Interest on property tax overpayment to municipalities

Individuals that have overpaid their property taxes or successfully appealed their property assessment may be eligible for a tax overpayment refund with interest.

When an individual receives a tax overpayment refund, it will include any interest that has accumulated. Interest starts to accumulate 60 days after the date the overpayment was made. Section 239 of the Community Charter establishes interest rates for refunds of tax overpayments.

The interest rates for tax overpayments are calculated by subtracting two percent from the prime lending rate (as of the 15th of the month preceding the effective date) of the principal banker to the B.C. Government. The Canadian Imperial Bank of Commerce is considered to be the B.C. Government’s principal banker for interest rate reference purposes.