2. Residential Property Tax Exemption Program

The Residential Property Tax Exemption Program is meant to help people with a gross household income under $26,000 a year. This program gives modest rebates to homeowners based on their income and the amount of property taxes that they pay.

A "rebate" is an amount of your property tax bill which is paid by HRM. The value of a rebate is calculated using your combined gross household income, the residential portion of your property tax assessment and the amount of property taxes billed.

How Rebates are Issued:

Applications that are approved for a rebate on or before July 16^th will have the rebate credited to their tax account. The rebate reduces the amount of the final tax bill that is sent out in August (to be paid in September). The second bill (August) is usually higher than the first bill, so being on time with your application is important.

Applications which are approved after the final tax bill has been issued and paid, and have a credit on their account will receive a refund for amounts over $5.00.

All mortgage accounts (those where property taxes are paid by the bank or mortgage institution) are processed after the final billing has been paid. This helps applicants avoid an overpayment of taxes. After the final bill has been paid and the application has been approved, a cheque will be issued to the applicant. If there is a change in property owner name, HRM needs to be notified immediately.

Some Special Circumstances:

Each case is different. This newsletter explains the general rules which apply to each program but there are cases which are complex - in this situation it is best to call HRM staff to get advice.

A Loss of Income in the Current Year

The way the HRM Residential Property Tax Exemption Program works is last year's income and this year's tax bill are what set the level of a rebate (see Table T).

If your income has dropped since last year (retirement, illness, divorce, or the death of a spouse) it is still last year's income that will be used to see what level of rebate you may be eligible to get this year. In this situation, a payment plan or a tax deferral might help you pay property taxes for this year. This year's lower income will be used next year to (a) qualify for a rebate, and (b) set the amount of the rebate.

The Death of A Spouse or Name Change on the Property Deed

A payment plan or a tax deferral might help you pay taxes or pay in smaller monthly amounts until the estate is settled. In this case, when you apply for a tax deferral or tax rebate make sure you include a copy of the death certificate.

Based on when the death of an income earning partner has occurred staff will make a determination as whether or not income from the partner will be used based on some of the following criteria.

If a partner is deceased prior to January 1 of the current year, then their income does not need to be included with the application form, but a copy of the death certificate does.

If the partener is deceased after January 1 of the current year, then thier income is to be included and a copy of the death certificate, the income is then pro-rated over the amount of days from Jan 1 to the date on the death certificate.

When a spouse passes away and the property is in the names of both partners a copy of the death certificate (copy of the will or front page of the property deed) should be sent to the Provincial Assessment Office so that the ownership is correct, Provincial Assessment Office, 780 Windmill Road, 2^nd Floor, Dartmouth, NS B3B 1T3 Telephone: 1-800-667-5727.

The Provincial Assessment Office is responsible for name changes and HRM is responsible for the correct address being on your tax account.

Table "T" shows the maximum amount of a rebate based on household income and the amount of property taxes payable:

Eligibility Criteria
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3. Residential Property Tax Deferral Program

The Residential Property Tax Deferral Program allows a homeowner to put off paying part or all of their property taxes due in the current year (the year in which application is made). Once the deferral application is approved and processed no interest is charged on the deferred amount.

The amount of tax deferred is a "lien" against the value of the property. The debt is collected if title to the property is transferred to another owner (such as in an estate settlement, a divorce, tax sale or if the property is re-possessed by a bank). The total amount deferred on a property cannot exceed 75% of the assessed value of the property. An owner can pay off the deferred taxes at any time with no penalty.

All applications received for the Deferral of Property Taxes Program will not be processed until after the final taxation bill has been issued and the payment due date passed, any and all interest on the account for the current year at that time will be reversed.

Interest is not charged on the tax you postpone (defer) in the current fiscal year (April 1^st, 2004 to March 31^st, 2005). In order to continue to receive the deferral of property taxes, you must renew your application each year.

Eligibility Criteria
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4. Deferral of Local Improvement Charges

Local Improvement Charges may be added to a property owner for services such as sewer, water or road work. These charges are paid once a year. If you need help paying for a local improvement charge you may do the following:

1. Set up a payment plan with HRM Financial Services; and

2. Apply for a Deferral of Local Improvement Charges.

A Deferral of Local Improvement Charges allows a homeowner to put off paying the local improvement charge without accumulating further interest on the outstanding amount. The debt is collected if title to the property is transferred to another owner (such as in an estate settlement or a divorce, tax sale or if the property is re-possessed by a bank). The total amount deferred on a property cannot exceed 75% of the assessed value of the property. In order to continue receiving the deferral of local improvement charges, you must renew your application each year.

Eligibility Criteria
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5. Eligibility Criteria

To be eligible for these programs you must meet the following eligibility criteria:

• The applicant must be the legal owner of the property and live on property.
• The "owner" is the person whose name is on the provincial assessment notice and the HRM tax bill.
• Where there is more than one owner of the property, each owner must sign the application form.
• If one of the owners is deceased a copy of the death certificate must be submitted.
• The property must be your principle place of residence; not a second home, a cottage, vacant land or rental property.
• Gross household income for all family members (income before deductions) is $26,000 a year or less.
• A copy of your Revenue Canada Income Tax Summary, titled Notice of Assessment, must be sent in with your application form, for each family member over the age of 18 residing on the property
• The Property Tax Exemption cannot reduce your taxes payable below $200 a year.

PLEASE NOTE:

• You can receive a Property Tax Exemption and a Deferral of Local Improvement Charges.
• You can receive a Property Tax Deferral and a Deferral of Local Improvement Charges.
• You can receive a Property Tax Deferral or a Property Tax Exemption but not both.
• Your total Property Tax Deferral cannot exceed 75% of the assessed value of the property.
• Your total Deferral of Local Improvement Charges cannot exceed 75% of the assessed value of the property.
• Rebates and Deferrals are not given retroactively - a Property Tax Exemption and Property Tax Deferral applies only to the current taxes and not tax arrears.

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6. Application Forms

You can fill out and print the Application Form for the Property Tax Exemption Program, Property Tax Deferral Program, and the Deferral of Local Improvement Charges Program then drop them off at any of the following HRM Customer Service Centres:

To have a form mailed to you please call the HRM Corporate Call Centre at: 490-4000 or, toll free in Nova Scotia only: 1-800-835-6428.

If you require assistance in completing the form please contact 490-5454, e-mail taxgrant@region.halifax.ns.ca or go to your nearest HRM Customer Service Centre.

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