The impact of costs associated with property assessment appeals has prompted Burnaby Mayor Mike Hurley to write to B.C. Minister of Finance Selina Robinson looking for an “urgent review” of the system.
The letter comes after the city was dinged in 2020 more than $6 million in costs associated with property assessment appeals, said a City of Burnaby staff report.
B.C. is currently undertaking a strategic review of property tax assessments.
“We would ask that this review not be limited to just commercial (class 5 and 6) properties, but also consider what is driving the appeal numbers and how the number of appeals can be reduced across all property classes,” Hurley wrote on Jan. 5. “A key overwhelming consideration to local government is the impact that appeal costs pose on local government finances. While some municipalities are able to absorb appeal costs, for others, this poses a real financial challenge.”
As of Jan. 10, the city was looking at more than $1.4 million in property assessment appeal costs for 2021. The deadline for appeals was Jan. 31.
“The City relies on timely and accurate property assessment data in determining the property tax mill rate and overall tax levy for a given year,” says the report. “In recent years there have been a number of significant changes in assessments and related processes, including the management of Home Owner Grants, application of the Assessment Act, the volume and cost implications of assessment appeals, and fluctuations in property assessments for certain classes. The City recently raised concerns to the BC Minister of Finance with regards to assessment appeals, and is continuing to work closely with BCA to better understand assessment fluctuations and risks to the assessment roll posed by assessment appeals.”
In Burnaby, the value of a single-detached house jumped to an average of $1,725,000 according to the BC Assessment Authority, a 19% increase from 2020’s $1,449,000. For strata-type homes, such as townhouses and condos, the increase was 10% to $646,000.
