Funds accumulated in your Property Tax Savings Account are used to pay your annual property taxes. We ensure the tax bill is paid for your property regardless of the balance in your Account. This means that at some point during the year, your Account may have a surplus and, at other times, a shortfall. The taxes will be paid no matter the dollar amount accumulated in your Property Tax Savings Account. After the final property taxes are remitted for the current year, an automatic review of the tax portion will be completed to ensure we collect enough funds to pay your property taxes for the next year. You can make a lump sum payment into your Property Tax Savings Account any time after funding. Once the additional funds have been deposited into your Property Tax Savings Account, an adjustment will then be made to the tax payment portion being collected with your mortgage payment.

A shortfall (debit) happens if there is not enough money in the Property Tax Savings Account when property taxes are paid. This money needs to be reimbursed to MCAP for taxes paid on your behalf. If there is a shortfall, you are charged an interest rate equivalent to your mortgage rate. We take the outstanding amount into account when calculating your new tax portion for the upcoming tax year. You may reduce the shortfall by making a lump sum payment into the Account, or a series of payments over time. The tax payment portion will then be adjusted to factor in the additional payments made.

After paying the final property taxes for the year, we will review your tax payment portion to ensure we are collecting the correct amount. We will also send you a Property Tax Statement to show the status of your Property Tax Savings Account, and to advise of any changes to the tax payment portion. This will show how we calculated the tax portion and will let you know when the change will take effect. The tax adjustment also takes into consideration possible increases in taxes.

A tax year is the period between when your final taxes are paid, to the expected date the final taxes are due for the upcoming year.

Across the country, various municipalities participate in the Vacancy Tax Program. It is the homeowner’s responsibility to submit all required documents to their tax office before the deadlines determined by the municipality to avoid any charges or penalties. We encourage you to visit your municipality’s website to confirm if this applies to you.

In case of a name or ownership change, please contact your municipal tax office.

RMG’s Property Tax Service only applies to property taxes. Homeowners are responsible for the payment of their utility bills directly to the service providers.

It is up to the homeowner to cancel their TIPPS or PAPP with their municipal tax office.