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Seniors praise provincial tax deferral program

A program allowing Alberta seniors to postpone some or all of their residential property taxes starting in 2013 is being applauded.

A program allowing Alberta seniors to postpone some or all of their residential property taxes starting in 2013 is being applauded.

Red Deer senior citizens praised the provincial Seniors’ Property Tax Deferral Act program, which was announced this week.

More than 170,000 senior households are potentially eligible for the voluntary program designed to help seniors use their home equity to stay in their homes longer. To be eligible, seniors must own and live in their home. The deferred taxes will be paid to the government, with interest, when the senior sells their home.

Viggo Nielsen, chairman of the Central Alberta Council on Aging, said he believes it would help some seniors who need a little more money in their pocket while they live in their own house.

“It’s a stop-gap plan,” Nielsen said on Thursday. “It certainly will cost the province right now, but it won’t cost them in the long run.”

Nielsen said overall he thinks the program is a good idea. He said he wouldn’t need to use the program.

Alan Smith, who was taking part in an art class at the Golden Circle senior resource centre, said some seniors are “suffering at the moment,” so the program is a good move for them.

Most retirees thought they would be getting seven per cent interest on their savings, but now it’s around one per cent, he added.

“This deferral would be an excellent idea,” said Smith.

Smith has his own house but won’t need the program. “I’m surviving,” he said.

Ted Holden, 68, can’t take advantage of the program because he rents an apartment.

He believes it would help seniors deal with costs, particularly when Alberta seniors are required to pay up to $25 on each prescription.

“Dollars don’t stretch that far,” he said. “This would help them out tremendously.”

Senior citizen Sheila Wright said the program is only a plus in certain circumstances, such as those who are strapped for cash. The homeowner said she wouldn’t apply for the program.

“It doesn’t suit my circumstances right now,” Wright said. “I guess I hate to owe money. If I guess I can pay it off right now, it just makes it easier.”

Seniors Minister George VanderBurg said in a news release that support for the program has been astounding.

Red Deer North MLA Mary Anne Jablonski added this option will allow seniors to be independent wherever they live in the province.

More details about the program, including eligibility and interest rates, will come forward as the regulations are developed later this year.

ltester@www.reddeeradvocate.com