Well over 100 Delta properties are being hit by the NDP government’s new school tax on expensive homes.
During a recent Delta council discussion on the 2019 tax rate, civic politicians wondered how many local homes would be impacted by the province’s increased school tax on residential properties valued at over $3 million.
The province is levelling an additional 0.2 per cent on the assessed value of a residential property between $3 million and $4 million, while the extra rate will reach 0.4 per cent on an assessed value above $4 million.
Finance director Karl Preuss’s report to council notes that based on information from B.C. Assessment, 131 properties in Delta have an assessment value greater than $3 million. Of those properties, 39 are valued at more than $4 million.
“To illustrate the impact of the additional school tax, a single family dwelling with an assessment value of $3.5 million would have $1,000 in additional school tax levied on their 2019 property tax notice. A single family dwelling with an assessment value of $4.5 million would have $4,000 in the additional school tax,” his report explains.
The report also notes the additional school tax impacts detached homes, stratified condominium or townhouse units and most vacant land that has an assessment value above $3 million. It does not apply to non-stratified rental buildings with four or more housing units. For mixed-use properties, only the residential portion of the property’s assessed value that is above $3 million is subject to the additional tax.
The tax has been a highly contentious issue in places like Vancouver and West Vancouver where real estate prices have soared, and where many more residential properties are hit.
According to West Vancouver, 2,616 homes have an assessed value between $3 million and $4 million with the average home in that class having to pay an additional $855 in tax. Meanwhile, 1,285 homes there have an assessed value between $4 million and $5 million, the average of which is paying an additional $3,810.
Delta council gave final approval of its 2.99 per cent tax increase. The average single-family residence assessed at $967,000 will see an increase of approximately $70 on their property tax bill, but that doesn’t include utilities as well as what the other taxing authorities will take.
Preuss noted about 40 per cent of the tax bill homeowners pay is collected by the city for other authorities.
