City sets ‘Tax Rates Bylaw’ for all taxes levied to Nelson taxpayers
The total tax picture for Nelsonites has been fully developed.
City council passed third reading Monday on the tax rates bylaw for2018, the roadmap for collecting the funds to operate the various city departments and services.
The total tax bill for Nelsonites will be over $4,000 per householdthis year — based on an assessment of the average Nelson home at $392,861 — with the city’s planned property tax, water and sewer increases.
Of the total tax amount, around 40 per cent will go to the City of Nelson, over $1,000 to water and sewer taxes, nearly one third to school taxes, almost 20 per cent to the regional district, three per cent to the regional hospital board and one per cent to the Municipal Finance Authority and the B.C. Assessment Authority.
For the average residential home in Nelson, the municipal propertytaxes for 2018 are estimated to be $1,690.
City chief financialofficer Colin McClure said in his report to council the 2016-2020 Five-Year Financial Plan incorporates an average tax increase of 2.5 per cent for all property classes.
Each year city council approves a five-year financial plan thatestablishes the annual budget and priorities. But a tax rates bylaw is also required in order to map out the collection of the appropriate funds to finance these activities.
The Tax Rates Bylaw supports all of the initiatives in the city’s FiveYear Financial Plan and, therefore, \ supports all of the city’s corporate objectives, said McClure.
The 2018 tax rates are assessed at dollars of tax per $1,000 oftaxable assessed value, meaning the figure BC Assessment has placed on the home or business.
There are nine property classes which the city recognizes tax ratesfor, but the main ones include residential and business. In 2018, with the adjustments made for new construction, 73 per cent of property tax will be contributed by residential taxpayers and 25 per cent from the commercial sector.
Both residential and business classes have to pay eight differenttaxes, with the Tax Rates Bylaw also setting tax rates for general municipal (city), city debt, the Regional District of Central Kootenay (RDCK) and West Kootenay-Boundary Hospital (WKBH) levies.
Specified areas (FortisBC and Cominco) and the library service are also levied.
Other levies collected through the municipal tax notice include thosefor Central Kootenay Regional Hospital (CKRH), the school authority, BC Assessment, and the Municipal Finance Authority.
For residential taxpayers, they will be coughing up $4.1990 per $1,000of taxable assessed home value for general municipal (city), $.0997 to the city debt, $.2763 to WKBH, $1.3775 to the RDCK, $4.2803 to specified area Fortis (RDCK), $.5799 to specified area Cominco (RDCK) and $.0859 to the library service.
The other city property classes include utility, supportive housing,light industrial, managed forest, recreational/non profit and farm.
By the books
Section 197 of the Community Charter requires that council adopt, bybylaw, tax rates for the current year by May 15. This year City of Nelson taxes are due on July 3.
The City of Nelson charges a 10 per cent penalty on taxes paid afterthis date. The tax rates that are ready for adoption are based on the 2016-2020 Five-Year Financial Plan that was adopted on April 4, which
incorporated an average municipal property taxation increase of 2.5 per cent.
Council takes a “fixed share approach” to tax rates between classes,McClure explained, where the share of the total tax levy collected from each property class remains consistent over time, subject to adjustments arising from non market (new construction) change in the assessment role, or council decides to adjust the share for each class.
Over the last 13 years the average single-family dwelling residentialassessment in Nelson has risen from $167,915 in 2005 to $392,861 in 2018, according to BC Assessment. Assessments peaked in 2018.
In five years — from 2004 to 2008 — assessments more than doubled inthe city, hitting $312,112 in 2008 from $142,004 in 2004. Business assessments also doubled in 13 years, from $199,452 in 2005 to $440,551 in 2018.
The financial plan for 2018 includes overall tax revenue of $8,940,633for general municipal purposes with an estimated additional $450,000 in general tax revenue being provided by boundary expansion
The Tax Rates Bylaw provides the city with the authority to assess andcollect the required tax funding.