As we continue to explain the Lake Country budget, I’m going to provide more numbers and explain where the money is going. Before we do that, let’s briefly talk about various taxes and what you see on your annual property tax notice.
TAXES AND FEES:
There is a difference between taxes and fees and there are also different kinds of taxes. I’m not going to cover federal taxes but will focus on municipal taxes and provincial taxes you pay with the annual property tax notice.
When you receive a property tax notice from the municipality the municipal portion that comes from property taxation (based on the assessed value of your home) is about 56%.
As I look at my property tax notice from 2019 (2020 will not be finalized and sent out until May 2020), my total is $3,860.63. The municipal part of this amount is $1,949.12 for all municipal services (including fire protection, which shows on a separate line on the notice for accounting purposes). I pay $984.48 to the province (school district and BC Assessment Authority), $361.13 to the Central Okanagan Regional District (including the Regional Hospital fund), and $90.90 towards the Okanagan Regional Library.
I also pay two parcel taxes and an environmental levy. Parcel taxes are local government taxes levied based on the unit, frontage, or area of a property. Parcel taxes are distinct and separate from the property value taxes, which are levied on the assessed value of a property. Parcel taxes are imposed based on a single amount for each parcel (unit). My property assessment notice shows that I pay a Sewer Parcel Tax of $275 and a Road Renewal and Improvement Parcel Tax of $125 as well as an Environmental Levy of $75. These three numbers are the same amounts for all taxpayers, regardless of the property value. All parcels in Lake Country pay for the Road Renewal Parcel Tax, but only some pay the Sewer Parcel Tax because not everybody is connected to the Lake Country Sewage System. This may not be simple, but it makes sense if you compare your property tax notice with mine.
WHAT AM I GETTING FROM THE PROPOSED TAX INCREASE?
Council is considering a 6.03% property tax increase for 2020. 2.5% is to cover additional inflationary costs and for added staff who are required to support levels of service, which has increased due to population growth and new infrastructure. 1.82% is for additional RCMP officers that Lake Country needs in the community. Council is also considering a 1.25% increase to implement the projects included in the recently approved Parks and Recreation Master Plan and finally a 0.46% increase to support local groups and societies that provide important services in the community that cannot be provided directed by the municipality.
Let’s add all up: 2.5% + 1.82% + 1.25% + 0.46% = 6.03%
WHAT IS THIS IN HARD DOLLARS?
In Part 3 of the series we said that a 1% tax increase equates to a $2.75 for every $100,000 of residential assessed value. The 6.03% tax increase is equivalent to $127.00 for a home with an assessment of $695,000 which is the average house value in Lake Country. Property tax break down for the average home in Lake Country:
Cost of Living & Staff increase – $52.50
Additional RCMP officers – $38.22
Parks & Recreation Master Plan Implementation – $26.25
Community Service Providers -$10.03
TOTAL – $127.00
In other words – the proposed tax increase to an average home would be the equivalent of $2.44 per week.
IS THERE MORE?
Council needs to decide on whether they wish to stick with this budget proposal, add an increase for Road Renewal & Improvements – which is needed in our community, or reduce the overall budget proposal. For everyone living in Lake Country there will be an impact depending on the decision Council makes. Overall the proposed 2020 budget is a reasonable option for everyone living and enjoying our beautiful community.
More to come!
adf
ASD Innovation 
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