Supporting our members in the face of rising property tax
Program Update
The Strathcona BIA noted a dramatic increase in 2019 property values. The SBIA Board of Directors took action to support our members in the face of rising commercial property tax with a SBIA-wide review and appeal approach. Every member of the SBIA benefited from a commercial tax agent�s opinion on their 2019 commercial property assessment. Those properties recommended for appeal were filed collectively by the SBIA. All members were notified in print or by e-mail with next steps and options depending on the results of their appeal recommendation.
34% of all properties in the Strathcona BIA area were recommended for appeal.
Properties Reviewed: 402
Recommended for Appeal: 137
Not Recommended for Appeal: 265
The key factors that supported grounds for an appeal included:
Assessed value is higher than market value
Market sales are analyzed by BC Assessment to determine market value of properties. Due to differences between properties, some are over assessed based on the sales.
55% of recommended properties
Errors in income approach
An appeal may be warranted based on the income approach if the rents or leasable area applied by BC assessment is not reflective of market for the property type.
36% of recommended properties
Physical characteristics misrepresented
An appeal may be warranted if the assessor has misrepresented the size of the building on a property or the lot size itself.
0.7% of recommended properties
Equity
The taxpayer has the right to be assessed at the “lesser of” market value or comparable assessments.
9% of recommended properties
Improper Classification
Classification determines which tax rate applies to your property. If you feel your property has been misclassified this would warrant an appeal.
insufficient information at time of investigation.
Approximately 14% of members recommended for appeal opted to work with our agent to pursue action. Others decided to represent themselves or work with other commercial tax agents. Some property owners withdrew appeals or took no action, resulting in expired appeals.
BC Property Assessment Appeal Process Timeline
We’ve created an appeal process timeline to help you plan for next year.� For detailed information on the BC assessment appeal process visit:
www.bcassessment.ca�(1st level of appeal)
www.assessmentappeal.bc.ca�(2nd level of appeal)
Get in touch with your appeal story.
The SBIA is collecting the neighbourhood wide results for a full report back to the membership in the Fall.
If you would like to share your appeal process story and results with us, please reach out below.
Call Us: (604) 258-2727
Email: theo@strathconabia.com
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Commercial Tax Shift
On April 29th, 2019 Vancouver City Council voted in favour of a 2% tax shift from commercial property tax to residential over the next three years. The tax roll will shift one per cent in 2019 and 0.5 per cent in both 2020 and 2021. Businesses that own or are a tenant in an average commercial property can expect savings of $508 in 2019. Currently, businesses shoulder 42% of the property tax burden while consuming only 23% of City services.
http://www.strathconabia.com/wp-content/uploads/2019/06/Consumption-of-Services-Infographic.jpeg
As part of our ongoing commercial tax advocacy in service to our members, SBIA Executive Director Theo Lamb, along with several other BIA leaders, spoke to Council in person and ultimately made the winning case that led to a majority Vancouver City Councillor vote in favour of this tax shift.
Vancouver has not seen a tax shift since 2012. We see this as a positive first step in addressing the unfair tax burden shouldered by the business community of Vancouver. There are many issues and drivers that contribute to high property taxes, and we look forward to working with stakeholders and the City to advocate for continued solutions and policies that provide relief to our commercial property owners and tenant businesses and organizations.
Read more about this Vancouver City Council decision in The Province and the Vancouver Sun.
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