Property Tax Scenario Analysis - Metro Vancouver€¦ · property tax exemptions for higher density buildings. The tax incentive is to encourage new developments to maximize potential

Property Tax Scenario Analysis For Agricultural and Industrial Lands

in the Metro Vancouver Region

February 7th, 2014

PREPARED BY:

Colliers International

PREPARED FOR:

Metro Vancouver, Planning, Policy

And Environment Department

19th Floor, Granville Square 200 Granville Street

Vancouver, British Columbia

www.colliers.com

MAIN 604-681-4111

FAX 604-681-2309

February 7th, 2014

Metro Vancouver Planning, Policy and Environment Department

4330 Kingsway

Burnaby, British Columbia, V5H 4G8

Attention: Theresa Duynstee & Eric Aderneck

Metro Vancouver Planning, Policy and Environment

Re: Property Tax Scenarios within Metro Vancouver Regional District

Colliers International Valuations and Advisory Services have been retained by Metro Vancouver Planning, Policy,

and Environment Department to research the property tax implications of various land use scenarios within

municipalities throughout the Metro Vancouver Region.

In preparing this report, Colliers International has consulted with Theresa Duynstee and Eric Aderneck of the

Metro Vancouver Planning, Policy, and Environment Department; various individuals at the Vancouver Sea-to-

Sky, North Fraser, South Fraser, and Fraser Valley Offices of BC Assessment; and individuals with the property

tax departments of the concerned municipalities. Areas for further investigation were completed in conjunction

with Lawson Lundell LLP.

Where assessment data was unavailable, Colliers International has provided calculations and assumptions used to

compile conclusions reached. The conclusions contained in this report are designed to provide a general

overview of property tax in 2013. Should any of the facts or assumptions made in this report change, our opinion

of value would change accordingly.

Yours very truly,

Scott Bowden

COLLIERS INTERNATIONAL REALTY ADVISORS INC.

1

Table of Contents

Executive Summary ............................................................................. 3

Project Parameters .............................................................................. 6

Scenarios Requested .................................................................................................. 6

Assessment Classification .......................................................................................... 7

Municipal Mill Rates .................................................................................................... 9

Methods of Valuation .................................................................................................15

Highest and Best Use ................................................................................................ 19

Farm Land Classification .......................................................................................... 20

Agricultural Scenarios ........................................................................ 22

Scenario 1 Farm Class Status ............................................................................... 24

Scenario 2 Resident Type ...................................................................................... 31

Scenario 3 Improvement / Residential Building Value ......................................... 39

Scenario 4 2013 Improvement Value Revision ..................................................... 56

Scenario 5 Natural Features ................................................................................. 62

Scenario 6 Split Classification ............................................................................... 69

Scenario 7 Leased Land ........................................................................................ 75

Scenario 8 Property Classification ....................................................................... 80

Overall Conclusions for Agricultural Land Scenarios .............................................. 89

Industrial Scenarios ............................................................................ 90

Scenario 1 Older Single Tenant Warehouse .......................................................... 91

Scenario 2 New Single-Tenant Warehouse .......................................................... 93

Scenario 3 Modern Cross-Dock Facility Building ................................................. 95

Scenario 4 Single Level Multi-Tenant Flex Space ................................................ 98

Scenario 5 Two Level Multi-Tenant Flex Space ................................................. 102

Scenario 6 Multi-Level Industrial Building with Office ....................................... 106

Scenario 7 Office Business Park ........................................................................ 109

Scenario 8 Large Format Retail Development..................................................... 112

Scenario 9 Townhouse Development .................................................................. 114

Scenario 10 Low Rise Apartment Development .................................................. 117

Scenario 11 High Rise Apartment Development ................................................. 120

Comparison of Industrial Scenarios ....................................................................... 123

Overall Conclusions for Industrial Land Scenarios ................................................. 131

1

Areas for Further Investigation ........................................................ 132

Encouraging Active ALR Land Use: ....................................................................... 132

Encouraging Densification of Industrial Areas ....................................................... 133

Contingent and Limiting Conditions .................................................. 135

Colliers ,' ",." ~"'

Executive Summary Purpose of this report

This report illustrates the relationship between different types of properties and land uses and the resulting

property taxes. The purpose of compiling this information is to help determine if there are ways that property

taxation policies can be used to encourage the active farming of properties within the Agricultural Land Reserve

and to increase the densification of industrial lands.

Methodology

In determining the property taxes for the various scenarios studied, Colliers International undertook the following

exercises:

In consultation with BC Assessment and market research, documented the assessed values for the land

and improvement components of the scenarios.

Applied the corresponding municipal mill rate and other taxing jurisdictions for 2013, to the appropriate

component of value.

Totaled the various component parts of the scenarios to determine the overall property taxes.

