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Premier Campbell freezes 2009 Property Assessments

Premier Campbell freezes the 2009 Property Assessment values at their highest levels ever in the Province of BC

We, like everyone else in the Province of British Columbia, were surprised to learn of Premier Campbell’s decision to freeze the 2009 Property Assessment Roll based on the 2008 Property Assessment Roll valuations.

The reasoning provided in his recent media release is “to create certainty for homeowners, businesses and local governments.”

We provide the following commentary to Premier Campbell’s media release:

“We know that property values have fluctuated widely since assessments were conducted last July,” said Premier Campbell. “To avoid confusion, anxiety and unnecessary assessment appeals prompted by higher-assessed property values that do not reflect current market conditions, we will lock-in B.C.’s assessment rolls at 2007 assessed levels.” The decision to freeze the 2009 Property Assessment Roll at 2008 values will confuse the public as the 2008 property assessment roll values reflect the highest assessment values on average ever recorded in the Province of BC. This decision will create more confusion and anxiety amongst property owners leading to higher rates of appeal than what may have originally been anticipated as these frozen property assessment values will not reflect current market conditions when the 2009 Property Assessment notices are delivered to property owners in January 2009."This measure will provide time for markets to stabilize and reflect proper market values so property owners know how much they will pay in property tax and local governments know how much they will collect to provide services."

The BC Assessment Authority has been a highly respected organization that demonstrated competency and credibility in the delivery of market value based property assessment services on annual basis to the taxpayers of British Columbia. The BC Assessment Authority is widely regarded as a leader in market based property assessment valuation across Canada and Internationally. Annual market based property assessment valuations are universally accepted by all professional appraisal and assessing organizations as the fairest means to equitably distribute the property tax burden for all property owners.

The legislation and regulations that guide property assessment valuation and appeals in BC has been drafted and fine tuned over the years to eliminate administrative and political influence. The BC Assessment Authority has withstood the challenges of various economic cycles in the Province of BC over the past 34 years. BC Assessment Authority employees remain well trained assessment professionals capable of producing and supporting annual market valuations for property assessment purposes under any economic circumstance. However, the collective political decision to freeze the 2009 property assessment roll undermines the independence, integrity and credibility of the BC Assessment Authority by artificially imposing non-market values to minimize potential assessment appeals in January 2009. It will help municipalities who otherwise might be forced to make significant adjustments to mill rates and protect homeowners whose assessments would be higher than the market value of their homes. This will not apply to new homes that have not yet been assessed. This will not affect municipalities’ ability to set their own mill rates.

Municipalities are represented by a Mayor and Council who are directly accountable and responsive to the needs of their constituents. With this responsibility comes the discretion and restraint to provide appropriate local services (water, sewer, roads, parks and recreation, police, fire protection, transportation, etc) while ensuring the fair distribution of the annual property tax burden to pay for these services.

Municipalities determine their annual budgetary requirements in advance and then apply an appropriate mill (tax) rate to the various classes of assessed properties (residential, business, light industry, major industry, farm, etc). Municipalities do not collect surplus revenues based on assessment value increases nor do they budget for annual deficits if property assessment values decline from the previous year. For these reasons, municipalities have always adjusted their mill (tax) rates on an annual basis to collect only those revenues (taxes) required to finance their annual budgetary requirements.  There is no need for the Provincial Government to protect individual homeowners as the mill (tax) rate affects all homeowners equally within a municipality.

The frozen assessment values as proposed by the Premier will lock in the highest average residential property assessment values in BC, which may still be higher than the current market value when the 2009 property assessment value notices are delivered to property owners in January 2009.

The property taxpayers of BC have had a professional provincial property assessment agency that has historically provided credible annual property assessments with integrity. This system has been supported by appropriate property assessment appeal safeguards that ensured fair and equitable property assessment values are placed on the annual property assessment roll. The collective decision to freeze the 2009 property assessment roll at the 2008 property assessment values does not provide any more certainty or protection to homeowners, businesses and local governments than a decision to allow the BC Assessment Authority to complete its annual legislated task which has been for all intents and purposes completed but now shelved through political intervention. I remain available should you have any questions.

