What happens if an Alberta property owner fails to pay their property taxes?
Correct Answer
B) The municipality may add penalties and interest, then auction it at a tax sale after typically 3+ years of arrears
Under the Municipal Government Act, municipalities charge penalties and interest on overdue property taxes. If taxes remain unpaid for an extended period (typically three or more years in arrears), the municipality may initiate a public tax sale, where the property is auctioned to recover the outstanding taxes, penalties, and costs.
Why This Is the Correct Answer
Under the Municipal Government Act, municipalities first add penalties (typically 12-18% annually) and interest on overdue taxes. After an extended period of arrears, usually three or more years, the municipality may place the property on a public tax sale auction to recover the outstanding taxes, penalties, and associated costs. This is a progressive, multi-year enforcement process.
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