Hamilton woman fears city's property tax collection plan will force her further into debt

The City of Hamilton is catching up on automatic property-tax payments following the recent cyberattack on its systems. Now, residents are being told to make four payments in two months. For one Hamilton woman who recently lost her job, that's more than she can afford. 

Downtown resident Carol Andrews, 59, lost her job in February in what she initially thought would be a short term lay-off from the east-end balloon factory where she worked.

Andrews said she's now receiving about $800 per month in employment insurance payments and working part-time at a store, but not earning close to what she used to. For her, having to make an unexpected mid-month tax payment, when she hasn't had time to save up, is a problem. 

"I have the house insurance payment and car insurance payment on April 19 and then [the city wants] their money on April 15. That $800 ain't going very far," Andrews told CBC Hamilton.

She said because she lost her job, she's already falling behind on other bills adding up to well over $1,000, and having to pay this one so soon — it's around $150 per payment — will put her even further behind. She wishes the city would extend the payment periods.

"I still have to live…but there's gonna be no money in the next two weeks to do so."

City said there will be some leniency for missed payments 

The city paused pre-authorized tax payments due to the ransomware attack that has disrupted numerous services since late February.

On April 4, the city website announced payments will resume April 15, on a schedule that would normally be four monthly payments come out of people's bank accounts two weeks apart from one another.

The city said in a media release revisions were made to the withdrawal dates to provide time for property owners to adjust. Around 68,000 property owners are on a pre-authorized payment plan for property tax, according to the city. 

The city said if payments do not go through on the first attempt, there is some leniency, for a short period. If funds are insufficient, the bank will automatically reattempt to withdraw funds within seven to 10 days, Mike Zegarac, general manager of finance and corporate services previously told CBC Hamilton via email. 

If taxpayers cannot deposit the necessary funds in their account in time for the second withdrawal attempt, their bank will charge a non-sufficient funds (NSF) fee, he said.

Zegarac said the city will credit residents' property tax roll account for NSF charges only for the revised withdrawal period between Feb. 25 and May 31. "During this same time period, the city will also waive its administrative fee for returned payments and taxpayers will not incur any penalty as a result of the delayed withdrawals."

That's cold comfort for Andrews.

"I'm not saying I don't want to pay it," she said, adding that she budgets carefully to make ends meet. But now she's behind on hydro and gas and worries property tax payments will add to that. "It's a snowball effect." 

Andrews said she's borrowed money and is hoping she'll have enough to pay the city next month.

She said she called the city about her situation and was told she could cancel her pre-authorized payments, but that doing so would take two weeks to process. Given the schedule was announced on April 4, and the first payment is Monday, that's not enough time, she said. "It just isn't right."

The city confirmed that two-week opt-out timeline to CBC Hamilton.

It also said that taxpayers who are "experiencing financial hardship" can complete what is called a compassionate appeal.

"Compassionate appeals are available for taxpayers unable to pay their property taxes and who wish to receive a tax reduction due to extreme sickness or poverty," Zegarac said by email. The deadline to appeal for 2024 is Feb. 28, 2025.

Andrews, who takes care of three rescue dogs and has difficulty walking and hearing, said she feels abandoned by her elected leaders.

She said she's worked her whole adult life but as the cost of living increases, she worries she won't be able to keep her home. "I see where these homeless people are coming from. Some of them I know," she said.

"You gotta work with us, not against us."