Effect of Lot Consolidation on Property Taxes

When an assembly is consolidated into one lot:

  • Assessed value goes up 10-15%
  • Additional School Tax (AST) will likely become applicable or increase

AST for Qualifying Residential Properties: 0.2% of value $3M to $4M and 0.4% over $4M.

As an example, let’s take 4 lots in Richmond with each lot worth $3,000,000. Based on 2024’s mill rate on Class 01 which is 3.04, total tax will be approximately $36,488 (NO AST is applied).

If lots are consolidated, value will be increased to $13,800,000 approximately. Taxes will be approximately:

Base Tax: $41,962
AST: $41,200
Total: $83,162

 
If you or your clients have questions, call Peter at 604-733-3282.