This is a frequent question to the CSRD when people receive their property assessments in the mail. Here's the answer!
It is a common misconception that a significant change in your assessed value will result in proportionately the same change in your property taxes.
A 40% increase in property assessment does not automatically equal a 40% increase in your property tax. No local government will increase taxes by 40% in one year. In fact, most local governments determine the amount of taxes required in advance of the assessment data.
The most important factor is not how much your assessed value has changed, but how much the local government needs in tax revenue. The next most important factor is how your assessed value has changed relative to the average change for similar properties in your local government. For example, if the local government increased taxes by 2%,
- If your property's value change was lower than the average change for your property class, your taxes will be less than 2% higher than the previous year.
- If your property value change was similar to the average change for your property class, your taxes will likely be 2% higher than the previous year.
- If your property value change was higher than the average change for your property class, your taxes will be more than 2% higher than the previous year.
To better understand the relationship between assessed property value and property taxes, please see the BC Assessment website.
They have some easy-to-understand videos and information to explain the process.