The economic downturn of 2008 is still having an impact on Port Coquitlam's financial situation as the city moves into its budget deliberations this fall.
For one thing, the city has had an increase in the number of delinquent property tax payments and will likely collect extra revenue from penalties and interest charged to those property owners who were in arrears.
Mindy Smith, the city's director of corporate services, said following the 2008 financial crisis, taxes in 2009 were unpaid by more property owners than usual. When these bills remained outstanding in 2010, they were considered in arrears and interest was charged.
With a tax sale pending in September, most of the 46 homeowners still behind in 2011 were able to pay their bill. Fourteen remaining properties were sold last month at the annual tax sale, an auction that is held in municipalities every year on the last Monday of September.
"There are no delinquent tax bills outstanding at this time," Smith said in an email. "Any properties with outstanding delinquent taxes were sold at tax sale."
A person who has had his property sold at a tax sale has one year to redeem the property and retain ownership. Smith said all of the properties sold in the last few years through the tax sale auction have been redeemed.
An annual property tax sale is held at 10 a.m. on the last Monday of September in council chambers and all properties with three years of unpaid property taxes are subject to sale. If there are no bidders on the property, the city is declared the purchaser.
The bidding starts at the upset price, which equals all outstanding taxes, penalties and interest, including a 5% tax sale costs.
