B.C.'s homeowner grant is 'a relic of the past,' but don't expect change anytime soon, says critic

Following the release of B.C. Assessment data on the value of residential properties, one critic says the province should reconsider a tax break given to the majority of homeowners across British Columbia.

The assessments are used by government to provide homeowner grants, giving some relief on property tax bills ranging from $570 to $1,045 on homes that are valued at under $2.15 million.

Unique to B.C., the grant was introduced in 1957 by W.A.C. Bennett's Social Credit government as a way to reduce the tax burden on homeowners. 

More than 60 years later, longtime developer and architect Michael Geller says it's time for change as the grant gives homeowners an unfair advantage over renters.

"It's a relic of the past... It encourages and assists people who own homes and doesn't do anything for people who rent homes," he said. "I think we should be devoting public money to those in greatest need."

Geller says he thinks the government has little motivation to tinker with the homeowner grant because B.C.'s rate of home ownership is over 60 per cent.

For 2024, the homeowner grant applies to properties valued at $2.15 million or less, capturing 92 per cent of homes in the province, according to the B.C. government. The grant is contingent on a property being the owner's primary residence. 

Eligible homeowners in Metro Vancouver, the Fraser Valley and Victoria area get a $570 break on their property tax bill. Those in other parts of the province get a $770 rebate, with larger grants available to seniors, veterans, and people with a disability.

On average, every eligible homeowner in B.C. will get a $668 rebate. That compares to the $400 tax credit offered to renters earning $60,000 or less annually.

"It's somewhat ironic that the renters' rebate is income-tested whereas the homeowner grant is not," Geller said. "And given the fact that 42 per cent of all Metro Vancouver homeowners are mortgage-free, giving them a grant when so many others are suffering just doesn't make sense to me."

The province budgeted $910 million for the homeowner grant program last February and $307 million for the new renters' tax credit.

In a statement, B.C. Minister of Finance Katrine Conroy said the homeowner grant helps almost 500,000 seniors who have seen costs rise but their income stay the same, along with 15,000 people with a disability. 

"This helps ensure homeowners with the greatest need receive the most support," she said.

Conroy said the renters' tax credit will benefit more than 80 per cent of renting households in B.C.

Geller said another problem with the grant is using a single threshold for the entire province.

"Here on the west side of Vancouver a $2.1-million house may not be that expensive compared to other houses, but in most parts of British Columbia a $2.1-million house is the nicest house in town and yet we're giving a grant to the person who owns the nicest house," he said.