Seniors struggling with rising property taxes could soon be able to move that concern a little further down the line under new legislation introduced this week.
The proposed legislation would allow seniors to defer paying their property taxes until they sell their home or they pass away.
Premier Alison Redford said the government wants to see the bill become law quickly.
“It is important for us to pass this. We want to make sure we are delivering on the commitment we have made,” she said. “We think it is important for seniors to be able to stay in their homes.”
Seniors’ minister George VanderBurg has championed the idea for years and brought in private member’s legislation, before he joined cabinet. He said the government wants seniors to stay in their homes for as long as possible.
“There are all kinds of issues with seniors’ housing and as important as building new seniors’ housing is, keeping them in their own homes is also important.”
With an election call expected soon, VanderBurg said he hopes to have the bill pass the legislature, but if it doesn’t before the campaign starts it will be brought back swiftly after the election.
He said many seniors have paid off their homes, but now face other financial challenges.
“There are so many seniors who are house rich, but cash poor.”
He said with the rising cost of real estate, many of the small homes seniors once purchased have increased substantially in value, which only increases the property tax burden.
“All of a sudden their modest home they purchased years ago is worth $500,000 or $600,000,” he said. “That is a major impact on your monthly budget.”
The government will set a modest interest rate to cover the cost of administering the program and VanderBurg said anyone over the age of 65 with 25 per cent equity in their home would be eligible.
Richard Tansey, chairman of the local chapter of Seniors United Now welcomed the bill and said legislation like this is long overdue.
He said along with many other things, property taxes have been steadily creeping upward and that can put pressure on seniors.
“If they are on a fixed income it becomes more and more of a challenge,” he said. “It is definitely a benefit to those who are struggling.”
Tansey said the money that seniors will now be able to put off paying will be re-invested in the community and when the house is sold the taxes will be paid.
“It gives them $300 or even $400 a month of disposable income,” he said. “The money is going to get spent and it is going to go out into the community.”
St. Albert Mayor Nolan Crouse said the city has been lobbying for the program and is thrilled to see the government bring it in.
“I am happy the province has done it. We have been lobbying for. We have sent letters to the province and mentioned it in meetings,” he said. “I think it is perfect. I think it is absolutely perfect.”
Crouse said he is not concerned about what the program could do to the city’s coffers.
“The money is essentially going to start rolling over and it is not like every Albertan is going to take advantage of it.”
VanderBurg also said the province would cover any shortfall municipalities might see while the program is in its infancy.
Crouse said he also appreciates the province taking the lead rather than having municipalities do it on a piece-meal basis “and then have the province catch up.”
If passed, the legislation would impact the 2013 tax year.
