Buying a new home in British Columbia (BC) involves several considerations, including property taxes. Property taxes are levied by local governments to fund services such as schools, roads, and emergency services.
In British Columbia, the assessment process for property taxes involves the BC Assessment Authority determining the value of a property annually. This assessment considers various factors such as the property's location, size, age, and condition. The assessed value serves as the basis for calculating property taxes, with local governments setting mill rates to determine the actual tax amount.
In BC, property taxes are typically due on the first business day after July 1. If you purchase a home at a different time, like in September, and the property seller hasn't committed to paying the property taxes in the Contract of Purchase and Sale, you'll need to pay your portion for the year to avoid any penalties.Consider these examples:
"Before July 1, If you buy your home before July 1 or before the taxes are fully paid, you’ll receive the seller’s part of the property taxes. You’ll be responsible for paying the total amount of the property taxes.
- Possession date: April 1
- Taxes: $4,500 less $570 (Home Owner’s Grant) = $3,930
- January 1 to April 1, 2023 is 90 days. $3,930.00 X 90 days = 35,370 ÷ 365 days in a year = $969.
After July 1, If you buy your home after the seller has paid for the full tax year, you’ll have to reimburse them.
- Possession date: September 1
- Taxes: $4,500 less $570 (Home Owner’s Grant) = $3,930
- September 1 to December 31, 2023 is 122 days. $3,930 X 122 days = 47,946 ÷ 365 days in a year = $1,313.59
- www.rebgv.org