Castlegar faces "assessment-freeze hangover" and probable tax hike
By Kyra Hoggan
Some Castlegar residents are shaking their heads at B.C. Assessment notices that indicate residential properties increased in value by an average 4.79 per cent last year, despite the global economic downturn.
Deputy Assessor Dennis Hickson says this is because the province froze assessment levels in 2008.
Assessments of value as of July 1, 2009 would usually be said to go up or down based on comparison to the assessed value of the previous year – in this case, July 1, 2008. But because of the provincial freeze, the values were actually compared to those of July 1, 2007.
“We’re calling it the assessment-freeze hangover,” Hickson said. “The market may well have decreased in third and fourth quarters of 2009, but not enough to sink below the peak of 2007.”
He said the assessments can also be perceived as good news, indicating the continued economic health of the community despite the recession, with commercial properties seeing even more dramatic increases at an average 22 per cent, relative to July 2007.
“That means there’s still a strong demand for commercial properties in Castlegar,” he said, adding residential property values indicate there’s still a demand for homes in the city, as well.
He said the only exceptions in the freeze were properties that physically changed – for example, if a house burned down, they’d obviously have to alter the assessed value to reflect that. Home improvements, renovations and subdivisions were also factored into 2008 assessments (the ones sent out a the beginning of 2009).
Local realtor Frank McCracken, with Castlegar Realty, said assessments rarely reflect market value.
“I think B.C. Assessment does do their best to come up with fair market value, but they don’t go into every house, he said. “There are so many factors that go into evaluating an individual property, as opposed to what B.C. Assessment looks at …they look at a general neighbourhood, and work from average sale prices, etc.”
McCracken said more emotive values, like paint colour, cleanliness or flooring choices can dramatically impact how well a house shows and/or sells, and bidding wars can drive a price up disproportionately … none of which hits the radar of B.C. Assessment.
Hickson also pointed out that assessment values don’t impact municipal tax rates – you still pay the same proportional amount. The only way assessed value will impact your property taxes is if your property’s value increased (or decreased) more than was average for your community that year.
Having said that, Mayor Lawrence Chernoff said increased property taxes are a likelihood this year, due to economic realities like infrastructure needs, not to mention Celgar’s non-payment of its tax bill in 2009 and the related pending lawsuit.
“I guess the simple answer would be, yes, they’re probably going to go up …but to what degreee, I have no idea,” he said, adding he hopes residents will see preliminary numbers from the city as early as April.
