The City of St. John’s is proposing to waive interest on taxes for residents who sign up for preauthorized monthly payments.

As it stands now, people who pay their yearly taxes in advance can avoid interest through preauthorized monthly payments. That leads to a credit balance so there’s no interest when taxes are due.

If approved, the new plan would eliminate the need to pay taxes in advance and hold a credit balance, as long as property owners sign up for preauthorized payments.

Council asked staff to look into the idea to give taxpayers some flexibility and much-needed relief from interest.

The city acknowledges it would mean some lost revenue but not enough to impact finances.

Commercial taxpayers would not be eligible.

The idea will go before the city’s committee of the whole tomorrow and could take effect as soon as this month.