Financial Hardship Property Tax Deferment Program

About the program

In light of recent global economic events, the provincial government recently announced amendments to the Land Tax Deferment Act creating a new temporary program which will allow eligible homeowners facing financial hardship, and who have at least 15 per cent equity in their homes, to defer their 2009 and 2010 property taxes.

The Financial Hardship Tax Deferment Program is a loan program that allows you to defer your annual property taxes on your home if you meet certain eligibility criteria.

The program is available to Canadian citizens and permanent residents who have lived in British Columbia for at least one year prior to applying for the program. You must occupy the home as your principal residence. Second residences, such as summer cottages or rental properties, do not qualify for tax deferment.

After deducting your Home Owner Grant, you can defer all or part of the unpaid balance of your residential property taxes for the current year. All penalties, interest, previous years' property taxes, and utility user fees must be paid to your municipal Tax Collector or the Surveyor of Taxes (rural properties), as these cannot be deferred.

You can defer your taxes as long as you own and live in your home and continue to qualify for the program. The deferred taxes must be fully repaid, with interest:

• before your home can be legally transferred to a new owner, other than directly to your surviving spouse
• upon the death of the agreement holder(s)

If you refinance your home, your mortgage holder may require full repayment of the deferred taxes upon refinancing. You may repay all or part of the deferred taxes and interest at any time without penalty.

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