What Does Your BC Assessment Value Really Mean?

Each year municipalities finalize a budget for the coming year. From there, it's time to generate the income needed to provide for the expenses. Remember, in British Columbia, unlike the federal and provincial government, municipalities cannot run large deficits. Rightly or wrongly, the way they generate revenue is largely through taxing businesses and properties.

 

How do they decide who to tax the most and who to tax the least?

 

The answer is to tax properties based on their value.  Higher value properties will pay more taxes and lower value properties pay less.  All properties in a municipality are valued and this becomes the tax-base. Then, the municipalities take the amount of their budget and divide it up among the tax base, by property value.  This explanation is simplified a bit, but it should give you the general picture of how things work.  You can find more details on the BC Assessment website.  We'll provide a link below.

 

It is important to point out that if your assessed value goes up by twenty percent, it doesn’t mean that your property taxes go up by the same amount.  Your taxes will depend on your home’s value “relative” to other properties in your municipality.

How does this affect the resale value of your home? Frankly, it doesn’t.

 

The value that B.C. assessment puts on your home means little as their values are only used for tax purposes. If you are considering selling your home and want to know its resale value, ask an experienced Realtor to perform a market evaluation. From our significant experience, resale values usually differ significantly from the BC Assessment values.

If you're concerned that your assessment is too high, by all means look into it, you may be paying more taxes than you should.  Your first stop should be the BC Assessment website where you can review the value of neighbouring properties.  After that, if you decide to appeal your assessment you need to do it by January 31st.  

 

To find out how to appeal your assessment or to check the value of neighbouring properties, visit:

 

 

If you have any questions about the value of your home, or would like a market evaluation, please call us anytime.

 

Click here to learn more about the Preferred Homes Team.

 

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