Kelowna mansions with pools and views are eligible for $200 more off their property tax than Burnaby bungalows, according to a Burnaby city councillor who says it’s time the province made the tax system fairer.
Coun. Colleen Jordan says she was surprised to discover a tax break that was supposed to help “northern and rural” British Columbians being applied to residents of southern B.C. cities with properties worth as much as $1.4 million.
“It’s not equal, it’s not fair,” Jordan told CTV News, adding that with property prices skyrocketing in the Lower Mainland, it’s locals who need the tax break.
“We need a total review of the property tax policy in this province because it doesn’t fit today’s needs."
Right now, the province gives $200 more in homeowner grants to those in “northern and rural” areas. The idea is that those rural British Columbians would pay less in property tax because they’re paying more carbon tax on the gas they need to drive.
But when the tax break was implemented in 2010, it applied to everyone outside Greater Vancouver, Greater Victoria and the Fraser Valley. That means that even cities like Kelowna, Kamloops and Nanaimo will have homes that benefit from the $83-million a year program.
And parts of the Fraser Valley that don’t have easy access to transit don’t benefit either.
The basic grant is $570 and the seniors grant is $845; outside the Lower Mainland, the basic grant is $770 and the seniors grant is $1,045.
The maximum value a property is eligible for the grant is higher outside the Lower Mainland as well: $1.409 million, compared to $1.369 million.
But because of sky-high home assessments in the Lower Mainland, many Burnaby properties have risen above that threshold – only about 79 per cent of homes in Burnaby qualify, a report from the City of Burnaby found.
Meanwhile many luxurious Kelowna homes fall under that maximum threshold. Some 91 per cent of homes across the province qualify for the grant, the report found.
One property Jordan used as an example of an eligible home is on Pinot Noir Drive in Kelowna, described in listings as a “Tuscan-inspired masterpiece” with a hot tub, pool, gas fire pit, and “magnificent lake views.”
The home is assessed at $1.38 million, and may have been under the grant threshold since at least 2012, Jordan said, adding up to a windfall of some $800 in that time.
Now as Kelowna prices are rising the home will likely be outside the threshold next year – but the owner may expect an even bigger windfall. It’s on the market for $1.7 million.
B.C.’s finance minister says the province constantly monitors the grant rates across the province.
“There’s no question that in more rural parts of the province people are obliged to travel farther. They don’t have the same access to transit or SkyTrain,” Mike de Jong said.
“Is it worth reviewing the amounts? Of course it is. Do I think there is still a rational for distinguishing some of the costs that people outside the Lower Mainland face? Yes, I do."
CTV News attempted to reach the owner of the Pinot Noir Drive home by visiting the property and by reaching out through the realtor, but no one returned calls.
