City drops residential property rates; taxes still likely to increase

Homeowners will pay a lesser property tax rate this year, but they may see their payments go up.

In a special meeting Wednesday, City Council agreed to drop the residential rate to $8.91 per $1,000 of the home’s value (the rate was $9.10/$1,000 in 2016). However, the amount of tax you pay is based on two components: the first is the city’s established rate. The second is your property value, which is calculated by BC Assessment. The third-party property evaluators figured the average value of a Prince George home rose 6% in the past year. The product of these two numbers is your annual property tax owed.

The formula is (BC Assessment home value/1,000) x (2017 Prince George property rate). We’ll use a home valued at $300,000 as an example.

The 2017 property tax owed for the home is ($300,000/$1,000 = 300) x ($8.90752) = $2672.26

In 2016, that same home would’ve been valued at $282,000 and paid a city-set rate of $9.10043, ($282,000/$1,000 = 282) x ($9.10043) = $2566.32

So, even though the city-set rate has dropped, you’re likely to pay more.

Where the city lowered residential property tax rates, it increased rates for major and light industrial spots, businesses, and utilities. The total per property tax class are as follows:

Those in certain areas of the city will pay more fees. Downtown properties with off-street parking will pay anywhere between $1.77 (residential) to $10.74 (major industrial) per $1,000 of their property value. Some downtown businesses are also subject to a business improvement rate, ranging between $0.61 – $1.18/$1,000 property value.

Businesses in the Gateway will pay $6.82 per $1,000 of property value for communal improvement fee.