Homes with less than 20% assessment increase will pay same or less taxes as 2004
John French - Chief Staff Reporter
For the second year in a row, many residents will pay about the same amount of property tax as they did last year - as long as their homes didn't increase in value too much.
Squamish Council settled Tuesday (March 8) on a municipal budget for 2005 with what council calls a zero per cent tax increase budget, meaning the District of Squamish will take in the same total amount of taxes from residential properties in 2005 as it did in 2004 and reduce the mill rate - the amount of property taxes owed per $1,000 of assessed property value.
That means anyone who saw their home's assessed value increase in 2004 by 19,9 per cent - the average increase in residential property value in Squamish - will pay approximately the same property taxes they paid last year.
Homes with assessment increases greater than that will pay more tax than last year and those with assessed value increases of less will pay less property tax than last year.
Working from the average assessed residential property in Squamish - a figure which includes single-family homes, townhouses and condominiums - a home with the average assessed value of $313,346 will pay property taxes amounting to $1,082.33, the same amount that the average property would have paid last year on a property assessed at $261,297.
The change in value of the average single family property jumped by 19.9 per cent from 2004 to 2005 - a smaller jump than 2003 to 2004, when the average residential assessment climbed 36.4 per cent from $191,512 to $261,297.
The budget will see the mill rate on residential property drop 15.4 per cent from 2004.
On top of the property taxes to be paid, local residents will also pay flat parcel taxes of $40 for the sewer services and $33 for water. The water and sewer parcel taxes remain the same as last year. These taxes are on top of the garbage, water and sewer bills residents have to pay each year.
Residents pay taxes for the library, schools, health facilities and regional district operations as well.
The amount being collected to pay for the construction of the library falls every year as the amount owing on the building drops.
Business will continue to pay a larger proportion of the total property tax collected by the District of Squamish (DOS). For every dollar of residential tax collected business will contribute $2.74. Owners of land zoned for business purposes in Squamish will collectively pay $2.5 million in property tax while owners of residential properties will be taxed to the tune of $5.7 million. Major industry will pay just over $2 million in 2005.
Overall, the District will collect $192,550 in new residential property taxes thanks to new property as well as $470,826 from new business inventory and $277,117 from new utility property. On the other side of the equation, the District will receive $332,129 less in major industrial taxes, due in large part to the closure and decommissioning of International Forest Products' Squamish Lumber Division sawmill.
"Over the next three or four weeks Mr. Hughes will verify the budget," said Mayor Ian Sutherland after council's final budget decisions were made.
Coun. Jeff Dawson emphasized this council's decision to pass two budgets without imposing significant tax increases on the community as a whole.
"Pee on us as you like but no other council in 40 years has done it," Dawson said. "And it was done by a bunch of rookies."Dawson also pointed out that staff put the budget together very quickly. "Staff now have time to do the other things they need to do."
The five council members in attendance at the meeting (Corinne Lonsdale and Raj Kahlon were absent) discussed trying to have council's work on the budget completed as early mid-February in 2006.
Coun. Dave Fenn said completing the budget process is important to him because it means major projects can get started earlier in the year.
Sutherland pointed out one disadvantage of completing budgets too early.
"Much sooner than Feb. 8 and you are still finalizing the year before and dealing with a lack of key information," Sutherland said.
Council may have set its spending priorities and completed the difficult work but the budget process will continue for another nine weeks.
The proposed budget will be presented and explained at a public information meeting. The meeting allows residents to see the numbers and offer feedback.
Council settled on a public meeting date of Tuesday, April 12.
Sutherland said the information to be presented at the meeting will include a list of sample homes and businesses and what their taxes will be this year.
The finance department traditionally prepares a list with the tax amounts the members of council will expect to pay along with some examples of what a few businesses, industrial operators and utilities will pay.
Fenn recommended the DOS take steps to explain the budget and how municipal taxes work. The members of council supported his idea and decided the explanation will be advertised in The Chief and also posted on the DOS website.
