With Covid 19 wiping out people’s earnings, savings, pensions, portfolios and now even real estate values, we haven’t heard anything from the Municipal Councils that they are cancelling this year’s property tax increase! And this after a full-on assault by all levels of government to kill the real estate market and destroy billions of dollars of people’s net worth. (so stupid!)
Why haven’t we heard from them? They aren’t providing the same level of dis-service and in fact the City has pretty much closed down when it comes to going to City Hall.
I have to ask the question about our property taxes… Where’s all the money going?
Municipalities property taxes have been going up every year and with increasing gusto in many cases. (a crazy 7% increase in Vancouver City’s case) However, from my perspective, taxes should be going down due to the economies of scale that should be available to efficiently run Cities due to the increased number of taxable residential units.
But, the spending seems to go unchallenged and I’m not sure why? It’s time for some real investigation and the media should be doing it. Why are we allowing Cities to increase our taxes two or three times the rate of inflation year after year, without questioning? (compounding)
If you just look at last year’s percentage increase in a year or two, you won’t see the full picture. You might like to do the math to discover the truth in your town.
Here’s the math for North Vancouver, City. From 2011 to 2020 (ten years) the City’s “Class 1” tax revenue has increased by a whopping 67.14%. Class 1 is residential homes and condos. Of course, the Cities have many other forms of revenue and those have also skyrocketed in many cases. I haven’t gone to the City and asked for the historical revenue numbers, but this would be another way for an accurate number. I wanted to focus only Class 1 residential tax increases.
Here are the tax rate increases for each of the last ten years in the City of North Vancouver.
- 2011 – 3.16%
- 2012 – 2.00%
- 2013 – 3.00%
- 2014 – 1.00%
- 2015 – 3.90%
- 2016 – 3.90%
- 2017 – 3.40%
- 2018 – 2.50%
- 2019 – 4.25%
- 2020 – 4.50% (unless cancelled?? – I doubt it)
Now if you simply add these numbers together you an increase in taxes of 31.61%. However, you must remember that your tax increases are compounded. Every increase is a percentage of the previously increased number. Also, you must also take into account the increase in the number of taxable residences in the City. If you look back at the 2010 tax rolls there were 15,240 units in N. Van City. For 2020, there are 18,670 taxable units, an increase of 22.5%.
Just that increase in the number of people the City is collecting tax from should give them the opportunity to reduce the tax burden on people. But hell no, reduce taxes? Why when they can get away with spending more and increasing the size the bureaucracy?
When you take into account the increase in the number of taxable units and the increase in tax rates, North Vancouver City is collecting 67.14% more revenue that it was just a decade ago in residential taxes.
If you go the bank of Canada inflation calculator, $1,000 back in 2011 equates to $1,163.42 today. (an 11.63% increase) But if you were paying $1,000 in property taxes back in 2011, you’re now paying $1,364.39 (a 36.44% increase)! Why do our Cities get to continually gouge us? And remember, they collect money from us AFTER we’ve paid tax on it to the federal and Provincial Gov.
It’s time to fight back against increasing taxes at all levels, but in particular property taxes are out of control.
There are a number of reasons for this, but in an effort to keep my thoughts as short as possible. I’ll just say that your City Council’s “pet projects” cost A LOT of money! Unneeded Pedestrian Bulges, traffic calming, narrowing of roadways, are just the start, but most “Traffic Departments” in the Cities are a big part of the problem. How about they JUST repair what’s already there?? How’s that for a concept? There are so many areas in need of repair throughout the City, but they continue to get left in favour of Counselor’s pet projects.
Cities must not increase taxes this year and they should work toward reducing them! As for where your money is being spent as I write this? The work I see going on is the wasting of money by the Traffic Department, which I mentioned. The City crews are out in full force!
It’s time this all stops!
Do the calculations on your City and let me know what you come up with.
Bank of Canada Inflation Calculator: https://www.bankofcanada.ca/rates/related/inflation-calculator/