Compared, using charts and graphs, the results by scenario and municipality.

Background Information

As part of this report, Colliers International has included background information explaining the various aspects of

property tax, including:

Information regarding the nine classifications of properties within the British Columbia property tax

system and the uses that dictate which classification(s) applies to properties.

A description of how millage rates are applied by municipalities, the legislation that give the

municipalities the authority to tax for certain services and detailed charts showing the allocation of the

overall millage rate to those budget considerations.

Information regarding the three methods of property valuation employed by BC Assessment to determine

the assessed value of a property.

A brief description of the concept of Highest and Best Use and how it is used by BC Assessment to

determine the assessed value of a property.

The distinct method used to determine the assessed value of farm land as dictated by BC Regulation

276/84.

Agricultural Scenario Results

The analysis of eight agricultural scenarios, and discussions with agents of the BC Assessment Authority

produced the following findings:

Properties with farm classification, whether they are in the ALR or outside of it, are given a highly

beneficial property assessment and tax rate.

Smaller properties with a non-farmer occupying the improvement, but leasing a majority of the parcel to

an active farmer, see a greater difference in property taxes associated with achieving farm class status

than larger parcels in the same situation (as the ratio of building-to-value varies by parcel size).

The value of residential improvements on a parcel has a significant effect on the property taxes,

especially for properties with newer or larger residential improvements.

The 2013 change in exemptions for farm buildings to 87.5% of assessed value creates a highly

beneficial property tax situation for owners of such improvements and should encourage additional

growth in intensive farming.

Generally, adjustments for unusable areas of a parcel, o

forested areas or riparian areas, are associated with a percentage of value and are consistently applied

by BC Assessment depending on the impact on value.

Properties tionately higher taxes than properties wholly used

for farming purposes.

Land leased to farmers is subject to beneficial property tax rates because the income from the sale of

agricultural products is based on all parcels the farmer manages that combine to form the farm.

Industrial Scenario Results

The analysis of 11 industrial scenarios, and discussions with agents of the BC Assessment Authority produced the

following findings:

Although properties with low site coverage are assessed at a higher value on a per square foot of

building than properties with higher site coverage, larger buildings generate higher property taxes as

values of improvements are greater than values of bare land.

Due to higher functionality, newer industrial buildings are able to achieve higher assessed values than

older industrial buildings and therefore pay more property taxes.

Depending on the impact on functionality, industrial buildings consisting of two levels would have a

higher property value and thus associated higher property taxes due to the greater amount of improved

space. This is true for properties improved with a second floor of industrial space or office space.

The density of a parcel, whether commercial or residential, had a significant impact on the property

taxes associated with that parcel. For properties developed to equal densities, those improved with

office, retail, or industrial developments pay higher property taxes compared to residential, due to the

difference in the millage rates applied by municipalities.

High density residential developments yielded the highest property taxes due to the significant amount of

density achieved, whereas on a building sq. ft. basis office and retail pay the highest rates.

SCENARIO REPORT FINAL COPY 2/27/2014 8:23 AM

Areas for Further Investigation

In consultation with Lawson Lundell LLP, Colliers International recommends further investigation into the

following policies which are designed to encourage active farming of properties within the Agricultural Land

Reserve and the densification of industrial development in designated industrial areas.

Agricultural

Increasing the agricultural product value threshold for farm properties to meet the Class 9 Farm

criteria.

Using Partnership Agreements as set out in the Community Charter Section 225; c

agricultural product production. Those properties

that meet a certain quota may be granted greater property tax considerations.

Review incentives for property transfer tax, property tax exemptions, or property tax rates to encourage

the consolidation of ALR parcels for intensive farming.

applied to recover beneficial tax incentives.

Industrial

Set lower tax rates for Class 5 Light Industry properties.

Using Partnership Agreements as set out in the Community Charter section 225, s

property tax exemptions for higher density buildings. The tax incentive is to encourage new

developments to maximize potential intensities. The ability for municipalities to incent intensive

development on a property by property basis ensures that it aligns with municipal goals.

Expand the scope of Class 5 Light Industrial to include additional accessory uses, which are able to

function in buildings that achieve much higher densities then traditional industrial uses.

Encourage, through zoning and planning guidelines, higher density industrial uses

Increase allowable density and site coverage to permit higher density industrial land use.

6

Project Parameters

Scenarios Requested

The purpose of this report is to provide a clear and concise description of how municipal property taxes (and

other property levies) are determined and to calculate the property taxes for different agricultural and industrial

land use scenarios for several municipalities across the Metro Vancouver region.

On December 9th, 2013 Colliers International met with Metro Vancouver to discuss the various scenarios. The 19

scenarios are separated in this report into two broad categories:

1. Those focused on Agricultural Type properties

2. Those focused on Industrial and Commercial Type properties

Within each category, the various scenarios are designed to augment a particular aspect of the property, such as

classification, location, size, and improvement value, to determine the implication on tax revenue for

municipalities.

