With property valuations soaring lately, it’s no wonder many are wondering how this might affect their annual property taxes. It’s a common misconception that if your BC appraisal notice states that your home’s real estate appraisal has increased by 20 percent, your property taxes will increase by 20 percent. We hope the following information will help clear up this misconception and explain how property valuations and property tax rates are related.
Municipal budgets are prepared each year based on the cost of providing services to residents and saving for the future. We go through an extensive budgeting process to determine the amount of property tax funding needed to balance the budget. Tax rates (mill rates) are then calculated to collect only the property tax funding needed.
The amount of property tax owed is only influenced by property valuations by how the valuation value relates to other valuation values. For example, properties at the higher end of valuations pay more taxes than properties at the lower end.
Local communities aren’t out to make money or make a profit, they only levy enough property taxes to balance their budgets. Preliminary information suggests that most South Island local authorities will see a tax increase from 3.5 percent to 6 percent on the average home ownership.
Visit the BC Assessment website to explain this common myth or contact your local municipal tax authority for more information.
Mayor Ryan Windsor, Central Saanich District
Mayor Geoff Orr, North Saanich District
Mayor Cliff McNeil-Smith, City of Sydney