Most of you have probably just received your 2020 Property Assessments and many of you may be surprised. It is the first time in 20 years that BC’s total property assessment values have decreased, says BC Assessment.
Here on the Sunshine Coast properties on average in Gibsons have decreased by about 3% and in Sechelt by 6%. The lower mainland saw the biggest decrease between 7-10%.
BC Assessments are used to calculate property taxes, based on the property’s assessed value as of July 1st of the previous year, in this case 2019. The assessments are based on sales in the neighbourhood, along with the size, age, quality, condition, view and location of the property.
But a lower assessment, does not necessarily translate to lower property taxes. How your assessment changes relative to the average change in your community, is what actually affects your property taxes.
Paul Sullivan, Head of the property tax division, said, “The declining assessments might be good news for people looking to get into the market, but will be far less welcome to those who have recently bought in.” Sullivan also noted that higher-end properties dropped more significantly. “The higher end values have gone down a lot more, than the lower end values. You are going to see an automatic shift in the tax burden to the lower end homes.”
If you disagree with the valuation of your home, you can take the assessment to a formal, independent review.
Although assessed values have gone down, analysts have seen the real estate market heating up again after the slow 2019 year. Therefore, home sales and prices are expected to start to climb again in 2020.