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Thread: 2017 Property Assessment Shock

  1. #21
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    Quote Originally Posted by Just a Guy View Post
    You should understand how the tax system works. If all assest values increase by 10%, your portion of the tax burden will not increase based on the assessed values. If the mill rate increases, your tax bill will go up accordingly.

    Of course, if your portion increases more than other, as in Karen's case, then you will most likely pay more, but it doesn't mean you'll necessarily pay significantly more. Her place increased nearly 20% more than average, but her taxes probably won't increase anywhere near 20%. Considering the average house price in Vancouver, she probably barely moved up the scale.

    It's the same in my case where I usually get my assessments lowered, having bought below market value. Though I usually get the appraised value decreased by more than 30%, but my tax savings is usually not that much. Of course, it's better than nothing and can add up over the years.
    Just chiming in to say I'm glad someone understands property taxes; namely an increase in assessed value =/= necessarily equal a higher tax bill.
    It all depends on i) your increase relative to the average, ii) any newly taxed developments, and iii) the increase in city property tax revenue as decided by council.

    Last edited by BoringInvestor; 2017-01-05 at 09:57 AM.
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  2. #22
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    Quote Originally Posted by BoringInvestor View Post
    Just chiming in to say I'm glad someone understands property taxes; namely an increase in assessed value =/= necessary equal a higher tax bill.
    It all depends on i) your increase relative to the average, ii) any newly taxed developments, and iii) the increase in city property tax revenue as decided by council.
    ... perhaps you can elaborate on all your 3 points here since it seems like you have a full understanding of how property taxes work. But I do have one simple question: does property taxes ever go down without an appeal of assessment and a static mill rate?
    Everyone should be respected as an individual, but no one idolized.-A. Einstein

  3. #23
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    Yes, if the property value decreases...let's say you demolished the house, your tax bill will decrease.

    On the whole though, taxes rarely decrease...it's "free money" to the government and those who ask for it.
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

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  5. #24
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    Quote Originally Posted by madmoney View Post
    I feel your frustration, mine went from $643,000 to $965,000 (North Delta).
    ...I'll be interested as well to see what this does to my actual property tax bill.
    I guess we'll all be waiting more anxiously than usual for our tax bills to come in the Spring, madmoney. Your assessment is a full 50 percent higher than last years. Wow! But at least neither of us will lose our homeowner grant as so many others will this year unless the government does something to stop that from happening. Good luck!

  6. #25
    Senior Member Beaver101's Avatar
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    Quote Originally Posted by Just a Guy View Post
    Yes, if the property value decreases....
    ... and what are the chances of a property value decrease, barring it's not next to a nuclear plant or that there is no housing collapse?

    ... let's say you demolished the house, your tax bill will decrease.
    ... not necessarily if the assessment on the land continues up and makes up for the house's assessment. Karen's area seems to be a good example.

    On the whole though, taxes rarely decrease...it's "free money" to the government and those who ask for it.
    ... yes, particularly for those who wastes it and has no shame.
    Everyone should be respected as an individual, but no one idolized.-A. Einstein

  7. #26
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    Quote Originally Posted by Beaver101 View Post
    ... But I do have one simple question: does property taxes ever go down without an appeal of assessment and a static mill rate?
    The question is a non-sequitor. Jurisdictions that have gone to market value assessments don't use static mill rates. In simplistic terms they take the city budget for the coming year, and divide by the total value of assessments in the city, to come up with a mill rate. (If I recall it's a little more complicated than that - I believe they throw in a factor depending on the property classification, so commercial pays a higher rate than residential for example.) But the principle is the same. Mill rates are determined by the budget and the gross value of assessments. That rate is then used to calculate the specific tax bill of individual properties. The budgets are not determined by assessments x a fixed mill rate.

  8. #27
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    Quote Originally Posted by Beaver101 View Post
    ... perhaps you can elaborate on all your 3 points here since it seems like you have a full understanding of how property taxes work. But I do have one simple question: does property taxes ever go down without an appeal of assessment and a static mill rate?
    As mentioned already, mill rates are not static. It is a calculated number essentially based on budget requirement divided by the aggregage market assessment in the municipality. Large increases in market assessments WILL result in a lower mill rate this year than last year.

    Example:
    2015 Budget requirement $100 milion, total MA assessment $4 billion. Mill rate = 100/4000 = 0.025
    2016 Budget requirement $105 million, total MA assessment $6 billion. Mill rate = 105/6000 = 0.0175

    Now let's say one's house in 2015 is market assessed at $500k.... Taxes payable = $500,000 x 0.025 = 12,500
    But in 2016, the house is market assessed at $750k....Taxes payable = $750,000 x 0.0175 = $13,125

    The only reason taxes went up is because the municipality had 5% more budget needs.

    In reality, municipalities look for new development to increase the tax base.... so maybe if there was a lot of new development, aggregate market assessment was actually $7billion rather than $6billion. In this case, the mill rate would be $105/7000 = 0.015. The taxes on that $750k house would now be $750,000 x 0.015 = $11,250 ....less than they were in 2015.

    IOW, that is why one ALWAYS wants to attract new development to their municipality. Burnaby residents should be really happy to have a Kinder Morgan expansion

  9. #28
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    We shouldn't forget that, in many municipalities only half of the property taxes are municipal taxes, the other (approximate) half is the education taxes set by the province, but collected by municipalities. The amount the province chooses to raise for education can be higher than the municipal tax increase, so they get blamed when, in reality, the province just grabbed more money.

    I've seen cities where they actually lowered the taxes, but the province raised it higher than usual so taxes still went up.

    Face it, as long as people are making money, the government will try and take it from them.
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  10. #29
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    I live in Port Moody, and I got an increase of 19% on my one bedroom condo. i was extremely surprised when I opened my mail yesterday- almost $40k in one year! How is that even possible on a condo?
    "What good is money if you can't inspire terror in your fellow man?"- C.M. Burns

  11. #30
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    Quote Originally Posted by indexxx View Post
    I live in Port Moody, and I got an increase of 19% on my one bedroom condo. i was extremely surprised when I opened my mail yesterday- almost $40k in one year! How is that even possible on a condo?
    Easy. It all depends on how much comparable condos in your area are selling for. 12 months change in Vancouver = 16% on average; your condo is only 3% up on that.


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