Pre-Authorized Tax Payments FAQs

Contact

 

Presented below are answers to a number of frequently asked questions (FAQs) about pre-authorized tax payments in Whitby.

How does the plan work?

The Pre-authorized Tax Payment Plan offers you the option of worry-free payments even if you are away for an extended period of time. Simply complete the application form, return it along with a personal void cheque, or bank stamped verification form for your chequing or savings account .

Our address is:

Town of Whitby, Tax Section
575 Rossland Road East
Whitby, ON  L1N 2M8

Your monthly tax payments will be automatically withdrawn from your bank account (or other financial institution) starting on the 15th day of the month following enrolment or the first business day after, if the 15th falls on a weekend or a holiday.

There will be no withdrawals made in the month of December, each year.

Please note that one withdrawal attempt is made and if the withdrawal is not honoured by your financial institution, you must replace the amount by the end of the month to remain on the Pre-Authorized Tax Payment (PAP) plan, plus the applicable administration fee for the returned payment.

In late December or early January of each year, we will send you notification in writing of the instalment amount that will be withdrawn on the 15th day of each month until the final tax levy for that calendar year is finalized.

Once the final tax levy for the year has been calculated, the payment schedule will appear on the back of the tax bill advising you of the revised amount of your withdrawal from that point in time until the last PAP withdrawal of the year, which will be November 15th. There is no withdrawal in December.

REMEMBER to attach a personal cheque marked "VOID" to your application and return both the cheque and application to the Town of Whitby.

What are pre-authorized payments?

Pre-authorized payments are a modern, easy method to make recurring payments without the inconvenience of cheque writing. With your permission, your payments can be made automatically through your financial institution.

All applications must be in our office prior to the end of the month preceding the month that you wish to join.

Who is eligible to join and how do I join?

You are eligible if your residential tax account is up-to-date. Just complete the application form, attach a personal cheque marked "VOID" to the application, and return both to:

Town of Whitby, Tax Section
575 Rossland Road East
Whitby, ON  L1N 2M8

All applications must be in our office prior to the end of the month preceding the month that you wish to join.

How much will my monthly payment be? Will it change?

In late December or early  January of each year, we will send you notification in writing of the instalment amount that will be withdrawn on the 15th day of each month until the final tax levy for that calendar year is finalized.

Once the final tax levy for the year has been calculated, you will receive a final tax bill with the payment schedule on the back of the bill advising you of the revised amount of your withdrawal from that point in time until the last PAP withdrawal of the year, which will be November 15th. There is no withdrawal in December.

What are the benefits?

As a taxpayer, you will no longer have to worry about missed due dates or late payment charges. Your eleven payments will be automatically deducted on the 15th day of each month, January to November inclusive, and will be recorded by your bank (or other financial institution) on your account statements. In the event of a postal disruption, illness, or if you are away on vacation, your payments will still be made. All you will have to do is update your bankbook! Monthly payments allow for easier budgeting, eliminating the need to pay your annual taxes in four instalments. You will also save on postal charges - it's all automatic. Once you are enrolled in the plan, you do not have to reapply for subsequent years, unless you sell the property.

Is it confidential and safe?

Yes. The Town's bank handles all of the payment transactions. Access to your account is limited solely to the withdrawal of monthly tax payment funds as authorized. Account information of balances and other transactions is not available to the Town.

What if I pay my taxes through a mortgage company?

You will need to contact your mortgage company to determine if it is an option for you to change how you pay your property taxes and join the Pre-Authorized Tax Payment Plan.

What if I sell my property?

Simply notify the Town of Whitby in writing to:

Town of Whitby, Tax Section
575 Rossland Road East
Whitby, ON  L1N 2M8

as soon as possible, stating the closing date of the sale. We will ensure that deductions stop at the appropriate time. Please advise us in writing prior to the end of the month preceding the month that you are selling and need the withdrawals to stop. Please be advised that when you are no longer on the Plan, your tax account reverts back to the normal four instalment due dates. Please ensure you have paid all instalments in full with due dates prior to your cancellation date to avoid penalty charges.

Can I withdraw from the plan?

Yes. To withdraw from the plan, notify the Town of Whitby Tax Section in writing, stating your decision to cancel and your tax account will revert to the regular instalment billing system. Your written request must be received prior to the end of the month preceding the month that you wish to cancel. Notice received after this date cannot be accommodated until the withdrawal in the following month. Please be advised that when you are no longer on the Plan, your tax account reverts back to the normal four instalment due dates. Please ensure you have paid all instalments in full with due dates prior to your cancellation date to avoid penalty charges.

What if there is not enough money in my account for the withdrawal?

Many banks and other financial institutions offer an overdraft protection service that will protect you if there are insufficient funds in your account to cover the monthly tax payment withdrawal. You may wish to contact your bank to find out more about overdraft protection.

However, if a withdrawal amount is returned to the Town of Whitby, written notification will be sent to the mailing address on record adding an applicable administration fee and the replacement payment must be made directly to our office on or before the end of the month that the withdrawal occurred. If the replacement payment is not received within the current month, the account is automatically removed from the Pre-Authorized Tax Payment plan and reverts back to the instalment due dates whereby penalty/interest charges will apply.