It is an easy assumption to make that your assessment has gone down so your taxes will be less. Sadly that is not the case for most people in the Okanagan.
The fact that assessments have generally fallen is a reflection of the fact that BC Assessment were well behind the curve anyway. This adjustment should shave been reflected on the assessment you received last year quite frankly. If you look at the overall stats for the Central Okanagan you would see that we had a slight growth in values not a decline. However, even though they were behind the curve, the adjustment is likely closer to reality now in many instances.
So why are you likely to see tax increases when your taxable assessment went down?
The Municipality you live in still has the same budget responsibilities. They collect their taxes by proportionately assessing taxes to the housing in their region. That means if everyone's assessment went down you will all still have the same proportion to pay and in fact, if the municipalities budget increased, you will see an increase in taxes.
The execution to that is if you had a home that was perhaps over-assessed in your region and was one of the few homes to be adjusted. In that instance, your proportion of taxes will be less and that can result in a lowering of the taxes you would pay.
Will I have to sell my house for less?
Not necessarily. That is why it is important to use a REALTOR® when you consider selling your home. While the Assessed value can give you some good indications of value, market value is determined by a willing buyer and a willing seller agreeing to a value, that can be different than the assessed value.
A REALTOR® will be able to do some very accurate research on what has been happening in your neighbourhood and exactly why market value in your area may be lower or higher than assessed values.
As usual, feel free to contact me if you have questions on this subject or other real estate matters at [email protected]
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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.
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