Irene Wong & Mike Mulligan

What is property tax?

An annual local government tax levied on real property based on BC Assessment’s estimated market value. Local governments calculate the tax by dividing the annual budget by total assessed property values. In rural areas, the province assigns the tax rate. Rates vary among property classes: residential, business, light and heavy industry, farm, recreation, utility and managed forest land.

Look at your tax notice which was delivered by mail in late May or early June. You can also check your local government web site, which may have information. For example, the City of Vancouver has a property tax web page http://vancouver.ca/fs/treasury/index.htm where you can find out your account balance or, for $50 buy a tax certificate which will come in handy during conveyancing if you are selling your home. For information contact your local government tax office.

What happens if I don’t get a tax notice?

You must pay whether or not you have received a notice. Contact your local government finance department and arrange for a duplicate notice. You must ensure that your local government and BC Assessment have your correct mailing address.

Five misconceptions about property taxes:

• You can appeal property taxes. No. You can appeal your assessment, not your taxes. You annually receive your assessment the first week of January and must appeal by January 31.
• An appeal will change the market value. The market value may not correlate to the assessed value. BC Assessment typically assesses properties as of the previous July 1. A Realtor® valuing a home now – 11 months later – may find the market has changed, the home has had an addition or the street has been re-zoned, all of which affect value.
• If you just bought a home, the previous owners are liable for taxes. No. When you buy a property you become liable for all outstanding taxes.
• New home owners can claim the Home Owner Grant. No. New home owners cannot claim the Home Owner Grant if the seller paid the taxes or if the new home owner claimed a grant on another property.
• You haven’t claimed your Home Owner Grant for a few years and you want to claim it all now. You’re out of luck. You can claim the grant amount only for the previous year.

What does your property tax bill include?

• online by www.epost.ca : you must first sign up for this free online Canada Post delivery service that lets you pay electronically. When you pay and claim your Home Owner Grant electronically, you’ll receive a receipt with a confirmation number;
• in person: take your tax notice and a credit or debit card, your cheque book, a certified cheque or cash to your local government finance department. Check business hours; 
• at the drop box: located near the front entrance of most City Hall offices. There may be drop boxes in alternate locations as well;
• by mail: your payment must arrive at City Hall by the due date on your tax notice;
• at a financial institution: most banks and credit unions accept tax payments in person. You can also pay online or by phone through your bank or credit union. Remember to submit your Home Owner Grant form directly to City Hall;
• through your mortgage: your mortgage company can pay your property taxes on your behalf if you arrange for this service beforehand; and
• by installments: check with your local government to see if prepayment options are offered.

The truth about unpaid taxes