Increase in assessment, not necessarily an increase in taxes
We understand that people are very apprehensive about the major increase in assessed value of their homes or properties in Osoyoos.
They should be.
But they should also understand that an increase in assessment doesn't necessarily mean an increase in property taxes.
Municipalities set what is called the Mill Rate based on the total amount of dollars needed to run the municipality. Although tied to assessed value for calculation purposes, it is not based on assessed value. As a taxing body that is not allowed to run a deficit municipalities must tax its residents (through their property) so that it has enough money to run that municipality. With the exception of some surplus accounts, such as sewer and water, it is unethical for municipalities to overtax to create unwarranted surpluses. They are supposed to tax based on that year's requirements, which will include long-term costs.
What people should be aware of, however, is an increase in their properties' value higher than the average increase in the community. For example if one property jumps by 50 per cent in value, while the average in the community was 30 per cent, then that person can expect to pay more in property taxes.
The reality in the Town of Osoyoos is that there should be no increase in property taxes, based on increase in revenue the municipality will see from new construction alone.
So if your property has increased in value greater than that of your neighbors then it is time to be concerned, but with B.C. Assessment, not the Town of Osoyoos.
The only reason to point the finger at the town would be if it came down in an overall tax increase without any explanation of why that increase in revenue is needed, and that is something we doubt very much will happen in what can only be described as a building boom in Osoyoos.
