What is the speculation and vacancy tax?

If you live in BC you should have recently received this years’ speculation and vacancy tax (SVT) letter. This is an annual tax requiring residential property owners in the taxable regions to complete a declaration.

What is the tax for?

The thought behind the tax is to encourage owners with empty properties in urban areas to put them back into the housing market.

What do I need to do?

Once you receive your letter in the mail follow the steps, by logging on to gov.bc.ca/spectax. Each person on title to a property needs to fill out a seperate declaration.

Make sure you have the following:

Declaration code (on the letter)

Letter ID (on the letter)

The full mailing address

Social Insurance Number (for individuals)

Business number, incorporation number and date of incorporation (for corporations)

How do I find out more information?

99% of homeowners in British Columbia will be exempt from paying the tax. CLICK HERE for the BC Government FAQ page that contains a lot of great information on the speculation and vacancy tax. You can check out the taxable areas and what the exemptions are.

Is there a way to declare other than online?

Yes you also declare by phone by calling toll free 1-833-55-2323 from 8:00AM to 8:00PM 7 days a week and they also have a translation service available.

Call Garry Voigt, your Langley Realtor at 604 789 2140 if you need more information.

The Bank of Canada has once again raised the interest rates, on this occasion the rate went up another .25%. See below some great information from our mortgage partners Thrive on how this new rate raise could impact you and some helpful tips things to consider depending on the type of mortgage you have.

Call Garry Voigt, your Langley Realtor at 604 789 2140 if you need more information.

Serving the entire Fraser Valley and Greater Vancouver

PROPERTY TAX ASSESSMENT AND WHAT IT COULD MEAN FOR YOU

By now you will likely have received your Property Tax Assessment in the mail and seen a substantial increase in the assessed value. What does this mean for you? Below we try to answer a few questions often asked about the assessment. More information about how your assessment is calculated can be found on the
BC ASSESSMENT WEBSITE

How is the assessment calculated?
When determining assessed value, appraisers consider the following.

• The location of the home

• The view from the home

• The size of the home

• The age of the home

• Garages, carports, decks, pool, etc.

• Comparable sales prices and other real estate market information

(Most often this information collection occurs when properties are created/constructed, but can also occur at other times like when properties are renovated.)

What is the difference between assessed value and market value?
Assessed Value is used to determine how much your tax bill should be every year and appraised market value represents what your home could sell for in the current market. (This is determined by having an experienced professional take a very close look at the following and compare to your specific property: Recent sales in the area similar, current listings for sale and how long they have been on the market for, lot size, how many bedrooms, how many bathrooms, age of house, upgrades done, size of house, orientation etc. along with current market conditions and future market conditions).

When was my assessment calculated?
Although you receive your property assessment in January, the assessment is actually calculated on July 1st the previous year.

Does the assessment reflect the true market value of my home if I were to sell?
The simple answer to this question is no. Firstly the date of the assessment (July the previous year) has no bearing on the current value, as we have seen, the market can change drastically in 7 months. Secondly, there are so many variables for market value that are not considered in the BC assessment, that would be factored into an actual property evaluation if you were to list your home for sale.

Can I appeal the assessment amount?
Yes, you can APPEAL THE ASSESSMENT amount if you believe it to be incorrect. There is however a cut off date to do this. You must fill out a NOTICE OF COMPLAINT by January 31st 2023, Click the links above for more information.

Does the percentage of increase mean my property tax will increase the same amount?
Your property tax amount is based on the assessed value of your home, according to the BC Assessment website:
“My assessment has gone up 40%, I can’t afford for my taxes to go up 40%!”
“A common misconception is that a significant change in your assessed value will result in a proportionately significant change in your property taxes. The most important factor is not how much your assessed value has changed, but how your assessed value has changed relative to the average change for your property class in your municipality or taxing jurisdiction”.
CLICK HERE for more info on how your assessment affects your tax amount

Call Garry Voigt, your Langley Realtor at 604 789 2140 if you need more information.

Serving the entire Fraser Valley and Greater Vancouver