The calculation of property tax is subject to three primary factors: Assessed Value, Assessed Classification, and

Millage Rate Applied. For each of the 19 scenarios, Colliers International has provided assumptions and inputs

used to arrive at the final value conclusion.

7

Assessment Classification

The property classes:

Class 1, Residential single-family residences, multi-family residences, duplexes, apartments, condominiums,

nursing homes, seasonal dwellings, manufactured homes, some vacant land, farm buildings and daycare facilities.

Class 2, Utilities structures and land used for railway transportation, pipelines, electrical generation or

transmission utilities, or telecommunications transmitters. This property class does not include gathering

pipelines, offices or sales outlets.

Class 3, Supportive Housing this property class only includes eligible supportive housing property that has

been designated by Cabinet. Eligible supportive housing property is funded by the provincial government or a

health authority for the provision of housing that includes on-site support services for persons who were

previously homeless, at risk of homelessness, and who are affected by mental illness or who are recovering from

drug or alcohol addictions or have other barriers to housing.

Class 4, Major Industry land and improvements (buildings and structures) of prescribed types of industrial

plants, including lumber and pulp mills, mines, smelters, large manufacturers of specified products, ship building

and loading terminals for sea-going ships.

Class 5, Light Industry property used or held for extracting, processing, manufacturing or transporting

products, including ancillary storage. Scrap metal yards, wineries and boat-building operations fall within this

category. Exceptions include properties used for the production or storage of food and non-alcoholic beverages

and retail sales outlets, which fall into Class 6.

Class 6, Business Other property used for offices, retail, warehousing, hotels and motels all fall within this

category. This class includes properties that do not fall into other classes.

Class 7, Managed Forest Land privately-owned, forest land managed in accordance with the Private Managed

Forest Land Act or the Forest and Range Practices Act. Property owners in this class have an obligation to

provide good resource management practices, such as reforestation, care of young trees, protection from fire and

disease and sound harvesting methods.

Class 8, Recreational Property, Non-profit Organization includes two very different categories:

Recreational Land

- land used solely as an outdoor recreational facility for specific activities such as golf, skiing, tennis, public

swimming pools, waterslides, amusement parks, marinas and hang gliding. Improvements on the land (such as a

clubhouse) fall into Class 6.

8

- Land in a rural area that is part of parcel used for overnight commercial accommodation that exists

predominantly to facilitate specific outdoor recreational activities such as hunting, fishing and kayaking.

Improvements on the land most likely fall within Class 6 (e.g. a hotel).

Non-Profit Organization Land and Improvements

- Property used or set aside for at least 150 days per year as a place of public worship or as a meeting hall by a

non-profit, fraternal organization. The 150 days cannot include activities with paid admission or the

sale/consumption of alcohol.

- additionally, the 150 days needs to be in the year ending on June 30 of the calendar year preceding the

calendar year for which the assessment roll is being prepared.

Class 9, Farm to qualify as farm for assessment purposes, the land must produce a prescribed amount of

qualifying primary agricultural products for sale, such as crops or livestock.

Split Classification

Property with several distinct uses can fall into more than one class. For example, commercial and residential

space might be combined in one building, or a property combines residential, farm and forest land. In these cases,

BC Assessment determines the share of the value of the property attributable to each class. Within the ALR in

some cases residential property owners are buying lots for personal purposes while leasing a portion of the

surrounding land to local farmers. BC Assessment will therefore assess the parcel as two components: the

residential parcel and the farm parcel and apply separate millage rates and land values.

Exemptions

Every property owner in the province must pay property taxes unless specifically exempted by provincial statute.

Municipalities use millage rates to determine how much tax they require to run the general services within the

municipality. Over recent years since the economic downturn in 2008 2009, municipalities applied a school tax

credit for Class 4 Heavy Industrial, Class 5 Light Industry and Class 9 Farm where properties within these

classes received a tax credit of 50% under the school tax section. This rebate is being removed for Class 5

Light Industrial properties with 50% removed in 2013 and the remaining 50% scheduled to be removed in 2014.

Class 4 Heavy Industry and Class 9 Farm will continue to receive this school tax credit.

In regards to property owned by federal or provincial governments, lands and improvements are generally

exempt from taxation due to the Community Charter, Taxation (Rural Area) Act and Vancouver Charter.

However, these agencies are required to make payments or grants in lieu of taxes which are equivalent to the

amount that would have been payable as tax. However, the exemption as it applies to a Provincial or Federal

Agency does not extend to a third party occupier of that property. The Assessment Act requires such occupiers

to pay property taxes as if they were the fee simple owner of the property.

