Frequently Asked Questions

Questions:

	What types of homes qualify for Property Tax Deferment?
	How is equity calculated?
	What assessment value will be used for the equity calculation?
	What tax amounts can and cannot be deferred?
	What are utility user fees?
	How long can I defer my property taxes?
	How do I add my spouse to my title?
	I forgot to send my application before the property tax due date. Can I still apply?
	Can I defer property taxes on a leased property?
	What charges can impact the equity in my property?
	Can I defer my taxes if I rent out part of my home or run a small business from my home?
	If my principle residence is registered in trust can I defer my taxes?

Answers:

A homeowner's principal residence qualifies for property tax deferment if the owner has a minimum equity of 25% of the current assessed value determined by BC Assessment. The Family with Children Program requires a minimum equity of 15%.

A principal residence is the place where you live and conduct your daily activities. Second residences, such as summer cottages or rental properties, do not qualify

For the equity calculation, we use the upper limit of all outstanding mortgages, lines of credit, child and spousal support charges and other charges on the home.

We use the current year assessment value determined by BC Assessment, and do not use other third party real estate appraisals.

Current year property value taxes, parcel taxes and local service taxes (as defined in Division 3, 4 and 5 of Part 7 of the Community Charter), after deduction of the Home Owner Grant (if applicable), are the types of residential property taxes that can be deferred. These taxes must be paid to the province or to a municipality. Property taxes paid to a First Nation cannot be deferred under this program.

Delinquent taxes or taxes in arrears, late payment penalties, interest, or utility user fees cannot be deferred.

Utility user fees are fees charged for the use of a utility, such as water, sewer, garbage, and recycling. These fees are usually based on consumption of the utility service (such as how much water did you use) and may include a fixed charge. Utility user fees are usually billed separately from your property taxes (although unpaid utility fees may appear on the property tax notice as a separate charge). Utility fees cannot be deferred.

A property tax is based on the value or some other characteristic of the property, and differs from a fee that is based on the level of services used.

A utility fee for the use of the service should not be confused with a property tax relating to the provision of the infrastructure required for the service. The tax for the building and borrowing costs of the infrastructure can be deferred; the fees charged based on the use of the utility service cannot be deferred.

You can defer your property taxes as long as you own and live in your home, maintain the minimum equity requirements and continue to qualify for the program.

The deferment account must be fully repaid before you can sell or otherwise legally transfer your home to a new owner, except directly to your spouse.

The account must also be repaid in full upon the death of the agreement holder(s) unless the agreement is transferred to an eligible spouse.

You will need to apply on an Application for Adding a Spouse to a Property Tax Deferment Agreement (Form 1A) to add your spouse to the tax deferment agreement. Also, you along with any other person who is on title as an owner of your home, and your spouse, will need to complete an Amending Agreement (Form 4).

You can apply until December 31 of the current year. However, penalties and interest will apply from the due date of your property taxes until the date your application is submitted. Penalties and interest must be paid before you apply, as these amounts cannot be deferred.

If you lease your property from the Crown or a municipality, you may be eligible to defer your property taxes. If you lease from a third party owner, you can not apply for tax deferment.

For leaseholders of property owned by the Crown or a municipality, ministry staff will assess each application on a case by case basis to ensure there is adequate security under the lease for the deferment loan.

Examples of what leases would be considered as inadequate security include:

• The lease is not registered on title in the Land Title Office;
• The lease is paid over a period of time;
• The lease is cancellable under certain conditions, such as non-payment, or death of the lessee;
• The lease is a short term lease.

Even if you do not fall within any of the above categories, the lease will still have to be reviewed to ensure adequate security can be obtained.

Note – some lessees whose leases fall within the above have been allowed to defer in the past. Existing deferment amounts will be allowed to continue, and future deferments may be assessed on the basis of whether they meet the above criteria.

All charges that have a financial impact to the property are taken into consideration when determining equity for the purposes of tax deferment. These charges include, but are not limited to, mortgages, lines of credit, child and spousal support charges. The upper limits of these charges are used when calculating equity.

Eligible property is determined by the BC Assessment classification. Class 01 (residential) and Class 09 (Farm) are deemed to be eligible property for the purpose of tax deferment.

Eligible property held entirely in trust does not qualify for tax deferment. Eligible property held partially in trust may or may not qualify for tax deferment. If your property is partially registered in trust, please contact the Property Tax Deferment Office to confirm if your property qualifies.

If you have a question that is not answered here, please contact the Property Tax Deferment Office