Some homeowners in B.C. may qualify for tax deferments. A deferment is a low-interest loan to help you to pay your annual property taxes on your primary residence.
When you receive your property tax notice, check the deferment programs to see if you qualify. Your property tax account should be current. You will then need to apply for the deferment program for which you qualify. Each year, you will need to renew your tax deferment agreement. Some property taxes can\'t be deferred.
The yearly property tax notices are mailed in May. You have to know your current year tax amount before you submit your application for a deferment. If you have not received your notice by June 30, contact the property tax office. If you live in Vancouver, you have to wait to apply for a tax deferment program until your tax notice billing period.
You may qualify for either the regular program or the program for families with children. The regular program is available to people who are aged 55 or older, surviving spouses, or people with disabilities. The families with children program is available to people who are parents, financially support a child or are stepparents.
To qualify for a deferment, you must be current on your past-year property taxes. This means that you will need to bring your past-year property taxes current if you owe anything before you will be able to defer your taxes. You should only have current-year taxes in your property tax account.
Your application should be sent to the address on your property tax notice. If you mail it directly to the province, you will have to submit a new application. Once the property tax office receives your application, it will complete its part of the application and send it to the provincial government to be processed. The property tax office is not responsible for approving tax deferment applications.
At the time that your application is processed, your eligibility for the program will be confirmed. You might be asked to supply additional information about your eligibility. You should add taxdeferment@gov.bc.ca to your contacts so that your firewall protections do not send emails from the government to your spam folder.
Deferment applications can take several months to process, which means that you might not receive your response until after the due date for your property taxes. As long as your application is received before the due date and is approved, you will not be assessed a late penalty. If your application is denied, you may be assessed a late penalty on your balance.
If your application for a tax deferment is approved, the province will pay your property taxes for you. A restrictive lien will be placed on your property. This lien will limit the changes that you can make to the title while you participate in the program. The regular program comes with a $60 fee that will be added to your property tax account. You will not be assessed a fee for participating in the families with children\'s tax deferment program.
You will be charged simple interest beginning from the due date of your property taxes or the date of your deferment application, whichever is later.
Finally, it is important to note that you will have to complete a renewal application each year if you want to continue to defer the taxes under the agreement. You will receive a statement of your account and a renewal application each May.
You will not be able to defer your property taxes under the following circumstances:
- You don\'t meet the qualifications for the program.
- You have already paid your property taxes in full.
- You have overdue property taxes that you owe for prior years.
- The taxes are for a second home.
- Your home is not taxed as a residential improvement.
- Your home is taxed by a First Nation.
- You have a restrictive lien on your home\'s title.
- You lease your home from a city or the Crown.
- You own your home as a registered owner in trust or are the executor of a will.
- Your home is on stilts or is floating and does not have a title that is registered with the Land Title Office.
You should talk to your lender before you apply for the tax deferment program to make certain that participating in the program will not violate the terms of your mortgage loan. Finally, your home might not qualify for a deferment if the title includes an option to purchase.