Tax Rate Options Presentation
A presentation slide deck explaining the mechanics of property taxes, assessment context, and the details of the four proposed tax rate scenarios.
Tax Rate Options
April 11, 2023 Committee of the Whole
Overview
- Property taxes 101
- Property assessments context
- Regional context
- Scenario description
- Scenario results
- Choices
Property taxes 101
- Property assessments
Property taxes 101
- Property assessments
- Average or representative property
Property taxes 101
- Property assessments
- Average or representative property
- Tax burden
Property taxes 101
- Property assessments
- Average or representative property
- Tax burden
- Tax revenue requirement
Property taxes 101
- Property assessments
- Average or representative property
- Tax burden
- Tax revenue requirement
- Tax ratios (multiples)
Property taxes 101
- Property assessments
- Average or representative property
- Tax burden
- Tax revenue requirement
- Tax ratios (multiples)
Property assessments context
| Property Class | 2023 Count | 2022 Average Assessment | 2023 Average Assessment | $ Chg | % Chg |
|---|---|---|---|---|---|
| Single Family | 2,414 (up 4) | $1,034,399 | $1,146,609 | $112,210 | 11% |
| Strata | 1,381 (up 15) | $582,965 | $685,148 | $102,183 | 18% |
| Vacant, ALR, Farm, other | 106 (down 4) | $2,959,589 | $3,467,724 | $508,135 | 17% |
| Total residential | 3,901 (net up 15) | $930,207 | $1,046,317 | $116,110 | 12% |
Property assessments context
Count of residential properties with assessed value between $1 and $2,200,000
- Average residential assessment $1,046,317
- 58% of taxable properties are assessed below the average
- 42% of taxable properties are assessed above the average
Property assessments context
| Property Class | 2022 Count | 2022 Average Assessment | 2023 Average Assessment | $ Chg | % Chg |
|---|---|---|---|---|---|
| Business/other | 123 | $2,563,913 | $2,845,411 | $281,498 | 11% |
Business/other (Class 6) properties with assessed value between $1 and $4 million (max $82 million)
- 48% properties are assessed less than $1,000,000
Regional context
Schedule 1 Comparative Tax Ratios-Business Class 6 Source: Province of British Columbia Local Government Statistics, Municipal Tax Rates & Tax Burden
Regional context
Schedule 2 Comparative Tax Ratios-Recreation Class 8 Source: Province of British Columbia Local Government Statistics, Municipal Tax Rates & Tax Burden
Regional context
Schedule 3 Comparative Municipal Taxes per Capita Source: Province of British Columbia Local Government Statistics, Municipal Tax Rates & Tax Burden
Scenario descriptions
| Scenario | What changes | By how much | What stays the same |
|---|---|---|---|
| A Change tax rates | All rates | Decrease by 1.5% | 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 | 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 7.0 | All other tax ratios |
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 | 12.48% | 10.98% |
| Scenario A | Neutral face emoji | Slightly sad face emoji |
| Scenario B | Happy face emoji | Very sad face emoji |
| Scenario C | Very sad face emoji | Happy face emoji |
| Scenario D | Happy face emoji | Neutral face emoji |
Scenario results
Schedule 5 Summary of impact on prior year $100,000 property value, adjusted for current year market change
| Property Class | Light Industry | Business | Recreation |
|---|---|---|---|
| 2022 multiple | 3.9620 | 4.3018 | 6.0000 |
| Property Class | Light Industry | Business | Recreation |
|---|---|---|---|
| Scenario A | 3.9620 | 4.3018 | 6.0000 |
| Scenario B | 4.2520 | 4.3756 | 5.3315 |
| Scenario C | 3.7000 | 4.0000 | 6.0000 |
| Scenario D | 3.9620 | 4.3018 | 7.0000 |
Scenario results
Scenario A results – individual properties
Average property assessment increase: 12%
Single family residential increase: 11%
Difference: -1%
Scenario A predicts for average property: 10% ($200)
Single family residential estimated increase: 10% - 1% = 9% ($189)
Average property assessment increase: 12%
Strata residential assessment increase: 18%
Difference: +6%
Scenario A predicts for average property: 10% ($200)
Strata residential estimated increase: 10% + 6% = 16% ($183)
Choices
Recommendation:
THAT the Committee recommend to Council the 2023 municipal tax rates and that a bylaw be prepared to implement the tax rates accordingly.