A property tax deferral program actualized in the 1970s is currently being taken advantage of by some rich Vancouver homeowners.
According to Vancity Buzz, the "property tax deferral program" permits residents with ages from 55 and above, dowagers, and PWD's (person with disabilities) to concede paying their property taxes until their home is sold, with a 0.85% interest rate. The B.C. program was implemented in the 1970s. At that time, it was very suitable for the regular age of retirement and the real estate market. Unfortunately, Vancouver's well off property holders are presently making use of this program to escape from paying property taxes.
The same source reported that there is more than $130 million worth of property taxes that is in deferred every year. This substantial amount of money may be a great source of income for different districts and municipalities that could be utilized for road constructions, educational projects, etc.
It's true that many homeowners benefit from the program but there are also lots of property holders aged over 55 enjoying the said benefits who are still receiving large incomes. In fact, in 2011, the highest average personal income of all age categories came from grown-ups aged between 55 and 64, as reported by the Canadian Mortgage and Housing Commission.
Architect and developer Michael Geller shared to CBC News that even he himself took advantage with the deferral program.
"Most people can invest the money and get a better return," Geller admitted. "A lot of people I know take advantage of this program even though they have the money to pay their taxes because the current interest rate is 0.85 per cent," he added.
He also admitted that it's been six years now since he first used the program to defer all of his property taxes in Vancouver amounting to about $60,000.
By 2038, the number of individuals aged over 55 are predicted to rise equal to the the joined populations of Ontario, Saskatchewan, and Alberta. Thus, financial loss caused by the deferral program will continue to grow indefinitely.
