Tax & Utility Prepayment Plan
Authorization
Form
Terms and conditions:
1. The person applying for admission into the Tax & Utility Prepayment Plan must be the person who
will be making the prepayments (the “Applicant”), but need not be the registered owner(s) of the
subject property (collectively, the “Owner”) provided that the Owner signs this application form
where indicated evidencing the Owner’s consent to this application and agreement to the terms
and conditions herein.
2. Before admission into the Tax and Utility Prepayment Plan, all current and outstanding taxes,
penalties, interest, and utilities must be paid.
3.
Authorization
forms must be received at least 15 days prior to the next payment date.
4. Prepayments are withdrawn on the first business day of each month starting in August and
ending in May.
5. The estimated monthly prepayment in Option 1 is calculated from the most recent property tax
notice, plus 5%, less your prior year Home Owner Grant eligibility, less any credit balance on your
account(if applicable), divided into 10 equal monthly prepayments, and is adjusted each year.
The annual
Property
Tax Notice will detail your next year’s monthly prepayment amount. There
will be no additional notification sent by the District with regard to annual changes to the
prepayment amount.
6. Total prepayments under Option 2 must not exceed the estimate of next year’s property taxes
(most recent +5%).
7. Simple interest will accrue on
prepayments
at an annual rate of 2.5% below the CIBC prime rate
set on August 1, December 1, and March 1 of each year. If the interest rate is zero or negative, it
will be based on the average interest rate offered by CIBC on personal savings accounts with
balances up to and over $5,000, rounded to the nearest half percent above zero on August 1,
December 1, and March 1 of each year.
8. Prepayments plus accrued interest thereon will be applied to taxes on July 1 in the year taxes are
imposed.
9. Tax and Utility Prepayments automatically
continue from year to year unless and until cancelled
in writing by the Applicant or the Owner (see #13 for details on cancelling Tax and Utility
Prepayment Plan).
10. The District may terminate the prepayment plan if two consecutive
prepayments
are dishonoured
by the Applicant’s financial institution and will charge an administrative fee to the owner of the
subject property, set by the District, for each dishonoured prepayment.
11. The Applicant and the Owner acknowledge and agree that, to avoid penalty, the Home Owner
Grant must be claimed (if eligible) each year by the tax due date, and any balance on the
property tax notice must be paid by the tax due date.
12. Changes to the
Prepayment
Plan:
The Applicant or the Owner must provide the District with written notice at least 10 days prior to
the next prepayment date to make
amendments
to bank account information, financial institution
information, or prepayment amount.
13.
Cancellation
of the Tax and Utility Prepayment Plan:
The Applicant or the Owner must provide the District with written notice at least 10 days prior to
the next prepayment date to cancel the
prepayment
plan. To obtain a cancellation
form please
go to
www.dnv.org/propertytax
and click the link: Pay Your Taxes Monthly (PAWS). For more
information on your right to cancel a PAD Agreement contact your financial institution or visit
www.cdnpay.ca
14. The Applicant and the Owner
acknowledge
that:
a. The
prepayments
will continue to be
automatically
withdrawn and applied to taxes,
even after the sale of the subject property, unless and until written notice of
cancellation
from the Applicant or Owner is received by the District;
b.
Prepayments
are not refundable;
c. Credits must be adjusted for through the property
conveyance
process on the sale
of the subject property; and
d. The District is not
responsible
for the
applicant’s
failure to cancel prepayment
authorization
on the sale of the subject property.
15. The Applicant and the Owner acknowledge and agree that by providing and delivering this
authorization to the District constitutes delivery by me/us to
m
y/our financial institution.
