A key Liberal proposal to allow Ontario seniors to defer any future property tax increases is creating a debate between the parties — just days ahead of Thursday’s provincial election — over how to help seniors stay in their homes for as long as money and health allows.
“One of the biggest challenges seniors face is the continuous rise in property taxes,” says Liberal candidate Yasir Naqvi, who is running for re-election in Ottawa Centre.
When it comes to keeping seniors in their home, the City of Ottawa already has a plan in place with some provisions for deferring property tax payments. But older residents across Ontario would have more extensive options under the proposed Liberal plan. According to the proposal, when seniors eventually choose to sell their homes, they could then repay deferred provincial portions of their property tax, minus administration fees or interest, says Naqvi.
The Liberals expect five per cent of the 1.3 million Ontario seniors who own their own homes to opt into the program within the first year, with participation increasing throughout the next four years, says Naqvi.
Centretown and adjacent areas constitute a prime area for seniors to live in the city because of access to services and transportation, says Trudy Sutton, executive director of Housing Help, an organization that helps people find affordable housing. But property taxes are a significant burden for many seniors in those areas, says Peter van Boeschoten, chairman of the City of Ottawa seniors advisory committee.
Bernard Bouchard, executive director of The Council on Aging of Ottawa, says, “it is hard to predict, but five per cent seems like a low number, and there are over 100,000 seniors in Ottawa — and the number is growing. I imagine there will be more of an uptake than most people think.”
The Liberals have based the predicted five-per-cent participation rate on the current, limited programs that help low-income seniors deal with increasing property taxes. Unlike the Liberals’ proposal, these programs have more restrictions attached, and they typically involve paying interest charges or administration fees.
Currently, the city offers two tax-deferral programs for low-income seniors and low-income residents with disabilities. If eligible, homeowners can apply for a full or partial deferral of their property taxes, says van Boeschoten.
“In election time, everyone has a wish-list of what they want to happen. The key here is that the council has been working for years and years on these different issues and to voice the seniors concerns,” says van Boeschoten.
The NDP provincial candidate for Ottawa Centre, Anil Naidoo, says the Liberal program targeted at seniors doesn’t offer needed relief to all homeowners.
“Though property taxes and rising affordability issues are important within the elderly community,” he says, “they are just as important for many Ottawa families as well.” Rob Dekker, the Progressive Conservative candidate for Ottawa Centre, said the Liberals can’t be trusted to deliver on their promises.
“After eight years of new taxes, fees and skyrocketing energy bills under Dalton McGuinty and the Liberal government, seniors need real relief,” Dekker says. “The Liberals have no credibility. We’re offering broad-based relief for seniors and all Ontario families.”
Dr. William Dalziel, a geriatrician at the Ottawa Hospital, says a property tax program targeted at seniors is not fair to the rest of the population.
“I would rather advocate for more money to be spent on community services for seniors who really need it,” he says, “as opposed to — for example, in the worst-case scenario — a millionaire in the Glebe (deferring) taxes without interest, and (that homeowner) makes another whole bunch of money.”
Pre-vote polls for the Oct. 6 election show the Liberals and Progressive Conservatives running neck-and-neck, with the NDP potentially poised to hold the balance of power in a minority government.