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MUNICIPALITY OF THE COUNTY OF PICTOU
TAX COLLECTION POLICY
POLICY # 2026-05-05
1
PURPOSE
1.1 This policy establishes guidelines for the effective and efficient billing and collection
of property taxes within the Municipality of Pictou County. It ensures that all taxpayers
are treated fairly, consistently, and equitably, while supporting the Municipality in the
responsible collection of revenues required to deliver municipal services.
2
LEGISLATIVE AUTHORITY
2.1 Property tax billing and collection are governed primarily by the Municipal
Government Act (MGA).
2.2 This policy provides administrative guidance to staff in circumstances where the MGA
allows discretion or where additional internal procedures are required to support
effective administration.
2.3 Where a conflict exists between this policy and the MGA, the provisions of the MGA
shall prevail.
2.4 Failure to strictly follow an administrative process described in this policy does not
invalidate any tax collection or tax sale proceeding that otherwise complies with the
requirements of the MGA.
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GOVERNANCE AND ADMINISTRATIVE AUTHORITY
3.1 The administration of property tax billing and collection is carried out by municipal
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staff under the authority of the Chief Administrative Officer (CAO) or designate.
3.2 Pursuant to Section 30 of the MGA, the CAO is responsible for the administration of
municipal affairs and is accountable to Municipal Council for the proper
administration of the Municipality.
3.3 Under Section 30(3) of the MGA, Municipal Council provides direction on municipal
administration through the adoption of by-laws and policies. Council therefore
provides governance oversight of the tax collection process, while staff are
responsible for implementing this policy and carrying out tax collection activities in
accordance with the MGA.
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SCOPE
4.1 All municipal employees involved in the billing, collection, and administration of
property taxes must adhere to the provisions of this policy.
4.2 All tax levies, rates, charges, and amounts added as tax liens are subject to this
policy.
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DEFINITIONS
5.1 Arrears means Taxes, rates, or charges that remain unpaid after the due date.
5.2 Interim Tax Bill means the Tax bill issued annually, generally calculated as 50% of the
previous year's taxes multiplied by the current year's assessment.
5.3 Final Tax Bill means Tax bill issued annually after the interim bill, reflecting the
remaining amount due for the fiscal year.
5.4 Payment Arrangement means a formal agreement between the Municipality and a
taxpayer to pay outstanding taxes over time.
5.5 Tax Sale Position means Status where a property is eligible or required to proceed to a
tax sale under Part VI of the MGA.
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TAX ACCOUNT BILLING
6.1 The Municipality will issue an Interim Tax Bill each year with a due date of June 15.
6.2 The Municipality may adjust individual accounts where the variance between the prior
year's taxes and the current year's assessment would result in a significant change in
the interim amount billed.
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6.3 The Municipality will issue a Final Tax Bill each year with a due date of October 15. Any
change to this due date requires approval of Municipal Council.
6.4 Interim and final payments are applied as part payments for the current fiscal year
and are subject to interest if unpaid by the due date.
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INTEREST
7.1 Interest will be calculated and accrued monthly on all outstanding taxes, rates, and
tax liens beginning immediately after the applicable due date.
7.2 The rate of interest shall be established by Municipal Council through the applicable
Interest Rate Policy.
7.3 Interest will not be paid on credit balances except where the credit results from an
overpayment of taxes following a successful assessment appeal. In such cases,
interest will be paid in accordance with the Policy on Interest Refunds - Overpaid
Taxes as the Result of Successful Assessment Appeals.
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TAX COLLECTION - GENERAL PRACTICES
8.1 The Municipality will make all reasonable efforts to collect taxes owed.
8.2 Collection activities may include, but are not limited to:
8.2.1 Written notices and reminders
8.2.2 Direct communication with taxpayers
8.2.3 Use of external collection agencies where approved by the CAO
8.2.4 Tax sale proceedings as permitted by legislation
8.3 The MGA requires that tax bills be mailed to the address shown on the filed
assessment roll or to a more current address if known.
8.4 It is the responsibility of property owners to ensure that their mailing address is
current with the assessment authority and municipal records.
8.5 If a taxpayer does not receive a tax bill, it remains the responsibility of the taxpayer to
contact the Municipality to determine the amount owing.
8.6 The Municipality is not responsible for notifying new property owners of arrears on
properties purchased after the filing of the assessment roll. It is the responsibility of
purchasers and their solicitors to ensure that taxes are paid as part of the property
transaction.
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9
PAYMENT ARRANGEMENTS
9.1 Staff may enter payment arrangements with taxpayers who have tax arrears.
Payment arrangements shall normally:
9.1.1 Extend for a period of one or two years
9.1.2 Include payments sufficient to cover both tax arrears and current year's taxes
9.1.3 All payment arrangements must be documented on the tax account.
9.1.4 A property that is in tax sale position may have the tax sale proceedings deferred
provided the taxpayer remains in compliance with the agreed payment schedule.
