For the second straight year, there will be shock when people open their property assessments for 2017 in the new year.
This week, B.C. Assessment released a preliminary analysis of the 2017 numbers which indicate a significant increase over last year’s property values.
In parts of Metro Vancouver including Burnaby, the typical single-family home will see an increase of 30 to 50 per cent over 2016’s assessment, while the typical strata residential unit increases will be in the 15 to 30 per cent range.
B.C. Assessment also noted commercial and industrial properties throughout the Greater Vancouver area will also see significant increases in the 10 to 30 per cent range, with properties being purchased for eventual redevelopment often exceeding these ranges.
If this sounds like déjà vu, it’s because it is.
Around this time last year, B.C. Assessment sent out notices to thousands of homeowners warning them of a dramatic increase on their assessment. Last year the number was between 15 and 25 per cent. Some homeowners saw increases of more than 30 per cent.
A bigger number on the assessment can pose a couple potential problems for homeowners: increased property taxes and the potential to lose the homeowner grant.
For property taxes, B.C. Assessment suggests not to panic.
“It is important to understand that large increases in property assessments do not automatically translate into a corresponding increase in property taxes,” said assessor Jason Grant in a statement. “Your taxes are actually affected by your assessment changes compared to the average change in your community.”
As for the homeowner grant, it’s unclear how many homeowners will be affected by the increase.
Last year, the eligibility threshold for the grant was $1.2 million, and 91 per cent of homes in the province fell below this threshold. In Burnaby, 78 per cent of residential homes met the lower eligibility threshold.
The city lobbied the provincial government to increase the eligibility threshold, but in the end there was no change.
Coun. Paul McDonell said he expects council to lobby the government again, but he doesn’t think it will change much.
“When it comes to Burnaby, this government isn’t too friendly toward us,” he said.
McDonell said nobody wants to see a 30 to 50 per cent increase in their property values and if the situation isn’t addressed, he suggested people won’t be able to afford to keep their home.
“Sooner or later, it gets to the point where people throw up their hand,” he said.
But the councillors also acknowledged the increase makes it tough on city councils as they come up with budgets and tax rates for the year.
He said council will be doing everything to keep taxes as low as possible, but noted city costs are going up.
“There’s no magic answer to this problem,” McDonell said.
The assessments were taken on July 1, before the provincial government brought in a 15 per cent foreign buyer property transfer tax in Metro Vancouver.
