Big Assessements Won’t Turn Into Huge Property Tax IncreasePublished: January 11, 2022
Vernon, BC – North Okanagan residents were shocked to see the new 2022 BC Property Assessments come out and like many, we are all concerned that this would turn into huge property tax increases. However, that is not necessarily the case.
Local assessments for property in the North Okanagan increased across every region, but not all went up significantly. The average single-family residential home in Vernon went up by 31% with the high of just about 50% for some properties. And while some might see that as a good sign, some worry that the increase will translate into an increase in actual property taxes.
But a quick dive into how it is calculated may ease some of that worry. Taxes are a function of the City or region needing to collect money to run and fund the needs of the area. A Mill rate is used to determine how much of every $1000 dollars in value of your home is needed to fund all the operating costs and special assessments for a given area.
This year the City of Vernon has determined that they need to increase the City budget by 6% for the coming fiscal year. With Assessments going up the actual Mill rate will likely have to go down to accumulate the amount needed from the homeowners. Therefore if your BC Assessment goes up at a rate that is in line with everyone else in the area, the taxes needed by the city will only go up in relation to the budget needs. If your home went up less than the City average then you may even see a decrease in your overall taxes.
So most homeowners will likely only see a small increase in their overall tax bill, sufficient enough to cover the 6% City budget increase. If however, your property went up more than 31% then you may see a slight increase in your tax bill. That doesn’t mean you have to agree to it though – you can appeal your assessment, but you must file your property tax assessment by the last working day in January each year, which will be Monday, January 31. You can visit the BC Assessment website to see more information on appealing your assessment.