The Land Tax Deferment Program allows qualifying British Columbia homeowners to defer the payment of annual municipal or rural property taxes on their home. The deferred taxes are paid by the province to the taxing authority (municipality or provincial collector), on behalf of the homeowner. The deferred taxes must be repaid with interest and an administration fee to the province, either:
• before their home can be transferred to a new owner, other than to their surviving spouse, or
• upon their death, with repayment through their estate.
Homeowners aged 60 years and over may defer the payment of annual property taxes on their principal residence. The program is also available to homeowners of any age who are widowed spouses, or who meet the definition of a person with disabilities, in the “Disability Benefits Program Act.”
Check with your local Municipal Government for more information.
For forms to defer your property taxes go to:
Currently more than 12,000 households in British Columbia defer their property taxes. In total there is about $173 million owing to the provincial government. West Vancouver heads the list with 941 homeowners who deferred over $4 million last year, just over $4,000 each on average so as you can see, although it was started to help poor seniors not loose their homes, the rich have been quick to jump on the band wagon!
Lots of seniors who can well afford to pay their property taxes are realizing it is a good investment NOT to pay property taxes but to defer it against the increased value in their homes.The program has become more popular with the increase in the price of homes, property taxes and the aging population. There was a 50% increase in applications last year.
The interest rate is set every six months, October and April at not greater than 2% below the rate at which the province borrows money. There is a $60 set-up charge and an annual renewal fee of $10 on which no interest is charged, it just accrues.
So consider a property tax deferment as a way to stay in your home. It is the cheapest loan you can get!
