Irene Wong & Mike Mulligan

In January 2009, when home owners receive their Property Assessment Notice, they will be able to select one of two values as the basis for their 2009 property assessment. The two options are:

• the value as of July 1, 2007; or

• the value as of July 1, 2008

Premier Gordon Campbell had originally announced on November 1, 2008 that he would freeze property assessment values for all properties at 2007 levels to help property owners and businesses weather the economic downturn.

However, the Premier has reconsidered based on new information.  Assessments are based on median (also known as average) prices on July 1 each year.  However, median prices fluctuate and depending on the specific property, most homes are either lower or higher than the median.

Depending on the type of property – a condominium, a townhome or a detached home – assessed values may have been lower in 2007 or 2008.  Property owners with a new home (built since July 1, 2007) or substantial renovations or improvements will have the option to choose the lowest assessed value for either 2007 or 2008.  It is important to note that only your property assessment is frozen, not your taxes.

Property taxes are a function of municipal revenue needs, based on operating costs and other factors.  Assessment increases or decreases do not necessarily mean corresponding changes in taxes. 

Municipalities are responsible for collecting property taxes, which fund regional districts, municipalities, school boards, TransLink and other local services. 

You have a right to appeal your assessment.  Once you receive your assessment notice early in the New Year, you will have until January 31 to file an appeal.  For more information visit:

• Ministry of Small Business and Revenue web site: www.gov.bc.ca/sbr and click on the 2009 Assessment Roll button in the right hand column for a Q&A on the freezing of assessed value.

• BC Assessment web site: www.bcassessment.ca

• Property Assessment Review Panel appeal process web site: www.sbr.gov.bc.ca/parp

You can defer your taxes

For 2009, all home owners, not just those age 55 and older, can defer their property taxes for two years if they:

• have 15% equity in their home; and

• can prove limited financial resources.

This is a temporary two-year tax deferment program.  The interest will be at the prime rate and the province will pay your taxes to your municipality on your behalf. 

Home owners will not have to pay their deferred taxes until they sell their home, but can pay the province back earlier if they choose.  The amount you owe becomes a debt to the province, payable after two years.