chapter 14 property tax

Question 1

Who is NOT responsible, by statute, for the payment of real property taxes?

1. The life tenant of the property
2. The registered owner of an estate in fee simple
3. The registered holder of an agreement for sale
4. The residential tenant

Answer 1

Correct Answer: 4

Options (1), (2), and (3) are all definitions of an “owner” under the provisions of the Assessment Act (section 1) and are therefore all responsible for payment of real property taxes. A residential tenant is not responsible for payment of real property taxes.

Question 2

Which of the following statements is TRUE regarding an appeal of a decision of the Property Assessment Review Panel?

1. An appeal to the British Columbia Supreme Court from the Property Assessment Appeal Board can only be heard on a point of law, not of fact.
2. An appeal can be made directly to the British Columbia Supreme Court from the Property Assessment Review Panel.
3. Only owners of assessed property can appeal a Property Assessment Review Panel decision.
4. Owners can appeal their property assessment as well as their property taxes.

Answer 2

Option (1) is true, and therefore is the correct answer. An appeal from the Property Assessment Appeal Board to the British Columbia Supreme Court can only be made on a point of law, not of fact. Option (2) is false because an appeal of a Property Assessment Review Panel decision must first be made to the Property Assessment Appeal Board before appealing to the British Columbia Supreme Court. Option (3) is false because any person, including a municipality, who is dissatisfied with the Panel’s decision, can appeal to the Property Assessment Appeal Board. Option (4) is false because property owners cannot appeal their property taxes. Owners can only appeal their property assessment.

Question 3

Which of the following statements about exemptions and reliefs from property tax is TRUE?

1. The home owner grant is not a type of tax relief from property taxes.
2. The use of a property for a purpose other than that which it is zoned for will never result in a relief from property tax.
3. The granting of all exemptions and reliefs from property tax are left to the discretion of the local authorities.
4. Where property is owned by the Crown but occupied by a non-tax-exempt organization, property taxes must be paid.

Answer 3

Correct Answer: 4

Option (4) is correct because when property is owned by the Crown but occupied by a non-tax-exempt organization, property taxes must be paid. Option (1) is incorrect because the home owner grant is a type of tax relief from property taxes for an owner of an eligible property, if they occupy it as a principal residence. Option (2) is incorrect because certain residential properties can be assessed according to the value based solely on their current residential use, even if the property has been zoned for a higher use. Option (3) is incorrect because some of the exemptions are mandatory, while others are left to the discretion of local authorities.

Question 4

Your friend Laurie is complaining about her property taxes. Laurie is a single 63-year old Canadian citizen, who is neither handicapped nor a war veteran. She has lived in British Columbia for more than the past year and is the owner-occupier of a house located in the City of Vancouver that is assessed at $430,000 and qualifies as an “eligible residence” as defined in the Home Owner Grant Act. There are no financial encumbrances on her house and her property tax liability for this year is $1,900. Given the above information, what property tax relief can Laurie expect?

1. Laurie can claim a home owner grant of $845 and is eligible to apply for tax deferment under the regular program.
2. Laurie can claim a home owner grant of $170 and is eligible to apply for tax deferment under the regular program.
3. Laurie can claim a home owner grant of $570, but is not eligible to apply for tax deferment under the regular program.
4. Laurie can claim a home owner grant of $570 and is eligible to apply for tax deferment under the regular program.

Answer 4

Correct Answer: 4

Laurie qualifies for a $570 home owner grant, but she does not qualify for the $845 grant (she is not 65 years old, handicapped, or a war veteran). However, since Laurie is over 55 years old, she is eligible to apply for tax deferment.

Question 5

Some real property may have an actual value for real property taxation purposes which is lower than market value because:

1. the property is owned by a non-profit organization.
2. a statute provides that it is assessed based on current use.
3. the owners qualify for tax deferment.
4. the property has been lived in continuously for 5 years.

Answer 5

Correct Answer: 2

Option (2) is correct because section 19(8) of the Assessment Act states that the actual value of certain residential properties may be based only on current use. If the resident-owner of a property has lived continuously in the residence for ten years, the resident-owner has made applications with the assessor each year, and the property has been zoned for a higher use or influenced by other non-residential uses of adjoining properties, the actual value for property taxation purposes may be based on current use, which may be lower than market value. Option (1) is incorrect because the nature of the owner has no bearing on the value of the land for taxation purposes although it may be relevant for tax exemptions. Option (3) is incorrect because when home owners qualify for tax deferments, they obtain a reduction in their net property taxes. However, this has no impact on actual value of the property.
Option (4) is incorrect because the fact that a property has been lived in continuously for 5 years does not change the value of real property for taxation purposes.

Question 6

Which one of the following properties would NOT qualify for a property tax exemption?

1. A local high school
2. A privately owned ski-lift facility operated on Crown land
3. Churches and other public places of worship
4. The Surrey Municipal Hall

Answer 6

Correct Answer: 2

Crown land is generally tax exempt. However, a private company is not a tax exempt organization, and if it is operating on Crown land it will be required to pay real property taxes. Thus, Option (2) will not qualify for a property tax exemption because it is a privately owned facility.

Question 7

Which of the following statements is FALSE?

1. Valuation of real property for property taxation purposes is done annually.
2. In the regular deferral program, a minimum of 25% equity in your home is required to qualify, whereas in the families with children program, only 15% equity is required.
3. For property tax purposes, an important consideration when assessing the value of improvements such as pipelines and utility cables is the selling price of those improvements in the open marketplace.
4. For property taxation purposes, a given tax rate applies with respect to each $1,000 of net taxable value.

Answer 7

Correct Answer: 3

Option (3) is false, and therefore is the correct answer. Statutes provide for special assessment of utility and industrial land improvements because of the absence of market evidence on which to determine actual value. Option (1) is true because valuation of real property for property taxation purposes is done annually. Option (2) is true because in the regular deferral program, a minimum of 25% equity in your home is required to qualify, whereas in the families with children program, only 15% equity is required. Option (4) is true because for property taxation purposes, a given tax rate is applied to every $1000 of assessed value of the property, less any exemptions that apply. This is called the mill rate.