Frequently Asked Questions About Property Taxation
- Online Services - 53Kb
- Understanding Property Taxes - 100Kb
- Understanding Property Taxes - During a Sale/Purchase of a Home - 50Kb
- The British Columbia Property Tax Deferment Program - 135Kb
- How to Complete the Home Owner Grant Application - 105Kb
- Property Tax Estimator
- Property Tax Prepayment Plan form - 115Kb
- Tax Rates - 28Kb
How are taxes calculated?
Property Tax Estimator
What will your tax bill be in 2009? Calculate your property taxes with our new online Property Tax Estimator.The formula for calculating taxes on property is:
Tax rate x assessed value
The tax rate is expressed as a dollar amount on every $1,000 of assessed value. If the tax rate for residential property is 8, this means that taxes of $8 are charged on every $1,000 of assessed value. Property valued at $100,000 would thus be charged taxes of $800 (100 x $8).
The assessed value of property for tax purposes is determined by the British Columbia Assessment Authority. The Authority is established under provincial legislation, and is independent of the municipality. The City is not involved in determining assessed values.
Taxation on property is the primary source of municipal revenue. The Local Government Act, which is a Provincial Act, sets out in detail the regulations for property taxation. The amount of money to be raised through taxation is set by Council through the budget process, but other aspects of the taxation process, such as the due date for taxes and the penalty on late taxes, are regulated by the Local Government Act.
Council does not have the power to adjust the taxes on individual properties. The taxes are set by the tax rate which applies to that class of property. For instance, if the tax rate for residential property is 8, then ALL residential properties must be charged this rate.
What is included on my annual Tax Notice?
Your annual tax notice includes ALL property taxes - those imposed by the City and those imposed by other governing jurisdictions. The City collects taxes on behalf of others as follows:
School Taxes These are remitted to the Provincial Government Hospital Taxes These are remitted to the Hospital District NORD Taxes These include the NORD 1 rate; the Parks & Rec rate and the NORD 3 rate Assessor These are the B.C.Assessment Authority taxes MFA These are the Municipal Finance Authority taxes Library These are taxes imposed by the Library Board.
All of these tax levies are NOT set by the City, but are collected by the City on behalf of those governing jurisdictions. This is more efficient and economical than each of these tax authorities sending individual tax notices. Your City Council sets the rates only for City taxes, Fire taxes and Local Services taxes.
The annual Tax Notice has the Home Owner Grant Application form attached. This form MUST be completed each year to claim the grant
EXPLANATION OF TAX LEVY ITEMS:
SCHOOL - residential & non-residential collected for the Provincial Government on all properties and reported to the "Ministry of Small Business and Revenue, Property Taxes".
Their website is http://www.sbr.gov.bc.ca/individuals/Property_Taxes/School_Property_Tax/school_property_tax.htm
BC ASSESSMENT - collected for B C Assessment Authority, this is a Provincial agency set up to valuate and classify all pieces of real property throughout British Columbia. Their website is http://bcassessment.gov.bc.ca/pdf/about/Bylaw_51.pdf
HOSPITAL - collected for the Interior Health Authority to help cover the costs of construction and maintenance of the Vernon Jubilee Hospital. Their website is http://www.interiorhealth.ca/information.aspx?id=7632
LIBRARY - collected for the Okanagan Regional Library. Their website is http://www.orl.bc.ca/aboutus/finance.aspx
MFA - collected for the Municipal Finance Authority, this is a Provincial agency set up to provide financing of capital requirements for Regional Districts and their Municipalities. Their website is http://www.mfa.bc.ca/
NORD 1 / PARKS & RECREATION / NORD 3 - includes, parks & recreation, solid waste disposal, administration, water distribution, etc. collected for the Regional District of North Okanagan. Their website is http://www.rdno.ca/index.php
GENERAL CITY/FIRE TAXES - includes the cost of fire protection, operating costs, debt servicing, etc., collected for the City of Vernon.
Our website is www.vernon.ca
When are taxes due?
Property taxes cover the fiscal year - January 1 to December 31 - and are due the first business day in July. Under the Community Charter, the municipality must charge a 10% penalty on late taxes. The City of Vernon charges a 10% penalty on the first working day after the tax due date.
How do I pay them?
Payment can be made by cash, cheque, money order or debit card at City Hall. Payment can also be made by your mortgage company. Payment by way of post-dated cheque is encouraged. Send the cheque with your completed and signed Home Owner Grant application to City Hall. Leave plenty of time for mail delivery, as postmarks will NOT be considered as date of payment.
- Property Tax Payment Options - 172Kb
The City of Vernon offers a Property Tax Prepayment Plan (PAWS). This allows you to pay next year's property taxes in advance by automatic monthly deductions from your bank account. Monthly payments will be collected on the fifteenth day of each month, starting in August and ending in May. There is no withdrawal for the month of June and a final adjusting withdrawl of the tax due date in July. The annual tax notice, mailed to you at the end of May each year, will show your current year's taxes less the total prepayments and interest earned. You are responsible for applying for the Home Owner Grant by the due date to avoid penalties. All PAWS customers are encouraged to claim their Home Owner Grant, if eligible, by June 15 to ensure your final withdrawl amount is correct. Download the Property Tax Prepayment Plan form - 115Kb
The Property Tax Prepayment Plan is a convenient method of paying your taxes. It will assist in your budgeting and eliminate the impact of one large annual payment in July. For further information, please contact our tax department.
What is the Home Owner Grant? Am I eligible to claim it?
The Home Owner Grant is a grant provided by the British Columbia Government to owners of residential property. The grant must be claimed each year. The application form is attached to the bottom of your tax notice.
The Basic Home Owner Grant is up to $570. To be eligible, you must:
- be a permanent resident of British Columbia
- be living in the house at the time you claim the grant, and
- be shown on the title as a registered owner.
The grant cannot be claimed on vacant land. Only ONE grant is allowed for each property, and you can only claim the grant once each year. When there are joint owners or multiple owners on title, any ONE owner on the title can claim the grant. If the property is registered to a company, no grant can be claimed. If your mortgage company is paying your taxes, you must still complete the Grant application if eligable and ensure it is received by the City by the tax due date.
An additional grant of up to $275 is available for seniors and persons with permanent physical disabilities. If you are 65 or will be turning 65 during the current year, complete section 2 of the Home Owner Grant application. Please ensure you enter the date of your birth. If you are a person with disabilities, or are the spouse or relative of a person with disabilities and that person lives with you, you may be eligible for the disability grant. The disability must be permanent and must require extensive physical assistance or costly modifications to the home to be eligible. Your doctor must complete the appropriate form to certify the disability. These forms are available at City Hall.
If the registered owner of the property is recently deceased, a relative may claim the grant, but only if they were living with the deceased at time of death, and are living in the home when they claim the grant.
New owners, whose names are not yet on the property tax notice, must produce a copy of their Certificate of Title or Freehold Transfer when claiming the Home Owner Grant. If you think you might be eligible for the additional grant under Section 2 of the Home Owner Grant application, please contact the tax department for further information.
For more information, contact the Property Tax Department at 250-545-1361.