2008 Assessments Skyrocket

Assessments skyrocket as demand stays strong

More Metro Vancouver neighbourhoods join the $1-million club

Randy Shore, Vancouver Sun

Published: Thursday, January 03, 2008

Seven neighbourhoods in Metro Vancouver have joined the exclusive one-million-dollar club, according to the B.C. Assessment Authority.

A typical home on a 33-foot lot on Vancouver's west side is now worth $1 million, achieved on the strength of a 20-per-cent average increase in the assessed value of homes in that neighbourhood.

Overall, the assessed value of B.C. real estate climbed by 16 per cent to top $940 billion, according to assessment authority figures released Wednesday.

http://www.canada.com/vancouversun/story.html?id=ff599701-69a0-42e6-bd21-c7493c4dad87&k=58105

Vancouver facing property tax hike of nearly 5%

Vancouver facing tax hike of nearly 5 per cent to get same service

Just offering the same city services and programs in Vancouver next year will require a property tax hike of 4.8 per cent.

And to pay for $6.3 million in new or expanded services the city is contemplating would bump rates to just over six per cent, according to a finance staff report heading for council Tuesday.

http://www.canada.com/theprovince/story.html?id=0de4e9c0-7c1a-4dd8-8f99-baf0fa5f7263

For big cities, a taxing dilemma

Businesses in Vancouver, Toronto being chased to suburbs because of high property taxes, officials contend

LORI MCLEOD

From Tuesday's Globe and Mail

December 4, 2007 at 6:57 AM EST

Their disproportionate share of the property tax load compared with homeowners is driving many businesses in Vancouver and Toronto to consider either moving from the city cores or closing up shop, according to business advocacy groups.

In Vancouver, businesses pay five times as much municipal property taxes as homeowners, and Toronto isn't far behind, according to a study by the Real Property Association of Canada (REALpac), which works on behalf of real estate owners and managers. Vancouver now has the "dubious distinction" of being the most overtaxed business jurisdiction in the country on this basis, the organization said in commenting on the study results.

http://www.theglobeandmail.com/servlet/story/RTGAM.20071204.wprtaxes04/BNStory/robNews/

BC Government ends Translink parking stall tax

If they've got parking stalls, they're celebrating today. By 6.p.m., the B.C. government is expected to officially scrap TransLink's parking tax levied against businesses in the Lower Mainland for the past two years and the target of a co-ordinated hate campaign since before it was even introduced.

http://www.canada.com/theprovince/news/money/story.html?id=868b3545-7f21-4b4d-b7ec-b22d0ab1a1c3&k=50286

Vancouver worst for business property tax, study says

Vancouver has become the worst place in Canada to do business from a property tax perspective, according to a study released Wednesday by the Real Property Association of Canada, an advocacy group for owners and managers of investment real estate.

Report on Business

Vancouver freezes commercial property taxes

City of Vancouver homeowners will pay all of the tax increase for the city this year, after a precedent-setting shift of taxes away from business.

That means the average tax increase for homeowners will double to eight per cent from four per cent, while the overall business tax contribution will essentially be frozen.

This is the first time in the city's history that taxes have shifted so dramatically.

http://www.canada.com/vancouversun/story.html?id=3926324a-afcc-44eb-8646-0968eaa70f3d&k=53003&p=1

Parking Site Tax eliminated for 2008 Assessment Roll

Minister Falcon announced that the Greater Vancouver Transit Authority (aka TransLink) is under Provincial review in terms of governance and funding. As part of this review, it has been reported that the controversial and punitive Parking Site Tax will be eliminated and possibly replaced by an increase in fuel taxes. March 8, 2007  

Victoria hikes taxes by 4%

2007 Property Assessment

    Assessment values up an average of 23% in BC!