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1. How is the municipal property tax calculated?

Each year, cities plan their budgets by estimating the revenue needed to provide essential services, factoring in cost increases like inflation, new regulations and added responsibilities from other orders of government. 

In British Columbia and other Canadian provinces, cities are required to collect their needed taxes based on property value (called "assessment") as established by BC Assessment, a provincial agency. Early in the new year, BC Assessment provides the valuation of all the properties in the province.

After the City sets its budgeted expenditures and once BC Assessment provides those values, the City’s tax division can set the municipal Tax Rate. The Tax Rate (often called the "mill rate"), when multiplied by the total value of all the property, will equal the total revenue needed to be collected from that class of property (residential, commercial, industrial, etc.).

2. How does fluctuation in my home's assessment affect my municipal property taxes?

If the City’s budget didn’t increase, and your assessment increased by the average, you do not end up paying more tax because it evens out.

But what if your property value increased by less than the average? In this scenario, an assessment increase that is less than average would actually result in your municipal taxes going down. And if your property value went up by more than the average, your municipal taxes (or your "share" of the costs) would increase.

Of course, most municipalities are facing the challenge of rising costs, both conventional inflation and cost pressures from such issues as downloading, increased regulation and climate change. But the principles are the same if your city institutes a 3% tax increase; if your property value increases by the same as the average, then you’ll face the 3% budget increase. Most properties, though, will face assessment increases either higher or lower than the average.

3. If the value of my property increases, does the City get extra revenue?

Changes in property values do not change the overall tax levy. Instead, the City adjusts the tax rate to offset the average increase in assessed values to generate only the amount of money needed to run the City’s operations.

4. Why does my municipal property tax go up more than the property tax increase approved by Council?

How the value of your property changes in comparison to the average for other properties in Coquitlam affects the amount of tax you will pay on your property. To set the municipal tax rate, the City of Coquitlam examines the average increase in assessed values for each property class within the City. 

If your assessed property value increased by more than the average, you will likely have a higher tax rate increase than the rate increase approved by Council. If your assessed property value increased less than the average, you will likely have a lower tax rate increase than that approved by Council.