At a glance (1 minute read)

• The City of Vancouver is increasing taxes on residential properties and lowering taxes on non-residential properties.

The City of Vancouver is attempting to spread the tax burden more evenly.

Vancouver council voted on April 26, 2022 to instruct the director of finance to calculate the 2022 general purpose tax rates for all property classes to achieve a tax share of approximately:

• 57.0% residential; and
• 43.0% non-residential.

In April 2019, council directed staff to implement a two per cent tax shift ($15.8 million) from nonresidential properties (classes 2, 4, 5 and 6) to residential properties (classes 1, 8 and 9) over three years, at a rate of:

• 1% in 2019;
• 0.5% in 2020; and
• 0.5% in 2021.

They completed the program in 2021.

In December 2021, council approved the 2022 Operating Budget of $1.7 billion of which $958.4 million is to be funded from general purpose tax levy.

In March 2022, council adopted the 2022 Land Assessment Averaging By-law that authorized the use of targeted five-year land assessment averaging for the purpose of calculating property taxes for residential (Class 1), light industrial (Class 5), and business (Class 6) properties for the 2022 tax year.

The city manager recommended approval of the tax shift, noting that property assessment reform is needed as hundreds of small businesses and community partners are struggling with the taxation impact arising from the highest and best use (market value) assessment methodology and development potential issue.

Read the City of Vancouver Staff report (opens 21-page pdf)