February 10, 2010
BC’s provincial government has instated a rule that you can defer your property taxes until death or until you sell your home if you have children under the age of 18. And financial experts are worried about what this means for accumulation of yet another debt.
…interest will accrue on the deferred taxes and if a person isn’t careful, they could end up in a situation where the debt has been deferred so long, they can’t get out from under it. Vancouver Sun
While it will be a temporary relief for many homeowners, many may just allow it to accrue like all their other debts. Another important consideration is that this policy may leave homeowners feeling locked into one property because, if they sell, they will be expected to pay property taxes.
Hopefully people won’t forget that the key word is ‘defer’ (as in, they’ll HAVE to pay it later). But then, there’s a lot of people who haven’t done so well with credit cards, and those earn 18.5% interest compounded monthly. I doubt the provincial government will be involved in such massive usury. And I doubt people will bother paying if they don’t have to.