Alleged drug-dealing behind Surrey home not sufficient to reduce its assessed value, board rules

Surrey is seen in this undated file image from CTV's Chopper 9 helicopter.

A Surrey homeowner who argued that illegal activity in the cul-de-sac behind his home should lead to a reduction in the property's assessed value has had his appeal rejected.

Reetinderpal S. Bhangu appealed the 2021 assessment of the home on 68A Avenue in Surrey to B.C.'s Property Assessment Appeal Board, asking for a $40,000 reduction to the home's assessed $1.35 million value.

In a decision posted online this week, board chair Steven Guthrie rejected Bhangu's arguments, finding that there was no evidence that the market discounts the value of properties in the area because of the alleged illegal activities. 

Bhangu told the appeal board that "partying and illegal activity occurs in the cul-de-sac" from 6 p.m. to midnight every Thursday through Sunday, according to Guthrie's decision.

As evidence of this, he provided photos of the cul-de-sac taken both during those hours and outside of them.

Guthrie summarized the contents of the photos in his decision, and noted that they didn't show clear evidence of the illegal activity Bhangu's appeal alleged.

"While the pictures show increased parking activity in the evening, I find they do not demonstrate the appellant’s specific claims, including: 'there is always some illegal activity going on in the cul-de-sac (cars coming and exchanging drugs). Police are always on patrol here,'" the board chair wrote.

Bhangu based his claim for a $40,000 reduction on the assessment of another property on nearby 64 Avenue. That home, which is located on a major road, experiences traffic noise 24 hours a day, and receives a 10-per-cent reduction in its assessed value as a result.

Since the property under appeal allegedly experiences a nuisance six hours a day, Bhangu argued that his assessment should be reduced by one-quarter of the discount applied to the 64 Avenue property.

Guthrie rejected this reasoning, noting that there was no evidence presented that the 10-per-cent reduction in value for the 64 Avenue property accurately reflected market trends.

"In past decisions, the board decided that it is not appropriate to reduce an assessment for a negative factor when there is no evidence to demonstrate that either the market discounts the property or evidence to quantify how much this discount may be," Guthrie wrote. "Similarly, the appellant has not provided evidence to substantiate the market effect of the above factors for the subject. Therefore, I decline to reduce the assessment based on these issues."

Ultimately, looking at the recent sales of comparable properties in the neighbourhood, the board decided that the market value for Bhangu's home would be just over $1.5 million.

However, because the assessor for the region did not request an increase in the property's assessed value, the board confirmed the $1.35 million assessment.