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Committee of the Whole/Documents/Property Taxes 101 and 2021 Tax Rate Options Presentation
Presentation

Property Taxes 101 and 2021 Tax Rate Options Presentation

April 13, 2021Pages 83–957 sections

An educational presentation explaining the components of property taxes and presenting four scenarios (A-D) for 2021 municipal tax rates based on assessment changes.

2. APPROVAL OF AGENDA
2021 Average Residential Assessment: $753,593 (3.25% increase)Business Assessment change: -6.31%Scenario A: 3.69% rate increaseScenario D: Increases Class 6 (Business) ratio to 3.6933

Property taxes 101

Slide puzzle showing numbers 1 through 15 in a grid, with numbers 14 and 15 swapped.
Slide puzzle showing numbers 1 through 15 in a grid, with numbers 14 and 15 swapped.
  • Property assessments
  • Average or representative property
  • Tax burden
  • Tax revenue requirement
  • Tax ratios (multiples)
Page 83–95

Property assessments context

Property Class 2021 Count 2020 Average Assessment 2021 Average Assessment $ Chg % Chg
Single Family 2,409 $768,876 $808,801 $39,925 5.19%
Strata 1,306 $486,339 $497,900 $11,561 2.38%
Vacant, ALR, Farm, other 104 $2,823,568 $2,685,697 -$137,871 -4.88%
Total residential 3,819 $729,898 $753,593 $23,695 3.25%
Business 122 $2,595,436 $2,431,552 -$163,884 -6.31%
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Regional context

Schedule 1 Comparative Tax Ratios-Business Class showing bar charts for various municipalities including Central Saanich, Colwood, Esquimalt, View Royal, Highlands, Langford, Metchosin, North Saanich, Oak Bay, Saanich, Sidney, Sooke, and Victoria, alongside a ranking of 2020 Business Tax Ratios by Municipality.
Schedule 1 Comparative Tax Ratios-Business Class showing bar charts for various municipalities including Central Saanich, Colwood, Esquimalt, View Royal, Highlands, Langford, Metchosin, North Saanich, Oak Bay, Saanich, Sidney, Sooke, and Victoria, alongside a ranking of 2020 Business Tax Ratios by Municipality.
Schedule 2 Comparative Tax Ratios-Recreation Class showing bar charts for various municipalities including Central Saanich, Colwood, Esquimalt, View Royal, Highlands, Langford, Metchosin, North Saanich, Oak Bay, Saanich, Sidney, Sooke, and Victoria, alongside a ranking of 2020 Recreation Tax Ratios by Municipality.
Schedule 2 Comparative Tax Ratios-Recreation Class showing bar charts for various municipalities including Central Saanich, Colwood, Esquimalt, View Royal, Highlands, Langford, Metchosin, North Saanich, Oak Bay, Saanich, Sidney, Sooke, and Victoria, alongside a ranking of 2020 Recreation Tax Ratios by Municipality.
Schedule 3 Comparative Municipal Taxes per Capita showing line charts for various municipalities including Central Saanich, Colwood, Esquimalt, View Royal, Highlands, Langford, Metchosin, North Saanich, Oak Bay, Saanich, Sidney, Sooke, and Victoria, alongside a ranking of Municipal Taxes per Capita by Municipality.
Schedule 3 Comparative Municipal Taxes per Capita showing line charts for various municipalities including Central Saanich, Colwood, Esquimalt, View Royal, Highlands, Langford, Metchosin, North Saanich, Oak Bay, Saanich, Sidney, Sooke, and Victoria, alongside a ranking of Municipal Taxes per Capita by Municipality.
Page 83–95

Scenario descriptions

Scenario What changes By how much What stays the same
A Increase rates All rates 3.69% All tax ratios
B Increase tax on average property Tax ratios for all property classes Different for each class; enough to spread requirement equally Relative tax burden, ignores changes in assessments
C Decrease Class 5 and Class 6 ratios Tax ratios for 5-Light Industry and 6-Business 3.3385 to 3.1000
3.5500 to 3.3000		 All other tax ratios
D Increase Class 6 ratio Tax ratio for 6-Business 3.5500 to 3.6933 All other tax ratios
Page 83–95

Scenario results

(Schedule 5 Summary of impact on $100,000 assessed value (2020))

Property Class Residential Business Recreation
Change in representative property assessment 3.25% -6.31% 2.87%
Property Class Residential Business Recreation
Scenario A [Dissatisfied face emoji] [Neutral face emoji] [Dissatisfied face emoji]
Scenario B [Happy face emoji] [Sad face emoji] [Happy face emoji]
Scenario C [Sad face emoji] [Happy face emoji] [Sad face emoji]
Scenario D [Neutral face emoji] [Dissatisfied face emoji] [Neutral face emoji]

Multiples Comparison

Property Class Light Industry Business Recreation
2020 multiple 3.3385 3.5500 4.7265
Scenario A 3.3385 3.5500 4.7265
Scenario B 3.5763 3.9123 4.7439
Scenario C 3.1000 3.3000 4.7265
Scenario D 3.3385 3.6933 4.7265
Graphic illustrating how property value change relative to the average change for a property class impacts taxes, showing that lower than average changes likely result in tax decreases, similar changes result in no change, and higher than average changes likely result in tax increases.
Graphic illustrating how property value change relative to the average change for a property class impacts taxes, showing that lower than average changes likely result in tax decreases, similar changes result in no change, and higher than average changes likely result in tax increases.
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Scenario D results – individual properties

Assessment Detail Percentage Estimated Impact
Average property assessment increase 3%
My assessment increase 0%
Difference -3%
Scenario D predicts for average property 6% $99
My estimated increase 6% - 3% = 3% $50
Assessment Detail Percentage Estimated Impact
Average property assessment increase 3%
My assessment increase 7%
Difference +4%
Scenario D predicts for average property 6% $99
My estimated increase 6% + 4% = 10% $163
Page 83–95

Choices

Recommendation:

THAT Council determines the municipal tax rates to be implemented for 2021 and direct that a bylaw be prepared to implement the tax rates accordingly.

Page 83–95
Extracted from: 2021 04 13 Committee of the Whole Agenda - Agenda - Pdf