What is a parcel tax or frontage tax on a BC property tax notice?

Question

Accepted Answer

A charge set by bylaw for one service, such as water or sewer: a flat amount per lot, or by its area or frontage, whatever the lot is worth, for the years the bylaw states. A parcel tax pays for one service, most often water, sewer or a local improvement, and doesn't depend on what the lot is worth. The bylaw sets a flat amount per lot, or a rate by its area or by its frontage along the street, for the years it states. Before it's first charged, owners get notice and can complain to a review panel about the roll; after that, an owner can ask each year for their own lot's entry to be corrected. Look up the address or PID on PlaceDossier to see the record for that lot. What it is: A council may, by bylaw, impose a parcel tax to pay for all or part of a service. The bylaw must state the service, the years the tax is imposed, the parcel tax roll used and the basis of the tax, and set the amount or the rates (Community Charter s. 200 (1) to (3)). On request, the municipality must make public a report on how the amounts or rates were set (s. 200 (4)). Three ways to charge it: A parcel tax roll may charge a single amount for each parcel, or by the parcel's taxable area or taxable frontage, or a mix of them (s. 202 (2)). For area or frontage, the bylaw says how it's measured, based on the parcel's physical characteristics, and may treat different kinds of parcels differently, such as corner or odd-shaped lots, as long as the basis is fair and equitable between them (s. 202 (3)). Which lots pay: Unless another rule allows otherwise, a parcel tax falls on every parcel in the municipality that isn't exempt. For a service to land or buildings, such as a water or sewer main, it may fall only on parcels that have the opportunity to be served, whether or not they are connected (s. 201 (1), (2)). The bylaw may waive or reduce it where an owner, or a previous owner, paid for the service or toward it already (s. 201 (3)). Value doesn't matter: Unlike the property value tax, a parcel tax doesn't change with BC Assessment's value: two lots of the same frontage pay the same frontage tax, whatever is built on them (our reading of s. 202 (2)). Before it's first charged: A parcel tax roll review panel of at least 3 people appointed by council must hear complaints and authenticate the roll before the tax is first imposed. The collector mails every owner to be taxed a notice at least 14 days before the panel sits, naming the service, the taxable area or frontage and when the panel sits (s. 204). What you can complain about: An error or omission in a name or address, in including a parcel, or in the taxable area or frontage, or an exemption wrongly allowed or refused; written notice must reach the municipality at least 48 hours before the panel first sits (s. 205 (1), (2)). The panel can't hear that the service isn't worth the tax: that is the council's decision on the bylaw (our reading). Appeal: The panel's decision can be appealed to the Supreme Court by serving written notice on the municipality within 10 days after notice of the decision is mailed or delivered (ss. 206 (3), (4), 207 (1), (2)). Each year after: In each later year the municipality publishes a notice that the roll can be inspected, and an owner may ask in writing, by the date in the notice, for their own parcel's entry to be corrected on the same grounds (s. 208 (2) to (4)). Part of a town only: A local area service is one the council considers benefits part of the municipality, set up by bylaw by owners' petition (owners of at least half the parcels, holding at least half the assessed value), by council initiative unless enough owners petition against it within 30 days, or with the electors' assent; its cost may be charged as a parcel tax, a property value tax or both, only inside the local service area (ss. 210 to 213, 216). Outside towns: A regional district may pay for a service with parcel taxes, though not for a regulatory one, and its establishing bylaw names the methods (Local Government Act s. 378 (1) to (3)). In an electoral area the board prepares the parcel tax roll under the same Community Charter rules, and the Province's Surveyor of Taxes collects it on the rural tax notice, with penalties and interest as for rural property tax (s. 388). In a town, the municipality collects it for the regional district (s. 386 (1) (b)). What a report shows: A report's Property tax section gives the lot's rate per $1,000 of assessed value. Parcel taxes, local service area taxes and utility fees aren't in the Province's rate files, so it can't add them: they are on the tax notice. What it means for a buyer: A parcel tax comes with the lot for the years its bylaw has left, and the statement of adjustments splits the year's bill with the seller at completion (see closing costs). A long frontage on a new main can mean a large yearly charge on a lot that never connects, so read the latest tax notice before you offer (our reading).

What is a parcel tax or frontage tax on a BC property tax notice?

What the answer means

Before you buy: who to ask