Property Tax Installment Payment Plan (TIPP)
WHAT IS ‘TIPP’?
Property Tax Installment Payment Plan (TIPP) is a Tax Installment Payment Plan that allows property owners to pay their Property Tax in 12 installments, rather than a single annual payment.
HOW DOES TIPP WORK?
Payments may only be made on the first of each month by automatic withdrawal from a bank account.
A monthly payment is calculated by dividing your annual tax levy by 12. The program begins January 1, however, you may join at any time during the year. Your payment amount will be adjusted for June 1 to compensate for changes in taxes as a result of the annual tax levy in May. You will be notified of the total amount of installments paid to date and the new installment amount for the remainder of the year.
Previous year’s taxes $1,200.00 January through May monthly payments ($1200 / 12) 100.00
Current year’s taxes 1,237.00
Less total payments (January through May) 500.00
Balance owing 737.00
June through December
$737 / 7 = $105.28 rounded up to $106.00 106.00 *
*December’s payment will be $101.00 to compensate for rounding up throughout the year.
NOTE: TIPP continues until written notification to stop the withdrawal is received.
IS THERE A CHARGE TO JOIN?
The City of Calgary does not charge for this service if you start the program January 1. If you join after January 1 there is a 2% filing fee based on the missed installments. An initial payment of the missed installments plus the filing fee must be paid at the time of application. If you are purchasing a home that is currently on TIPP, you may continue the program by contacting our Customer Service Centre at (403) 234-7480 to obtain details and an application.
WHAT IF AN ADJUSTMENT IS MADE TO MY TAX ACCOUNT?
Adjustments to your tax account may be made during the year due to a decrease or increase in your assessed value. You will be given 30 days notice unless other arrangements have been made.
The monthly installment will continue until your account is paid in full. The final installment will bring your account to a zero balance.
The monthly installment will automatically be adjusted for increases received prior to November. After November 1, increases are due and payable by the due date or you may contact us for alternate arrangements.
In December all accounts are reviewed. If an adjustment is made to your account you will be notified.
SUPPLEMENTARY TAXES AND TIPP
A supplementary tax bill is issued when a building or residence is completed or has had additional construction in the current tax year. If you receive a supplementary tax bill we will automatically recalculate your monthly installment to account for this bill.
TWO WEEKS WRITTEN NOTIFICATION IS REQUIRED
• To change banking information, you need to provide a new ‘VOID’ cheque.
• To stop withdrawals when your property is sold.
• To cancel the program for any other reason.
If you withdraw or your plan is cancelled, all unpaid taxes are due and payable, subject to penalties in accordance with the Penalty By-law.
TIPP payments are neither refundable nor transferable.
If any payment is missed, The City of Calgary has the option to cancel the agreement and request payment of the total outstanding taxes.
The new owner can assume the TIPP payments for the property by submitting an application. TIPP payments are not refundable and may not be transferred from one property to another.
TIPP YOU NEED TO …
• have a bank account
• fill out an application
• provide a sample cheque marked “VOID”
Line of Credit and Power Line accounts CANNOT be used.
If you pay Principal Interest and Taxes (PIT) to a mortgage company you must contact them prior to joining TIPP.
TO OBTAIN AN APPLICATION …
VISIT 3rd floor
Calgary Municipal Building
800 Macleod Trail S.E.
Our hours for telephone and walk-in service are:
8:00 am – 4:30 pm, Monday through Friday.
To find additional helpful guides and documents, visit: //firsttimehomebuyercalgary.com/packages-for-available-for-download