Land Tax Deferment Act, Sections 7, 7.1, 7.2, And 11

Land Tax Deferment Act, R.S.B.C. 1996, c. 249

The Act authorizes the Minister of Finance to enter into agreements with qualified owners to defer payment of all or part of the taxes payable on eligible property. The surveyor of taxes makes application on behalf of the minister to register the agreement in the land title office. The minister pays the deferred taxes until the agreement terminates at which time the owner becomes liable for the amount paid plus interest.

• Nature of Interest: Registered copy of the agreement constitutes a charge in favour of the government.
• Electronic Submissions: The surveyor of taxes electronically submits a copy of the agreement to the registrar pursuant to Director’s directions issued pursuant to s. 168.22(3) of the Land Title Act. For hardcopy submissions, a Form 17 is not required. The registrar provides an electronic copy of the agreement to the surveyor of taxes with the registration particulars endorsed on it.
• Effect of Registration: Registered agreement and deferred taxes and interest have preference or priority over claims, liens, charges, or encumbrances subsequently registered or filed.

Section 7.1 of the Act allows an owner who has deferred taxes on a property to transfer a portion of the owner’s interest to a spouse provided both parties and all other owners, if any, enter into an amending agreement. The amending agreement must be approved by the minister and registered in the land title office. The amending agreement must stipulate that the spouse is liable for all past and future taxes deferred under the original agreement and for any interest on the deferred taxes. The registrar registers the amending agreement as a modification to the original agreement. By virtue of s. 11(7) of the Act, the amending agreement has no effect on the priorities established and set out in s. 11(1).

• Electronic Submissions: On the Form 17 Charge, Notation or Filing, select Nature of Interest, Land Tax Deferment Act Agreement, Modification, and attach an image of the copy of the amending agreement certified by the Surveyor of Taxes.

Note that, as a matter of policy, mortgages registered under the B.C. Home Programs Legislation, chapter 36 (British Columbia Home Programs Legislation), have priority over agreements under the Land Tax Deferment Act.

Note also that, once an agreement is registered and unless permitted by the regulations, the registrar must not register a transfer or other conveyance of any part of the eligible property without the written consent of the minister. The registrar considers that foreclosure transmissions are thus prohibited. Where the minister consents to a transfer, the registrar carries forward the charge.