If you own a commercial property in British Columbia, your property tax bill may have been quite a shock in comparison to 2020. With the market movement, commercial and industrial property values are on the rise. In combination with municipalities property tax rate, your tax bill probably had a significant number on it. Will these numbers go down? We do not think so. There are a few steps and information that can provide you as a property owner some peace of mind when it comes to paying your tax bill.
The 2020 pandemic had a major impact on every single Canadian. Nearly 40% of Vancouver businesses were forced to close in light of the novel virus. In response, the BC government lowered the school tax rate for commercial properties in Classes 4, 5 and 6, in efforts to keep businesses afloat during that time as property tax is one of the largest expenditures. Now that the worst is over, the school tax rate in 2021 returned to their pre-pandemic levels but property values have often increased. This attributed to that large jump in your commercial property tax bills for all industrial and commercial properties from 2020 to 2021.
Property taxes are levied by taxing authorities and are based on your real property value. Each year, BC Assessment assesses the value of your property based on the characteristics of the property. And based on this valuation, you pay the designated tax amount per your property class designation.
Commercial property taxes have a significant effect on businesses across the entire province as property tax is one of the largest expenses to a business. While larger businesses can afford to pay the rising cost and handle the fluctuation, small and upcoming businesses are often left unable to viably keep their business when costs dramatically increase. Thus, leading to lay-offs, relocations to less expensive cities, or complete shutdowns.
Your best course in action to manage one of the largest, non-recoverable, expenditures related to holding real estate is by having Sidco review the assessment. You cannot change the tax rate you pay, but by having an accurate, independent review done, you are ensured to be paying the fairest amount. If not, tax recovery is an option.
Make sure your assessment is reviewed by reputable consultants like those at Sidco Consultants! Our review is based on our knowledge of the market, comparable assessments, legislation, and case law.
Contact us today for free information on how you can get started.
This document is intended for advertising and general information only. Sidco Property Consultants makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Sidco Property Consultants excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.