Understanding Your Property Taxes
- Why are Property Taxes Collected?
- How are Property Taxes Calculated?
- What Else is Billed on my Tax Notice?
Property taxes are one of the ways the City collects revenue to pay for City services. The amount you pay is based on the funds the City needs to provide City services each year and your property assessment.
These City services include:
- Police and fire protection services
- Road maintenance and transit services
- Parks and recreation facilities
- Current and future infrastructure replacement
To learn more about how your tax dollars pay for City services, see our 2019 What's New @ the City Newsletter.
More detailed information about the City budget is available online or contact the Finance Department.
Taxes for Other Taxing Authorities
Five other taxing authorities get a portion of their annual revenue from property taxes:
- Province of BC, School District No. 34
- Fraser Valley Regional Hospital District
- Fraser Valley Regional District
- BC Assessment
- Municipal Finance Authority
To reduce the administrative costs of billing and collecting these other property taxes, the City includes these levies on the tax notice we send to property owners each year.
City Council has no control over the levies from other taxing authorities. We also do not control the way the levies are distributed to properties in the City.
Property tax rates are the rates used to determine how much property tax you pay, based on the assessed value of your property. The tax rate applies to each $1,000 of net assessed value.
The property tax rate is different depending on the class of property (e.g. residential, business, farm).
Formula - Your property taxes are based on this formula:
Net Assessed Property Value multiplied by Property Tax Rate equals Property Tax Bill
Taxes for Other Taxing Authorities
Each government agency with taxing authority sets a budget for the amount of tax revenue it requires. Tax rates vary among property classifications and are calculated by dividing the budget needs of the agency by its assessment base. The appropriate tax rate is then applied to individual property assessments, and the tax levy is calculated.
- Urban Storm Drainage Fees are billed annually on the property tax notices. All properties within the service boundaries pay annual storm drainage fees. These fees are to pay for the maintenance and replacement costs associated with operating the storm sewer system. All streets within the urban development boundary are drained though some sort of storm system. All residents have access to or use these streets and benefit from the storm drainage to get around to work, school and shopping safely.
- Dyking, Drainage and Irrigation Fees - Properties in the Matsqui and Sumas Prairie boundary areas pay a separate fees for maintaining their ditching network rather than the urban storm drainage fee.
- Solid Waste Collection and Recycling Fees are billed annually on the property tax notices. All single family and duplex residential properties within the service boundaries are charged the curbside collection fee. Curbside collection includes recyclables, compostables and garbage for single family and duplex homes.
Multi-family residential properties do not have City collection services but are charged a recycling processing fee to support processing of the recycling and education programs.
- Secondary Suite / Coach House Infrastructure Fees are billed annually on the property tax notices. The fee is payable for any additional suite, including but not limited to a Secondary Suite or Coach House.