If you are a homeowner in South Okanagan you may be in for a sticker shock when you get your BC Assessment notices in the mail. The average residential property value has increased 14 per cent.
But the City of Penticton is reminding residents that an increase in the value of their property does not necessarily result in equivalently higher taxes.
The city has an annual budget, which determines the amount of property tax revenue needed to fund important services used every day in the community. Property assessment values may go up or down but the city-wide total property taxes budgeted for does not change based on assessments.
Tax rates are set before May 15 each year and the budgeted amount of property tax revenue along with assessments are used to determine the rates, explained the city.
Property tax rates are set during the budget deliberation process which typically occurs in late November. However, due to the election in 2022, budget deliberation dates have been scheduled for mid-March 2023 with tax rate set to occur during that process.
If your property assessment increased by 14 per cent, your municipal tax will equal the budgeted rate change per cent.
If your property assessment increased more than the 14 per cent average, the tax increase will be relatively higher than the budgeted rate change per cent.
If your property assessment increased less than the 14 per cent average, the tax increase will be relatively lower than the budgeted rate change per cent.
If you have concerns with the assessed value of your property, you can appeal to BC Assessment by Jan. 31 through the contact information on the notice.
Penticton’s most expensive property went up $400,000 this year compared to 2021’s assessment to over $8.3 million.
The property is located at 345 Lower Bench Road and is the sole Penticton residence among the top 100 for the Thompson Okanagan.
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