The city of Toronto on Friday introduced a 60-day grace period for residents to pay property tax, water and solid waste bills.

Businesses will also get a 30-day extension on a grace period announced for them earlier this week. The grace period applies to bills as of March 16.

Mayor John Tory, who launched an economic support and recovery task force on Monday to help struggling businesses during the COVID-19 outbreak, announced the relief program on Friday morning.

“We know families are struggling to figure out how to make ends meet while also worrying about their health and the health of their loved ones,” Tory said in a press release. “Toronto businesses and residents need to know that we understand these are extraordinary circumstances and we are here to support them. The immediate grace period announced today will give people relief as we all work to rebuild the economy. We will continue to find ways to offer extraordinary help in these extraordinary circumstances.”

The grace period does not apply to hydro bills.

On Monday, Toronto Hydro said they would extend their promise to suspend electricity disconnections for unpaid bills and would assist customers experiencing “financial hardship.”

The move Friday means property owners won’t be charged any late penalties if they can’t make their payments for 60 days as the city works to manage the spread of the virus, which has caused businesses to close, crippled tourism and other industries, and has seen some workers lose their jobs.

The city further clarified Friday how residents could defer property tax payments, saying any pending automatic withdrawals scheduled within the next 60 days that have not yet been withdrawn would be suspended. Residents will be notified of the future rescheduling of withdrawals after the grace period ends.

If you pay your property taxes through a mortgage, owners should contact their financial lending institution or mortgage company to understand how it would affect their mortgage payment, city spokesperson Ashley Hammill said in an email.

Anyone who wants to continue to make payments as scheduled should submit them anytime through their bank, using online banking services, telephone banking or via ATM payments.

Hammill confirmed the grace period will cost the city. The city typically collects $2 million per month in revenue from late penalties and interest charges.

Utility bills will no longer be due 21 days after the billing date, with an extension of an additional 60 days, Tory is expected to outline. Property tax bills will be changed to reflect the grace period.

Asked why the grace period was set for 60 days rather than a longer 90-day period like that announced by Mississauga on Friday, Hammill said they are not ruling out further extensions.

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The announcement is part of a series of ongoing relief measures introduced by various governments in the past two weeks. Ontario Premier Doug Ford declared a state of emergency in the province on Tuesday.

The mayor is also renewing a commitment to help tenants, who are currently not receiving any government-directed relief on rent payments. Though property owners may be able to defer mortgage payments up to six months, six big banks announced Wednesday, there’s no obligation or incentive for landlords to allow tenants to defer rent payments over that same period.

Tory, who remains in self-isolation after travelling to London, England, is scheduled to host a teleconference with landlords on Monday as part of his task force.

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