TIP FAQ

What is the Tax Instalment Plan (TIP)?

The Tax Instalment Plan (TIP) is a convenient way to pay your property taxes in monthly instalments by automatic bank withdrawal without incurring late payment penalties.

Monthly payments are automatically withdrawn from your bank account from January to December on the last day of each month.

If you are interested in signing up for the Tax Instalment Plan please fill out our Tax Instalment Plan (TIP) Pre-Authorized Debit Application Form (Online).

Condo owners please note: If you are paying your taxes on your condo unit and you have one or more titled parking stalls, an application form is required for your condo unit and each parking stall.

Who can sign up for the Tax Instalment Plan (TIP)?

The owner of the property. A property owner may elect to have someone else pay property taxes on his/her behalf. In this case both the owner and the elected payor will be required to sign the TIP application form.

All correspondence regarding the tax account will be mailed to the property owner as legislatively it is the owners responsibility to ensure that the taxes are paid. If the property owner has elected another party to pay on his/her behalf it is their responsibility to forward any payment change notifications to the payor.

Do I need to sign up each year?

No, once you have enroled your property on the Tax Instalment Plan you do not need to re-apply each year. You will remain on the plan until you fill out the TIP cancellation form.

I just purchased a new property. Can I transfer my monthly payments to my new property tax account?

No. Payments made to the Tax Instalment Plan are not transferrable or refundable. A new Tax Instalment Plan (TIP) Pre-Authorized Debit Application Form is required for your new property.

I own multiple properties. Can I pay my property taxes for all of them through the tax instalment plan?

Yes. However, because our TIP applications are unique to each property, you will need to fill out a separate Tax Instalment Plan (TIP) Pre-Authorized Debit Application Form for each property.

If you have multiple properties on TIP being withdrawn from the same bank account, you will only see one lump sum transaction on your bank statements monthly.

Is there a deadline to enrol in the Tax Instalment Plan (TIP)?

Yes, the deadline to enrol for your current year’s taxes is June 15. Any applications received after June 15 will not be accepted for the current year.

When is the best time to join the plan?

You can enrol at any point up to June 15. However, it’s best to join by January 15 for the upcoming year to avoid paying an initial payment. Please note; all applications must be received by the 15th of the month you wish to start in.

What is the initial payment?

If you enrol in the Tax Instalment Plan (TIP) after January, you will need to make an initial payment of all the “missed monthly payments”. For example, if you enrol to start TIP in March (application must be received by March 15th), you will need to make up the payments for January and February.

I have a balance owing on my tax account. Can I sign up for the Tax Instalment Plan?

Yes, but all outstanding balances and missed payments must be paid at the time of the application.

I have received a Supplementary Tax Notice, can I sign up for the Tax Instalment Plan?

Yes, the deadline to enrol is November 15.

If you are already enroled in TIP and receive a supplementary tax bill, your monthly instalments will be automatically adjusted. Please look on your bill to see your new monthly instalments.

How are the monthly instalments calculated?

For the first five months of the year, your monthly instalments are based on 1/12 of the previous year’s tax amount. The monthly instalment amount will be adjusted for the remaining seven months of the year based on the new annual tax amount.

Your property tax notice mailed in May will show the new monthly instalment withdrawal amount to start June 30.

The payment withdrawn December 31 will be for the balance remaining in your tax account and will bring your account to a zero balance.

Will my monthly instalments change for any other reason during the year?

Your monthly withdrawal amount may be adjusted if a revised or supplementary tax is applied to your account, or if other charges or credit adjustments are processed during the year.

The payment withdrawn on December 31 will be for the remaining balance of your tax account. This will include any missed payments, NSF charges and other charges that may have been processed during the year.

I am enroled in the Tax Instalment Plan, why does my tax notice show a balance owing?

The Tax Instalment Plan runs January to December. When the tax notices are mailed in May there is a balance still owing on the account. When you are enroled in TIP you are able to spread your tax balance into monthly payments over the calendar year without penalty. The final payment withdrawn on December 31 will bring your tax account to a zero balance.

Please do not pay the balance showing as owing, as this is a statement of your tax account at the time of the tax levy billing. Make sure to look for the new monthly payment amount that will start June 30.

My bank is requesting proof that I have paid my taxes. How do I show that I am enroled on the Tax Instalment Plan and what the balance is on my account?

The City of Red Deer now has an online service that will allow you to access information about the various accounts you hold. Please register for MyCity to view and print information about your property tax account; you will require your roll number and access code.

The account balances tab will indicate any balance owing on your account as well as if you are enroled in TIP. The transactions tab will show a detailed breakdown of your monthly payments. A printout of either of these tabs should satisfy your bank’s request.

The December 31 withdrawal will bring your tax account to a zero balance.

What if my banking information changes?

You are responsible for submitting any banking information changes via our Tax Instalment Plan (TIP) Change Form (Online) by the 15th of the month you wish the change to be processed. Any changes received after the 15th of the month will not be processed until the following month. Any payments not received due to changes in information not being submitted by the deadline, will be subject to a fee.

 

How do I cancel my participation in the plan?

If you wish to cancel your enrolment in TIP, you are required to submit a Tax Instalment Plan (TIP) Cancellation Form (Online) by the 15th of the month.

Condo owners please note: If you are paying your taxes on your condo unit and you have one or more titled parking stalls, a cancellation form is required for your condo unit and each parking stall.

Once TIP is cancelled, all unpaid taxes become due, payable and will be subject to penalty charges per the Tax Instalment Plan Bylaw (pdf) .

TIP payments are non-refundable and non-transferable to other property tax accounts.

What if I sell my property?

A change of ownership in the property does not automatically cancel participation in the Tax Instalment Plan. You are responsible for notifying The City in writing of your intent to cancel, please submit a Tax Instalment Plan (TIP) Cancellation Form (Online) by the 15th of the month. We recommend that you inform your lawyer that you are participating in The City’s Tax Instalment Plan, and check to see how any adjustments are being made to determine what month you should be cancelling TIP.

Payments will not be refunded if there is a change in ownership of the property.

What if I forgot to cancel my participation in the Tax Instalment Plan?

The property tax account belongs to the property not an individual. When a property is bought and sold the property tax account is bought and sold along with that property. If a property has changed ownership and you have continued to make payments, you are now making payments to someone else’s account. Due to Freedom of Information and Privacy Legislation you are no longer entitled to the information on that account.

TIP payments are non-refundable and non-transferable to other property tax accounts.

News & Notices

The City turns off the lights to ...

March 22, 2017

Red Deerians are encouraged to turn off their lights for one hour on Saturday to conserve energy and raise awareness of climate change in celebration of Earth Hour.