General News

New Tecumseth council receives tax arrears report

April 24, 2026   ·   0 Comments

By Brian Lockhart

The Town of New Tecumseth received a report at the April 13 council meeting detailing the status of property tax arrears as of Dec. 31, 2025, along with current collection efforts and the number of properties eligible for tax sale registration.

As of Jan. 1, 2025, there were 255 properties with two-plus years of tax arrears. As of Dec. 31, 2025, 56 properties remained with over two years of arrears.

Of the 56 remaining properties, 26 had been formally registered in the tax sale process, while the remaining 30 had either entered payment arrangements with the town or had been issued a final notice prior to tax sale registration.

The total arrears as of Dec. 31, 2025, amounted to $6,548,584, inclusive of penalties and interest, tax sale charges, and water/wastewater arrear transfers.

The Town of New Tecumseth collects property taxes for multiple entities, including its own operations, the County of Simcoe and local school boards.

The tax collection is based on assessment values provided by the Municipal Property Assessment Corporation (MPAC).

These property taxes are critical for funding essential services, including education, infrastructure, and municipal operations. Outstanding property tax receivables continue to be monitored and acted upon in a timely manner.

Given that property taxes form a priority lien on the property, the town’s tax receivables are secure with minimal risk of uncollectable taxes. MPAC assessments ensure property taxes are distributed based on each property’s current market value, providing a consistent and equitable approach to funding local services and education.

Taxes are billed twice a year through interim and final billing, with each consisting of two installments.

Unpaid utility arrears are transferred to the tax accounts after three months of non-payment. This process is completed monthly by staff in settlement areas, including Beeton, Tottenham, and Alliston.

The town is obligated to remit levies billed to the County of Simcoe and school boards, irrespective of whether it has received payment from taxpayers.

To encourage prompt payment, the town imposes a penalty and interest rate of 1.25 per cent on the first day of each month for principal balances not paid by the designated due date. The town aims to enhance cash flow by reducing the amount of outstanding property taxes.

As of Dec. 31, 2025, there were 56 properties in a position of tax sale.

Of these properties, 26 had already been registered for tax sale, while the remaining 30 properties were either actively engaged in arrears payment arrangements with the town, which are expected to bring the accounts fully up to date within 24 months through pre-authorized payment agreements, or were in the process of receiving final notice prior to registration. 

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