Mid-to Low Income, Home-Owning Seniors Can Opt Out of Education Property Tax
Seniors aged 65 and over have another way to help them stay longer in their own homes as a new tax deferral program has been created to give seniors the means to opt out of education property taxes.
“This program will provide low-to-moderate-income seniors with greater financial flexibility, and help them stay in their homes longer,” Social Services Minister and Minister Responsible for Saskatchewan Housing Corporation Paul Merriman said in a recent media release.
The program is called the Seniors Education Property Tax Deferral Program and is designed for senior homeowners with a household income under $70,000. The homeowners will be able to deflect the education property tax through a repayable loan.
Merriman said this program is fulfilling an election promise and supports government strategies, including the Poverty Reduction Strategy.
The tax deferral is aimed for the primary residence of the homeowner, not for an additional residence, farmland, or commercial property that is outside of the principal residence area. However, the program will be able to offset the taxes applicable for the entire current calendar year, no matter when in the year an application is put in.
According to the media release, the senior homeowners under the program would still remain responsible for the direct and full payment of their property taxes, but the repayable loan would offset the financial burden.
Repayment of the loan would occur when homeowners in the program sell, transfer, no longer reside in their homes, or when they no longer meet the conditions of the loan. The loan could also be redeemed in full at any time without any penalties.
Seniors are eligible for the program if they:
- Are 65 years of age or older
- Own and live in their home which must be their primary residence in Saskatchewan
- Have total household income below $70,000
- Maintain a minimum of 25 percent equity in their home
According to the media release, “Seniors can apply at any point in the year to defer their education property taxes. Approved applicants will be enrolled in the program for 10 years with the option to opt out at any point. At the end of the 10-year enrollment period, seniors who would like to continue to defer future education property taxes can reapply to the program.”
People interested in the program can call 306-787-4177 or 1-800-667-7567 or email repairstaff@gov.sk.ca.
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