9.1.4.1 If a payment arrangement is not honoured, the property may immediately proceed
with the tax sale process.
10 ANNUAL TAX SALE REVIEW
10.1 Each year staff shall review all tax accounts in arrears to determine which properties
meet the requirements for tax sale under the MGA.
10.2 This review shall normally occur prior to June 30 and shall include:
10.2.1 Identifying properties eligible for tax sale
10.2.2 Identifying properties required to proceed to tax sale
10.2.3 Confirming ownership and assessment information
10.2.4 Confirming outstanding balances including interest and applicable costs
11 PROPERTIES IN TAX SALE POSITION
11.1 The Municipality conducts tax sales in accordance with Part VI of the MGA.
11.1.1 Tax Sale Eligibility is any property with taxes unpaid from the immediately preceding
taxation year and outstanding as of June 30th..
11.1.2 Required Tax Sales is any property with taxes unpaid for the preceding three fiscal
years
11.1.3 The Municipality may not commence tax sale proceedings if the amount of taxes due
is below $250.00 and less than 4 years in arrears
12 COLLECTION NOTICES AND REMINDERS
12.1 For properties not in tax sale position, reminder notices may be issued to property
owners to encourage payment of outstanding balances.
12.2 Generally, reminder notices will be issued:
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12.2.1 July for outstanding balances from the Interim Tax Bill (due June 15)
12.2.2 November for outstanding balances from the Final Tax Bill (due October 15)
12.2.3 Further collection communications may include:
12.2.4 February for Arrears Statements
12.2.5 May for Tax Sale Warning notices
13 TAX ACCOUNT ADJUSTMENTS AND WRITE-OFFS
13.1 Staff may write off or adjust accounts in the following circumstances:
13.1.1 Errors on the assessment roll which cannot be corrected through the assessment
appeal process
13.1.2 Administrative errors approved by the CAO or designate
13.1.3 Taxpayer discharge from liabilities through bankruptcy
13.1.4 Where the cost of pursuing collection would reasonably exceed expected recovery,
a write-off may be recommended to Municipal Council.
14 PROPERTY TAX DEFERRAL
14.1 Section 70 of the MGA allows Council to adopt by-laws permitting the postponement
of tax payments.
14.2 Applications must be submitted and approved in accordance with the applicable Tax
Deferral by-law.
15 PAYMENTS
15.1 Payments must be received on or before the due date. Accepted methods:
15.1.1 In person (cash, cheque, debit, money order)
15.1.2 Mail (postmarked prior to due date)
15.1.3 Drop box at the municipal office (located at the front entrance of the municipal
building)
15.1.4 Mortgage company payments
15.1.5 Telephone or Internet banking (Taxpayers must allow 3-4 business days for the
payment to reach the Municipality of Pictou County's financial institution for it to be
considered received)
15.1.6 Pre-authorized payment plans for special programs
16 POST-DATED CHEQUES
16.1 Post-dated cheques are not normally accepted, except for:
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16.1.1 Interim Tax Bill (due June 15)
16.1.2 Final Tax Bill (due October 15)
17 RETURNED PAYMENTS
17.1 Payments returned for insufficient funds are subject to a handling fee equal to the
cost charged to the Municipality by the financial institution.
18 REPORTING
18.1 The Deputy Treasurer or designate shall report quarterly to the Financial Services
Committee, including:
18.1.1 Total outstanding tax arrears
18.1.2 Status of payment arrangements
18.1.3 Tax collection activity
18.1.4 Properties identified as eligible or required for tax sale
19 POLICY REVIEW
19.1.1 This policy shall be reviewed periodically to ensure compliance with the MGA
and reflect best practices.
20 ADMINISTRATIVE
20.1 This policy provides administrative guidance and does not create any legally
enforceable rights for taxpayers. The Municipality of Pictou County retains full
authority and discretion under the Municipal Government Act (MGA), including, but
not limited to, the collection of taxes, imposition of interest, or initiation of tax sale
proceedings.
20.2 Staff are required to exercise their duties in accordance with the MGA, applicable by-
laws, and Council-approved policies, and to apply this policy at their professional
discretion.
21 CONFLICT OF INTEREST
21.1 No council member or employee of a municipality that sells land for arrears of taxes
or the council member or employee's spouse shall be eligible to participate in tax sale
proceedings.
21.2 No company in which a council member or employee or their spouse owns or
beneficially owns the majority of the issued and outstanding shares shall be eligible
to participate in tax sale proceedings.
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21.3 The Municipality shall use its best efforts to determine if a conflict of interest exists
prior to the issuance of any deeds required as part of the tax sale process.
22 REPEAL
22.1 All other policies related to Tax collection are hereby repealed namely POLICY # 2022-
04-25