971 replies to this topic

[Victoria Watcher]

Everybody pays the same mill rate.  It is what it is.

[Nparker]

Short answer is they take what they want. What are you going to do about it?

Exactly.

 

At least I won't being property taxes now for as long as I live in this condo. Thanks Property Tax Deferment program! 

[dasmo]

Everybody pays the same mill rate. It is what it is.

That’s another way of putting it. But it’s not just whatever it is. If it was our budgets would match the money available not the other way around.

[Tony]

Exactly.

 

At least I won't being property taxes now for as long as I live in this condo. Thanks Property Tax Deferment program! 

 One in effect takes out a reverse tax payment type loan at current rate of 5.25% Great for current cash flow and possible positive gains if you can earn more after taxes  (TFSA contribution ? ) than the interest rate. if you opt to invest the tax payments due each year.

[Mike K.]

Housing affordability through debt.

Only a misguided society can consider that a positive.

We are headed for economic catastrophe with the way municipalities are spending money.

[Matt R.]

Is there a way to end this program (when you die) with negative equity? Or so there a system in place to prevent that.

[lanforod]

Is there a way to end this program (when you die) with negative equity? Or so there a system in place to prevent that.

You have to reapply each year and:

You must have and maintain a minimum equity of 25% of the property's assessed value. This means that all charges registered against your property plus the amount of taxes you want to defer can’t be more than 75% of the BC Assessment value of your property in the year you apply.

[Matt R.]

Thank gods.

[Sparky]

If you have a conventional mortgage with a conventional bank, can you still defer property taxes?

I thought the banks have wording in the small print that disallows that.

[Mike K.]

I’ve only known people with conventional mortgages from the big banks who ever deferred, but maybe that’s a throwback to an earlier set of policies still in effect, but not offered on new mortgages?

[Daveyboy]

You have to reapply each year and:

You must have and maintain a minimum equity of 25% of the property's assessed value. This means that all charges registered against your property plus the amount of taxes you want to defer can’t be more than 75% of the BC Assessment value of your property in the year you apply.

The rule of having to reapply every year has been removed.  The homeowner can now be put on automatic renewal until they no longer wish to continue.

[Nparker]

...The homeowner can now be put on automatic renewal until they no longer wish to continue.

Which is what I did when I applied this year.

[lanforod]

They need to update their website then cause I copied that right off of bcgov today.

[Tony]

 mortgages?

 

Sparky.......I thought the banks have wording in the small print that disallows that

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Good question! I had a TD mortgage that required me me to contribute an amount monthly to pay my taxes. When I refused to pay the estimated tax amount ant paid my taxes directly they pointed out the small print in my contract. That was a long time ago but lesson learned.

Edited by Tony, 17 May 2024 - 07:42 AM.

[Mike K.]

My mortgage has property taxes lumped in with every payment. It gets adjusted annually if I’ve over or underpaid, but the bank makes the payment on my behalf.

[Nparker]

My mortgage has property taxes lumped in with every payment. It gets adjusted annually if I’ve over or underpaid, but the bank makes the payment on my behalf.

This was how I handled my property taxes for years until I decided to retire and pay off my mortgage. Last year was the first time (and perhaps last time) I actually made a lump sum annual PT payment.

[Mike K.]

Yes, congratulations!

[Victoria Watcher]

With so much taxing power, why do municipalities choose to wait to the last minute - and then borrow money?  Why not set aside a reserve for 10 or 15 years prior for this, then strike when the timing is best?   They have a budget of about $8M per year.

 

 

 

 

 

Ladysmith wants to borrow $13.5 million for new municipal hall

 

 

 

The Town of Ladysmith is hoping to borrow $13.5 million to build a new municipal hall to replace the current building, which opened in 1952.

 

A building of up to six storeys would be constructed to replace the existing building at 401 Esplanade, which is 3,152 square feet. The plan is for a one-level 19,000-square-foot hall at First Avenue and Buller Street, with another 4,000 to 5,000 square feet that would initially be leased out for institutional or community use, but would be available for municipal expansion in future years.

 

Ninety-five middle-market rental units would be built above the hall, to be developed by Catalyst Community Developments Society and the province through the B.C. Builds program.

 

A shortage of space at municipal hall has resulted in the town having to rent space at other locations, Mayor Aaron Stone said Monday. The town holds council meetings in various other venues, and spends $8,000 a year to store files off site. “It’s really inefficient. It is not the best work environment.”

 

A January staff report on the old hall says that with no shipping and receiving area, packages end up being stored in corridors, creating obstacle and safety issues. Ideally, all municipal offices other than parks and public works would be in the new building, Stone said.

 

An alternative approval process began May 24 and closes on June 25 for borrowing money for the project through the Municipal Financing Authority. The low-cost loan with a 30-year term would require an estimated annual payment of $860,520.

 

 

 

https://www.timescol...al-hall-8872192

Edited by Victoria Watcher, 28 May 2024 - 04:42 AM.

[Mike K.]

Multiply $860,520 x 30 and you DO NOT get $13.5 million.

The low-cost loan with a 30-year term would require an estimated annual payment of $860,520.

You get $25.8 million.

[Victoria Watcher]

Presumably the loan has interest.  But as I stated, if you start saving up 15 years out, you earn interest on your savings.  The existing building is a 1952 model, it's not like this snuck up on them.

 

2009 - Year #1 - take a 1% tax hike.  Set aside $90,000

2010 - Year #2 - take another 1% tax hike.  Set aside another $180,000

2011 - Year #3 - take another 1% tax hike.  Set aside another $270,000

2012 - 4  $360,000

2013 - 5  $450,000

2014 - 6  $540,000

2015 - 7  $630,000

16 - 8  $720,000

17 - 9  $810,000

18 - 10  $900,000

19 - 11  $990,000

20 - 12 $1,080,000

21 - 13  $1,170,000

22 - year 14 4 $1,260,000

2023 - year 15  $1,350,000

 

____________________

 

$10.8M

 

With interest each year we have close to the $13M needed.  With a 1% tax hike each year over 15 years.  Prudent planning.

Edited by Victoria Watcher, 28 May 2024 - 05:48 AM.