Assessment increase doesn't mean tax increase for sure
A dramatic increase in assessments won't mean a leap in local taxes.
Town of Osoyoos Director of Finance Jim Zakall said a sharp increase in property value will not mean a corresponding increase in taxes for residents of Osoyoos.
If we kept the mill rate where it is, taxes would rise by about 30 percent, and that just isn't going to happen, Zakall said.
Zakall said the mill rate would definitely be lowered, in order to avoid an increase in taxes.
He added it is not in the town's interest to substantially raise taxes based on increased property values.
Council has to answer to the public, and they're supposed to act on behalf of the people of Osoyoos, Zakall said. But he said while the town does not get increased revenue from the higher property values, all the new construction, utility fees and related activity does bring more revenue into the town, which can then be used to provide more services for the public. Zakall also pointed out Osoyoos was experiencing the same increase in property values as the rest of the Okanagan.
We're no different than the rest of the valley. Waterfront property has increased its value everywhere, he said.
He attributed the rise in value to current market trends, and said while this increase is more dramatic than in previous years, the overall trend is for property to increase in value, then stabilize.
Mayor John Slater agreed with Zakall.
We knew the assessments would go up, and while there might be a slight increase in expenditures for the town, we'll tow the line on a tax rate increase, Slater said.
He also pointed out that while the property value of an individual house in Osoyoos had gone up, so had everyone else's house, and the tax rate is determined by the average, not by a dollar amount per se.
Slater also said while it's good that property values in Osoyoos have risen, it only benefits a homeowner if they sell.
And once you've sold your home, if you want to buy another home it's worth more as well, he said.
