Delay In Property Tax Soared By 67% In 2016

The British Columbia property tax delay in 2016 is exploding with many residents taking advantage of the program by not paying their taxes. Recently, the British Columbia government introduced new tax measures which mainly favored senior residents with a $570 grant which is a sort of property tax subsidy on homes costing less than $1.2 million.

But this tax delay has increased the number of seniors avoiding to pay taxes. New reports shows there are close to 10,000 property owners deciding to postpone paying their tax in 2016. This is a 67% increase from 2015.

The intended reason for the program was to aid seniors to have shelter over their heads until they sell their property and get another affordable home. The program will give seniors the opportunity to put together taxes in the form of low-interest loans.

However, this does not go down well with some market critics who believe many people who should not be part of the program are benefiting from it.

According to consultant Michael Geller, a large number of people capable of paying their own tax without any form of aid are making use of the granted intended for people that are struggling to pay their taxes.

The program gives people over the age 55 a 0.7% interest rate and this is luring many more people to take advantage of the program by the end of this year.

Geller went on to suggest the program made by the government does not help matters. Instead of seniors being allowed to hold onto their properties at a period when the housing market is in need of new listings does not make sense.

The government should rather urge seniors to go in for smaller homes or rent rather than occupying large homes which they are not making proper use of while there are many people out there looking for places to live in.

According to Paul Kershaw of Generation Squeeze, the government instead of promoting seniors, they should also help millennials who are finding it very difficult to enter the housing market.

Despite all these suggestions, the British Columbia government disclosed they will not make any change to the program.