What is TIPP?
TIPP is a monthly tax installment payment program by which taxpayers may make consecutive monthly payments for taxes rather than a single annual payment.
Why should I use TIPP?
Many people find it difficult to make a single large tax payment that becomes due once a year. Monthly installments break this large payment into monthly payments to make budgeting for monthly expenses easier.
Who can use TIPP?
You can join TIPP ...
If your tax account is paid in full and you do not have any other outstanding charges or adjustments other than the supplementary tax billing not yet past its due date;
If you do not presently pay your taxes through a mortgage company (P.I.T.);
If your application is received by December 15, for commencement of TIPP payments in January of the next calendar year.
How does TIPP work?
A monthly payment amount is calculated by dividing your most recent annual tax levy by the number of installment payments in the upcoming calendar year (e.g. 12). Payments begin January 1 of the new year and continue each consecutive month until the account is paid in full.
Payment amounts will be adjusted in July to compensate for changes in taxes resulting from the annual tax levy. At the time of the annual tax billing you will be notified of the total amount of installments paid to date and the calculation of the new installment amounts for the remaining payments in that year.
Payments may be made by automatic withdrawal, by post-dated cheque, by internet or telephone banking or by walk-in. Installment payments must always commence in January and continue each consecutive month with your last payment being December 1 of the current tax year.
You may withdraw from the program by giving written notice at least two weeks before the next payment date. NOTE: If you withdraw or your program is cancelled, all unpaid taxes become due and payable, and are subject to penalties in accordance with the tax levy bylaw.
If any payments are missed, the Rural Municipality of Headingley has the option of removing the taxpayer from the TIPP program or charging interest of 1.25% per month on the outstanding balance for the month missed.
Change of Account
If you change your chequing account, please advise the Municipal Office by providing a new VOID cheque, at least two weeks before the next payment date.
What happens if I sell my property during the year?
When your property is sold, TIPP participants are requested to inform the Municipal Office, in writing, at least two weeks in advance of the next payment.
If you sell your property, we can provide your solicitor with the most recent tax levy and the total TIPP payments made to date in the current year. Your solicitor should take these facts into consideration when making the final adjustments to the transfer of funds between you and the purchaser.
How do I apply for TIPP?
Alternatively, application forms may be obtained from the Municipal Office, 1-126 Bridge Road, Headingley, MB.
To apply for TIPP, complete and sign an application form and return it along with a sample cheque marked "VOID" if the automatic withdrawal is the form of payment you wish to make.