Did your property tax and fees compare favorably to other municipalities from 2019- 2023? What’s next in 2024?
Do house taxes and fees in the capital region really need to take an huge hike this year compared to the last five years, asks the municipal watchdog Grumpy Taxpayer$ of Greater Victoria.
Our analysis of taxes and fees on a “representative house” from 2019 to 2023 revealed that most municipalities increased property taxes and fees close to four percent annually. Those five-year increases ranged from 13.7 percent in Sidney to 32.3 percent in Langford.
“Inflation was 3.4 percent in 2023, so why are local politicians now contemplating increases of double or triple recent years? asks Stan Bartlett, vice chair of Grumpy Taxpayer$. “How does that help resolve the housing crisis for potential buyers or renters?”
During the last 20 years the annual BC inflation rate averaged 1.91 percent, well below most municipal tax increases. But this year several regional municipalities are considering property tax increases in the range of eight to 12.4 percent.
“It’s obvious to residents and business, not necessarily to local politicians, that more harmonization of services will offer better value for their taxes,” says Bartlett.
A so-called representative house is a provincial government construct calculated by taking the total general assessment value for land and improvements for single family residents and dividing by the number of properties. It’s popular because it shows the entire tax load including general property taxes plus school, regional district, hospital, BC Assessment, transit and other fees.
Got it?
Well, if you haven’t got it, you will when you see your next municipal tax bill this summer. Several municipalities are talking about stiff property tax increases of eight to 12.41 percent.
It doesn’t have to be.
The landmark report of the Mayor’s Budget Task Force in Vancouver will table its 36-page report and 17 recommendations for discussion at a Vancouver council meeting on Jan. 23.
The blue-ribbon, third-party task force recommended the city narrow it’s scope of work, consider divesting itself of ‘non-core assets, and get philanthropic, business and non-profit help for municipal priorities.
It focuses on three themes; defining the role of the city and keeping within it; improving efficiency by using performance indicators, cross-department collaboration and managing absenteeism; and better managing capital assets.
It’s time to get a grip on reality, Bartlett says. A lot of homeowners and businesses are under pressure with renewing mortgages and loans at higher rates in the next several years. That needs to be considered.
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Representative House Taxes and Fees 2019-2023, Analysis by Grumpy Taxpayer$ of Greater Victoria, January 2024.
Outsized tax increases unsustainable, Grumpy Taxpayer$, Jan. 22, 2024.
Calgary city council to debate property tax rebate, budget cuts next week, Globalnews Calgary, Jan. 24, 2024.
Cities eye tax increases to fund budget shortfalls , Globe and Mail, Jan. 20, 2024.
Canadians showing the strain of historically high debt, Financial Post, Jan. 22, 2024.
Vancouver Mayor’s Budget Task Force says City needs “disciplined focus” on spending: report, Daily Hive, Jan. 18, 2023.
Vancouver mayor’s budget task force proposes ‘potentially divesting’ some city assets, CBC News, Jan 17, 2023.
Capital Integrated Services and Governance Initiative, Government of BC, 2017.