Council voted Monday to adjust the general residential tax rates for 2017 to ease the burden on Vernon businesses. This decision will reduce $100,000 of total tax burden from business to residential properties. Of the $37.8 million of taxes necessary for a balanced budget, $23.1 million will be derived from residential property owners, and $11.8 million from business property owners.
Overall, total property taxes will increase by an average of 3.58 per cent: 1.9 per cent for Capital Projects in Vernon—including road, sewer and facility improvements—and 1.68 per cent for City operating expenses.
Vernon currently has 17,581 residential properties and 1,377 business properties. In 2016, the average residential property paid $1,252 in general municipal taxes; for 2017 that amount will be $1,301, a difference of $49.The business property tax increase will average 3.49 per cent.
Tax rates are calculated by multiplying the property assessment (provided by BC Assessment) by the established mill rate as part of the balanced budget equation. For both business and residential property owners, the mill rate will be reduced in 2017. In 2016, the business mill rate was 9.9847; in 2017, the mill rate will be 9.8522. In 2016, the residential mill rate was 3.6716, and for 2017 it will be 3.6103.