Property Tax FAQ

What are property taxes?

Monies collected by municipalities that provides services such as waste collection, recreation, fire, and police services, along with roads and parks.

How many tax notices will you receive annually?

2 Tax Notices are sent annually, February and July.

How are the tax notices sent out?

We currently offer the 2 options to receive the bills by mail or email.  Sign up for E-billing  E-billing Registration Form - Town of Essex

How many installments and what are the due dates?

We currently have 4 Installments.

The last business day of February, April, July, and October.

How are residents notified of due dates?

In February and July, 21 days prior to the first due date of each installment, reminder ads are placed in the Essex Free Press and Harrow News along with social media.

When does penalty get charged? 

How is the interim tax notice calculated?

 Half of the previous year’s taxes less any local improvements.

How is the final tax notice calculated?

The current assessed value per the returned Assessment Roll multiplied by the current year’s property tax rate by ward and property class plus any local improvements.

What are local improvements?

Locals are improvements are projects that add benefit to specific benefitting properties within the municipality and only the properties gaining the benefit share in the costs.  A by-law gives the municipality the authority to add these costs to the property owners that share in the benefit.  Financing generally occurs by issuing a long-term debt or debenture and is divided over several years.  Examples: constructing of sewers or construction of a drain.

What can be added to the tax account?

A municipality has the authority to add water/sewer arrears to the property not the person that benefits.  Therefore, a landlord can be responsible for their tenants’ water/sewer arrears.  When these charges are added to a property, they become tax and are collected in the same manner.  We send the property owners a letter notifying them of the charges.  Depending on the timing of these bills they may or may not be included in the Tax Notices.

Other common charges added to tax are outstanding drain bills, dog tags, Provincial offences, and false security alarms.

What is a supplementary tax notice?

Supplementary Tax Notices are in addition to your annual Tax Notice.  They reflect an increase in a value of property where a new home or building is completed or occupied during the current tax year.  Omitted assessments were not previously included in the annual Tax Notice.  If your property is newly constructed, has had improvements, or occupied you will receive a Supplementary Tax Notice.  The Assessment Act allows MPAC to go back two years plus the current year.  If there is a change in ownership before the tax adjustment is processed, the adjustment belongs to the land and is the responsibility of the new owner to pay.  They can contact their lawyer to apply for the money through title insurance.  

What are the tax reductions available to residents?

Tax incentives for farm, managed forest, and conservation lands along with charitable rebates for commercial properties and the tax increase reduction for low-income seniors and disabled.

Where does the tax rate come from?

The total tax rate is made up of the Municipal, County and Education rates.  The tax rates are passed annually through the Town of Essex, the County of Essex, and the Province of Ontario.

Where does the assessment come from and who’s responsible?

Municipal Property Assessment Corporation (MPAC) determines the assessed value for all properties across Ontario and is responsible for the assessment appeals.  Find information about your property by calling 1-866-296-6722 or AboutMyProperty™ | MPAC

What are the options to revise your assessment?

Contact MPAC to fill out a Request for Reconsideration Application (RFR) free of charge. 

Disagree with Your Assessment? | MPAC

 What are the payment options? 

• In person at the Municipal Office, 33 Talbot Street South, Essex.  Accepted methods of payments, cash, cheque, and debit.

• In person at the Harrow & Colchester South Arena, 243 McAffee Street, Harrow.  Accepted methods of payment are cheque only.  (No tax information is provided).

• After hours Dropbox located at 33 Talbot Street South, Essex and Harrow & Colchester South Arena, 243 McAffee Street.

• Financial Institutions, in person, online or telephone banking.

• Through your mortgage company.

• Preauthorized Payment Plans – Monthly and Installment Plans are offered at no additional charge.
  Pre-Authorized Debit (PAD) Enrollment Form
  
  Monthly Plan is estimated in January and withdrawn from your bank account on the last business day from January to November.  December the balance owing is withdrawn on the last business day of the month.  The Town recommends that in July you look at your total taxes and divide this by 12 to ensure your payment is enough.  You may contact the Town to increase the payment if you notice it is not enough.
  
  Installment Plan is withdrawn on each of the Installment due dates.

• Virtually City Hall (VCH) – Credit Card Payments only.  A 2.5% service fee is added on the total amount paid.  Virtual City Hall - Town of Essex

Why is a service fee added on credit card payments made through Virtually City Hall (VCH)?

To cover the significant fees charged on credit card transactions ensuring that the costs are not passed along to those not using the service.  The fee is not retained by the Town but will be used to offset the credit card processing fees being incurred.

When are arrears notices sent?

Sent semi-annually by mail in May and November.

What is tax registration?

The Municipal Act, 2001 allows a municipality to begin the tax sale process on a property on January 1, if there is a balance in the second year following the year that the property taxes are due.  The Town of Essex adheres to this timeline for tax sale.  We send out arrears’ notices semi annually, May and November along with a warning letter before we proceed with tax registration.  Tax registration is a lien that is placed on the property by the municipality and does not affect one’s credit rating.

Why is the information only shared with the property owner on title?

The Town of Essex follows the Municipal Freedom of Information & Protection of Privacy Act (MFIPPA).  This allows us to share information on a person’s account with the registered person on title unless authority is given by the owner.  Lawyers may obtain information on account by ordering a tax certificate, a charge is associated with this service.  See the Fees and Charges By-Law.