The City of Weyburn has now discontinued offering a discount for early payment of property taxes, as the city determined there is no fiscal advantage for the payments. "This was a difficult decision.
The City of Weyburn has now discontinued offering a discount for early payment of property taxes, as the city determined there is no fiscal advantage for the payments.
"This was a difficult decision. We have always been focussed on finding as many ways as possible to keep our ratepayers' taxes as low as possible. Unfortunately, this program is no longer feasible. After long discussion and analysis, we realized that this discount is no longer cost effective," said Brenna Keeler, city finance manager and assessor.
Previously, the City offered a discount of 2.5 per cent to those who paid their taxes before the end of March.
In an interview, Keeler explained the discount, while acting as an incentive to taxpayers to get their bill paid early, was actually instituted to give the city cash flow in the early part of the year. As things have evolved over the years, the city no longer requires that cash flow, she said, explaining, "For us, that's an issue any more. We have enough funds on hand to operate."
Analysis by the City's finance department showed the city was only earning interest of 0.8 to 1.3 per cent on these prepayments, meaning the city was basically subsidizing early payers.
"It just isn't fiscally responsible for us to be paying out more money than we are taking in on these taxes," said Keeler, adding that removing this discount will remove an $80,000 expense from the city's budget.
From now on, property owners will receive their tax notice in May, with taxes due by July 31 of that year.
Other payment options available from the City include a preauthorized payment program where ratepayers can pay their taxes over 12 months with automatic monthly withdrawals. There is no fee to use this option.
Keeler said there are many people who are taking advantage of the monthly payment system, and noted some are even doing their payments bi-weekly, as they get paid on that basis.
For more information, contact Keeler at City Hall, or e-mail her at bkeeler@weyburn.ca.
