The District of West Vancouver is heading to court to fight a recent decision that slashed the assessed value of BC Ferries’ Horseshoe Bay ferry terminal to just $20 from more than $47 million.
The decision, made after BC Ferries argued the property was worthless because it’s restricted to use as a ferry terminal, could set a precedent for other assessing terminals such as Tsawwassen, Swartz Bay or Departure Bay.
The decision essentially strips the municipality of about $250,000 of anticipated property taxes in 2013, meaning a possible two-per-cent increase in property taxes for homeowners.
“It’s a significant loss of revenue,” said Smith. The board’s decision is retroactive, meaning the district will be required to repay approximately $750,000 in property taxes it collected on the parcels going back to 2010.
According to BC Assessment, $6.2 billion in property taxes is collected across the entire province of British Columbia based on these valuations.
Right now in Richmond, virtually every single property is selling below assessed value. Some real estate agents are advising sellers to list a minimum of 10-15% below assessed value if they expect anyone to even look at their house. We have profiled a number of homes that have sold for between 25%-34% below assessed value.
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