Vancouverites to pay 7,5% more on Property Taxes in 2024

December 13, 2023December 13, 2023british columbia, canada, City budget, City council, Cost of living, economy, Property tax hike, Property Taxes, taxes, vancouerites, vancouver, Vancouverites angry

As Vancouverites look ahead to the fiscal landscape of 2024, a notable development has taken center stage – a 7.5% increase in property taxes imposed by the Vancouver City Council. This recent decision has sparked discussions and concerns among residents about its impact on their finances and the broader implications for the city’s economic landscape.Vancouver is already the most expansive city to live in Canada, residents in Vancouver have the most expansive real estate market in Canada and the most expansive rental market. Combined with higher lending rates and now higher property taxes, Vancouverites are not happy at all.

The boost, which was $550,000, or 5% less than what staff had suggested, was approved by city council on Tuesday in order to balance a $2.15 billion operating budget, an increase of almost $193 million above the 2023 budget.

Although he acknowledged that affordability is still “a challenge in our community,” Mayor Ken Sim called the 2024 budget “transitional” and stated that future property tax hikes are expected to be less. In 2023, taxes were raised by an extraordinary 10.7%. Since taking office as mayor, Sim has stated time and time again that large tax hikes are unsustainable, and he supported the 10.7% hike.

Reasons Behind the Property Taxes Hike in Vancouver

Infrastructure Investments: One of the primary reasons cited by the City Council for the property tax increase is the need for substantial investments in infrastructure projects. These may include improvements to public transit, roads, and other essential services that contribute to the overall well-being and development of the city.

Fire Department: At the start of the year, 22 jobs will be filled by the fire department. Karen Fry, the chief of the fire department, called the accusations made by certain council members that the department’s budget was being slashed “much ado about nothing,” pointing out that the agency was receiving a rise of $13.5 million, or 7.7%, over 2023. Sim was successful in introducing an amendment to cut the fire department’s budget proposal by $1 million during the council chamber debate.

Increase for Majors office: Sim also increased his office budget by $180,000, reaching a total of $1.3 million. A position in the municipal clerks’ department “to provide administrative support to the mayor’s office” can be filled for at least $80,000. The increased “discretionary office expenses” in the mayor’s office will be covered by the $100,000. Sim justified the raise by stating that, in comparison to previous mayors, his office was “operating at a significantly increased capacity.” He mentioned a lot of meetings, the necessity of interacting with the public, higher authorities, and civic agencies.

Impact on Vancouverites: What Property Taxes Hike will effect

Homeowners: Property owners in Vancouver will bear the direct impact of the tax hike. Depending on the assessed value of their properties, homeowners may experience a noticeable increase in their property tax bills for the upcoming fiscal year. The city’s communications department provided statistics that the owner of a typical strata unit assessed at $804,000 will pay an additional $98 next year due to the 7.5% rise. For a typical single-family house valued at $2.1 million, it increases to $260, and for a typical commercial property valued at $1.2 million, it goes to $472.

This is not a lot, one might think, but combining increased lending rates and projected 6% grocery price increase for 2024, many families will be hurting for sure.

The city’s annual budget survey was completed earlier this year by 2,845 citizens and 502 company owners. It was available in Punjabi, English, traditional Chinese, and simplified Chinese. According to the poll, housing ranked as the top budget priority for businesses (62%) and people (70%) alike. Transportation, infrastructure, equality, and social challenges came next.

Renters: While property tax increases typically affect homeowners more directly, renters may also feel the ripple effects as landlords adjust rental rates to compensate for higher property tax obligations. A perfect storm brewing in from of our eyes? 7.5% increase in property taxes will surely see at least that or even more in rental increases during 2024. At rental prices all time high in Vancouver, many residents and business owners will have less for leisure and profit, indirectly the economy will suffer as the result.

The announcement of a 7.5% property tax increase has generated diverse reactions within the community. Some residents appreciate the city’s commitment to crucial initiatives, while others express concerns about the financial burden on homeowners, particularly amid economic uncertainties. According to survey, a little more than half (53%) of owners of strata properties approved of a property tax increase for 2024 that would have been between $64 to $103. Of the owners of single-detached homes, four out of ten (or 39%) supported an increase in property taxes to a range of $169 to $270. Yet, are those numbers accurate?

Canadian citizens are already hurting with cost of living in general, Vancouverites being more than half for tax increases? Hard to believe.

As Vancouver residents prepare for the 7.5% increase in property taxes in 2024, the broader implications on the city’s infrastructure, affordable housing initiatives, and homeless reduction efforts cannot be overlooked. The financial burden on property owners calls for a delicate balance between community development and the need for fiscal responsibility. As discussions unfold, community engagement and open communication channels will be essential in ensuring that Vancouverites are informed, heard, and actively involved in shaping the future of their city.