What does my BC Tax Assessment Mean? Will I pay more property taxes? Is that what the market value of my home is?

Dated: January 17 2022

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You have likely received your 2022 BC Property Assessment Notice, and like most of us were quite surprised by the new 2022 Taxable Value increase. I find that there are a lot of misconceptions about these assessments with regards to the market value of properties and also municipal property taxes.

 property-tax-assessment

Does the increase in my home’s assessed value mean my property taxes are also going to increase?

No, this is a very common misconception. An increase in your home’s assessment does not necessarily translate into higher property taxes. While an increase may be a possibility, there are a lot more factors that come into play with regards to property tax amounts.

 

Property taxes are generally impacted by your property assessment’s change relative to your community’s average assessment change. Your property assessment determines your share of taxes for your property class.

 

Each year new tax rates are set by your municipal government before May 15th in order to raise enough revenue from property taxes to cover their annual budget. There is a different tax rate set for each property class. Residential properties are considered Class 1.

 

Assuming that the total taxes your municipal government and other tax agencies needed to balance the budget are the same as last year – If your property’s taxable value change is lower than the average value change for your property class, your property taxes will likely decrease. If your property’s value change is similar to the average change for your property class then your property taxes will likely not change. However, if your property’s value change is higher than the average value change then your property taxes will likely increase.

 

Does my home’s taxable value mean that’s what my home will sell for today?

No, it does not. BC Assessment uses many different factors to determine the taxable value of your property. This amount is calculated on July 1st of the previous year and assessments are not mailed to homeowners until January of the following year. Your BC assessed value is one indicator of what your home could have sold for on July 1st of the previous year. However, a lot could have changed in the market within that six-month time period. The market value of a property can increase or decrease, sometimes significantly, over even the course of a week. As we’ve seen this past year, the market is ever-changing.

 

Market value of a home is ultimately based on what buyers are willing to pay for a specific property at a specific period in time. What a buyer is willing to pay is often based on comparing a property to recent sales in the area. However, there are many other factors which a buyer will consider when determining what they are willing to pay for a property such as supply and demand, the age, size and layout of your home, the size of the property, what updates you’ve done to the home or lot and the quality of the updates, location to transportation routes, property zoning or even something such as proximity to having family or friends close by in a neighbouring property.

 

An experienced REALTOR® can help you determine your property value by doing a market analysis of similar and recent sales in your area and also doing a walkthrough of your home to determine details of your property that set it apart, either in a positive way or items that may need attention. If you are considering selling and are looking to know the current market value of your home, please don’t hesitate to contact me. I would be happy to answer any questions you may have and to provide you with a current market value. This is a complimentary service I provide.

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Candy Ashdown

Experienced REALTOR® specializing in the Fraser Valley and Lower Mainland. My local experience and expertise, combined with the brand power and influence of Royal LePage enables me to help my clients....

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