9

Municipal Mill Rates

British Columbia operates on an Ad Valorem property tax system, designed to place a greater burden on more

municipalities

set millage rates on a rate per $1,000 of assessed value, causing properties that have greater value to pay

proportionately higher property tax.

Within the Assessment Act, properties are separated into nine property classifications. The Community Charter

grants municipalities the right to set millage rates for each of these Classifications to generate the revenue

required to operate the municipality. Depending on the economic position and development goals of a

municipality, one classification may receive favorable treatment over another.

An example is Class 5 Light Industrial properties in the City of Surrey and the City of New Westminster. A

$1,000,000 Industrial Development in the City of Surrey will pay $12,776 in property tax while the same

development would pay $33,584 in New Westminster, based on the mill rate difference.

The Province of British Columbia also sets millage rates associated with property tax. As described below these

charges are designed to fund Schools, Hospitals, BC Assessment and other provincially provided services. A

breakdown of the individual charges as provided in The Continuing Legal Education Society of British Columbia

(CLEBC) Real Property Manual can be found below.

Taxing Authority Function (and enabling statute)

School districts Provide kindergarten to grade 12 educations. (School Act)

Municipalities Depending on their size and community desires, they can regulate a variety of

activities and provide services such as police, fire, water, sanitary and storm

sewers, roads, street lights, libraries, garbage collection, parks and recreation, and

cemeteries. Community Charter; Local Government Act (for land use regulation

and heritage conservation); Vancouver Charter)

General Purpose/ Municipal

General/ Provincial

Government

Provides police and local road services in rural areas, and provides police services

to small municipalities. (Taxation (Rural Area) Act; Police Act)

Funds 5 kindergarten to grade 12 education. (School Act)

Regional Districts / Greater

Vancouver Regional District

Provide local services to rural areas, and provide services to municipal and rural

areas that are done most economically on a joint basis (fire, water, recreation etc).

Local Government Act Part 24

Regional Hospital Districts Share capital funding of hospitals with the province. ( Hospital District Act)

Applies to all regions in British Columbia except for Greater Vancouver, which has

no regional hospital district.

10

Improvement Districts Provide water, fire protection, etc., generally in rural areas. (Fewer than 30 utilize

property value taxation.)

(Local Government Act Part 23)

BC Assessment / Municipal

Finance Authority

Each levies a tax to fund a portion of its budget. ( Assessment Authority Act and

Municipal Finance Authority Act)

Transit Authorities The Greater Victoria Regional Transit Commission is the only remaining transit

commission. Transit commissions have taxation power under s.15 of the British

Columbia Transit Act. The South Coast British Columbia Transportation Authority,

known as Translink, is covered by a separate Act (the South Coast British

Columbia Transportation Authority Act) and began imposing a transportation levy

in 1999.

On the following pages are charts detailing overall mill rates by municipality, and charts detailing specific

breakdowns of property tax rates within the individual municipalities. Please note that evidence for the specific

industrial scenarios in North Vancouver was gathered from both the City and District of North Vancouver,

however in graphs provided only the mill rates for the District of North Vancouver was applied.

Each municipality establishes municipal mill rates differently depending on the services provided. Some separate

the charges into Fire Rescue, Policing etc. whereas others just charge a General Purpose Tax Levy. Where a

section is blank, information is not available or has been accounted for under a different section. i.e. Class 1

Residential, Vancouver charges a General Purpose Tax Levy of 1.8950, whereas Richmond separates the charge

into General 1.2421, Policing 0.4656, Fire Rescue 0.3669 and Storms 0.0480.

Other property levies charged by municipalities include water rates, sewer levies and garbage collection. These

charges on generally charged on a metered or per use basis for businesses and industrial properties and a set

charge for residential properties (charge will vary for single family home to row house / duplex) to ensure an

equitable cost. For example, a 90,000 sq. ft. industrial building would use more water and require more utilities

to that of a 10,000 sq. ft. industrial building. The rates at which these charges are calculated vary for each

municipality.

The following tables include all provincial and regional taxes and levies. Please note that municipal taxes are

separated differently by each municipality. Some municipalities charge a general tax while others provide a

breakdown of the individual taxes. (i.e., The City of Vancouver charges one tax for Greater Vancouver Regional

District (large projects) and does not charge for Regional District tax, whereas the City of Surrey separates these

taxes.

