The Yukon government has deferred the deadline for property tax payments to Sept. 2 for people and businesses experiencing monetary challenges due to COVID-19, with hope that those with stable income will still pay on time.

“We all recognize the challenging times Yukoners and Yukon businesses are facing right now,” John Streicker, the minister of Community Services, said Thursday afternoon.

“We’re all in this together; Yukon property owners whose incomes are affected by the crisis need to be spending their money supporting their businesses and families during this time.”

Streicker signed a ministerial order this week under the Civil Emergency Measures Act to defer property tax payments without interest nor penalties. The 2020 property tax payment would normally be due July 2.

Streicker announced the two-month deferral at a media briefing with Mayor Dan Curtis.

“We are hoping by deferring the tax by two months, this will bring some breathing room when it comes to managing your finances,” Curtis said.

“This is a way of putting more money in your pocket.”

Proof of income loss is not required to take advantage of the late payment deadline; however, Streicker said he hopes Yukoners who are able to pay by July 2 will still do so.

“We are just encouraging people, if they have the means, if they’re fine, to encourage them to continue to move forward because the money is important to our municipalities,” Streicker said.

While the Yukon government also collects property taxes from property owners outside the territory’s eight municipalities, Streicker said the delay of funds is not of major concern to his department at this time.

Curtis noted this decision isn’t without consequences for the City of Whitehorse, which relies on property tax payments to provide half of the city’s total operations and maintenance budget.

The expected revenue for the city is $43 million, and is written into the city’s budget for 2020.

Curtis said he expects enough Yukoners will pay on time that it won’t severely impact essential services the city provides.

“At the best of times, when we’re at a full complement of tax, we struggle then as well to ensure the essential services are continuing through our community,” Curtis said.

“We are going to keep on keeping on, I think we’re in pretty good shape in that most people are in a position to pay…. We aren’t looking at a massive reduction of essential services that I can see.”

Streicker said his department is in close conversation with the City of Whitehorse and the Yukon’s eight other municipalities. He believes all jurisdictions will be able to weather the delay in funds.

“We don’t anticipate we’re going to hit a problem, but if there is, we’ll work on it,” Streicker said.

“We are all trying to put some skin in the game, and do our best to support Yukoners and Yukon businesses.”

The territory’s municipalities recently received government funding through the comprehensive municipal grant program, and Streicker said more support is possible if it’s required. The City of Whitehorse received $7.6 million from the territorial government through the grant.

The two-month extension is in line with what several other Canadian jurisdictions have enacted since the pandemic began. The extension only applies to the 2020 year, and includes any tax notices municipalities may have already issued.

Curtis said Yukoners can expect an explanatory document with their tax bill.

Tara Wheeler, the president of the Association of Yukon Communities, told the Star this morning that the Yukon was lagging behind the rest of the country on property tax deferrals. That’s most likely because the tax deadline is written into the act and required a municipal order to override it.

“I’m glad it happened now, because residents are starting to get nervous,” Wheeler said.

“It’s the unknown, and right now nobody knows if and when they’ll be going back to work or how things are going to look this summer. We know finances are tight, and going to be tight all over the country.”

Wheeler said the seven municipalities outside of Whitehorse are in good shape to maintain services in spite of the delay in property tax payments.

“Our Yukon municipality governments are very fiscal, we have a little bit of a cushion in the bank and we have some great CAOs up here,” Wheeler said.

She added that she is confident the Yukon government will be responsive to any cash flow issues the municipalities might face later this year.

The association is now looking to the homeowners grant to provide additional relief to Yukoners. Wheeler said she hopes that homeowners who were eligible for the grant last year will qualify again without reapplication.

“If you’re eligible last year, you should still be eligible this year, and it kind of eases up social distancing rules and will also get money flowing faster,” Wheeler said.

The Federation of Canadian Municipalities issued a press release Thursday asking the federal government for a grant of between $10 million and $15 million to provide aid to municipalities during the pandemic. Wheeler said this funding may provide additional support to the Yukon.

Yukon Party members of the legislative assembly are pleased with the property tax deferral, which they brought to question period before the house adjourned on March 18.

“This move will help Yukoners who are struggling financially and I am happy to see the government listen to the Yukon Party on this,” Wade Istchenko, the Yukon Party MLA for Kluane, said this morning.

“We just wish that the Liberals didn’t stick their head in the sand when we initially made the suggestion.

“If they had taken our advice at the time, Yukoners would have had far more time and certainty to plan their finances accordingly.

“This whole ordeal shows the importance of leadership and acting quickly and decisively,” added Istchenko.

“Hopefully the Liberals’ inability to work with the opposition parties or make quick decisions has not contributed to a worsened situation.”