1. Property Tax 101
Web:
Direct:

2. What Determines your Property Tax?
Ad Valorem system
Two main components; Assessed Value and Tax Rate
Assessed Value
Based upon market value
July 1st Valuation Date
October 31st Physical Condition & Permitted Use date
Highest & Best Use
Must be Equitable

3. What Determines your Property Tax? cont’d
Classification
Based upon actual use of the property
9 different property classes in the Province
Each class as a different tax rate
Class 1 = Residential and Class 6 = Business / Other
Tax Rate applied per $1,000 of Assessed Value
Example
Assessed value $1,000,000
Tax Rate of 15 mills
Tax = ($1,000,000/1,000) x 15 = $15,000

4. What Determines your Property Tax? cont’d
Tax Rate Determined by Taxing Jurisdiction
Revenue Neutral
Average Value Change by Class is what Matters

5. How are you Affected by Property Tax?
Property Taxes becoming a larger operating cost
Cannot Eliminate it, but understanding allows for planning
Owner or Tenant?
Gross or Triple Net Lease?
Especially important to understand Property Tax implications when Renewing or signing a New Lease
Allows for Budgeting

6. What Can you do about it? The Assessment can be reviewed and appealed
Various Stages
Pre- Roll Consultation (Sept to Dec)
Assessment notices Mailed ( beginning of January)
First Level Appeal Deadline to Property Assessment Review Panel (end of January)
Second Level Appeal Deadline to Property Assessment Appeal Board (end of April)

7. What Can you do about it? cont’d
What to look for…
Assessment is lesser of market value or equitable value
Understanding the Assessment Act and Case Law
Confirm Classification is applied correctly
Building area and Physical Characteristics are correct

8. Property Tax Issues are Always Evolving
Framework Generally Static
Understanding Legislative Changes
Case Law brings change and sets Precedent
Market Place and Trends can be volatile

9. Prescribed Classes of Properties
Classification
2016 Value
% of Roll
% of #
Class 01 – Residential
$239 billion
83.10%
92.07%
Class 02 – Utility
$223 million
0.08%
0.10%
Class 03 – Supportive Housing $0
0.0%
0.00%
Class 04 – Heavy Industry
$200 million
0.07%
0.01%
Class 05 – Light Industry
$1 billion
0.37%
0.21%
Class 06 – Business/Other
$47 billion
16.23%
7.10%
Class 08 – Non-Profit/Recreational
$426 million
0.15%
0.45%
Class 09 – Farm
$187,000
Total un-averaged 2016 Vancouver Roll
$288.3 billion
Total # of Properties
202,415

10. 2016 Property Tax Rates (per $1000 Taxable Value)
Municipal tax rate bylaws are required to be adopted before May 15th of each year.
2016 Property Tax Rates (per $1000 Taxable Value)

11. 2017 Budget Summary Property Tax $751 million Utility Fees
Program Fees
$66 million
License & Development Fees
Parking
Cost Recoveries, Grants & Donations
$39 million
Rental, Lease & Other
$26 million
Revenue Sharing
Bylaw Fines
$13 million
Investment Income

12. Municipal Taxes Payable vs Total Property Tax

13. Past vs Present

14. In 1983, the Province empowered the municipalities to determine property tax allocation for each class of properties.

15. Assessment Growth In Vancouver
VALUE

16. Growth in Properties in Vancouver
# of Properties

17. Regional

18. Metro Vancouver – 2016 Tax Burden
Business/Other
Municipality
Burden
% of Assessment
Vancouver
44%
16%
Richmond
36%
Burnaby
40%
City of Langley
26%
City of North Vancouver
34%
15%
Coquitlam
30% 9%
New Westminster
32%
13%
Delta
23%
11%
Surrey
Average (excluding Vancouver)
Source: Ministry of Community and Rural Development: 2016 Local Government Statistics

19. Consumption of Services
2016
Residential Classes
Business Classes
Total General Levy Paid
$367,870
$315,631
% Paid of Levy
53.8%
46.2%
% Services Consumed
76%
24%
Value of Services Consumed
$519,460
$164,040
$ Levy Paid Per Consumed
$0.71
$1.92

23. Hot Issues

24. VFTC Core Issues
Tax Distribution between Commercial & Residential (Fixed levy system)
Hot Spots (Highest & Best Use versus Interim Use)

25. Number of New Properties

26. Tax Topography Tax Revenue vs Demand on Services

27. 703 Denman St (+269%)

28. 774 Denman St (+261%)

29. 1059 / 1075 Nelson St (+365%)

30. 1610 Robson St (+268%)

31. 1019 Nelson St (+1046%)