In just a few short weeks, one North Vancouver martial arts studio has appreciated and depreciated in value by approximately $65,000.
North Vancouver Aikikai on East First Street was assessed at $75,000 for the building alone in 2013. When owner Joel Posluns got his 2014 B.C. Assessment, the studio (not including the land value) had rocketed in value by 86 per cent to $140,000.
Posluns elected to fight the evaluation.
Accusing B.C. Assessment of relying on "black box calculations" with a limited relationship to reality, Posluns went to his assessor.
"Ordinarily they just say take it to appeals because they know they're going to win.. .. It's like, 'This is the way it is, if you don't like it, sell your building and get out,'" he said.
The appraiser surprised Posluns.
"He was very nice. .. he's one of the most helpful people I've ever had to deal with," he said.
Posluns won his fight to restore his assessment to its 2013 level.
In order to make his case, Posluns looked next door, where Love Nest Home Parties received a more modest assessment despite being a class-A cinder block building with 50 per cent more retail space as well as air conditioning and proper heating, according to Posluns.
North Vancouver Aikikai is in a wood stucco building that is at least 85 years old, said Posluns.
"I haven't put a cent into it in six years," he said.
The neighbourhood is also not as prosperous as the assessors assumed, said Posluns.
High municipal taxes and an onslaught of construction have squeezed Lower Lonsdale business owners, he said.
While assessors assumed he could lease his building for $30 a square foot, Posluns said the reality is closer to $15 a square foot.
"All you've got to do is walk around on Lonsdale between Esplanade and Third. Count the number of empty storefronts. Half of them are empty," he said.
The higher assessments are not sustainable given the other costs faced by owners of small businesses, according to Posluns.
When he first rented the building in 2007, Posluns said he paid $13,000 in municipal taxes. In 2013, he paid more than $19,000.
The deadline for assessment appeals is Jan. 31. Posluns urges owners of small businesses to petition B.C. Assessment to reverse unfair evaluations.
"A lot of times people just can't go through the appeal process, it's too overwhelming," he said.
Fewer than two per cent of property owners in British Columbia typically appeal their assessment, according to Dharmesh Sisodraker, deputy assessor for the Sea to Sky region.
Each assessment for 2014 is based on market value as of July 1, 2013.
"Market value encompasses everything that purchasers and sellers look at," he said.
In Lower Lonsdale, property values might dip due to construction, according to Posluns.
If there's sales evidence to show nearby construction affected property value, it can be considered in the assessment, according to Sisodraker. "We look at all the consideration that purchasers and sellers look at, but we have to couch that with evidence from the marketplace," he explained.
Any property owners who are unhappy with their assessment should look at sales transactions of similar properties or look for comparable evaluations within the neighbourhood, according to Sisodraker.
Posluns encourages property owners to probe their assessment for false assumptions.
"Don't accept it at face value," he said. "People have to be their own advocates."
