With many British Columbia residents — including seniors — facing difficult times, the time is right to see if you qualify for the province’s property tax deferment program.
Last year, then-Seniors Advocate Isobel Mackenzie said that nearly half of the seniors in the province live on incomes that are below minimum wage. In the last five years, the number of seniors in B.C. using food banks increased 78 per cent, and 84 per cent of seniors reported that they have run out of money to buy food at times, according to a systemic review of conditions for B.C.’s seniors conducted by Mackenzie in 2022.
The property tax deferment program is available to many B.C. homeowners via two programs: the Regular Program and the Families with Children Program. Homeowners who defer their taxes can save up to $500 per month; money that can go towards other essentials.
The Regular Program is for anyone who is 55 years (or turning 55 this year) or older, to a surviving spouse of any age, or to eligible persons with disabilities and is applicable to their principal residence. The Families with Children Program is available for homeowners who are a parent, stepparent, or financially supporting a dependent child under the age of 18.
Property tax deferment is a provincial low-interest loan program that helps qualified homeowners pay their annual property taxes on their principal residence. Taxes can be deferred for any year the homeowner lives in the home and continues to qualify for the program. Eligible homeowners are then able to pay their property taxes at a later date.
When you defer your annual property taxes, the province charges interest on your tax deferment loan. The current loan rate is 5.20 per cent for the Regular Program and 7.20 per cent for the Families with Children Program. The deferred taxes are paid to your local government by the province, which recoups the money when the house is sold or transferred.
In order to qualify, your property tax account must be up to date. The program is only applicable to residential (class 1) or residential (class 1) and farm (class 9) properties; it is not available for secondary residences such as a cottage, summer home, or rental property.
It can take some time to process tax deferral applications, so those interested in taking advantage of the program in 2024 are encouraged to apply as soon as possible starting in early May. If your application is submitted before the property tax due date but is approved after the due date, you won’t be charged a late payment penalty. However, if it is found that you aren’t eligible for deferment and it’s past the property tax due date, your property tax office may charge you a late payment penalty on the unpaid taxes.
Find out if you are eligible for either of the property tax deferment programs, as well as the guidelines, at https://bit.ly/2GM7FLP.