Insights · Blog
Langley property taxes and BC Assessment: how they work
By Ramon Gutierrez, PREC
By Ramon Gutierrez, PREC
Most buyers think the assessed value on a home is what it is worth and that a higher assessment means a higher tax bill. Neither is quite right. The assessment and the tax come from two different bodies, and the number that matters for your bill is not the one most people look at.
BC Assessment is a provincial Crown corporation. According to BC Assessment, its job is to determine each property's market value, its classification and any exemptions. It does not set your tax.
The tax is set by the taxing authorities: your municipality and the provincial and regional bodies that collect through it. They decide how much money they need, set a rate, and apply it to the assessed values.
In Langley, that municipality is either the City of Langley or the Township of Langley. They are separate governments with separate budgets and separate tax bills. A home in Langley City and a home in Willoughby or Walnut Grove, which are in the Township, are taxed by different councils. When you look at a listing, confirm which one the home is in.
The City of Langley explains that part of a residential bill goes to outside agencies, including the Province, TransLink, Metro Vancouver and BC Assessment. In the City's words, those authorities "determine the amounts payable, and the City collects on their behalf."
Every property in BC is valued as of the same date: July 1 of the year before the notice. BC Assessment describes the value as the most probable price in an open market between a willing buyer and a willing seller. Its appraisers study sales from before and after that date, along with the property's location, size, age and condition. The physical condition is taken as of October 31.
The notice is mailed at the end of December and usually arrives in early January.
This matters for a buyer in two ways. First, the assessed value is a mass appraisal done for tax purposes, months before you read it. It is not an appraisal of the home you are buying today, and it is not a price. Second, if a home was renovated or changed after October 31, the notice will not show it yet.
Here is the part most people miss. BC Assessment says the key factor for your taxes is not how much your value changed, but how it changed relative to the average change for your property class in your municipality.
If every home in the Township rises by a similar amount, the Township does not collect more because of it. It collects what its budget requires. Your share goes up if your value rose faster than the average, and down if it rose slower. Your notice shows the average change for your area, so you can compare.
Both the Township of Langley and the City of Langley mail tax statements in spring, and the payment deadline is early July. The Township describes the due date as the first business day after Canada Day. The Township is also clear that the owner is responsible for paying on time even if a statement never arrives. If you complete a purchase in spring, make sure the statement reaches you.
The home owner grant reduces the tax for eligible owners who live in the home. It is not automatic. The Township reminds owners that they must apply every year, through the Province at gov.bc.ca/homeownergrant. The eligibility rules and limits are set by the Province, so check them there.
The Province also runs a property tax deferment program for eligible homeowners. Ask the Province whether it applies to you.
BC Assessment's process starts with its own assessment search, where you can compare your value with sales of similar homes. Then you contact BC Assessment directly, and many concerns are settled there. If not, you can file a complaint with the Property Assessment Review Panel by January 31. When that date falls on a weekend, it moves to the next business day. After the panel, there is a further appeal to the Property Assessment Appeal Board.
When I prepare a buyer's offer, I pull the current assessment and the last tax bill, and I explain what each one is. The tax bill tells you the real carrying cost. The assessment tells you very little about the price.
I also make sure the statement of adjustments is right on completion, because the seller may have paid the year's taxes already, or not. Your lawyer or notary handles that, and I ask them to confirm it. Then, once you live in the home, put a reminder in your calendar for the home owner grant every year. It is the easiest money in this whole process to miss.
Thinking about buying or selling in the Fraser Valley? Message me and we will go through your options.
Every property and every household is different. Ask Ramon directly.