must still complete and sign the Home Owner Grant Application form, if you are eligible, at the bottom of the property tax notice and return it to the City of Salmon Arm before the tax due date to avoid a penalty.
- Home Owner Grant applications that are incomplete, unclaimed or late may result in a 10% penalty on this amount if corrections are not made prior to the tax due date
- Annual utilities unpaid at December 31 of each year are transferred to arrears taxes. If at any time you owe money for previous years' utilities the prepayments will be used to offset the arrears taxes.
- All dishonoured payments will be subject to a handling service charge; and
- The City of Salmon Arm may cancel your enrolment in the property tax prepayment plan if two payments are dishonoured by your Financial Institution.
Written notification must be received by the City of Salmon Arm to:
- Change your bank account number and/or Financial Institution; or
- Cancel of your participation in the property tax prepayment plan.
If you withdraw from the program, all payments received are non-refundable and will remain as a credit on your property tax account.
Selling Your Property?
If you sell your property during the year, the prepaid amount will stay with the property. It is very important to notify the City of Salmon Arm to stop withdrawals from your bank account to this property tax account.
It is your responsibility to ensure that your lawyer or notary handling the sale of property provides you with a credit for payments made on your property tax account. This is normally reflected in the statement of adjustments provided by your lawyer or notary.