Province unveils new tax deferment for seniors

The provincial government is debuting a new tax deferment program it says will give some seniors greater financial flexibility and help them remain in their principal homes.

Under the program, people 65 and older with an annual income less than $70,000 can apply to defer the education component of their property taxes through a repayable loan for 10 years.

The program, which opened last month, fulfils a Saskatchewan Party campaign promise made in the lead-up to the 2016 general election — though it comes slightly later than the party expected.

“This program will provide lowto-moderate-income seniors with greater financial flexibility, and help them stay in their homes longer,” Social Services Minister Paul Merriman said Wednesday.

Applicants for the program must maintain a minimum of 25 per cent equity in their principal home and live in that residence. Loans are to be repaid if the home is sold, the conditions are no longer met, or after 10 years.

The program is not applicable to secondary homes, farmland or commercial property.

As of January, education property taxes collected by municipalities are directed into the province’s general revenue fund rather than to school divisions, as was previously the case.

The current education property tax mill rate is 4.12, meaning a residential property assessed at $100,000 would generate $412 in annual taxes.