Tax Installment Payment Plan (TIPPs)
This optional plan allows property owners to pay taxes by automatic monthly debit from their bank account. There are no administration fees for TIPP subscribers. Enrollment can be done any time of the year.
2020 Tax Notice Information:
Due to the COVID-19 pandemic, residents will receive their 2020 Tax Notice during the first week of August. It will include the 2020 municipal taxes and the provincial education taxes (which are collected by the municipality on behalf of the provincial government).
For residents who are part of the Tax Installment Payment Plan (TIPP), no action is required upon receipt of your bill. Your monthly rate will be automatically adjusted on September 15th. More details about the new calculation will be on the back of the tax notice.
For residents who asked to defer their payments, the City finance staff will be in contact in August to set up a mutually-agreed upon payment plan. If you have any questions once you receive your tax notice, please contact the Tax Clerk at 403-207-7057 or email firstname.lastname@example.org.
Need more time?
For those who may need extra time, Chestermere Council is considering a bylaw (Bylaw 028-20) that would allow people to combine 2020 and 2021 tax payments and then pay the amount over the months from the time they sign up until the end of 2021.
Example: For a home that has an average property tax of $4000, the City would combine your 2020 bill with an estimated 2021 bill and then divide the payments over 16 months (September 2020 to December 2021) to set an average monthly payment of $500 per month. Without this program, this property would pay $1000 per month until December and then $333 for the months of 2021.
If you are interested in this program, email email@example.com.
To participate in the TIPP program:
- Complete the TIPP Application Form
- Return the form and your void cheque, and payment (to get your tax account up to date) to City Hall. There is no application cost to sign up. For the first year, your total tax amount will be split over the remaining months of the year (rather than paying a lump sum to catch up to the current month). The following January, you will have your payments split over 12 months.
- The first payment will be withdrawn from your account on the 15th of the following month.
- Payments will continue to be withdrawn unless you submit a TIPP Termination Form
- Payments will be automatically adjusted each year (in July and January) to account for any changes in the tax rate. See the 'Calculations' tab to learn more.
Note: If your home was a new build and was completed in the current calendar year, please call the Tax Department at (403) 207-7057 prior to signing up for TIPPs.
Changing your Banking Info
If you need to change the banking info for TIPPs, complete the TIPP Change of Banking Information Form. Please email, fax or drop off this form at City Hall (105 Marina Road).
Payments will continue to be withdrawn unless you submit a TIPP Termination Form. Please email, fax or drop off this form at City Hall (105 Marina Road).
The monthly payment is calculated by dividing your annual property tax by 12. You will still receive a tax notice in June that shows your current taxes but it will also show a credit amount that is equal to the payments made to date.
Annual Tax Levy = January to June payments + July to December payments.
Monthly TIPP payments are adjusted 2 times a year: every January and July.
January to June TIPP payments are a pre-payment for the current year taxes, based on the prior year’s tax amount and calculated by the Total previous year’s tax amount divided by 12 = January to June Monthly Withdrawal. The January adjustment is NOT a tax rate increase.
July to December TIPP payments pay off the remaining current year taxes and are calculated by taking the Current year taxes less January to June’s pre-payments then divided by 6 = July to December Monthly Withdrawal
Due to the COVID-19 pandemic, the 2020 adjustment will be done in September to ensure the balance of yearly taxes are paid by the end of the year. The calculations are as follows:
September 2020 Adjustment:
(Total yearly taxes – payments already made-August 15th payment withdrawal) ÷ 4 = September to December monthly withdrawal
January 2021 Adjustment:
Total previous years taxes ÷ 12 = withdrawals for the first part of the year, until the next tax rate is established in bylaw
Total payments made from January to August plus September to December equals the Annual Taxes.
Notes about the Tip Program:
- The Provincial Government has a property tax assistance program for seniors. Visit their website or call 1 (877) 644-9992 to learn more.
- Some properties are exempt from taxes (including some non-profits and community groups). Find out more here.
- When application occurs during August to December and penalties have been applied, they will be held in abeyance for 12 subsequent successful monthly payments. Once the 12 months are complete the penalties applied will be waived. \
- The monthly payment amount will be automatically adjusted annually on July 15th and January 15th. New amounts are shown on the annual tax notice mailed in June.
- Defaulted payments will have a fee applied and a letter will be mailed out.
- In the event that two consecutive payments are defaulted, this agreement will become null and void.
- New amounts are shown on the annual tax notice mailed in June.