Property assessment notices for 2017 are in the mail, and some homeowners might be excused if they go a little bug-eyed in the next few days. In some parts of Greater Vancouver, assessed values have jumped 30-50 per cent for a detached single-family home, and 15-30 per cent for strata properties.
In New Westminster, assessments increased by an average of 28.48 per cent. In Burnaby the average increase over 2016 was 30.72 per cent. Assessments in Coquitlam increased by an average of 32.91 per cent; in Port Moody it was 31.49 per cent and in Port Coquitlam it was 33.86 per cent. Residential assessments in Surrey increased by an average of 36.26 per cent.
The most expensive residential property in Greater Vancouver is at 3085 Point Grey Rd. in Vancouver, with an assessed value of $75,821,000. All of the top 100 most expensive properties receiving assessment notices in the region are located in either Vancouver or West Vancouver.
Across the province, 2,017,364 properties were assessed for a total value of $1.68 trillion, a 25 per cent increase in value over 2016.
Assessment notices part of formula to set property taxes
Property assessments are set on July 1 by BC Assessment. Assessment notices are then sent to homeowners early the following January.
The agency estimates the market value of every residential, commercial and industrial property in the province based upon an analysis of current sales in the immediate area of each property, as well as its size, age, quality, condition, location and view. That information is then used by municipalities as a component for calculating property taxes, although a 30 per cent increase in assessed value doesn’t typically mean a corresponding increase in property tax. In fact, if the increase in the assessed value for a property is in line with the average increase of other properties in the community, your property tax will likely go up only by the rate set by the municipality to meet its budget.
But a property’s assessed value isn’t necessarily an accurate reflection of what that property might currently sell for on the open market. Some properties sell for more than their assessed value, while others can sell for less. A month after BC Assessment set its values for this year, the BC government introduced its foreign buyers’ tax on residential property transactions in Greater Vancouver that accelerated the usual summer slowdown of prices. Subsequent initiatives by the provincial and federal governments to help address the affordability of housing further impacted sales and prices.
Homeowners who can’t wait for their property assessment notice to arrive in the mail, can check their assessment online. They can also compare their assessment to others in their neighbourhood, as well as get information on how to correct or appeal incorrect assessments.