Does an increase assessed property value automatically equal an increase in property taxes?
Not always, according to city finance manager Sandra Stibrany.
The city sets its tax rates to collect a fixed amount of money each year. Because taxes are collected based on the assessed value of of all properties in the city, she said, an increase in assessed value does not automatically equal an increase in taxes.
For an example of this, check out the tables on this page showing the taxes collected on an average household in Prince George and the value of that average home over time.
The amount of taxes collected rises steadily each year. However, the average home price in Prince George peaked in 2008, then dropped in subsequent years.
When a homeowner can expect their property taxes to just dramatically is if their home gained value faster than average for the city, Stibrany said.
"You have to look at how your house did compared to what's happening in the city," she explained. "The value of all residential properties in the city went up from $5.1 billion to $5.4 billion this year. About 5.12 per cent of that increase is due to the value of homes increasing due to changes in the market."
The total increase in city taxes this year is set at 4.2 per cent, she said.
"If my house went up [in assessed value] more than 5.12 per cent, than I can expect to be paying more than 4.2 per cent more taxes this year," Stibrany said.
The value of properties in Prince George, based on the B.C. Assessment Authority report for 2011, rose to almost $7.1 billion this year from $6.7 billion in 2010.
Approximately $64 million of that increase is from new construction in the city, while the remaining increase is due to a 4.86 per cent increase in market value.
There is good news for all homeowners, however. This year Prince George residents will be eligible for an additional $200 homeowner property tax credit, in addition to the basic $575 credit for all British Columbians.
"You have to apply for it, and it only applies to your primary residence," she said. "[But] it's an ongoing credit for 2011 and on."
