Golden Town Council gave three readings to the tax rate bylaw at their regular meeting on April 23, and voted a scenario that endeavours to evenly distribute the two per cent increase between the various classes.
(The two per cent increase was brought in to build up an Asset Renewal Reserve).
Chief Financial Officer Lisa Vass put together four scenarios, each distributing the tax increase differently.
“So ultimately the goal was to distribute the two per cent evenly across Class 1 and Class 6. My understanding is that Scenario 4 does that,” said Mayor Christina Benty.
Class 1 (residential) and Class 6 (business) provide the bulk of the property taxes for the municipality.
Residential properties in British Columbia have seen an average decrease of six per cent in 2013.
So if a home in Golden was assessed at $300,000 in 2012, it would now be assessed at $282,136.
Scenario 4 (which was unanimously voted on by council) adjusted the mill rate for Class 1 to 5.276, bringing the property tax for this house from $1,465 to $1,489, an approximate increase of 1.6 per cent from 2012.
Businesses in B.C. on the other hand have seen an increase in assessed value in 2013, by an average of two per cent.
Given that it is standard principle of municipal taxation for Class 6 to pay a higher rate of taxes than Class 1, Scenario 4 applies a tax rate of 12.926 to businesses.
So if a business was assessed at $500,000 in 2012 and paid $6,498 in municipal taxes, than in 2013 it would be assessed at $509,513 and will pay $6,586 in municipal taxes. This is an approximate increase of 1.4 per cent.
The tax rate bylaw passed its first three readings on April 23, and must be adopted by May 15.