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Property Tax deferral
1-12-2016
Once you receive your property tax notice, you may be able to apply for a low interest loan to pay your current year property taxes on your principal residence. There are two programs you may qualify for:
• Regular Program
You may qualify for this program if you’re:
o 55 or older during the current year or
o a surviving spouse of any age or
o a person with disabilities
• Families with Children Program
You may qualify for this program if you're a parent, stepparent or financially supporting a child.
You can apply to defer a portion or all of your residential (class 1) or residential and farm (class 1 and 9) property taxes after the home owner grant is deducted. If you qualify for the home owner grant, you must apply for it separately every year.
If your application is approved, the province pays your current year unpaid property taxes on your behalf.
Sometimes it can take us several months to process tax deferment applications due to the need to gather necessary information. You may not get a response from the government about your application until after the property tax due date. If your application is received before the property tax due date but is approved after the due date, you won’t be charged a late payment penalty.
You'll be charged a late payment penalty if:
• you apply after the property tax due date
• your application isn't approved and it’s past the property tax due date
• you fail to provide the required information
• you sell your home before the taxes are paid on your behalf
• you cancel or withdraw your application for any reason at any time before the taxes are paid on your behalf
You can make a payment or repay the loan at any time without penalty.
Property Lien
While you carry a property tax deferment balance, you'll have a restrictive lien registered against your property. Once the lien is registered, you can only change your property title to add your spouse. You must repay the outstanding balance of your agreement before you:
• sell your property
• change property owners other than adding your spouse
• refinance with some financial institutions (check with your financial institution )
Interest
Interest is calculated every month starting from the date your property taxes are due or the date you applied to defer, whichever is later. You'll be charged simple interest on the taxes you've deferred. You won’t be charged interest on interest or any application or renewal fees.
Interest rates are set every six months.
Footnotes: Footnotes: This column is presented as a general source of information only and is not intended as a solicitation for business. It is always recommended that you consult a qualified tax professional beforeembarking on any of the suggestions outlined above. Mohammed Yasin, CGA, is the principal of M. Yasin & Co. Inc., Certified General Accountants and has offices in Vancouver & Surrey,B.C. For more information on this topic or any other taxation matters, please contact taxes@alameen.ca.
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