A Powell River couple concerned with increases in property taxes has suggested the tax hikes will have a negative effect on the city.
Correspondence from Jim Blom and Sherry Burton was reviewed at the Tuesday, July 16, committee of the whole meeting. The couple wrote in an email to city council that they were facing a $717 increase in taxes in 2019 over 2018, which, they stated, was an increase of 15.825 per cent. They stated that since purchasing a home in Powell River in 2013, property taxes have increased 29.26 per cent.
The couple went on to say the city needs to understand that it cannot expect homeowners to afford these kind of annual increases as they are unsustainable.
The email stated City of Powell River needs to take accountability for its spending and projects. As well, it needs to become more business friendly, encouraging/enabling new businesses into the area, thereby sharing the tax load with its residents, according to the email.
“Otherwise, these exorbitant property taxes will surely be the death knell of Powell River,” the couple stated.
In response, chief financial officer Adam Langenmaier encouraged the couple to use the city’s property tax estimator, which would help outline where the changes occurred in property taxes. Langenmaier said the city collects property taxes on behalf of qathet Regional District, the regional hospital district, School District 47, the municipal finance authority and BC Assessment. He stated that the city has no control as to how much these other governments are collecting.
The couple responded, stating they had looked at the tax estimator. They stated that the biggest problem is the city’s reliance on property assessments, which is a “flawed system, based on algorithms and not reality.”
They stated that the assessed value of their house is not reflective of its actual market value. They plan on disputing the assessment next year.
The couple also took exception to the increase in stipend mayor and council took this year to compensate for changes in tax law that saw the one-third tax-free allowance taken away from local government officials.
In discussion regarding the emails, councillor Rob Southcott said the whole works of those raises go to taxes.
“It’s not like we really voted ourselves a raise at all,” said Southcott. “It portrays an image of us that I think is completely inconsistent.”
Southcott said council has the intention of real fiscal responsibility.
The committee of the whole directed the correspondence to its finance committee, which will be meeting on Thursday, July 25.
