Denise Goodkey is worried about Elizabeth who saw her BC Assessment increase by a whopping 31 per cent.
Elizabeth is afraid she won’t be able to afford to pay her property tax bill so Goodkey promptly wrote to the Citizen after reading Elizabeth's story to talk about the BC government’s tax deferral program that she has used for years as a person who is 55+.
Goodkey is a former Prince George city councillor who spent 40 years here before returning to Vancouver to enjoy her retirement from teaching.
“I just thought it was important for Elizabeth to know this is available and not only will she not have to pay more taxes, she’ll pay no taxes,” Goodkey said. “It sounds like she could use the extra money.”
The regular tax deferral program, which is a low interest loan program, can be used by people who are 55+ or the surviving spouse at any age. There is also a program for families with children as well. The BC government pays the taxes and the owner pays back the loan from the BC government.
Eligibility is pretty standard. You must own the property and it has to be your main residence and here is where the challenge might come in. You must have a minimum equity of 25 per cent of the property’s assessed value or you can’t apply for the deferral.
Timing is everything with this deferral application and it is recommended to apply after receiving your property tax notice and before taxes are due.
The interest is a modest 1.70 per cent that is not compounded and you can pay it back anytime but you must pay it back if you sell the property.
“I can’t remember exactly when I started using the deferral," Goodkey said. "It was some time after I first read about it and I hope Elizabeth will read about it now too. When I first heard about it I thought, “I can’t squander my kids’ inheritance like that” but then I got an assessment and the value of my place had gone up so much I decided the kids would do quite well in any case."
Goodkey keeps thinking about Elizabeth.
“You know I wish I knew her last name,” Goodkey said. “I think she might be around my age and she lives in the Crescents – I might’ve known her when I lived in Prince George.”
Goodkey wishes Elizabeth well.
“It’s really easy to do as long as you have enough equity in the property and it’s a really good thing,” Goodkey. “And I hope Elizabeth will do the deferral if she needs to.”
For all the details on the property tax deferral visit BC Government Tax Deferral program.
And remember if you are 65+ there is an extra grant amount that you can claim on your homeowner's grant as well. So instead of the grant amount being $750, it goes up to $1,045 if you live in Northern BC. It’s not a lot but every little bit helps these days.
