Earlier this month, BC Assessment released updated property assessments by mail and through its online portal. This often raises questions about whether a change in assessment will affect property taxes. The information below explains how the two are related.

What Is a Property Assessment?

A property assessment reflects the estimated market value of a property as of July 1 of the previous year. BC Assessment determines this value independently from the District. Assessments consider factors such as property size, age, location, classification, and recent comparable sales.

Are Property Assessments and Property Taxes the Same Thing?

No. Property assessments and property taxes serve different purposes.

An assessment helps determine how property taxes are distributed across the community, but it does not set how much tax is collected. The total amount of property tax collected is determined through the District’s annual budget process, and individual properties pay a share based on their assessed value relative to others in the same class.

In simple terms, assessments help determine each property’s share of the total tax amount, rather than setting the total tax bill on its own.

How Are Property Taxes Calculated?

Property taxes are calculated using a standard equation:

Taxable Assessed Value × Property Tax Rate = Property Taxes

In practice, this means:

• The taxable assessed value of a property is divided by $1,000.
• That number is multiplied by the applicable tax rate for the property’s class.
• The result is the amount of property tax owing.

Tax rates vary by property class and are applied consistently across similar properties.

If My Assessment Changed, Will My Taxes Change Too?

Not necessarily. Property assessments can increase or decrease from year to year. What matters most is not how much an individual property’s assessed value has changed, but how it has changed relative to other properties in the same class within the community.

For example, if a property’s assessed value increases but similar properties increase by a comparable amount, the overall tax impact may be minimal. Property taxes are shared across the total assessed value of all properties, rather than calculated in isolation.

When Are Property Taxes Actually Set?

Property tax rates and notices are finalized after the annual budget is adopted by Council.

Learn More

Visit www.tofino.ca/property-tax for more information.