Many clients ask me about their assessed value, especially when it comes time to sell their home. Is the assessed value the same as the market value of the home? Most of the time the answer is no. Note that the assessments you just received are for the assessed value as of July 1 of LAST YEAR, 2019. As you all know, the market can change a lot in just a few months. So assessed value is not relevant for the purposes of determining today's market value. BC Assessment uses a very complex algorithm to determine each and every home's estimated value for property tax purposes only. In addition to the time lag, the government has never stepped into your home, doesn't know of any improvements you've made, what the street is like that you live on, or any other nuances that play into the value of a home from a Buyer's perspective.
So if the assessed value of your home is down, does that mean you'll pay less tax? The answer is not necessarily. Every year each municipality has a certain amount of taxes it must raise to run the city. Your share of those taxes is based on the proportionate value of your home's share of the total tax base. If everyone's house values go down, the city still needs to collect the same amount of money. The only way your taxes could go down is if your house value drops more than the average. So if the value of your home goes down 10% but the average value went down only 8%, the your relative share of the taxes should be less. For example, the City of Vancouver just announced an overall tax increase for 2020 of 7% so despite the fact that everyone's assessments are down in value, your taxes will still be higher this year. It's really about allocating everyone's share of the total tax pot that must be paid.
Here is a chart showing sample Property Value changes, year over year, by neighbourhood:
For more information click here: https://info.bcassessment.ca/About-Us/how-bc-assessment-works