Burnaby council blasted the provincial government on Monday for not increasing the B.C. homeowners’ grant threshold for 2015.
“It’s traditionally been looked at that the homeowner grant was a way for the government of giving back some of the school tax money that was being drawn out of municipal property owners,” Mayor Derek Corrigan said at the council meeting.
With property values increasing in the city and the homeowners’ grant not shifting to accommodate inflation, 324 homeowners became ineligible for the grant in Burnaby this year, according to a city staff report.
The threshold for a full grant is $1.1 million. Partial grants are available for homeowners under 65 for homes that are assessed up to $1.214 million, and for homeowners over 65 for homes that are assessed up to $1.269 million.
Because many properties in the Metro Vancouver region are assessed above the threshold, this means more money is being collected from homeowners in the region to cover schooling costs for the rest of the province, Corrigan said.
“It is a big problem and it’s one that’s inequitable around the province,” he said. “Regions aren’t treated equitably.”
The houses that are assessed above the threshold aren’t mansions, Corrigan added.
“People are living in very modest bungalows where the land has value but the home itself is not a particularly fancy home,” he said.
Burnaby residents who are upset about tax increases should direct their ire at the provincial government, Coun. Paul McDonell said.
“We bear the brunt of it because people will come in and complain their taxes have gone up. But one reason they’re paying more taxes is because they’re losing their homeowners’ grant,” he said. “We should let the citizens know – their fight isn’t with us.”
The government stopped making inflationary adjustments about three or four years ago, according Coun. Colleen Jordan.
“Within the next couple of years, this is going to have a serious impact, especially on seniors,” she said. “It’s a bad situation, and it’s very specific to this region.”
Coun. Pietro Calendino said he is most concerned about the effect on the school district.
“It seems to me the provincial government is collecting $2.4 million more from homeowners to subsidize the school system,” he said, adding that at the same time, the board of education has to make massive cuts.
The province announced the homeowners’ grant thresholds would remain the same as the previous year in the 2015 budget.
For those under 65, grants can reduce property taxes by up to $770 in northern rural areas, or up to $570 elsewhere in the province.
For those over 65, grants can reduce property taxes up to $1,045 in northern rural areas, or up to $845 elsewhere in the province.
The grant is reduced by $5 for every $1,000 assessed home value that exceeds the threshold.
Ninety-three per cent of homes in the province are below the threshold this year, according to the budget.
No one from the B.C. Ministry of Finance was available to speak on the issue before press time.
