Creston council and the town staff work hard at managing budgets and expenses, trying to keep property taxes as reasonable as possible while maintaining expected levels of service. It is important to note that approximately 53 per cent of your property tax bill goes to municipal government, with the town collecting the remaining 47 per cent for the Regional District of Central Kootenay (RDCK), provincial education and more.
In spite of the efforts of council and the regional directors to keep property tax bills low, many people find the payment of annual property taxes every summer to be an onerous burden. If this is a challenge for you, did you know it may be possible to defer your property taxes with a low-interest loan from the province?
There are two types of deferrals available under the British Columbia Tax Deferment Program. The criteria for the regular program are that you must be 55 years of age, a surviving spouse of any age or a person with disabilities. The non-compounded interest rate under that program is currently 0.85 per cent. On a $1,500 tax bill that’s interest of $12.75 per year! The interest rate is reviewed every six months and the 0.85 per cent is set until March of 2016.
The second program available is the families with children program. The interest rate under that program is currently 2.85 per cent. Again, it is simple interest and, compared to the compound interest rates offered by credit cards and financial institutions, it is a very attractive rate. You must be a parent, step-parent or financially supporting a child to qualify.
Due to these attractive rates, many financial advisors are recommending that their clients take advantage of these low-interest loans. These programs are available for properties located within the town, as well as rural properties in the regional district. The deferral is available for both residential and farm properties.
There are a few other qualifications in addition to those listed above. You must have fire insurance and 25 per cent equity in your property. The property must be your residence and registered in your name. Additionally, it is important to note that to take advantage of a deferral program there can be no outstanding arrears or delinquent taxes owing.
If you qualify, the province will pay the balance of your current taxes after deduction of the homeowners grant. A lien will be placed on your property, which must be paid before you can sell the property. You can repay your deferment loan at any time in full or part without penalty.
More information on these programs is available on the British Columbia Tax Deferment website. You can call 1-800-663-7867 and ask to be transferred to 250-356-8121 or email TaxDeferment@gov.bc.ca. If you have forms to submit or questions to be answered, our always helpful town staff would be pleased to assist you with your enquiry.
Let me take this opportunity to wish you and your families a very merry Christmas and a happy and prosperous new year!
Jim Elford is in his first term on Creston town council. Council Comment is a monthly column by Creston councillors.