Whereas assessing and appraising real estate is primarily an information business and the Assessment Act requires BC Assessment to value similar properties consistently and equitably recognizing that similar unsold properties are consistently under-assessed, sometimes for consecutive years; And whereas the Assessment Act has no meaningful consequences for withholding information vital to BC Assessment to obtain critical information necessary to properly assess properties and this results in taxation rates based on flawed assessmentvaluation data: Therefore be it resolved that UBCM ask the Province of BC to update the Assessment Act to significantly reduce the number of drastically under-assessed properties year over year.
Ministry of Finance BC Assessment applies a mass appraisal system to assess residential properties which uses sales information for comparable properties in a neighborhood to determine values. Sales information is sourced from Real Estate Boards, the Land Titles and Survey Authority and, in some cases, property consultants. BC Assessment also uses several statistical measures to ensure that assessments are fair and equitable. While the mass appraisal approach may result in values of certain properties being under or overvalued, on average, they accurately reflect the value of properties in the province. Individuals who believe the circumstances of a property are not reflected in a property value may choose to appeal. The relatively large number of residential sales ensure assessments are accurate and equitable, supported by less than two percent of property assessments being appealed annually. Assessed land values for vacant non-residential properties are determined using a similar comparable sales approach. Sales values will depend, to a considerable extent, on how much a purchaser is willing to pay for a property, taking into account the zoning, community plan restrictions, the overall real estate market, and the future potential site use. Non-residential properties which include improvements or are operating businesses are valued using an income approach on the basis of revenues or using a replacement cost approach for the improvements and market value for the land. If necessary, BC Assessment has legislative authority to request financial information from property owners or can refer to the operating results of similar commercial operations to determine value. If a municipality, or anyone else, has information that would be useful in better determining the value of a specific property, they are encouraged to discuss the situation with BC Assessment.