Rural, northern homeowners get budget boost

Ian Bailey Victoria, BC — From Wednesday's Globe and Mail

B.C. is providing a special grant to homeowners in northern and rural areas of the province that have been hard hit by the resource-sector downturn. But Finance Minister Colin Hansen hopes that won't mean municipalities will rush to raise property taxes to fill their coffers. “We will continue to work with the [UBCM] and municipal leaders to encourage them to ensure their tax rates are competitive,” Mr. Hansen told a news conference yesterday as he tabled his latest budget. Explaining the targeted northern and rural program, Mr. Hansen said in his budget speech that the government well knows how bad economic times have affected many smaller communities. He said he hoped the new measure will give such communities a “little extra breathing room.” The benefit is aimed specifically at residents outside Greater Vancouver, the Fraser Valley and Capital Regional District.

A senior UBCM official said that a tax grab was possible among some communities, as the new Northern and Rural Home Owner Benefit provides $200 in relief per household. “Certainly I guess some communities might do that, but I believe communities are very conscious of the economic situation,” said Mary Sjostrom, mayor of Quesnel and a vice-president for the UBCM. “A lot of communities are being diligent with tax increases to keep them to a minimum, but they have to maintain and support services in their communities.” The $200 benefit expands on the long-running homeowners' grant for B.C. property owners with residences valued up to $1-million. That grant is worth $570, which means those eligible for the northern-rural benefit would get $770 in total.

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From BC Budget Highlights: Reader-friendly, plain-language overview of Budget 2010. PDF

We are standing by our commitment to provide a Northern and Rural Home Owner Benefit for British Columbians outside the Greater Vancouver, Fraser Valley and Capital Regional Districts. Beginning in 2011, a benefit of up to $200 will be available — over and above the Home Owner Grant. Many people will be able to receive up to $770 a year towards their property taxes. Seniors will be able to receive up to $1,045
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Northern and Rural Area Homeowner Benefit

As announced in 2009, a northern and rural homeowner benefit of up to $200 will be available for the 2011 and subsequent tax years. To be eligible for the benefit, you must meet the requirements for the basic and/or additional grant, and your home must be located in British Columbia, but outside the Capital Regional District (CRD), Greater Vancouver Regional District (GVRD) and Fraser Valley Regional District (FVRD).In early 2011, the ministry will provide further information on this benefit and details on how to apply. If you wish to receive such update(s), please subscribe to the Property Tax What’s New webpage and you will be notified by e-mail of all changes that relate to property taxes.

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Don Quixote Note: I am still trying to ascertain if Vernon Taxpayers are part of the Rural and Northern taxapayers that are elgible for this increased homeowners grant in 2011.