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Vancouver home, business owners can expect property tax to rise five per cent in 2021

Last Updated Nov 24, 2020 at 8:00 pm PDT

A condo building is seen under construction surrounded by houses in Vancouver, B.C., on Friday March 30, 2018. Credit rating agency Equifax Canada says total consumer debt increased 2.8 per cent to $1.99 trillion in the second quarter despite the economic impact of COVID-19 amid a strong recovery in the housing market. THE CANADIAN PRESS/Darryl Dyck

A five per cent property tax hike is part of the City of Vancouver's draft budget for the upcoming year

Council will meet December 1 to iron out details

VANCOUVER (NEWS 1130) — A five per cent property tax hike is part of the City of Vancouver’s draft budget for the upcoming year.

Council will meet December 1 to iron out details which include projected revenue losses of $85-million and increased costs linked to the pandemic.

“The City has taken a conservative and flexible approach to preparing the Draft 2021 Budget,” a release from the city reads.

The $1.6-billion operating budget is one per cent lower than this year’s, marking a drop of $17-million.

But because of the financial challenges Vancouver residents and businesses may be facing due to the pandemic, City Council is directing staff to prepare a budget for the new year with options for a property tax increase of no more than five per cent.

“A five per cent increase assumes regular operations including additional operating costs due to the pandemic, addresses critical risks and service gaps, and covers the City’s annual inflationary fixed cost increases. As this budget is lower than the 2020 budget, some planned initiatives will need to be deferred and service levels for the public will be also impacted.”

The average increase for a single-family home assessed at $1.6-million is $146, business owners can expect their taxes to rise $166 if assessed at $1-million.