11

2013 Mill Rate by Municipality per $1,000 of assessed value

City Residential Utilities

Supportive

Housing

Major

Industry

Net taxes

Light

Industry Net

taxes

Business /

Other

Recreation /

Non-Profit

Farm Net

taxes

Class 1 Class 2 Class 3 Class 4 Class 5 Class 6 Class 8 Class 9

Vancouver 3.7935 53.8186 1.6559 38.4466 15.2115 16.4854 5.6491 5.6491

Surrey 4.6016 50.4697 - 16.8704 12.7760 15.0054 6.1266 6.5188

New Westminster 5.8571 50.4344 5.2017 34.0216 27.1037 21.0351 7.3791 7.4805

Burnaby 4.2806 51.8008 3.8955 50.4098 15.9794 17.4770 5.3109 13.3936

Richmond 4.1674 57.3612 - 19.8857 14.6514 15.6439 5.7945 16.1905

District of North Vancouver 4.3019 57.4573 - 42.2320 17.4363 16.6227 9.9237 -

City of North Vancouver 4.3832 57.4613 - 37.0061 15.1440 16.6383 7.0438 -

West Vancouver 3.3070 26.6888 - 19.3281 20.3883 12.2517 10.6769 -

City of Langley 6.2227 57.4499 5.4599 - 16.3195 16.8007 12.6156 11.1887

Township of Langley 5.6905 45.3983 - 14.2901 16.4264 17.8451 9.2067 13.9787

Abbotsford 7.8027 55.2189 - - 16.6309 20.1730 12.1313 22.9040

North Delta 5.5421 57.9715 - 39.7099 17.2965 18.7924 11.1394 21.7569

Ladner 5.5043 57.5155 - 39.3244 17.1753 18.6712 11.0572 21.5562

South Delta 5.5100 57.5842 - 39.3825 17.1935 18.6894 11.0696 21.5865

Annacis 5.5421 57.9715 - 39.7099 17.2965 18.7924 11.1220 21.7144

Port Coquitlam 6.0313 57.4546 5.4776 - 20.0559 19.8802 18.0487 27.1631

Coquitlam 5.2633 57.4493 - 34.6564 20.1176 21.7712 18.5705 21.1752

Port Moody 5.6095 57.4517 - 70.7454 25.1688 18.0594 6.3285 -

Maple Ridge 6.7711 57.4601 - 42.7028 18.7595 20.2541 15.9324 31.8001

Pit Meadows 6.3940 57.3020 - 42.9937 23.3133 20.1329 14.1435 33.8130

Colliers , ~,,,~ .. ,~.

12

Classification 1 Residential

Class 1

General

Purpose

Tax Levy

Municipal

General,

Dept Policing Fire Rescue

Storm

Damage

Greater

Vancouver

Regional

District Library

Sungod

Expansion Recreation

City

Council

Total

Municipal

Provincial

School

Regional

District

BC Assessment

Authority

Municipal

Finance

Authority Translink

Total

Provincial Total

Vancouver 1.8950 0.0616 1.9566 1.4337 0.0637 0.0002 0.3394 1.8369 3.7935

Burnaby 2.2419 2.2419 1.5930 0.0593 0.0610 0.0002 0.3252 2.0387 4.2806

Richmond 1.2421 0.4656 0.3669 0.0480 2.1225 1.5994 0.0592 0.0610 0.0002 0.3252 2.0450 4.1674

Surrey 2.2573 0.0600 2.3173 1.7762 0.1218 0.0610 0.0002 0.3252 2.2844 4.6016

Langley City 3.8061 0.0595 3.8656 1.9707 0.0610 0.0002 0.3252 2.3571 6.2227

North Delta 3.1194 0.0611 0.1008 0.0354 0.0080 3.3247 1.7362 0.0948 0.0610 0.0002 0.3252 2.2174 5.5421

Ladner 3.1194 0.0611 0.1008 0.0056 3.2869 1.7362 0.0948 0.0610 0.0002 0.3252 2.2174 5.5043

South Delta 3.1194 0.0611 0.1008 0.0113 3.2926 1.7362 0.0948 0.0610 0.0002 0.3252 2.2174 5.5100

North Vancouver 2.3696 0.0616 2.4312 1.4843 0.0610 0.0002 0.3252 1.8707 4.3019

Township of

Langley 0.7325 1.4128 0.1890 0.5782 0.1144 0.2474 3.2743 1.9707 0.0591 0.0610 0.0002 0.3252 2.4162 5.6905

Maple Ridge 3.8564 0.4109 0.0113 0.0047 4.2833 2.0390 0.0624 0.0610 0.0002 0.3252 2.4878 6.7711

Coquitlam 2.3154 0.6530 0.0876 0.0593 3.1153 1.7616 0.0610 0.0002 0.3252 2.1480 5.2633

Pit Meadows 3.7724 0.1342 0.0620 3.9686 2.0390 0.0610 0.0002 0.3252 2.4254 6.3940

