When it comes to property taxes, new homeowners may often get taken aback when they receive what is referred to as a supplementary tax bill from their municipality or local taxing authority.
In Calgary, Edmonton and most municipalities in Alberta, property taxes are due and payable by June 30 each year. No matter the due date, when the property taxes are paid, they cover the calendar year. Paying property taxes in full by June 30 covers the taxes owing for the previous 6 months and the ensuing 6 months following ( January 1 to December 31) of that particular year.
With newly constructed residential homes, at the time of closing, the property tax rate is usually only assessed against the vacant land and not against the improvements on the vacant land; in other words, the physical building. Once the city completes their assessment of the property, the municipality or local taxing authority will normally issue a supplementary tax bill to the new homeowner shortly thereafter. It is prorated to reflect the number of months the new construction is complete or occupied during the current tax year.
The supplementary assessment notice includes both the supplementary months and the date the supplementary is based on. This information will be used to calculate the supplementary property tax bill, which will be sent separately.
Be prepared for this when buying a newly constructed home—it is almost certain that a supplementary tax bill will be issued. When the supplementary tax bill is received, the due date may not provide sufficient time for the homeowner to obtain the adjustment from the builder. In this event, it is prudent for homeowners to set aside additional funds for the supplementary tax bill, or risk paying unnecessary penalties for late payment should the homeowner not be in a financial position to pay by the required due date.
When you were working with your solicitor regarding the final closing costs, you would have signed an acknowledgement stating that any post-closing adjustments should be dealt with directly with Excel Homes and not with Boyce Law or through your chosen legal representative.
When a new homeowner receives a supplementary tax bill, a copy of the supplementary tax bill should be forwarded to Excel Homes so that the adjustments can be made accordingly. Generally, Excel Homes will calculate what the homeowner is owed prior to possession and send them a letter explaining the calculations along with a copy of the invoice and a cheque.
It is the homeowner’s responsibility to pay the municipality for the full amount if they have not done so already.
You can scan or give a copy of the supplementary tax bill to your Area Manager in your community and they will send it on to our head office for processing, or:
Email or mail a copy to:
Excel Homes Accounting Department
Email: proptax@excelhomes.ca
Suite 200, 1710 – 14th Avenue NW
Calgary, Alberta
T2N 4Y6
To avoid penalties, the supplementary tax bill must be paid on or before the due date shown on the bill. If you are a current Tax Instalment Payment Plan (TIPP) participant, your property tax instalment is recalculated when the supplementary tax is billed. The revised payment amount and the start date of that new payment is shown on your supplementary tax bill.
If the homeowner does not make immediate arrangements for their own monthly payment to the municipality, they will receive a bill for the full amount owing to December 31. If the closing date is prior to June 30, they will have up to June 30 to pay this outstanding amount without penalty. If the closing date is after June 30, they must pay this remaining amount in full within 30 days to avoid penalties.
Last updated on Oct. 4, 2023