Another tax deadline is almost here

The first day of summer was on Thursday.

Before we get too involved in our summer activities, we need to reach into our pocket once more. It’s time to pay our 2018 property taxes, due Tuesday, July 3.

If you are a home or property owner, then you owe property taxes.

Do you own property within a municipality such as Kelowna or West Kelowna? Your tax notice is sent directly from City Hall. By the time you read this article, you should have received your 2018 property tax notice. If not, contact your local municipal hall.

For rural property, which is defined as land outside cities, towns, districts and other municipal areas, owners usually receive their property tax notice by mid-June.

If you have not received your notice or have recently purchased property, you can contact the local Service BC centre to obtain a tax notice and avoid late payment penalties.

Contact can be by phone (1-800-6637867), email (ruraltax@gov.bc.ca), online (rev.gov.bc.ca/rpt) or in person at 305 – 478 Bernard Ave.

Your tax notice outlines each separate tax that is assessed. Services such as sewer usage or garbage/landfill/recycle may appear as a flat rate.

The two major recipients of your property taxes are the municipality or regional district and the school district.

These two groups receive almost 90 per cent of your tax payment.

There are many options available to pay your property taxes.

Payments can be made by mail to the address listed on the notice, paid in person at a financial institution or through online banking.

If you prefer monthly payments, you may pay your property taxes with your regular mortgage payments or by preauthorized payments plan.

Remember to first complete and sign your 2018 Home Owner Grant Application form. Drop off the completed form at City Hall or claim it online at Kelowna.ca/propertytax.

After the tax-due date of July 3, a five per cent penalty is applied to any balance, including unclaimed homeowner grants.

If your taxes are still unpaid by Aug. 7, an additional five per cent penalty is imposed.

If the home you own is located in Kelowna or West Kelowna and is not your primary residence, then you may be subject to the new speculation tax introduced by the NDP government in its February 2018 budget.

If the property qualifies as a longterm rental, it will also be exempt from this new tax.

In 2018, homes need to be rented out for at least three months to qualify for an exemption.

For 2019, this rental requirement increases to at least six months to qualify for an exemption.

Three separate programs are available to assist property owners in the payment of their taxes. They are the Home Owner Grant, the Property Tax Deferment and the Farm Extension program.

Home Owner grants can reduce your property taxes by as much as $770. To qualify for the homeowner grant, you must live in your home in 2018. If you meet additional criteria, such as being over 65, a veteran or certain persons with disabilities, you may qualify for a total grant of up to $1,045.

This grant must be applied for each year.

The tax deferment program allows homeowners to defer taxes. Those who qualify are 55 years or older, people who are widowed or those with certain disabilities. Low-interest loans can assist you in payment of your annual property taxes.

The Farm Extension program allows the tax-due date to be extended to Oct. 31. Farmers must apply online for the extension by July 3.

Marion Wahl is a chartered professional accountant.

Email: mwahl@wahlcga.com. Phone: 250-762-3362.