Report to Council Re: 2023 Tax Rates

Report to Council

Re: 2023 Tax Rates Meeting Date: May 2, 2023

The average residential property valued at $1,046,317 in 2023 could expect to pay about $13 more for Capital Regional District taxes and less than $1 more for Capital Regional Hospital District taxes in 2023.

Like View Royal, other municipalities in the Capital Regional District are in the process of finalizing their 2023 tax rates. View Royal’s municipal property taxes per capita ranked fourth lowest in the region in 2022, as described in Schedule 4 – Comparative Municipal Taxes per Capita.

Property owners will experience changes in tax amounts differently to the extent that the change in their property assessed value differs from the average change in total assessments for that property class.

Note that while information is provided for subsets of assessments within the residential class (single family, strata), legislation allows only one rate for the residential property class.

The proposed tax rates bylaw follows the legislated general property tax scheme, meaning that taxes are due on July 2 of the year. However, since Town Hall is closed on Sunday, July 2, and Monday, July 3, for the Canada Day statutory holiday, property taxes are due the next business day being Tuesday, July 4, 2023, at midnight. The legislated penalty of 10% on all unpaid taxes, including unclaimed homeowner grants will be applied on any balance owing after this time.

SUSTAINABILITY/CLIMATE CHANGE IMPACTS:

The recommendation has no significant sustainability or climate change impacts.

FINANCIAL IMPLICATIONS:

Half of View Royal’s operating revenue comes from property taxes. The Community Charter and other legislation provides the framework for imposing and collecting property taxes. The annual tax rates bylaw is a key part of this process that results in raising sufficient revenue for the current year that, when combined with non-tax sources of revenue, fully funds the services and activities described in the five-year financial plan.

ALTERNATIVES:

Delaying adoption of the 2023 tax rates may create the need for additional Council meetings to meet the May 15, 2023, statutory deadline.

CONCLUSION:

The proposed 2023 Tax Rates bylaw reflects Council’s direction regarding the tax burden for the View Royal property owners based on the respective property assessment class as determined by BC Assessment. As a result of non-market change in the tax base, the property tax burden shifts slightly (<0.25%) away from the light industry and business classes to the residential and recreation/non-profit classes.

The average residential property valued at $930,207 in 2022 is valued at $1,046,317 in 2023 and will see a $200 increase for municipal taxes and a $14 increase for Capital Regional District and Capital Regional Hospital District taxes. Once the bylaw is adopted, property tax notices will be issued to property owners at least four weeks prior to the July 4, 2023, due date.

ATTACHMENTS:

• Schedule 1: Municipal property tax rates and ratios
• Schedule 2: Summary of impact on prior year $100,000 property value
• Schedule 3: Sample property comparatives
• Schedule 4: Comparative Municipal Taxes per Capita
• Tax Rates Bylaw No. 1114, 2023