COVID-19 Financial Support

The Municipality of Clarington has implemented a COVID-19 Monthly Pre-Authorized Payment (PAP) plan to assist property owners who the COVID-19 pandemic has financially impacted. This program helps 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 will enable taxpayers to join without paying an amount upfront.

Monthly payments will be deducted from your account provided on the first day of each month. The monthly withdrawal amount will be calculated by taking the account balance for 2021 divided by the number of months remaining in the 2021 term. The term will end with the November first withdrawal, and the new term for 2022 will begin on December 1.

You will be automatically enrolled in the program for subsequent years unless a cancellation request is received in writing.

To determine what your monthly withdrawal amount will be, contact Taxation Services at 905-623-3379 ext. 2650.

The Municipality of Clarington has implemented a COVID-19 Property Tax Deferral Program to assist property owners financially impacted by the COVID-19 pandemic. This program helps property owners with payment flexibility by deferring the interim tax instalment due dates by 60 days; penalty and interest-free.

Applicants must meet the eligibility criteria, which includes:

• Property taxes must be paid in full on December 26, 2020 (the date the second emergency order was declared).
• Experienced financial hardship directly related to the COVID-19 pandemic in one or more of the following categories: loss of pay/employment, excessive revenue loss (greater than 30 per cent), or business closure.
• Property is in either the residential/farm property class or a commercial property class with an assessment value of less than $5 million.
• Did not receive compensation from business interruption insurance for property taxes.

Approved applications would have their February 18, 2021 instalment deferred until April 19, 2021, and their April 22, 2021 instalment deferred until June 21, 2021; penalty and interest-free.

The deadline to apply was March 31, 2021.

The application window for this program is now closed.

Application deadline: Sunday, July 12, 2020

As part of a $2 million financial support package for taxpayers and business owners negatively impacted by the COVID-19 pandemic, Clarington Council has dedicated $1 million to a temporary property tax relief program.

The property tax relief program will only cover the local, municipal portion of the tax bill, which amounts to roughly 30 per cent of the overall bill. The relief program spans from March 17, when the Province declared an emergency, until June 19, when Clarington entered Stage 2 of Ontario’s reopening framework. Residents will need to apply for the tax relief program and will have to meet strict criteria. The program was passed under a clause in the Municipal Act, which gives a local municipality the authority to refund taxes levied if Council considers the taxes to be “unduly burdensome” on taxpayers. The definition of “unduly burdensome” has been set out by Clarington Council. The tax relief program requires residents to show that the taxes levied are unaffordable and create a financial strain on the overall household income, which may have been cut as a result of the pandemic due to job loss or other circumstances. Taxpayers will have to prove that property taxes levied are higher than five per cent of their overall household income. Also, residents will have to show that the taxes levied amount to more than 20 per cent of their non-registered savings, creating a financial hardship. To qualify for the rebate, residents will have to provide the following documents:

• bank statements or investment statements for each month of the rebate period (March to June);
• letters from employers showing job loss;
• record of employment;
• notices of assessment or supporting documentation that show receipt of Employment Insurance (EI) or Canada Emergency Response Benefit (CERB) payments.

If residents meet the conditions outlined in the application process, they will receive a refund cheque from the Municipality. As an example, the annual municipal taxes on a home assessed at $500,000 are $1,965.38. This translates to monthly payments of $163.78, which covers only the local portion of your taxes, and the rebate received would be $655.12.

• Property Tax Relief Program is now closed.

2022 COVID-19 Tax Deferral Program

To ease the financial burden of the fifth wave of the COVID-19 pandemic on residents, the Municipality of Clarington is once again implementing a 60-day deferral of taxes without interest and penalties for qualifying taxpayers.

The 2022 COVID-19 Tax Deferral Program allows qualifying taxpayers, including business owners, to fill out an application to defer their tax payments without interest and penalties for two months. Clarington has developed an application process for taxpayers to follow requesting to qualify for the Tax Deferral Program. For those that qualify, the February 17 instalment will be deferred to April 18, 2022, while the April 21 instalment will be deferred to June 20, 2022.

Applicants must meet the eligibility criteria, which includes:

• The applicant has experienced financial hardship directly related to the COVID-19 pandemic in one or more of the following categories: loss of pay/employment, excessive revenue loss (greater than 30 per cent), or business closure.
• Property taxes must be paid in full as of January 5, 2022, for the property the applicant is applying for or agrees to pay any outstanding 2021 tax amounts to support their application eligibility.
• The property is in either the residential/farm property class or a commercial property class with an assessment value of less than $5 million.
• The applicant did not receive compensation from business interruption insurance for property taxes.

The deferral program is now closed. The deadline to apply was March 31, 2022.