Property taxes on the average home in Prince George will rise $85 this year.
On Monday city council unanimously approved the tax rate for 2011. For an average single-family home valued at $233,050, city property taxes will increase by $85 to $1,778. That amount only represents the city's portion of property taxes, which equal about two-thirds of the average property tax bill -school taxes, regional district property taxes, regional hospital district taxes, 911 service tax, B.C. Assessment Authority and the Municipal Finance Authority all contribute to the final tax assessment.
The city's property tax levy is increasing 4.2 per cent to covering rising costs and a special levy to raise $1.3 million for capital projects related to the 2015 Canada Winter Games.
"We really wanted to make sure we were bringing forward the best option," city finance and audit chairman Coun. Murray Krause said. "We're trying to minimize the impact on residential [properties], but the burden on others was just to high. When you look at the impact of keeping [the residential tax increase] at 4.2 per cent, it just wasn't possible."
The proposed residential tax rate for 2011 is $7.6304 per $1,000 of assessed value. To calculate your municipal property taxes, divide the assessed value provided by the B.C. Assessment authority by 1,000 than multiply the result by 7.6304.
The tax rate for 2011 is down slightly from 2010, when the tax rate was 7.7103 per $1,000.
However, according to the city's report, residential properties have increased in value an average of 5.12 per cent compared to last year.
"It seems to me that the residential class has seen an increase every year since 2007," Coun. Dave Wilbur said. "[But] at the end of the day, I can't find a better option - including manipulating the ones presented."
The tax rates for utility, major industrial and farm properties will stay the same as in 2010. Business class properties will pay $15.91679 per $1,000 value, up 0.46 per cent from last year.
However light industrial properties will see a 25 per cent increase in tax rates this year. The proposed tax rate for light industrial property is $33.485 per $1,000 value, up from $26.61715 last year. Property values in the light industrial category only dropped 1.22 per cent compared to 2010.
Coun. Shari Green said of 67 light industrial properties valued over $100,000, each will face an average property tax increase of $9,000 this year.
"It's going to be a pretty major shock to some people when they read about this tomorrow," Green said.
