Sudbury councillor says city will lose $150K in interest due to property tax billing delay
SUDBURY -- Tax bills in Greater Sudbury will now be sent out at a later date, but at a cost.
In addition to the $12,000 cost to reissue Sudbury property tax bills in three weeks, one councillor says the city will lose $150,000 in interest.
The first set of property tax bills were scheduled to be sent out Wednesday morning, but now the new dates are set for Mar. 2 and Apr. 2.
This decision came after a City Council committee meeting Tuesday night.
“Council agreed that we felt it was unfair to send these tax bills out three weeks early and we’ve asked that the dates be changed, and they will be similar to the dates in previous years.” said Sudbury Mayor Brian Bigger.
The city says this change will cost an estimated $12,000.
“I think it’s well worth it not to give tax payers a nasty surprise this week and three weeks early, so well worth it and lessons learned.” said Bigger.
Bigger says the majority of the $12,000 will go towards reissuing 26,000 new statements.
However, City Councillor Mike Jakubo says another effect of the billing delay is that the city will lose out on approximately $150,000 in interest earned.
Jakubo, who also serves as the chair of the city's finance and administration committee, also says that the 2020 budget did not reflect higher interest and penalties on late tax payments because of the change in dates.