Port Coquitlam 3.8224 0.0609 3.8833 1.7616 0.0610 0.0002 0.3252 2.1480 6.0313

Classification 4 Major Industry

Class 4

General

Purpose

Tax Levy

Municipal

General,


Storm

Damage

Greater

Vancouver

Regional

District Library

Sungod


City

Council

Total

Municipal

Provincial

School

Regional

District

BC Assessment

Authority

Municipal

Finance

Authority Translink

Total

Provincial Total

Vancouver 32.9809 0.2093 33.1902 2.4800 0.5213 0.0007 2.2544 5.2564 38.4466

Burnaby 44.9518 44.9518 2.4800 0.2016 0.5213 0.0007 2.2544 5.4580 50.4098

Richmond 8.4435 3.1648 2.4939 0.3260 14.4282 2.4800 0.2011 0.5213 0.0007 2.2544 5.4575 19.8857

Surrey 10.8260 0.2038 11.0298 2.4800 0.5841 0.5213 0.0007 2.2544 5.8405 16.8704

Langley City No Mill Rates 0.0000 0.0000 0.0000

North Delta 31.8085 0.2078 1.0279 0.3610 0.0816 33.4868 2.4800 0.9667 0.5213 0.0007 2.2544 6.2231 39.7099

Ladner 31.8085 0.2078 1.0279 0.0571 33.1013 2.4800 0.9667 0.5213 0.0007 2.2544 6.2231 39.3244

South Delta 31.8085 0.2078 1.0279 0.1152 33.1594 2.4800 0.9667 0.5213 0.0007 2.2544 6.2231 39.3825

North Vancouver 36.7662 0.2094 36.9756 2.4800 0.5213 0.0007 2.2544 5.2564 42.2320

Township of

Langley 1.9763 3.8109 0.5099 1.5598 0.3085 0.6674 8.8328 2.4800 0.2009 0.5213 0.0007 2.2544 5.4573 14.2901

Maple Ridge 33.5237 3.5718 0.0979 0.2122 0.0408 37.4464 2.4800 0.5213 0.0007 2.2544 5.2564 42.7028

Coquitlam 21.8400 6.1600 1.1984 0.2016 29.4000 2.4800 0.5213 0.0007 2.2544 5.2564 34.6564

Pit Meadows 36.0510 1.4755 0.2108 37.7373 2.4800 0.5213 0.0007 2.2544 5.2564 42.9937

Port Coquitlam 0.0000 0.0000 0.0000

Colliers I ~!E .... • ~" "

13

Classification 5 Light Industry

Class 5

General

Purpose

Tax Levy

Municipal

General,


Storm

Damage

Greater

Vancouver

Regional

District Library

Sungod


City

Council

Total

Municipal

Provincial

School

Regional

District

BC Assessment

Authority

Municipal

Finance

Authority Translink

Total

Provincial Total

Vancouver 8.2042 0.2093 8.4135 4.7263 0.1879 0.0007 1.8831 6.7980 15.2115

Burnaby 9.4612 9.4612 4.3200 0.2016 0.1811 0.0007 1.8148 6.5182 15.9794

Richmond 4.7599 1.7841 1.4059 0.1838 8.1337 4.3200 0.2011 0.1811 0.0007 1.8148 6.5177 14.6514

Surrey 5.9355 0.2038 6.1393 4.3200 0.3201 0.1811 0.0007 1.8148 6.6367 12.7760

Langley City 9.8006 0.2023 10.0029 4.3200 0.1811 0.0007 1.8148 6.3166 16.3195

North Delta 10.0055 0.2078 0.3233 0.1135 0.0257 10.6758 4.3200 0.3041 0.1811 0.0007 1.8148 6.6207 17.2965

Ladner 10.0055 0.2078 0.3233 0.0180 10.5546 4.3200 0.3041 0.1811 0.0007 1.8148 6.6207 17.1753

South Delta 10.0055 0.2078 0.3233 0.0362 10.5728 4.3200 0.3041 0.1811 0.0007 1.8148 6.6207 17.1935

North Vancouver 10.9103 0.2094 11.1197 4.3200 0.1811 0.0007 1.8148 6.3166 17.4363

Township of

Langley 2.2171 4.2759 0.5719 0.2009 0.3461 0.7484 8.3603 4.3200 1.7495 0.1811 0.0007 1.8148 8.0661 16.4264

Maple Ridge 11.0118 1.1733 0.0322 0.2122 0.0134 12.4429 4.3200 0.1811 0.0007 1.8148 6.3166 18.7595

Coquitlam 10.3087 2.9076 0.3831 0.2016 13.8010 4.3200 0.1811 0.0007 1.8148 6.3166 20.1176

Pit Meadows 16.0941 0.6918 16.7859 4.3200 0.2108 0.1811 0.0007 1.8148 6.5274 23.3133

