Thursday, January 25, 2007

TAX DEFERMENT PROGRAM BENEFITS SENIOR HOMEOWNERS

Gov BC NEWS

VICTORIA – With most British Columbia property owners seeing an increase in their 2007 assessments, Rick Thorpe, Minister of Small Business and Revenue and Minister Responsible for Regulatory Reform, is reminding seniors of the advantages of the Property Tax Deferment Program.

“We’re working to build the best system of supports for seniors in North America, and the Property Tax Deferment Program is an important part, providing a simple way for seniors to help manage their housing costs,” said Thorpe. “Interest in property tax deferment already spans the province, with taxpayers in rural British Columbia and 132 of 156 municipalities currently benefiting from deferment, and we want to build on this awareness.”

In 2006, the number of new applications rose to 4,563, an increase of 60 per cent. This total represents a fivefold increase in new applications since 2001, when just 908 British Columbians applied.

Under the program, the Province pays municipal or rural property taxes on behalf of eligible property owners who are 60 or older, a surviving spouse, or a person with a disability. Participants may defer taxes on a home in which they live and have equity equal to at least 25 per cent of the current value, and may continue to defer as long as they own and live in the home. After paying a one-time, $60 administration fee, approved applicants benefit from simple interest charged on their deferment accounts at a rate two per cent below the bank prime rate, and they can renew annually for $10.

In any given year, homeowners can apply for deferment at any time between receiving their property tax notice and Dec. 31, the application deadline.

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