The average increase of total tax bills are estimated to be approximately 2.48% in Creston this year. The full break down of the 2019 budget and 5 year financial plan may be found here.
The Director of Finance & Corporate Services Steffan Klassen illustrated on April 16’s committee of the whole meeting how a sharp municipal tax rate change would be likely be the cause of assessed property value fluctuating rather than the tax increase.
“It’s very reliant on what BC Assesement does as well as what the Town asks for.” Klassen explained. “The ratios, how it’s shared among users is set by BC Assessment when they set your house value. When your house value goes up greater than the average [in Creston] you’ll pay a greater than average increase. Also, if it goes down, your taxes go down.”
For example, a house valued at $579,000Â in 2017 would have had its rate drop 12.6% percent in 2018 if its value decreased to $523,000 even though the tax rate rose that year. The same house’s tax assessment would rise 12.94%Â based off the most its 2019 assessed value of $583,000.
An average priced home in Creston is close $229,700 according to Klassen’s budget draft. If the same house did not increase in value in 2019 even though BC Assessment says property values rose in Creston by 2%, then that household’s tax assessment will rise by only 1.32%. From $1,276 in 2018 to $1,293 in 2019.
The town of Creston provided a simple info-graphic as well to explain the increase.
