Most tax rates in the Village of Burns Lake will increase slightly this year, but the move isn’t expected to generate additional revenue for the municipality.
The Village of Burns Lake Tax Rate Bylaw #956, 2015, adopted by council May 13, authorizes a one-per-cent increase in the general municipal tax rates applying to most classifications of property in the village. Only the general municipal tax rate for business properties will be remain unchanged.
Homeowners will see the general municipal residential tax rate increase to $7.3697 per $1,000 of taxable property value, up slightly from last year’s figure of $7.2967. The general tax rate for utility properties will rise to $36.6503 from last year’s rate of $36.2874, while the tax rates for major and light industry will be $46.2615 in 2015.
This year’s general tax rate for recreational properties is identical to the residential rate.
The rise in tax rates doesn’t necessarily mean property owners will pay more this year, as a decline in property values may negate the increase. The BC Assessment Authority annually sets the assessed value of every property in the municipality, and as a result, the owners of lands and improvements valued lower by BC Assessment Authority this year could end up with slightly lower general municipal tax bills. By the same token, the one-per-cent tax increase will be magnified for the owners of properties whose assessed values rose in 2015.
The village also collects taxes for other levels of government. Increases in these rates, which are beyond council’s control, could also impact property owners.
Despite the one-per-cent increase in most municipal tax rates, council isn’t expecting total tax revenues will increase in 2015. The village’s five-year capital plan estimates that real property tax revenues will total $1,273,359 this year, down approximately $120,000 from last year’s total (as shown in the 2014 audited financial statements) of $1,395,097.
The municipality continues to rely heavily on residential and business properties for its real property tax revenue. In 2015, residential property taxes will generate 54 per cent ($685,968) of the village’s total tax revenue, while business properties will generate another 39 per cent ($491,566).
Unlike neighbouring municipalities, Burns Lake does not have an industrial tax base; only four per cent of the village’s total tax revenues, or $52,044, come from lands used for industrial purposes. The Burns Lake Band has taxation authority on the only heavy industrial property within municipal boundaries, the Indian reserve lands occupied by Babine Forest Products Ltd.
Total municipal property tax revenue would be higher if not for permissive property tax exemptions. Council exempted 18 properties from paying the general portion of municipal property taxes in 2015, at a cost of $114,256.
Properties exempt from paying general municipal taxes include those occupied by the Pines, the hospital, several churches, and a number of community service organizations.
Property owners can expect to receive their 2015 tax notices within a few weeks.