VICTORIA - With 2007 property tax notices in the mail, government is reminding British Columbians about new and expanded eligibility for property tax deferment and homeowner grants to assist them in managing their housing costs.

As a result of changes introduced in Balanced Budget 2007, the Province will now pay municipal or rural property taxes on behalf of eligible property owners who are 55 or older, a surviving spouse or a person with disabilities. Participants may defer taxes on the home in which they live and have equity equal to at least 25 per cent of the current value, and may continue to defer as long as they own and live in the home.

The program works simply: after deducting their homeowner grant, a participant can defer all or part of the unpaid balance of residential property taxes for the current year. Simple interest is charged on deferment accounts at two per cent below the bank prime rate. The taxes and interest only have to be paid when the home is sold or transferred to a party other than a surviving spouse.

In recent years, seniors' interest in property tax deferment has grown steadily, as participants who need a little extra at the end of the month can save thousands of dollars of ownership costs every year. Applications to the program increased fivefold from 2001 levels to over 4,500 in 2006, and government anticipates the lowering of the eligibility threshold to age 55 from age 60 will more than double new applications this year.

Government is also reminding all British Columbia homeowners that, under Budget 2007, the threshold at which the homeowner grant is phased out increased again, so about 95 per cent of homeowners will continue to qualify for the grant. As well, the budget extended eligibility for the grant to lower-income seniors, regardless of their home's assessed value.

People interested in learning more about property tax deferment in British Columbia may contact their municipal office or nearest Service BC-Government Agent listed in the blue pages, visit the ministry website at www.sbr.gov.bc.ca/rpt online