Property Tax Deferral Program for Families with Children

The Families with Children Property Tax Deferment Program

The Families with Children Property Tax Deferment Program is a new option available to assist families during those years when household costs can be the highest. It is a loan program that allows you to defer all, or part of, the annual property taxes on your home for the 2010 and following tax years. To qualify, you must be financially supporting a dependent child under age 18 and meet certain criteria as outlined below.

Qualifications

You may defer taxes on your home where you live and conduct your daily activities.

Second residences, such as summer cottages or rental properties, do not qualify for the tax deferment program.

Taxes paid to a First Nation are not eligible for the deferment program. You can only defer property taxes paid to a municipality or the province.

To qualify for the program you must meet the following criteria:

you are a Canadian citizen or permanent resident who has lived in British Columbia for at least one year immediately prior to applying for tax deferment.
you are financially supporting, at the time of application, a dependent child who is under the age of 18 at any time in the calendar year in which you apply, and who
- lives with you full time in your home
- lives with you at least part time under a shared custody arrangement, or
- does not live with you, but you pay support for the child, or are responsible for fees and/or living costs if they are attending school
- you must have, and maintain, a minimum equity of 15% of the current BC Assessment value (other appraised values are not accepted), after deducting the upper limit of all outstanding mortgages, lines of credit and other charges on your home, and
- you must have a current fire insurance policy on your home for an amount not less than the current BC Assessment value.

Please note: You may be required to provide proof that you are financially supporting, at the time of application, a dependent child who is under age 18 during the calendar year.

How to Apply

Once you receive your property tax notice, follow the steps below to apply for the program.

Pick up a Families with Children Property Tax Deferment Program Application form (available May 2010) from your municipal office or Service BC Centre, or through this government website www.sbr.gov.bc.ca/individuals/property_taxes/property_tax_deferment/forms.htm
Complete your home owner grand and tax deferment application forms, ensuring all registered owners of the home sign the deferment application.
Return the completed home owner grant and deferment forms to your municipal office or Service BC Centre for processing before the property tax due date.

If you wish to continue to defer taxes in subsequent years, you must apply each year for tax deferment. Deferral of your 2010 taxes will not automatically result in the deferral of your 2011 taxes. If you miss the property tax due date, you have until December 31 of the current taxation year to apply; however, penalties will apply.

Before applying for tax deferment, you must pay all penalties, interest, previous years' property taxes, user fees and utility charges, as these cannot be deferred. You must also complete any land title ownership changes, such as adding or removing owners, subdivisions or refinancing. If you make land title ownership changes after applying for tax deferment, other than directly to a surviving spouse, you will have to repay your tax deferment account.

The Property Tax Deferment Program office receives your application, confirms receipt and determines your eligibility. The approval process includes several municipal and provincial government offices. Applications that require additional information may take more time to complete.

If your application is approved, it becomes a signed agreement and a lien is registered in the land title office or, if your home is a manufactured home, in the Personal Property Registry. The tax deferment office then pays your current property taxes for you. The lien remains in effect until the account is paid in full.

You must pay late payment penalty charges if, after the property tax due date, you:

are found ineligible for the program,
cancel or withdraw your application for any reason before the tax deferment office pays the taxes on your behalf,
apply for deferment after the property tax payment due date, or
sell your home before the taxes have been paid on your behalf.

Interest

Simple interest is charged on your tax deferment account and is based on the bank prime rate. The interest rate is set every six months. Interest begins from the date your property tax is due or the date you apply to defer, whichever is later. Information on the current interest rate will be provided on the provincial website www.sbr.gov.bc.ca/individuals/Property_Taxes/Property_Tax_Deferment/ptd.htm

There are no fees for the Families with Children Property Tax Deferment Program.

When You Must Repay the Deferred Taxes

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, or
upon the death of the agreement holder(s).

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

Other Property Tax Deferment Programs

The Financial Hardship Property Tax Deferment Program is available for the 2009 and 2010 tax years. The Property Tax Deferment Program is also available for seniors and for people with disabilities. Program details and qualification requirements are available on the provincial website www.sbr.gov.bc.ca/individuals/Property_Taxes/Property_Tax_Deferment/ptd.htm

More Information

Tax Deferment Program
Ministry of Finance
PO Box 9446 Stn Prov Govt, Victoria BC V8W 9V6
250.387.0555
ruraltax@gov.bc.ca

Enquiry BC
604.660.2421 from Vancouver or 1.800.663.7867 throughout BC and request a transfer to 250.387.0555

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Property Tax Deferral Program for Families with Children

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