By Dominic Abassi

Higher assessment doesn’t necessarily mean big property tax hike

Jan 3, 2018 | 3:17 PM

NANAIMO — Unsurprisingly, property values are up substantially in Nanaimo, but homeowners don’t necessarily need to panic about a hike in property taxes because of it. 

2018 assessment notices from BC Assessment are in the mail and available online. The average single-family residential property in Nanaimo saw a 15.9 per cent increase in value compared to 2017, with the average valuation as of July 1 coming in at $440,000.

While some homeowners are startled at the increase in the value of their property, deputy assessor Chris Whyte said a higher valuation doesn’t automatically translate into a steep jump in property taxes.

“It’s important to understand how the percentage change is relative to the overall average change in their community,” Whyte said. “That’s what’s going to drive whether the taxes increase, decrease or stay the same.”

The City of Nanaimo’s finance department said as long as a home’s value increased by the average for the city, property taxes would increase by 2.7 per cent, the amount proposed in the draft financial plan. An increase of less than 15.9 per cent would lead to a tax hike less than 2.7 per cent. If a home’s value jumped by more than the average, the tax increase will be higher.

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Whyte said their valuations are based on research from all sales in an area over a given year and the trend “on a mass basis.”

He said demand outpacing supply drove up property values.

“One thing we did see was a larger increase in the percentage change in central and northern island than we’ve seen before, so there’s definitely demand out there for the real estate.”

Home values also surged across the mid-island region. Twenty-one per cent in the District of Lantzville, 18 per cent in rural areas of Nanaimo and 22 per cent in Parksville and Qualicum Beach. The Town of Ucluelet saw the largest average increase on Vancouver Island at 26 per cent.

A mid-island property landed among the top 10 highest valued homes on the island. 1365 Dorcas Point Rd. in Nanoose Bay came in at $12.4 million, fifth highest for Vancouver Island. Nanaimo’s highest valued residential property was a $4 million home at 5025 Hinrich View.

BC Assessment said the total value of property in the province increased nearly 12 per cent from 2017.

Whyte urged people to check their website to ensure the details of their assessment are accurate. Homeowners can also review other assessments in their neighbourhood and comparable sales in the area.

“If they still feel the assessment is out of line there is always the opportunity to appeal,” Whyte said, adding the deadline for such appeals is Jan. 31.

On Wednesday, the provincial government announced it raised the threshold for the 2018 homeowner grant. Anyone who owns a home under $1.65 million is now eligible for the $570 basic homeowner grant.

The province said the increase means 91 per cent of B.C. homes will be eligible for the grant, the same percentage as 2017.

The threshold is up from $1.6 million and $1.2 million in 2016 as the value of real estate has steadily climbed in the province.

Top 10 highest valued residential properties in Nanaimo and Lantzville:

1. 5025 Hinrich View, Nanaimo: $4.1 million
2. 3372 Stephenson Point Rd., Nanaimo: $4.1 million
3. 6970 Dickinson Rd., Lantzville: $3.8 million
4. 7386 Sunbury Rd., Lantzville: $3.5 million
5. 6960 Dickinson Rd., Lantzville: $3.4 million
6. 7600 Harby Rd. W, Lantzville: $3.3 million
7. 3576 Planta Rd., Nanaimo: $3.2 million
8. 3384 Stephenson Point Rd., Nanaimo: $3.2 million
9. 6952 Dickinson Rd., Lantzville: $3 million
10. 6998 Strait Rd., Lantzville: $2.7 million

dom@nanaimonewsnow.com

On Twitter: @domabassi

Note to readers: This is a corrected story. Adds 3372 Stephenson Point Rd. as the number two highest valued property. BC Assessment said it was left off in error.