The B.C. government is set to hand out nearly one billion dollars in property tax subsidies to most homeowners.
This year, a homeowner grant will be issued to 92 per cent of owners of principal residences, totalling an estimated $907 million of property tax refunds, according to the Ministry of Finance.
The property value threshold to receive the full grant is $2.15 million, up from $2.125 million last year.
Qualifying homeowners in the Capital Regional District, Fraser Valley Regional District and Metro Vancouver will get a $570 discount on their property tax bill while those outside those three major areas will get $770 — the same amounts as 2023.
There will be partial rebates for homes valued up to $2.264 million (or $2.304 million outside the three major areas) and seniors, veterans or people with a disability can qualify for an additional grant up to $845 in the three major areas or $1,045 for those outside them.
Grant applications can be made following receipt of one’s BC Assessment notice or municipal property tax notice.
Property value assessments across the province went up three per cent, according to BC Assessment Tuesday. The average detached home in Vancouver was assessed at $2.2 million; Whistler, West Vancouver and Anmore also had average values exceeding the grant threshold.
While the province issues the homeowner grant, this year it will introduce a renter’s rebate for $400 to households earning less than $60,000 of net income (2023 tax year). The ministry has budgeted $307 million for the renter’s rebate.
As usual, the provincial government will also offer property tax deferrals to principal homeowners age 55 or older; surviving spouses; and persons with disabilities. Those applicants will need to have at least 25 per cent of their home equity (based on property values) free of any charges. Families with dependent children living in the home also qualify for the deferral program. The provincial government sets the interest rate for deferred taxes at prime rate minus two per cent, so 4.95 per cent although qualifying families will have to pay the full prime rate, presently set at 6.95 per cent. The deferrals are only charged simple interest, not compounding.
The homeowner grant has long been criticized for providing tax breaks to people with millions of dollars of assets.
Last year, Housing Minister Ravi Kahlon suggested he would consider changes to the grant program to make it more progressive; however, there have been no apparent alterations to the program.
The Ministry of Finance told Glacier Media no policy changes have been made to the grant.
