We value... Fairness Integrity Efficiency

We value... Fairness Integrity Efficiency

Prince George City Council Presentation Christopher Whyte Deputy Assessor John Castle Senior Appraiser May 2 nd, 2011

BC Assessment Our Mission is to: The mission of BC Assessment is to create uniform assessments which are relied upon to build sustainable communities throughout BC. 3

BC Assessment Today With the creation of BC Assessment the two critical elements of our system were established -uniformity and Independence. The system, as established in 1974, has been measured over time and is recognized as an independent, fair, uniform and equitable system upon which to base property taxes. wevalueb 4

BC Assessment Legislation The purpose of the Assessment Authority Act is to: Establish and maintain assessments that are uniform in the whole of the province. The Assessment Act requires that: The Authority produce annual assessment rolls with the assessments at actual value. 5

BC Assessment Responsibilities Identify property ownership Estimate actual value Classify property by use Inform public prepare and mail 1.9 million assessment notices provide public information on assessment system Inform taxing authorities provide all taxing authorities with assessment rolls 6

BC Assessment Checks & Balances External, public audit of assessments: Assessment t notices Assessment and sale by address Public enquiries Property Assessment Review Panel (PARP) Property Assessment Appeal Board (PAAB) Court system: Supreme Court of BC BC Court of Appeal Supreme Court of Canada 7

BC Assessment Actual Value For most properties actual value is market value as of a specific date. The valuation date for assessment purposes is July 1st of the year preceding publication of the roll. When valuing property, the appraiser considers the property s location, size, topography, shape, age, condition, and sales of comparable land and improvements in the area. 8

When is Actual Value not Market Value? The actual values of some properties are determined using statutory rates. These rates apply to the following types of property: Continuous structures such as: Fibre Optics Pipelines Railway track Electrical power distribution and transmission lines Telephone lines Rights-of-way (railway, pipeline, electrical etc.) Farm Land Forest Land In addition, the Assessment Act states that improvements (e.g. buildings and structures) of a major industrial plant must be valued using prescribed costing manuals. 9

BC Assessment Prescribed Property Classes In addition to valuation, the appraiser must classify all property. The Assessment tact prescribes the property classes: Class 1 - Residential Class 2 - Utilities Class 3 - Supportive Housing Class 4 - Major Industry Class 5 - Light Industry Class 6 - Business and Other Class 7 - Managed Forest Land Class 8 - Rec/Non-Profit Class 9 - Farm 10

BC Assessment Class 1 Residential Includes land or improvements, or both, used for residential purposes ~-... [].. "11"... Generally valued on the Direct Comparison approach General assessed residential values have increased from $5.15 billion to $5.46 billion This is an increase of approximately $309 million 11

BC Assessment 10 Year Residential Value Trend N et General Value (Billions $) 6 5.5 5 4.5 4 3.5 3 25 2.5 2 1.5 1 0.5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 12

BC Assessment Class 2 Utilities Railways, pipelines, telecommunications & power corporations Legislated valuation by Commissioner s i Rates Regulations General assessed values have decreased from $27.73 million to $22.25 million This is a decrease of approximately $5.48 million 13

BC Assessment Class 4 Major Industry Includes land and improvements which form part of a major industrial plant designed and built for one of the purposes set out in the Assessment Act Legislated valuation manuals and depreciation rates General assessed values have increased from $241.14 million to $242.91 million This is a increase of approximately $1.77 million 14

BC Assessment Class 5 Light Industry Used as a gathering pipeline Used or held for purposes of extracting, processing, manufacturing or transporting of products as well as for storage of products as ancillary to or in conjunction with those purposes Not included are properties specifically included in Class 2 or 4 Actual assessed values have increased from $75.32 million to $78.74 million dollars This is an increase of approximately $3.41 million 15

BC Assessment Class 6 Business & Other Typically referred to as Commercial properties Second largest class in Prince George covering many various types of properties such as: offices restaurants retail government buildings hotels, and a variety of others General assessed values have increased from $1.193 billion to $1.269 billion This is an increase of approximately $75 million 16

