Proposed Increase to Home Owner Grant Threshold

“The real estate and housing boom we're seeing shows immense confidence in our economy,” said Hansen. “It's great to see so many people moving here and building their futures in British Columbia.

“But rising property values also create concern for a number of people – especially seniors on fixed incomes – who stand to lose some or all of the home owner grant. Today, we have good news for those British Columbians.”

The government intends to introduce legislation in February, as part of Budget 2005, to raise the threshold for unreduced home owner grants to $685,000 from $585,000. The legislation will also include an improvement to the phase out rate, which will change to $5 per $1,000 of assessed value above the threshold from the current $10 per $1,000 of assessed value.

The Home Owner Grant Program reduces the burden of residential property taxes for eligible homeowners and is intended to provide the greatest benefit to people with lower valued homes who are often most in need.

“These changes will help ensure senior citizens and persons with disabilities continue to share in the benefits of a stronger economy,” said Hansen.

The basic grant entitles a homeowner to a maximum reduction in residential property taxes of $470. An additional grant of $275 is also available if the owner is over 65 years of age, or permanently disabled, or eligible to receive certain war veterans’ allowances.

Assessed residential property values in British Columbia, including new construction, increased by 20 per cent over the past year. The new proposed threshold would allow an estimated 21,000 homeowners, who would otherwise face a reduced benefit, to receive the full grant in 2005.

As was the case with a similar threshold change announced last year, the new threshold would ensure that approximately 95.5 per cent of B.C. homeowners receive the full grant.