BC Assessment
What is BC Assessment?
BC Assessment is a provincial Crown corporation that determines the market value of all real properties in British Columbia. After determining the correct classification, actual value and exemption status of every property, BC Assessment provides taxing authorities with an Assessment Roll, which lists all properties, names of the owners and the taxable values of the land and any improvements (buildings).
What is market value?
Market value for assessment purposes is the price an unencumbered property would sell for on July 1 of the preceding year if a reasonable amount of time is allowed to find a purchaser.
How is market value determined?
When establishing the market value for a particular property, BC Assessment considers each property's unique characteristics. These are the same characteristics that a home purchaser would consider, including size, layout, shape, age, finish, quality, number of carports, garages, sundecks and condition of buildings. Services in the area, location, views and neighbourhood may also influence a property's market value.
Appraisers may enter a home to conduct property inspections, ensuring that the description and condition of a property is accurately reflected on the Property Assessment Notice. BC Assessment appraisers analyze all real estate sales in their area and develop common units of comparison and corresponding values. They review similarities and differences between properties to arrive at a uniform assessed value for a particular property.
Why do assessments increase and decrease?
Changes in assessment reflect changes in market value. Market value can change for the following reasons:
- a property may have improved (e.g., a renovation or addition);
- demand for property in the neighbourhood may have caused prices and market values to rise or fall;
- a change in zoning may have affected the value of the land.
How can similar properties have different values?
Similar properties may have different values because:
- the properties may be located in different neighbourhoods;
- the zoning for each property may be different; or
- an adjoining use may affect one property and not another (e.g., one property is located next to an industrial plant).
Principles
The Assessment Act requires that most land and improvements be assessed at market value. Exceptions include utility properties, such as railways, pipelines, power lines and farm land. These properties are valued at regulated rates.