If you’ve got little ones running around the house, you may now be able to get the provincial government to pay your property taxes, at least in the short term.
Starting this year, eligible families with children under the age of 18 can apply to defer their property taxes under an expanded property tax deferment program from the provincial government.
The program was originally announced in the provincial budget in March. Eligible homeowners will essentially be provided a loan by the government to pay their property taxes and be charged simple interest at the prevailing prime lending rate for each year the loan is outstanding.
Among the basic eligibility requirements for the program, homeowners need to be financially supporting children under the age of 18, live in B.C. for at least a year prior to applying, have a fire insurance policy on their residence and have at least 15% equity in their home, based on the assessed property values determined by BC Assessment.
The program requires an initial application followed by an annual renewal application for each subsequent year of tax deferral.
B.C. Finance Minister Colin Hansen said the program is meant to help families in the years when household costs are typically highest.
Once the family no longer has children under 18, they will be required to pay their property taxes. However, the accumulated amount of deferred taxes plus interest does not have to be repaid until the homeowner sells his or her primary residence, transfers ownership or the home becomes part of an estate.
Currently, there is not a cap on the amount of accumulated tax and interest that can be deferred, however, it is something the government is considering. The total amount can grow substantially over time. If a family in Vancouver owning a house worth $944,900 deferred its taxes of $3,950 for ten years, the accumulated taxes deferred and interest would be $44,388, assuming property taxes and interest rates did not rise.