Take a deep breath. This year’s tax assessments for single-family homes are going to sting. The province is sending out letters next week informing anyone whose home has jumped more than 15 per cent in assessed value compared to other properties in their area. About 4,500 owners on the North Shore will be getting the early warning.
A quick reminder: A higher assessment doesn’t necessarily mean a higher tax bill. Municipalities wait to see what the total assessed value of the land in their jurisdiction is before setting their tax rates.
It’s those whose assessments outpaced the average increases of those around them who tend to wind up paying more on their tax bill.
It’s unfortunate that BC Assessment uses the month of July to set the benchmark for the year’s assessments. You may recall July was a record month for sales as buyers scrambled to complete sales before the province’s new foreign buyers tax came into effect on Aug. 2.
Metro Vancouver’s politicians are now calling for reforms to the homeowner grant to make the system more equitable.
But those now feeling burned by the spring’s hot housing market should remember there were voices calling for the province to take action sooner.
A big part of the reason the party continued was the province relied heavily on the advice of the real estate industry itself. That and the tax bonanza it brought in.
If you’re feeling particularly aggrieved by your assessment, you can appeal it. The province also allows anyone over the age of 55 to defer their taxes indefinitely at a token interest rate.
And remember, there are worse problems to have than owning a multimillion-dollar home.
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