Frequently Asked Questions

Questions:

	What types of homes qualify for Property Tax Deferment?
	Is there an application fee?
	What tax amounts can and cannot be deferred?
	What are utility user fees?
	How long can I defer my property taxes?
	I don't turn 55 until after the property taxes are due. Am I still eligible for the Property Tax Deferment Program?
	I forgot to send my application before the property tax due date. Can I still apply?
	What assessment value will be used for the equity calculation?
	Can I defer property taxes on a leased property?

Answers:

A homeowner's principal residence qualifies for property tax deferment if the owner has a minimum equity of 25% of the current assessed value determined by BC Assessment. A principal residence is the place where you live and conduct your daily activities. Second residences, such as summer cottages or rental properties, do not qualify.

If your application is approved, a $60 administration fee will be added to your account. Approved annual renewal agreements have an administration fee of $10, which is also added to the deferment account. These fees do not have to be paid at the time of application.

Current year property value taxes, parcel taxes and local service taxes (as defined in Division 3, 4 and 5 of Part 7 of the Community Charter), after deduction of the Home Owner Grant (if applicable), are the types of residential property taxes that can be deferred. These taxes must be paid to the province or to a municipality. Property taxes paid to a First Nation cannot be deferred under this program.

Delinquent taxes or taxes in arrears, late payment penalties, interest, or utility user fees cannot be deferred.

Utility user fees are fees charged for the use of a utility, such as water, sewer, garbage, and recycling. These fees are usually based on consumption of the utility service (such as how much water did you use) and may include a fixed charge. Utility fees are billed separately from your property taxes (although unpaid utility fees may appear on the property tax notice as a separate charge). Utility fees cannot be deferred.

A property tax is based on the value or some other characteristic of the property, and differs from a fee that is based on the level of services used.

A utility fee for the use of the service should not be confused with a property tax relating to the provision of the infrastructure required for the service. The tax for the building and borrowing costs of the infrastructure can be deferred; the fees charged based on the use of the utility service cannot be deferred.

You can defer your property taxes as long as you own and live in your home and continue to qualify for the program.

The deferment account must be fully repaid before you can sell or otherwise legally transfer your home to a new owner, except directly to your surviving spouse.

The account must also be repaid in full upon the death of the agreement holder(s) unless the agreement is transferred to an eligible surviving spouse.

You are eligible if you turn 55 during the calendar year in which you apply for the program. Only one spouse must be 55 in the case of joint ownership.

You can apply until December 31 of the current year. However, a penalty and interest will apply from the due date of your property taxes until the date your application is submitted. The penalty and interest must be paid before you apply, as these amounts cannot be deferred.

We use the current year assessment value determined by BC Assessment, and do not use other third party real estate appraisals.

For the 2009 taxation year only, special valuation rules were used to determine the 2009 assessment value for property taxation purposes. Residential properties were valued using the actual value calculated using a July 1, 2007 valuation date or July 1, 2008 valuation date, whichever was lower. For tax deferment equity purposes, we will use the 2009 assessment value, which is based on a July 1, 2008 valuation date.

If you lease your property from the Crown or a municipality, you may be eligible to defer your property taxes. If you lease from a third party owner, you can not apply for tax deferment.

For leaseholders of property owned by the Crown or a municipality, ministry staff will assess each application on a case by case basis to ensure there is adequate security under the lease for the deferment loan. Examples of what leases would be considered as inadequate security include:

• The lease is not registered on title in the Land Title Office;
• The lease is paid over a period of time;
• The lease is cancellable under certain conditions, such as non-payment, or death of the lessee;
• The lease is a short term lease.

Even if you do not fall within any of the above categories, the lease will still have to be reviewed to ensure adequate security can be obtained.

Note – some lessees whose leases fall within the above have been allowed to defer in the past. Existing deferment amounts will be allowed to continue, and future deferments may be assessed on the basis of whether they meet the above criteria.