2009 Assessed Values and Budgeting for 2009 Property Taxes
The Premier's intent was well meaning, in that his original proposal does give certainty. Taxes for 2009 would have been 2008 plus the additional % by which any municipality increases their budget.
A second proposal to choose the lower of the 2008 assessed values or the 2009 assessed values, allowed those with lower values at July 1 2008 [2009 valuation date] to have lower taxes.
What to expect
BC Assessment have not yet come out with all the rules and regulations; however, one might anticipate the following:
- Each Assessment Notice will have two values; the 2008 and 2009. The "roll value" will be the lower;
- In making an appeal, it should be possible to appeal both values, so that you can achieve the lowest, even if you did not appeal last year;
- The state and condition will be as at October 31, 2008 for the 2009 value and October 31, 2007 for the 2008 value;
- A property that has been physically changed as of October 31, 2008 should be assessed in the state that existed on that date but using  July 2007 values for land and  costs as at October 2007 for a 2007 value of the construction in place at Oct 31 2008;
- If you paid $5,000,000 in 2007 and now find additional costs not previously anticipated - eg. poor soils, your value should be lower;
- If the zoning changed, a new value as of July 1, 2007 should be created;
- If the use changed, then a new classification might be merited, particularly properties that are in the development stage;
- New buildings should be assessed at 2007 costs for the 2008 roll;
- Improved properties where land averaging was in effect in the City of Vancouver will want to have the highest value on the roll;
- Properties not appealed last year, which in hindsight were too high, can be appealed;
School Tax Reduction
Effectively, the mill rate for school taxes will be reduced for all class 4 and 5. The most relevant to an owner is the amount of space that can be classified 5 rather than 6 in an industrial building. It has been suggested that this reduction might continue for at least 3 years.
For years, we have tried to keep tenant areas out of class 5 because the mill rate was higher. It seems as though there might now be a substantial benefit in attempting to reclassify areas to qualify for the discount.
2009 Tax Budgets
Unless the 2007 value (2008 Roll amount) for the property is lower than the 2008 value (2009 assessed value), your assessment will remain the same.
The mill rate will rise because:
(a) Municipality will increase its budget;
(b) Some property values have fallen, thus decreasing the total assessed value on the 2009 Roll.
Mill rate = Taxes x 1,000____
Thus, we will see an increase in the taxes equal to the proposed Municipal budget increase plus a "little".
For properties whose values for the 2009 Roll (2008 values) are less than the 2008 Roll (2007 value), the increase will be less.
If you have any questions, please give me a call.
B.Sc., AACI, C.Arb/PA/af
- Minimizing Property Tax on Development Land
- Why Such An Increase 2021 Industrial Property Taxes?
- Burnaby Industrial Properties Appear to be Over-Assessed
- Have BC Assessment Over-assessed Retail Spaces
- 2021 Property Assessment Value Changes
- Assessment Of Residential Sites Under Construction
- Should Homebuilders Be Paying Additional School Tax?
- City of Vancouver Land Averaging 2020
- Government Assistance: Property Tax
- 2020 Assessment of Apartment Properties
- Development Sites: Is The Additional School Tax Applicable?
- 2020 Property Assessment Value Changes
- BC Lower Mainland Market Update 2020
- Taxes Affecting Real Estate In 2019
- Development of Sites Under Construction - 2020
- Land Averaging For 2019 Property Tax In Vancouver
- 2019 Property Assessment Value Changes
- Understanding B.C.'s Proportional Representation Referendum (PPTX)
- Amacon Update
- Vancouver Vacancy Tax
- 2018 Property Assessment Value Changes
- Misconceptions within the Property Assessment Process
- Mayor's Council Proposal for Funding Transit
- Resolving Disputes - A New Approach
- Mixed Use Properties - Potential reclassification for Property Taxation
- Classification of Mixed Use Properties September 2016 Update
- Possible Effects of FIT on Assessments
- BC Foreign Investors Tax
- NAIOP Industrial Panel
- Classification of Mixed Use Sites - Part 2
- Opportunities for Brokers
- Valuation of Properties Under Construction
- Is Assessed Value Equal to Market Value?
- Civil Resolution Tribunal Update - October 2014
- Assessment Appeal Board Changes Classification for Mixed Use Development Sites
- Strata Civil Resolution Tribunal Update
- Reviewing Appraisals - Download
- Resolving a Rental Dispute
- How are School Taxes Calculated? | doc