BC Assessment 10 Year Business & Other Value Trend 1400 Net General Value (Milli ons $) 1200 1000 800 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 17

BC Assessment Class 8 Recreational Property & Non Profit Organizations Limited to recreational land used solely as outdoor recreation for a specific list of uses. Does not include improvements on that land Also includes land and improvements used or set aside as a place of public worship or as a meeting hall for a non profit fraternal organization. General assessed values have increased from $4.4 million to $4.9 million This is a decrease of $516,200 18

BC Assessment Class 9 Farm Includes only land classified as farm Actual assessed values have increased from $898,199 to $907,884 This is an increase of $9,685 19

BC Assessment 2010 Revised Roll vs. 2011 Revised Roll Comparison by Property Class Area: 26 - Prince George Jurisdiction: 226 - Prince George GENERAL VALUES Change Change Property Class 201 O Revised 2011 Revised Amount % 01 Residential 5,154,740,466 5,464,515,000 309,774,534 6.01 % 02 Utilities 27,732,665 22,250,810-5,481,855-19.77% 03 Supportive Housing 2 6 4 200.00% 04 Major Industry 241,143,700 242,914,700 1,771,000 0.73% 05 Light Industry 75,324,500 78,742,900 3,418,400 4.54% 06 Business And Other 1 193,619,903 1,269,434,468 75,814,565 6.35% 08 Rec/Non Profit 4,408,100 4,924,300 516,200 11.71 % 09 Farm 898,199 907,884 9,685 1.08% - L S.353LGA/398VC 46,530,000 46,729,600 199,600 0.43% TOTALS 6,744,397,535 7,130,419,668 386,022,133 5.72% 20

BC Assessment Non Market Roll Change Non-Market Change by Property Class 2011 Net General Taxable Values Area 26 - Prince George Property Class Total 01 - Residential $46,774,816 F 02 - Utilities $7,535 03 - Supportive Housing $4 F 04 - Major Industry $9,200,000 F 05 - Light Industry $3,427,900 F 06 - Business And Other $3,004,832 F 08 - Rec/Non Profit $47,500 F 09 - Farm $11,713 1 Total All Classes $62,474,300 21

BC Assessment Assessment & Taxation The market creates the value, BC Assessment reports it. The assessments determine the distribution of the property values and taxes within each class The total amount of the tax burden is controlled by the taxing authorities, which set tax rates applicable to each of the property classes in order to raise the required revenues 22

BC Assessment Assessment & Taxation Assessed Value x Tax Rate = Taxes Payable able (BC Assessment) (Taxing Jurisdiction) (Tax Payer) 23

BC Assessment Property Class Distribution Number of Properties 1 Residential 91.50% 1 Residential 2 Utilities 3 Supportive Housing 4 Major Industry 5 Light Industry 6 Business & Other 8 Rec/Non Profit 9 Farm 2 Utilities 0.49% 9 Farm 0.25% 3 Supportive Housing 0.01% 8 Rec/Non Profit 1.06% 6 Business & Other 6.25% 5 Light Industry 0.33% 4 Major Mj Industry 0.14% 014% 24

BC Assessment Property Class Distribution 1 Residential 77.04% 9 Farm 0.01% 8 Rec/Non Profit 0.07% Net Assessed Value General Purposes Contribution by Property Class 2 Utilities 0.33% 3 Supportive Housing 0.00% 4 Major Industry 3.43% 1 Residential 2 Utilities 3 Supportive Housing 4 Major MajorIndustry 5 Light Industry 6 Business & Other 8 Rec/Non Profit 9 Farm 6 Business & Other 18.03% 5 Light Industry 1.08% 25

BC Assessment 2010 Percentage of Tax Load by Class Residential 54.20% Rec Non Profit 0.10% Light Industry 2.70% Business/Other 25.80% Utility 1.50% Major Industry 15.70% 26

Questions? 27