Port Coquitlam 13.5325 13.5325 4.3200 0.2068 0.1811 0.0007 1.8148 6.5234 20.0559

Classification 6 Business / Other

Class 6

General

Purpose

Tax Levy

Municipal

General,


Storm

Damage

Greater

Vancouver

Regional

District Library

Sungod


City

Council

Total

Municipal

Provincial

School

Regional

District

BC Assessment

Authority

Municipal

Finance

Authority Translink

Total

Provincial Total

Vancouver 8.2042 0.1508 8.3550 6.4046 0.1871 0.0005 1.5382 8.1304 16.4854

Burnaby 9.4612 9.4612 6.2000 0.1453 0.1811 0.0005 1.4889 8.0158 17.4770

Richmond 4.4643 1.6733 1.3186 0.1724 7.6285 6.2000 0.1449 0.1811 0.0005 1.4889 8.0154 15.6439

Surrey 6.6304 0.1469 6.7773 6.2000 0.3576 0.1811 0.0005 1.4889 8.2281 15.0054

Langley City 8.7844 0.1458 8.9302 6.2000 0.1811 0.0005 1.4889 7.8705 16.8007

North Delta 10.0055 0.1498 0.3233 0.1135 0.0257 10.6178 6.2000 0.3041 0.1811 0.0005 1.4889 8.1746 18.7924

Ladner 10.0055 0.1498 0.3233 0.0180 10.4966 6.2000 0.3041 0.1811 0.0005 1.4889 8.1746 18.6712

South Delta 10.0055 0.1498 0.3233 0.0362 10.5148 6.2000 0.3041 0.1811 0.0005 1.4889 8.1746 18.6894

North Vancouver 8.6013 0.1509 8.7522 6.2000 0.1811 0.0005 1.4889 7.8705 16.6227

Township of

Langley 2.1993 4.2413 0.5676 1.7357 0.3434 0.7426 9.8299 6.2000 0.1447 0.1811 0.0005 1.4889 8.0152 17.8451

Maple Ridge 11.0118 1.1733 0.0322 0.1529 0.0134 12.3836 6.2000 0.1811 0.0005 1.4889 7.8705 20.2541

Coquitlam 10.4107 2.9363 0.4084 0.1453 13.9007 6.2000 0.1811 0.0005 1.4889 7.8705 21.7712

Pit Meadows 11.6776 0.4329 12.1105 6.2000 0.1519 0.1811 0.0005 1.4889 8.0224 20.1329

Port Coquitlam 11.8607 11.8607 6.2000 0.1490 0.1811 0.0005 1.4889 8.0195 19.8802

Colliers I ~!E .... • ~" "

14

Classification 8 Recreational / Non-profit

Class 8

General

Purpose

Tax Levy

Municipal

General,


Storm

Damage

Greater

Vancouver

Regional

District Library

Sungod


City

Council

Total

Municipal

Provincial

School

Regional

District

BC Assessment

Authority

Municipal

Finance

Authority Translink

Total

Provincial Total

Vancouver 1.8159 0.0616 1.8774 3.4000 0.0610 0.0002 0.3105 3.7717 5.6491

Burnaby 1.4799 1.4799 3.4000 0.0593 0.0610 0.0002 0.3105 3.8310 5.3109

Richmond 1.1491 0.4307 0.3394 0.0444 1.9637 3.4000 0.0592 0.0610 0.0002 0.3105 3.8309 5.7945

Surrey 2.1775 0.0600 2.2375 3.4000 0.1175 0.0610 0.0002 0.3105 3.8892 6.1266

Langley City 8.7844 0.0595 8.8439 3.4000 0.0610 0.0000 0.3105 3.7715 12.6154

North Delta 6.7867 0.0611 0.2193 0.0770 0.0174 7.1615 3.4000 0.2062 0.0610 0.0002 0.3105 3.9779 11.1394

Ladner 6.7867 0.0611 0.2193 0.0122 7.0793 3.4000 0.2062 0.0610 0.0002 0.3105 3.9779 11.0572

South Delta 6.7867 0.0611 0.2193 0.0246 7.0917 3.4000 0.2062 0.0610 0.0002 0.3105 3.9779 11.0696

North Vancouver 6.0905 0.0616 6.1520 3.4000 0.0610 0.0002 0.3105 3.7717 9.9237

Township of

Langley 1.2027 2.3195 0.3104 0.0591 0.1878 0.4062 4.4857 3.4000 0.9493 0.0610 0.0002 0.3105 4.7210 9.2067

Maple Ridge 10.8926 1.1606 0.0318 0.0624 0.0133 12.1607 3.4000 0.0610 0.0002 0.3105 3.7717 15.9324

Coquitlam 11.1689 3.1502 0.4204 0.0593 14.7988 3.4000 0.0610 0.0002 0.3105 3.7717 18.5705

