Pre-Authorized Payment Plan

Who is eligible?

This plan is for payment of residential taxes only.

What are the benefits?

• Easier on your budget by spreading payments over twelve months, rather than four large instalments.
• No special fees or service charges to enroll in the plan.
• Save the cost of postage, cheques and envelopes.
• Avoid late payment charges and eliminate the worry about missed due dates, postal disruptions, etc.

How does the plan work?

Plan A:  Monthly - Regular

This plan spreads your taxes over 12 monthly payments beginning in January and ending in December.  Your monthly tax payment will automatically be withdrawn from your bank account on the 15th of each month (or next business day).

Plan B:  Instalment

We will debit your bank account on the tax due date for the amount of your instalment.

Plan C:  Monthly - Arrears

We will debit your bank account on the 15^th of each month (or next business day) for the amount stated on your application (subject to approval by the Tax Section).

Plan E:  Monthly - Property Not Fully Assessed

We will debit your bank account on the 15^th of each month (or next business day) for the amount stated on your application.        

How are my payments calculated?

Full Year - Monthly Regular

• January to May - 1/12^th of prior year's total taxes
• June to December - Current year taxes payable, (less total amount paid from January to May), divided by the seven months remaining.

Example:  An average homeowner with prior year taxes of $3,600.00 (assume current taxes increase 3% to $3,708.00) would have the following payment schedule:

You can join the Regular Monthly Plan (A) at any time throughout the year as long as your taxes are "current" at the time of the first withdrawal.  You will be required to make a payment to bring your total payments up to the YTD balance required under the PAP plan.  For example, if you join the plan for the August 15^th withdrawal, your total YTD payments must equal $2,130.86.  Your August through December payments will be as outlined in the above schedule.

If your account is not "current" you are only eligible for the Monthly Arrears Plan C, which is subject to penalty/interest charges.

Property Not Full Assessed

Based on your purchase price, closing date and current assessment value, we will calculate a monthly estimate using past and current tax rates.  This amount will need to be reviewed/revised at the time you receive your Notice of Supplementary Assessment from the Municipal Property Assessment Corporation.  You can choose to have any amount withdrawn from your account, however, it must be sufficient to cover at least the land only taxes on your account.

Please contact the Town of Ajax Tax Section for an estimate. 

How will I be notified of changes to my payment amount?

Prior to the 15^th of the month of your first payment, you will be informed of the amount to be withdrawn from your account. When that amount is to change, (usually January and June) you will again be advised prior to the 15^th.

Can I change accounts or financial institutions?

Yes. You must notify the Town in writing by the fifth day of the month in order to change the next scheduled payment.  You must provide a new 'VOID' cheque or a signed Account Change Authorization Form from your financial institution.

What about special charges, supplementary taxes?

If you are on the Regular Monthly Plan (A), this applies only to your regular yearly taxes.  Any additional amounts added to your account throughout the year must be paid in full separately.  If you are on the Property Not Fully Assessed Monthly Plan (E), your withdrawal amount is an estimate only.  Please contact our office when you receive your Supplementary Assessment Notices.

What if there's not enough money in my account?

A withdrawal request not honoured by our bank will be subject to the standard returned cheque administration fee. You must replace the payment by the end of the current month (your account will not be re-debited for the returned payment) or your enrollment in the plan will be cancelled.

If a second monthly payment is not honoured within a plan term, the administration fee will apply and your enrollment in the plan will be cancelled. However, you may reapply for enrollment for the next calendar year.

Can I delay or put a monthly payment on hold?

No. In order to reduce administrative costs, automatic withdrawals cannot be delayed or held.

Can I withdraw from the plan?

Yes. To withdraw from the plan at any time, just send a letter to the Tax Section stating your decision to cancel and your tax account will revert to the regular instalment billing system.

Your written request to cancel must be received by the fifth day of the month in order to stop the next scheduled payment.

If you sell your property, please notify us in writing stating the closing date of the sale by the fifth day of the month.

How & When do I enroll?

Complete the attached application form and return to the Tax Section by December 5^th to join effective January 15^th, or by the 5^th of the month in which you want your first payment to begin.

• There is no need to re-enroll each year. Your enrollment in the plan remains in effect until it is cancelled in writing either by yourself or the Town.