Saturday, June 08, 2019

Things the City of Toronto Should Invent: monthly property tax bills

I knew that when I switched from renting to owning that I would have to pay property taxes separately (rather than property taxes being included in my rent).

What I didn't know was how weird the City of Toronto's billing schedule would be.

I have six scheduled property tax payments a year. Any sensible person would conclude "Okay, so one payment every two months," but it doesn't work that way - they're unevenly spaced!  My six payments a year are due in March, April, May, July, August and September.

This spacing means that the payments always feel like a burden. Because I get five months in a row without a payment, it doesn't feel like the kind of regular recurring expense I would mentally take into consideration in my budget.  But, at the same time, the fact that it happens multiple months in a row doesn't make it feel like a one-off expense that hurts a bit in the month where it occurs but ultimately my bank account reachieves equilibrium. This arrangement is the worst of both worlds.

Solution: 12 monthly property tax payments

People are accustomed to sizeable monthly payments being due on the first of the month - after all, that's how rent works!  So not only would monthly payments make each cheque smaller, but, by fitting into the pattern to which we're accustomed, it would make it more painless.

I previously came up with a conspiracy theory that sales tax isn't included in sticker price to stoke anti-tax sentiment, by making it an unpleasant surprise at the cash register. 

I wonder if that's also the intention behind this erratic property tax schedule?

1 comment:

Anonymous said...

The City of Calgary already does this - it is called the TIPP program...