The MD of Bonnyville is moving toward a significant change in how and when property taxes are due, with council giving first reading to a bylaw that would shift the tax penalty date earlier starting in 2026.

Council approved first reading of Bylaw 1927, which would amend the unpaid tax penalty bylaw and move the penalty date to June 30, instead of the current September deadline.

Why council is considering the change

Administration told council the change is driven by cash flow realities and the timing of municipal expenses.

“Revenue raised through property taxes supports the current year’s operating and capital budgets, but we don’t collect most of that revenue until September,” administration explained.

Administration noted that roughly 41 per cent of municipal costs are incurred between May and September, while only about 11 per cent of tax revenue has been collected during that same period.

“Nearly the entire construction season is paid for prior to the collection of taxes,” administration said, noting this reduces the municipality’s ability to earn interest on investments.

Administration also noted that most Alberta municipalities already operate under a June 30 tax deadline.

Support for ratepayers

Council raised concerns about how the change could affect residents who are used to paying later in the year.

Administration said several supports are already in place.

“Administration is very mindful of potential hardship,” council was told. “We want to make sure tools are in place to help residents transition.”

Those tools include a tax instalment payment plan, a penalty forgiveness policy for long-time taxpayers with clean payment histories, and proposed updates that would allow residents to enter payment plans mid-year during the transition.

What happens next

Bylaw 1927 has only received its first reading. Further readings and public communication would be required before any change takes effect.

If approved, the new deadline would apply to the 2026 property tax year.