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Committee of the Whole/Documents/Presentation: Tax Rate Options
Presentation

Presentation: Tax Rate Options

April 9, 2024Pages 82–10210 sections

Slide deck explaining property tax basics, assessment contexts, and the impact of the four proposed tax rate scenarios.

6.3.3 c) 2024 Tax Rate Options
Average residential assessment: $1,060,90836% of taxable properties are assessed above the averageScenario A results in a 6.6% increase for prior year properties

Tax Rate Options

April 9, 2024 Committee of the Whole

Close-up of a white jigsaw puzzle with one piece being placed into a gap, revealing an orange background beneath
Close-up of a white jigsaw puzzle with one piece being placed into a gap, revealing an orange background beneath
Page 82–102

Overview

  • Property taxes 101
  • Property assessments context
  • Regional context
  • Scenario description
  • Scenario results
  • Choices
Page 82–102

Property taxes 101

A sliding 15-puzzle toy with red and white tiles and gold numbers, showing numbers 1 through 15 with one empty space
A sliding 15-puzzle toy with red and white tiles and gold numbers, showing numbers 1 through 15 with one empty space
  • Property assessments
  • Average or representative property
  • Tax burden
  • Tax revenue requirement
  • Tax ratios (multiples)
Page 82–102

Tax revenue requirement – February versus April

Factor February 2024 April 2024 Difference
Tax revenue requirement $12,025,440 $12,025,440 $0
2023 tax revenue $11,114,643 (budget) $11,095,951 (actual) $(18,692)
2024 non-market change $199,400 $202,352 $2,952
2024 increase borne by prior year properties ($) $711,397 $727,137 $15,740
2024 increase borne by prior year properties (%) 6.4% 6.6% 0.2%
Page 82–102

Property assessments context

Property Class 2024 Count 2024 Average Assessment 2023 Average Assessment $ Chg % Chg
Single Family 2,411 (down 3) $1,148,366 $1,146,522 $1,844 0.2%
Strata 1,405 (up 24) $690,192 $685,148 $5,044 0.7%
Vacant, ALR, Farm, other 104 (down 2) $4,041,630 $3,430,508 $611,122 17.8%
Total residential 3,920 (net up 19) $1,060,908 $1,045,252 $15,656 1.5%

Count of residential properties with assessed value between $1 and $4,000,000

  • Average residential assessment: $1,060,908
  • 63% of taxable properties are assessed below the average
  • 36% of taxable properties are assessed above the average
Histogram showing the distribution of residential property counts across various assessed value ranges from $0M to $4M
Histogram showing the distribution of residential property counts across various assessed value ranges from $0M to $4M

Business/other assessment context

Property Class 2024 Count 2024 Average Assessment 2023 Average Assessment $ Chg % Chg
Business/other 123 $2,826,149 $2,812,366 $13,783 0.5%

Business/other (Class 6) properties with assessed value between $1 and $4 million (max $76 million).

  • 50% of taxable properties are assessed less than $1,000,000
Histogram showing the distribution of business/other property counts across assessed value ranges up to $4M
Histogram showing the distribution of business/other property counts across assessed value ranges up to $4M
Page 82–102

Regional context

Schedule 1 Comparative Tax Ratios-Business Class 6 charts comparing View Royal ratios to other municipalities including Central Saanich, Colwood, Esquimalt, Highlands, Langford, Metchosin, North Saanich, Oak Bay, Saanich, Sidney, Sooke, and Victoria
Schedule 1 Comparative Tax Ratios-Business Class 6 charts comparing View Royal ratios to other municipalities including Central Saanich, Colwood, Esquimalt, Highlands, Langford, Metchosin, North Saanich, Oak Bay, Saanich, Sidney, Sooke, and Victoria
Schedule 2 Comparative Tax Ratios-Recreation Class 8 charts comparing regional municipalities' recreation tax ratios from 2019 to 2023
Schedule 2 Comparative Tax Ratios-Recreation Class 8 charts comparing regional municipalities' recreation tax ratios from 2019 to 2023
Schedule 3 Comparative Municipal Taxes per Capita charts showing tax trends per capita for View Royal and neighboring municipalities
Schedule 3 Comparative Municipal Taxes per Capita charts showing tax trends per capita for View Royal and neighboring municipalities
Page 82–102

Scenario descriptions

Scenario What changes By how much What stays the same
A: Change tax rates All rates Increase by 6.6% All tax ratios
B: Change class total contribution Tax ratios for all property classes Different for each class; enough so total contribution changes by same percentage (6.6%) Relative tax burden, ignores changes in assessments
C: Decrease Class 5 and Class 6 ratios Tax ratios for 5-Light Industry, 6-Business 3.9620 to 3.7000; 4.3018 to 4.0000 All other tax ratios
D: Increase Class 8 ratio Tax ratio for 8-Recreation/NP 6.0 to 6.5 All other tax ratios
Page 82–102

Scenario results

Schedule 5 Summary of impact on prior year $100,000 property value, adjusted for current year market change

Property Class Residential Business
Change in representative property assessment 1.5% 0.5%
Scenario A (Green Happy Face) (Orange Neutral Face)
Scenario B (Yellow Neutral Face) (Red Sad Face)
Scenario C (Orange Neutral Face) (Green Happy Face)
Scenario D (Green Happy Face) (Yellow Neutral Face)

Impact on Tax Ratios (Multiples)

Property Class Light Industry Business Recreation
2023 multiple 3.9620 4.3018 6.0000
Scenario A 3.9620 4.3018 6.0000
Scenario B 3.5570 4.3200 4.7428
Scenario C 3.7000 4.0000 6.0000
Scenario D 3.9620 4.3018 6.5000
Infographic explaining the relationship between property value change and property tax impact. 1. Lower than average change likely results in a tax decrease. 2. Similar to average change likely results in taxes not changing. 3. Higher than average change likely results in a tax increase.
Infographic explaining the relationship between property value change and property tax impact. 1. Lower than average change likely results in a tax decrease. 2. Similar to average change likely results in taxes not changing. 3. Higher than average change likely results in a tax increase.
Page 82–102

Scenario A results – individual properties

Metric Calculation / Value $ Impact
Average property assessment increase 1%
Single family residential increase 0%
Difference -1%
Scenario A predicts for average property 8% $167
Single family residential estimated increase 8% - 1% = 7% $152
Average property assessment increase 1%
Strata residential assessment increase 1%
Difference +0%
Scenario A predicts for average property 8% $167
Strata residential estimated increase 8% + 0% = 7% (rounding difference) $99
Page 82–102

Choices

Recommendation:

THAT the Committee recommend that a bylaw be prepared to implement general municipal tax rates with no change to property class tax ratios from the prior year as described in Schedule 4 – 2024 Municipal Tax Rates Analysis Scenario A.

Page 82–102

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Extracted from: 2024 04 09 Committee of the Whole Agenda - Agenda - Pdf