Quote:
Originally Posted by queetz@home
Considering how ridiculously high property values in Vancouver are and low the property taxes are in relation to it, the city doesn't have to raise the property tax that much in order to have the funding to pay any debt related expense for its share of the Broadway Line.
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There seems to be a lot of misconception about how property taxes work. People seem to think that if your property is worth a lot of money then that must mean you have to pay a lot of property tax. But that is
not true.
The city sets a budget amount each year, and then the property tax rate is set to an amount which will produce the needed amount of money. The assessed values of the properties are only used to prorate how much tax you pay compared what your neighbors and other owners in the city pay. If my property is worth twice as much as my neighbor's, then I pay twice as much as he does. But that's based on the relative
difference between our assessments, not on their
absolute values. We would pay the same amount of property tax if his and my assessments were $100,000/$200,000 or if they were $1,000,000/$2,000,000. In other words, the value of my land has no direct link with how much property tax I pay - the only bearing it has is how it compares to the average property value in the city.
Vancouver's property values are very high - but that doesn't automatically give the city a windfall in property taxes. Because the values are high, to generate the same amount of revenue the city must set the rate low. If prices go down by 50% next year then the rate will double and we'll all still end up paying the same tax (subject to a budget increase, of course).
It's wrongheaded to think that the city has some sort of inherent right to tax Vancouver property owners more than other cities do just because the properties here are expensive. The only valid reason to raise taxes would be if the City needs to spend more money - and of course they have to answer to the voters if they capriciously decide to do that.
And the estimate of the average property tax bill as being ~$2300 per year is crazy. My tax bill is almost 50% more than that and my assessed value is well under what I'm always hearing as the "average house price" in Vancouver. Edit: maybe it includes condos?