COVID-19 Monthly Pre-Authorized Payment (PAP) Plan Authorization
Introduction
The Municipality of Clarington has implemented a COVID-19 Monthly Pre-Authorized Payment (PAP) plan to assist property owners who have been financially impacted by the COVID-19 pandemic. This program is to assist property owners with payment flexibility by allowing taxpayers to spread their taxes over equal monthly payments. An administrative change to the existing pre-authorized payment (PAP) plan allows taxpayers to join without paying an amount up front.
How does the plan work?
Monthly payments will be deducted from the account provided on the first day of each month. The monthly withdrawal amount will be calculated by taking the account balance for 2022 divided by the number of months remaining in the 2022 term. The term will end with the November first withdrawal and the new term for 2023 will begin on December first. You will be automatically enrolled in the program for subsequent years unless a cancellation request is received in writing.
For applicants enrolled on the plan prior to the calculation of the 2022 final taxes, an estimated account balance will be used to calculate the withdrawal amount. Once taxes for the year are finalized, you will receive your final tax bill which will indicate a revised payment schedule. The payment schedule will appear on the front of your tax bill and will indicate the new withdrawal amount for July to November. Your tax bill will also indicate your payment schedule for the upcoming tax year to begin on December first.
Applicants enrolled on the COVID-19 Monthly Pre-Authorized Payment plan are exempt from penalty and interest charges.
A monthly withdrawal request not honoured at the bank (i.e. Non-sufficient funds (NSF) or stop payment etc.) will be subject to a service charge. The dishonoured amount plus the service charge must be paid by the tenth of the month. If payment is not received, your next withdrawal amount will be automatically increased to cover this amount.
If two or more payments fail to be honoured, The Director of Financial Services/Treasurer may revoke continued enrolment in the plan as well as cancel your privilege to participate in the plan for one year. Tax accounts disqualified from the program shall revert to the regular instalment billing system and be subject to penalty and interest in accordance with Municipal By-Laws. If you pay taxes through your mortgage company but wish to join our plan, it is your responsibility to ask your mortgage company if they will allow you to do so. It is the taxpayer’s responsibility, not your lawyer’s, to submit a request to cancel. Taxation Services must be notified, in writing, at least two weeks before the next withdrawal for all cancellations and bank account changes.
How do you enrol in the plan?
- All prior outstanding taxes must be paid in full by January 5, 2022.
- Complete the “COVID-19 Monthly Pre-Authorized Payment Authorization” form which allows the Municipality to automatically withdraw the applicable monthly withdrawals from your bank, trust company or credit union account.
- Contact Taxation Services 905-623-3379 ext. 2650 for the monthly payment amount.
- Upload a void cheque or a personalized per-authorized debit slip along with this online application form. Alternatively, a paper copy of the application form can be requested by contacting Taxation Services.
