British Columbia Property Tax Deferment Program

The provincial government recently announced 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. 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.

Sponsoring agency: BC Government
Type of agency: Provincial government

Eligibility

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.

Homeowners with at least 15 per cent equity in their home, based on assessed values as determined by BC Assessment, who declare that they are facing financial hardship due to current economic conditions, and who meet the program eligibility requirements, will be eligible to apply.


Restrictions

To qualify for the Financial Hardship Property Tax Deferment Program, you must:
  • be the registered owner(s) of the home
  • be a Canadian citizen or permanent resident under the Immigration Act (Canada)
  • have lived in British Columbia for at least one year immediately prior to applying
  • apply on the home in which you live
  • have a minimum equity of 15% in your home based on assessed values as determined by BC Assessment
  • have a current fire insurance policy on your home
  • You must occupy the home as your principal residence. Second residences, such as summer cottages or rental properties, do not qualify for tax deferment.
  • The property taxes are up to date prior to the current year Levy
  • If you own your home under a registered 99 year lease or have a life estate interest in your home, you may also qualify for tax deferment.
The deferred taxes will not have to be paid back to the Province until the homeowner sells their home or makes a registered change to ownership other than to a surviving spouse. However, the deferred balance owing may be paid back earlier without penalty.

Application procedure

Homeowners can apply for the program after the tax notices have been issued by their municipal or rural tax authorities.
  1. Receive your property tax notice.
  2. Complete the Application and Agreement for Financial Hardship Deferment of Property Taxes .
  3. The application form can be completed on screen and then printed out. Forms are also available at local municipal or Service BC–Government Agent offices. All registered owners must sign the deferment agreement.
  4. Return the completed application and agreement to your municipal or Service BC–Government Agent office for processing before the property tax due date. If you miss the due date, you have until December 31 of the current tax year to apply. Before applying, you must pay all penalties, interest, previous years' property taxes, utility user fees, as these cannot be deferred. Only outstanding taxes can be deferred, so if you have already paid your taxes, you may not defer taxes for this year.
  5. The municipal or Service–BC Government Agent office will complete the Collector portion and forward the application/agreement to the Tax Deferment Program.
  6. Due to the volume of applications, you may not be notified about your application status for several months.
  7. If your application is approved, it becomes a signed agreement and a certified copy is registered as a lien* in the Land Title Office or, if your home is a manufactured home, in the Personal Property Registry. The lien remains in effect until the account is paid in full. Once the lien is registered, the deferment program pays your current property taxes for you.
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 deferment program pays the taxes on your behalf
  • apply for deferment after the property tax due date
  • sell your home before the taxes have been paid on your behalf
Once you have been approved and enrolled in the Financial Hardship Property Tax Deferment program, you will be sent a statement of account and a renewal application the following year.

Contact information

Telephone: 1-800-663-7867
Email: ruraltax@gov.bc.ca
Website: BC Ministry of Finance Tax Deferment

Tax Deferment Program Ministry of Small Business and Revenue PO BOX 9446 STN PROV GOVT Victoria, BC V8W 9V6