tat aih

ee ENR RE

of Victoria

The Mayor's Proposal for Property Tax Deferment . . ‘ : 2
yer Poreone Over 65 Yeats of Are ‘ : + Administratively, implementation of this tax deferral will

present litcle difficulty. TnitiaNy it will be acessary to exple

The objective of the scheme is ta provide to persons over 65 : the features of the schewe to qualified taxpayers and to keep the

yesrs of age living in Single Family Dwellings, the option of deferring - @ppropriate records of the amount of tax in ar rears. Since it is not
the increase in their property tax until the home is sold. Since the . " Possible to: transfer title of the property until the tax in arrears has

majority of people in this age group are on fixed incomes, increased : been paid, the sunteipality {s protected against abuse of the scheme.

property tax levels have caused considerable financial hardship. Even In order to implement the proposal, the City of Victori

with a fixed mill rate, increasing market values and herce assessments tequires relief from provisions in the Municipal Act requixing the

nake it impractical to prevent the property tax from increasing for . Collector to offer for sale real peoperty on which taxes are delinquent,
this sroup. . oe : . “Ie ts urgently requested that the Governeent of british Colusbia provide
It is proposed that this tax deferral scheme become a pilot the City with the opportunity of implementing this pilot Project.

Project which, if successful, may be applied co other municipalities in — : a .

British Columbia. Such a scheme is of particular importance to the City
- of Victoria because, 222 of our population ts over 65 years of age. It
follows that aay increase in property taxes bears heavily on a large

portion-of our population. September 1, 1972

The proposal is to allow the homeowner over 65 years of age the

* option of deferring the increase in his or her net property tax above that
-Prevailing in the base year of 1970. This option would be applicable only
to the home in which the individual resides and for which the Provincial
Hore Ovner Grant is claimed. Deferred taxes would be subject to an
interest rate of 8% but the 10% penalty would be waived if the application —
for deferment is made pefor to July Ist. The deferred taxes, plus accrued
interest, would be repaid when the home is sold or at the option of the
fadividual,

“In the absence of information of the number of families that
would wish to take advantage of this proposal and of the extent to which
taxes will increase year. by year, it is difficult to Provide any nore
than an approximation of the City's revenue loss. Houever, if & tax
increase of 5% is assumed and that every homeowner. over 65, avails himself
of the tax defercent, the revenue loss in the first year of operation

would be in the order of $50,000. This also assuzes that persons ia this

age Eroup occupy an “average! home yhich yields Bross taxes of $470 per annun,

Se a on