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BCSLA Opposed to BC Assessment Tax Hike

Posted April 9, 2010 at 3:15pm by BCSLA

BC Assessment has implemented a "Reassessment Project" of seniors housing facilities, utilizing an "income" approach to property assessment, which in its current form seriously impacts the assessed value of seniors housing properties and the property taxes we pay.

BCSLA is opposed to this proposed new initiative for a number of reasons:

1. No Right to a Tax on Income. BC Assessment has the right to tax the value of our land and our improvements. BC Assessment has no right to tax us on the value of our business too. We already pay income taxes on our business revenues. By assessing our property on an income basis without a deduction for business value, is simply taxing our business income twice.

2. Three Strikes Against Seniors. The BC Government has announced that it is introducing the harmonized sales tax, which will have a profound impact on seniors housing. This is bad timing to consider "re-doing" the methodology of assessing Senior Housing.

3. Inconsistent & Not Fair. As you are no doubt aware, seniors who live in their own home receive significant savings on their property taxes. Yet as soon as they move into seniors housing this is taken away, and they will be taxed higher than just the property value. This initiative is simply not fair to seniors.

4. Balancing the Books on the Backs of Seniors. If implemented, this initiative will have to address the anger of thousands of seniors living across British Columbia who will believe, as we do, that the BC Government is trying to balance the budget on the backs of seniors who can ill afford it.

Simply put, the seniors housing facilities cannot face another tax hike at this time. With the pending HST implementation and the recent economic downturn, this new tax grab would cause undue hardship to countless seniors across British Columbia living in retirement communities.

BC is presently facing a number of challenges including increased vacancy rates, increased operating expenses and increased seniors housing stock. There are presently too many suites chasing too few seniors. In the face of this economic challenge, it is simply not fair for BC Assessment to change the way our properties are assessed in order to raise our tax assessments.

It is also our view that utilizing the "income" approach in assessing seniors housing facilities has a myriad of complications and inconsistencies which would be difficult to administer and would be susceptible to appeal.

In recognition of the need to ensure the viability and affordability of seniors housing as part of the fabric of social services, BCSLA is pursuing the following:

(a) as an interim measure, that all current appeals for the seniors housing folio be reviewed with BCSLA, BC Assessment, an outside appraiser and a representative of the Policy Services Branch to review the methodology and suggest an alternate method for 2010

(b) that the Minister direct his staff to work with BCSLA to create a long term solution of a Special Classification for seniors housing that will remove the "valuation mood swings" and provide a mechanism to restore affordability to BC Seniors.

Please share your thoughts on this issue.

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