The Land Tax Deferment Act provides relief for all or a portion of the current year's taxes on a principal residence after the deduction of the Home Owner Grant (HOG) and after meeting certain eligibility requirements set by the Province of British Columbia's Ministry of Finance. Previous year's taxes, penalty and interest charges cannot be deferred.
Please note that all Tax Deferment application/renewal forms and Home Owner Grant application forms (if eligible) must be sent to the City of West Kelowna for approval and must be received in our office by the due date in July in order to avoid paying a late penalty. DO NOT send any Tax Deferment application/renewal forms or HOG application forms directly to the Ministry of Finance office in Victoria as this will cause delays which may result in paying penalties.
Two Types of Deferments
Property Tax Deferment
The Property Tax Deferment program is available for property owners that are 55 years and older in the current tax year or persons with a disability as defined by regulation. Property owners must have a minimum equity of 25% in their principal residence based on assessed values as determined by BC Assessment. A one-time administration fee of $60 applies for new applications and a $10 annual agreement renewal fee applies for approved renewal applications. The interest rate for this program is usually set at the prime interest rate minus 2%.
Families with Children Tax Deferment
The Families with Children Tax Deferment program is available for property owners financially supporting at the time of application a dependent child, who is under the age of 18 years at any time in the calendar year in which an application is made. Property owners must have a minimum equity of 15% in their principal residence based on assessed values as determined by BC Assessment. No fees are charged under the Families with Children program, however, the interest rate is higher (approximately 2% more) than the Property Tax Deferment program.