The typical assessed value of a single-family home in Kelowna for 2023 is up 14% to $988,000.
But, don't panic, that is not how much your 2023 property taxes are going up.
In the next few days, 289,000 property owners in the Thompson Okanagan will be receiving their 2023 assessment notices in the mail.
"That's right, property owners with a typical 14% increase in assessed value will certainly not see a 14% increase in property taxes," pointed out Tracy Wall, the deputy assessor for the Thompson Okanagan region with BC Assessment Authority.
Property tax increases are determined by municipalities based on assessments, but don't mirror exact assessment increases or decreases.
In the case of Kelowna, the average property tax increase for 2023 has already been figured out to be 3.8%, so even if your home is assessed at 14% more, your property tax increase will be that 3.8%.
Property taxes on a home assessed at $988,000 would be around $4,300, with $770 taken off in homeowner grant if you live in it yourself, for a total of about $3,530.
It's a similar story in Kamloops where 2023 typical assessed value of a single-family home is up 11% to $689,000, in Penticton up 14% to $727,000 and in Vernon up 11% to $714,000.
See this chart for most communities in the Thompson Okanagan.
The 2023 typical assessed value for condominiums and townhouses in Kelowna is up 16% to $519,000, in Kamloops up 19% to $408,000, in Penticton up 19 to $414,000 and in Vernon up 14% to $399,000.
The assessed value of your home should not be confused with what you could possibly sell it for right now.
The 2023 typical assessment of $988,000 in Kelowna is actually based on the value of the home, and those similar to it in your neighbourhood, as of July 1, 2022.
That's when the market was still relatively hot, thus the 14% increase in the year from the 2022 typical assessed value as of July 1, 2021.
Since July 1, 2022, house prices came down as the market softened because of inflation, higher mortgage interest rates and battered consumer confidence.
But the Association of Interior realtors pegs the benchmark selling prices of a typical single family home in Kelowna at just over $1 million, slightly more than the typical assessment of $988,000.
Overall, the Thompson Okanagan's total assessments increased from $203.7 billion in 2022 to $234.3 billion this year.
A total of about $3.8 billion of that is new construction, subdivisions and the rezoning of properties.
That means the bulk of the growth is from increases in values of existing properties, even if the real estate market is currently in flux.
When you receive your assessment in the mail and it looks right, you don't have to do anything.
You'll receive your property tax bill in a few months, payable July 1, 2023, and will have to pay however much more your municipality has determined.
However, if your property assessment does not reflect the market value as of July 1, 2022 or you see incorrect information on your assessment, contact BC Assessment Authority at BCAssessment.ca.
If you need to submit a Notice of Complaint (appeal) it has to be done by Jan. 31.
