Province Issues Reminder of Tax Loans

Thursday, January 25, 2007 03:55 AM

Property Assessments are up and taxes are likely to increase as well, so the Province is stepping in with a reminder of it’s tax deferment program.

With an aging population and tax rates climbing, the program seems to be gaining some popularity among the seniors it is geared to. Since 2001, the number of applications has increased by 60%. There are 15 thousand deferal agreements with the Province valued at some $200 million dollars, plus interest.

Here’s how it works:

The Province pays municipal or rural property taxes on behalf of eligible property owners who are 60 or older, a surviving
spouse, or a person with a disability. Successful applicants can defer taxes on a home in which they live and have equity equal to at least 25 % of the current value. They can ( for an annual $10 renewal fee) continue to defer as long as they own and live in the home. If they decide to sell the home, or die, the amount becomes payable.

The deferal amounts to a loan from the Province, and participants are charged interest at 2% below the bank prime rate.

The money loaned is part of the annual provincial budget. It is not clear just how much money will be available through the program this year, as the Provincial Budget won’t be announced until the 20th of February.

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