At least six homeowners in Squamish will be paying significantly more municipal taxes this year thanks to the jump in value of their property.
But most homeowners won't necessarily get a bigger tax bill, even if the value of their property shot up as much as 25 per cent.
Property assessments went out last month and for some landowners, the increases were shocking. But an assessment increase doesn't automatically mean a higher property tax bill this year.
Any property owner with an increase that is higher than the average increase for similar properties is likely going to pay more property tax than last year.
Those who own homes that were assessed at more than $525,000, however, no longer qualify for the full homeowner grant (HOG) that is offered to qualifying BC residents.
Because of the dramatic rise in assessments a number of homeowners in Squamish found themselves unexpectedly facing significantly higher property tax rates due to a loss of the HOG. The maximum grant is $470 and senior citizens, some war veterans and those who are permanently disabled qualify for as much as an additional $275.
According to documents from the district's financial services department, at least six homeowners who qualified for the HOG in 2003 will not qualify in 2004. One of the homes, located on Clarke Drive, went from a 2003 assessment of $409,000 to $698,000 in 2004 - a 59 per cent increase over last year.
There is no avoiding a dramatic property tax rise for those with homes valued over $525,000. Mayor Ian Sutherland notes that council will play a role in determining just how much property tax is paid by property holders.
Council sets the rate per thousand dollars of assessed value charged to each owner, commonly referred to as the 'mill rate'. Last year, that rate for residential property was $5.344657 for every $1,000 of assessed value.
"The mill rate will have to come down," Sutherland told The Chief. "We always start with collecting the same amount of tax that we did last year."
The amount collected last year was just over $11 million.
The mayor said council has to decide if it wants to collect the same as last year or more than last year. Once that is determined, council will decide if it wants to shift the tax burden by collecting more or less from the various types of property that ranges from residential to business to industry and farming properties.
The bottom line from the mayor is that homes with property assessments of greater than 28 per cent are probably going to pay more property tax.
Council will begin its decision making process soon and the five year plan must be finished by May 15.
