Yellow Fever
December 1st, 2008, 06:29 AM
NDP protests property assessment move
By Tom Fletcher - BC Local News
Published: November 30, 2008 4:00 PM
Updated: November 30, 2008 4:25 PM
0 Comments Property assessment notices arriving in mailboxes across B.C. in January will show the value assigned to homes this year as well as last year, but taxes will be based on whichever value is lower.
Small Business and Revenue Minister Kevin Krueger expects that in most cases, the 2007 assessments will be used, because this year's values were assigned in July at the peak of a hot real estate market. That market has since cooled rapidly with this fall's economic turmoil, resulting in what Krueger says would amount to an average 10 per cent over-valuation of B.C. residential properties, and more than 20 per cent for business properties.
The B.C. government passed amendments to allow the use of last year's property assessments in the legislature last week. It was the only part of Premier Gordon Campbell's economic stimulus package that was opposed by the NDP.
NDP critics repeatedly demanded to know whether the change to last year's assessments was intended to lower property tax bills for homeowners. Krueger acknowledged that was not, since municipalities are still free to set their tax rates based on how much revenue they need to provide services.
NDP finance critic Bruce Ralston suggested that when Premier Gordon Campbell announced the decision to use 2007 assessments, it was rushed out early to make a "political splash" at the B.C. Liberal party convention in Whistler in late October. Then when problems were noticed, such as that homes built this year don't have a 2007 assessment, the dual value system was put in the legislation, he said.
Krueger rejected NDP suggestions that the move was political, and that it was done over objections from the B.C. Assessment Authority. It was the authority that approached him about the falling values and the prospect of a wave of property assessment appeals next year, he said.
Krueger also said he has implemented all three recommendations made by the Union of B.C. Municipalities, and they have been reflected in legislation.
The first was that the use of older assessments is for 2009 only, and the legislation will be repealed for 2010.
The second was that the UBCM be consulted on the legislation, which resulted in changes such as the use of whichever valuation is lower, rather than the 2007 value.
The third was that the B.C. government clarify to property owners that the change does not mean an automatic reduction in property tax payable.
By Tom Fletcher - BC Local News
Published: November 30, 2008 4:00 PM
Updated: November 30, 2008 4:25 PM
0 Comments Property assessment notices arriving in mailboxes across B.C. in January will show the value assigned to homes this year as well as last year, but taxes will be based on whichever value is lower.
Small Business and Revenue Minister Kevin Krueger expects that in most cases, the 2007 assessments will be used, because this year's values were assigned in July at the peak of a hot real estate market. That market has since cooled rapidly with this fall's economic turmoil, resulting in what Krueger says would amount to an average 10 per cent over-valuation of B.C. residential properties, and more than 20 per cent for business properties.
The B.C. government passed amendments to allow the use of last year's property assessments in the legislature last week. It was the only part of Premier Gordon Campbell's economic stimulus package that was opposed by the NDP.
NDP critics repeatedly demanded to know whether the change to last year's assessments was intended to lower property tax bills for homeowners. Krueger acknowledged that was not, since municipalities are still free to set their tax rates based on how much revenue they need to provide services.
NDP finance critic Bruce Ralston suggested that when Premier Gordon Campbell announced the decision to use 2007 assessments, it was rushed out early to make a "political splash" at the B.C. Liberal party convention in Whistler in late October. Then when problems were noticed, such as that homes built this year don't have a 2007 assessment, the dual value system was put in the legislation, he said.
Krueger rejected NDP suggestions that the move was political, and that it was done over objections from the B.C. Assessment Authority. It was the authority that approached him about the falling values and the prospect of a wave of property assessment appeals next year, he said.
Krueger also said he has implemented all three recommendations made by the Union of B.C. Municipalities, and they have been reflected in legislation.
The first was that the use of older assessments is for 2009 only, and the legislation will be repealed for 2010.
The second was that the UBCM be consulted on the legislation, which resulted in changes such as the use of whichever valuation is lower, rather than the 2007 value.
The third was that the B.C. government clarify to property owners that the change does not mean an automatic reduction in property tax payable.