Politics · Canada · 50 mins ago

Senior property-tax relief could shift costs to other taxpayers

Senior property-tax relief could shift costs to other taxpayers

Property taxes in Canada are rising almost three times faster than inflation, and more than 30 per cent of Canadian homeowners were seniors in 2021.

Some seniors have modest incomes despite owning valuable homes, so paying their tax bills can be difficult.

Canadian governments have offered rebates and tax deferrals, while proposals include a freeze on senior property-tax rates in Mississauga and lower interest on British Columbia's deferral program.

A deferral lets a homeowner borrow against their home equity and repay the tax bill when they sell, rather than having to pay it immediately.

Property taxes fund services such as road repairs and garbage collection, so reducing bills for some homeowners could mean higher taxes or service cuts for others.

The writer argues that deferral programs provide subsidized loans, even though banks and private lenders offer other ways to borrow against a home.

The government pays the difference when its borrowing costs exceed the rate charged, and the writer warns this could create pressure for further tax increases and relief.

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What people are saying

Globe and Mail opinion writerOpinion writer
their victories could mean higher taxes or reduced services for the rest of us.
via Globe and Mail
These same political pressures exist in Canada, but to date, the measures proposed and implemented have been far more modest
via Globe and Mail
Property-tax deferral programs are not filling a need that the market is leaving unfulfilled
via Globe and Mail