BC Amends Homeowner Grant Scheme

by Mike Godfrey, Tax-News.com, Washington

04 January 2012

In an effort to accommodate rising property values, the Canadian province of British Columbia has increased the threshold for the homeowners' grant, a scheme which helps the province's residents with property taxes.

The grant is designed to help reduce the amount of residential property tax payable. It applies to taxes paid by British Columbians to their municipality or to the Surveyor of Taxes for rural areas. The latest changes will mean that homeowners with properties worth up to CAD1.285m may be eligible to receive the entire grant this year. In 2011, the threshold was raised to CAD1.15m, up from CAD1.05m the previous two years.

Each year, BC Assessment estimates the value of all homes based on their market value on July 1. The information is then reviewed, and the threshold adjusted with the intention of making sure 95.5% of eligible homeowners receive the full amount. In addition, those with homes valued above the threshold may still be eligible for a partial grant.

The grant scheme provides a maximum reduction in residential property taxes on principal residences of CAD570 in the Capital, Greater Vancouver and Fraser Valley regional districts and CAD770 elsewhere in the province. An additional grant of CAD275 is available to those who are age 65 or over, permanently disabled or a veteran of certain wars. In November, 2011 plans were unveiled to create a further grant of up to CAD275 for low-income Canadian Forces veterans with more recent service in the event they do not already qualify as seniors or persons with disabilities. Details will be announced shortly, the Finance Ministry has said.

The Province also provides property tax deferral options for qualified individuals, including homeowners over 55, persons with disabilities, and families with children. The deferment programmes are low-interest loan schemes that allow qualifying residents to defer all or part of their property taxes until they sell or transfer ownership of their home, or it becomes part of an estate.

Minister of Finance Kevin Falcon commented: “The homeowner grant is one way our government can help support families in the face of challenging economic times. Homeowners who have seen their property values rise will continue to be protected as we increase the threshold. We continue to see challenging economic times around the world. By maintaining the homeowner grant, we continue to help families with the costs of owning their homes.”

Recommended