Marleane Maxwell

Office: 604-530-4141 |

Property Taxes

Qualification Requirements For the Basic Home Owner Grant & Additional Grant

To obtain the grants, you must complete and sign the appropriate application form each year. The homeowner grant application is written on your yearly tax notice and will be mailed to you at your principal residence address. If you qualify for the additional grant and wish to obtain it, you must tick the box that describes your qualification.

To avoid penalty, an owner should apply for a grant prior to the tax due date even if he/she is not paying taxes that are due at that time.


Basic Qualifications:

a) You must be a Canadian citizen or landed immigrant and ordinarily reside in B.C.

b) You are the registered owner or eligible occupant of the home. The home must be located within the province; and

c) The home on which the grant is claimed must be your principal residence – where you live and conduct your daily activities. The grant does not apply to summer cottages, second homes or rental properties.


Spouses who live together, including those who are married or who live together in a marriage-like relationship, including same-gender partners, can qualify for a grant on only one residence in the province in a calendar year.


You may qualify for the additional grant if:


  • You are over 65.
  • You are a veteran or spouse of a veteran receiving certain war veterans’ allowances.
  • You are permanently disabled or you have a disabled spouse or relative residing with you permanently.
  • You receive a disability allowance under the Employment and Assistance for Persons with Disabilities Act.

The amount of the $570 regular grant (for the Capital, Greater Vancouver and Fraser Valley) is reduced at a rate of $5 for each $1,000 of assessed value in excess of $1,100,000. Therefore, there is no HOG or portion available for homes above $1,214,000. The additional grant of $275 that is available to some seniors, veterans and persons with disabilities is eliminated for properties that are assessed at $1,269,000. or more. However, some individuals who meet the low income criteria and are eligible for the additional grant will receive some or all of the Home Owner Grant no matter what the value of their homes are.

 

Will you receive a credit or a debit when you sell/buy a property?

Property taxes are paid for the whole year on the first working day of July of that year. Look at the "Adjustment Date" on your Contract of Purchase & Sale. If the date occurs after July, the Buyer, will have to credit back to the Seller a portion of the already paid taxes. This will be handled at the lawyers and will be shown on the "Statement of Adjustments" that is drawn up for you.





Example One:
The adjustment date is November 28th and the property’s gross taxes are $2,022.
 
   $2,022
-  $570   (Home Owner's Grant)
   $1,452


$1,452 x 34 days (Nov. 28th to Dec. 31st) = $135.25
      365 days 
 
The amount of $135.25 is the amount that will be credited
back to the Seller on Completion Day.

 

Worksheet

Contract Adjustment Date:                         ,200    
Gross Property Taxes $                             
Less Applicable Grant(s) $                             
Net Property Taxes $                             
   
Net Property Taxes                             x Days                      
                           Divided by 365 days 
   
Buyer Credit $                     Seller Credit $                    
January to early July Early July to December



Please note:
If the property is not your principal residence, then you will not be entitled to the B.C.

Home Owner’s Grant and therefore, the figures in Example One and Two above will not be correct.

 

This is a guideline only . You should always consult your Lawyer or Notary.
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