Homeowners who have seen a significant increase to their properties are getting a break from the government when it comes to paying their taxes this year.
The government of B.C. announced yesterday that it has increased the homeowner grant threshold from $1.2 million to $1.6 million, which represents a 33 per cent increase over last year. The goal of this increase is to ensure that most homeowners who received the grant in 2016 will qualify for it again in 2017.
In a nutshell, properties valued up to $1.6 million will now be able to claim the basic $570 grant for a principal residence or $770 if the home is in a rural or northern area. Seniors can claim a larger grant of $845 for a principal residence or $1,045 if the property is in a rural or northern area. This increase is irrelevant to those whose homes are still worth less than the old threshold of $1.2 million who were going to qualify anyway. They will continue to get the $570 annual credit against their property taxes if under the age of 65, or $845 for seniors.
The targeted beneficiaries are those with homes previously worth perhaps $1.1 million that have jumped to $1.4 or $1.5 million, who would have lost the homeowner grant without the change.
According to Premier Christie Clark, MLA for Westside-Kelowna, the move will keep the percentage of property owners eligible to claim the grant at 91 per cent.
For more information about property tax deferment, click here or call 250 356-8121 (Victoria) or 1 888 355-2700 (toll-free in B.C.)