Pitt Meadows calls on province to rethink tax deferment changes over impact to seniors
Pitt Meadows council is urging the province to reconsider changes to B.C.’s property tax deferment program, warning the new rules could put financial pressure on seniors and other vulnerable homeowners already struggling with affordability.
Council voted unanimously on May 12 to send a letter to Finance Minister Brenda Bailey expressing “significant concerns” about the provincial overhaul, particularly a sharp increase in interest rates and the move to monthly compounding interest.
“For many individuals — particularly seniors, low-income households, and those on fixed incomes — the Tax Deferral Program has long served as an essential support, enabling them to remain in their homes despite rising costs,” the letter states.
The province announced earlier this year that, effective for the 2026 tax year, interest on the regular property tax deferment program would rise from prime minus two percent to prime plus two percent. The program will also shift from simple interest to interest compounded monthly.
The changes are intended to make the property tax deferment program’s borrowing costs “better reflect real borrowing costs” and reduce the use of the low-interest program as a financial strategy by homeowners who could otherwise afford to pay their taxes, according to the province.
Previously, the deferment program allowed eligible seniors, families with children and people with disabilities to postpone paying annual property taxes, with the province placing a lien against the property that is typically repaid when the home is sold or transferred.
Pitt Meadows councillors said the changes undermine the province’s own push to support aging in place.
“This one I just find quite unbelievable,” Coun. Mike Manion. “At a time when our seniors — and in some cases our most vulnerable people — are facing real economic hardship, to add this burden that potentially leaves them out of their homes is beyond belief.”
Coun. Bob Meachen said many residents had relied on the deferment program specifically because of its previously low borrowing costs.
“It went from minus two percent to plus two percent compounded,” Meachen said. “Folks that really did rely on being able to defer taxes are now faced with accumulating interest each year, which means that equity basically is being used up.”
Meachen said the province appeared to be targeting a relatively small number of people who may have used the program strategically while ignoring the broader impact on seniors.
“The vast majority do not do that,” he said. “Pitt Meadows is roughly 20 percent senior citizens, many of whom do in fact defer the property tax based on the fact it was a pretty good deal to do so. This is horrible for our senior citizens.”
He added the province should have explored measures such as means testing rather than broadly increasing borrowing costs.
Mayor Nicole MacDonald said the changes clash with provincial messaging around keeping seniors in their homes longer.
“We’re hearing such a drive for aging in place and keeping people in their homes, and it just smacks up right against that principle,” MacDonald said.
In its letter, the city also raised concerns about confusion surrounding the province’s automatic renewal system and the June 1 deadline for residents wishing to opt out under the new terms.
The city said staff have received numerous inquiries from residents seeking guidance on how to leave the program and asked the province to clarify the process publicly.
Council’s letter urges the province to improve communication with participants and provide clearer information about available support services during the transition.
