Property taxes can’t be avoided…but you may be able to postpone paying them

For some, paying municipal property taxes presents a cash flow hardship that may result in the unnecessary sale of their property.  Others may just have a better use for the money, whether an investment opportunity or something more frivolous like a vacation.

Those who qualify under the provisions of the BC Property Tax Deferral Program may put off paying their property taxes until the death of the owner(s) or transfer of the title to a new owner (other than a surviving spouse).
In a nutshell, one of the owners must be at least 55 years of age, a Canadian citizen residing in BC for at least one year.  Taxes may be deferred only on a principal residence where the owner(s) has a minimum equity of 25%.

If you qualify under this program, the Provincial Government creates an account in your name and pays your net property taxes after the deduction of your Home Owners Grant. The account is charged an annual interest rate 2% below the prime rate of the Province’s principal banker. For the period ending March 31, 2008, the rate charged tax deferral accounts is just 4% and that is likely to be even lower for the year ahead.  Simple interest, rather than the more costly compound interest, is charged on the account balance making the program even more attractive.

The ceiling for the Home Owner Grant has been raised again this year to reflect the increased values of properties in the province.  The basic grant of $570 applies to properties up to an assessed value of $1,050,000.  For each $1,000 of assessed value over that level, the grant amount is reduced $5. The basic grant is eliminated on homes assessed at $1,164,000 or more.

There is also an additional grant of $275 (for a total grant of $845) where the basic grant criteria are met and one of the owners is at least 65 years old or receiving a disability allowance under the Employment and Assistance for Persons with Disabilities Act or permanently disabled or a disabled spouse/relative is residing with you permanently or a veteran (or spouse of a veteran) of WWI, WWII or the Korean War.  This additional grant is eliminated on homes of $1,219,000 assessed value or more.

Complete information is available at http://www.rev.gov.bc.ca/individual.html. Select “Property Owners” in the middle column and then either “Property Tax Deferral Program” or “Home Owner Grant”.

If I can be of assistance in explaining any of the issues associated with either program, please feel free to phone me at 604-351-1400 or email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Douglas Miller