Classification of Mixed Use Properties September 2016 Update
The Assessment Act, in a nutshell, says any land that is vacant and not zoned or held for commercial or industrial purposes should be classified residential.
What is land? In my opinion, it went from underground to the sky (if that were true, then any zoning that limited commercial development on any floors and allowed residential, should be classed residential).
Ludmila Herbst, a lawyer at Farris Vaughan, agreed with me, and together with other property tax consultants, selected Amacon as having the best property for a test case. The Appeal Board agreed, but BCA appealed.
On February 1st, 2016, Madame Justice Lane dismissed her appeal, (http://canlii.ca/t/gn5ml), but she referred the appeal back to the Board to clarify the reasons for their decision.
BC Assessment believed this could give them an opportunity to introduce new evidence. After a further presentation, the Board refused the introduction of further evidence and provided more detailed reasons for their decision. The date for a BCA appeal is now past.
- Air space is land for assessment purposes
- If the land/air is vacant, it can qualify under the Assessment Act for a split classification
- Any airspace that can be used, according to the zoning bylaw, for residential only, should receive a residential class
- This will apply to commercial properties that have commercial on the main or second floor, if the property is not fully developed
In C-2B sites can be developed with 1.5 FSR on the 1st and 2nd floors and residential for the balance of the 2.5 FSR. 40% of the assessed value should have a residential class.
In C-2C and C-2C1, only residential is permitted on the 3rd floor. The FSR is 3 so the class should be 33% residential at a minimum.
An initial reaction from BCA is that they propose to narrowly interpret the decision, however they have advised that they will review the application of the case to the above zonings and advise by October 10th, 2016.
Peter Austin, BSc. AACI, CArb
- 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