With the recent changes introduced by the Broadway Plan and British Columbia’s transit-oriented development legislation, which focuses on building higher-density housing near transit hubs like SkyTrain stations, property values in these areas could see a significant increase. This is great news if you plan to sell, but if you’re not selling, you might just suffer higher property taxes as a result.
In some cases, properties are assessed based on their potential use rather than their current use. This means your property might be taxed as though it’s a prime redevelopment site, even if you’ve lived there for years and have no way to take advantage of it. Crazy, right? But how much of a difference can this make? Consider a real example near the Oakridge/41st Avenue Canada Line Station. Two similar properties on adjacent lots had dramatically different values: one was assessed at under $4 million, while the other was $7.6 million. The difference? One was taxed based on its current use, the other on its potential use.
If you notice a sharp increase in your property assessment and you’re a long-time resident, there’s a way to address this. BC Assessment allows eligible homeowners to apply for a special assessment that values the property based on its actual use. To qualify, you must be able to answer “yes” to all three of the following questions:
Is your property 5.02 acres or smaller, used only for residential purposes, and accommodating three or fewer families?
Have you or your spouse continuously owned and lived on the property as your principal residence for at least 10 years?
Do real estate sales suggest your property is now valued more as a redevelopment site than for its current residential use?
If you meet these criteria, you need to submit your application to BC Assessment before January 31st each year to be considered. Missing the deadline could mean paying significantly higher taxes. For more details and to start your application, click the link.
