Understanding taxes and property assessments

·1 min read

It can be hard for people to understand what an increase in the tax rate actually means for the taxes they pay, a Village official told the Valley Voice.

While the Village is considering setting the tax increase at 4%, what a home or business owner finally pays will depend on their property assessment.

In Kaslo’s case, the average property value assessment for Kaslo went up by 9.75%. The average residential property value assessment in 2020 was $228,604. In 2021, the average property value assessment is $253,300.

“If a property owner sees that their property value went up by around 9.75%, the Village portion of their property tax bill will increase by around 4%,” explains Dunlop. “If their assessment went up by less than average, stayed the same, or went down, their increase will be less, or they may see a decrease. If their assessment went up by more than the average, they will see a higher increase in taxation.”

Property taxes are based on the assessed value multiplied by the ‘mill rate,’ which is a rate per $1,000 of assessment. The proposed mill rate for Village residential tax rate for this year is $2.94.

“What’s interesting is because the assessments have increased over the past several years, the Village’s tax rate per $1,000 is actually decreasing,” notes Dunlop.

John Boivin, Local Journalism Initiative Reporter, Valley Voice