Pit Meadows 10.0128 0.2970 10.3098 3.4000 0.0620 0.0610 0.0002 0.3105 3.8337 14.1435

Port Coquitlam 14.2161 14.2161 3.4000 0.3714 0.0610 0.0002 3.8326 18.0487

Classification 9 Farm

Class 9

General

Purpose

Tax Levy

Municipal

General,


Storm

Damage

Greater

Vancouver

Regional

District Library

Sungod


City

Council

Total

Municipal

Provincial

School

Regional

District

BC Assessment

Authority

Municipal

Finance

Authority Translink

Total

Provincial Total

Vancouver 1.8159 0.0616 1.8774 3.4000 0.0610 0.0002 0.3105 3.7717 5.6491

Burnaby 9.4612 9.4612 3.4500 0.0593 0.0610 0.0002 0.3619 3.9324 13.3936

Richmond 7.1736 2.6889 2.1188 0.2770 12.2583 3.4500 0.0592 0.0610 0.0002 0.3619 3.9323 16.1905

Surrey 2.4534 0.0600 2.5133 3.4500 0.1324 0.0610 0.0002 0.3619 4.0055 6.5188

Langley City 3.8061 0.0595 3.8656 6.9000 0.0610 0.0002 0.3619 7.3231 11.1887

North Delta 16.5543 0.5031 0.5349 0.1879 0.0425 17.8227 3.4500 0.0611 0.0610 0.0002 0.3619 3.9342 21.7569

Ladner 16.5543 0.5031 0.5349 0.0297 17.6220 3.4500 0.0611 0.0610 0.0002 0.3619 3.9342 21.5562

South Delta 16.5543 0.5031 0.5349 0.0600 17.6523 3.4500 0.0611 0.0610 0.0002 0.3619 3.9342 21.5865

North Vancouver 0.0000 0.0000 0.0000

Township of

Langley 2.2479 4.3351 0.5799 0.0591 0.3509 0.7589 8.3318 3.4500 1.7738 0.0610 0.0002 0.3619 5.6469 13.9787

Maple Ridge 25.0879 2.6730 0.0732 0.0624 0.0305 27.9270 3.4500 0.0610 0.0002 0.3619 3.8731 31.8001

Coquitlam 13.0726 3.6872 0.4830 0.0593 17.3021 3.4500 0.0610 0.0002 0.3619 3.8731 21.1752

Pit Meadows 29.0010 0.8769 29.8779 3.4500 0.0620 0.0610 0.0002 0.3619 3.9351 33.8130

Port Coquitlam 23.2291 23.2291 6.9000 0.0609 0.0610 0.0002 0.3619 7.3840 27.1631

Colliers I ~!E .... • ~" "

15

Methods of Valuation

The Continuing Legal Education Real Property Manual provides a good insight into the methods of valuation.

the absence of a statute or regulation dictating methods and procedures for valuing real property, generally

accepted appraisal principals and valuation methodologies are applied. Organizations such as the Appraisal

Institute of Canada publish appraisal standards and authoritative texts providing appraisal guidance. In valuing the

fee simple interest in land and improvements, which is the default requirement under the Assessment Act, a real

estate appraiser will investigate the subject property, perform a market analysis, and develop an opinion of

for the subject property. Then one or more of the variants of the Cost Approach, Direct

Comparison Approach and the Income Approach (explained below) are applied, and then reconcile the value

estimates derived under the various approaches to conclude a final estimate of market value

Generally the following valuation methods are applied;

Class 1 Residential Single Family - valued using the Direct Comparison Approach

- Residential Multi Family valued using the Income Approach

Class 2, 4, 7, 9 Utility valued through statute (valued using specific rates prescribed by the assessment

authority)

Class 3 Supportive Housing valued using either the Income Approach or Direct Comparison Approach

Class 5 Light Industrial valued using the Income Approach

Class 6 Business / Other valued using the Income Approach

Class 8 Recreational Property, Non Profit valued using the Direct Comparison Approach

Direct Comparison Approach

The Direct Comparison Approach is based on the premise that the value of a specific property is set by the price

an informed purchaser would pay for a comparable property, offering similar desirability and usefulness. This

requires an understanding of all market variables, including location, property size, physical features and

economic factors. Assessors may make adjustments, if required. For example, if an analysis of a property sold in

May indicated that the overall market price for similar properties has moved as of July 1 the previous year, an

adjustment would reflect the sale price as of last July 1. Since the real estate market changes, the adjustment

process is an important part of developing market-value indicators. The process of identifying and analyzing

comparable property sales is repeated until a satisfactory range of value indicators for the subject property is

established and a final estimate of value is possible.

Cost Approach

The Cost Approach is based on the premise that an informed purchaser will judge the value of a property by

market price and rents of similar properties, and will also consider the cost of buying land with similar

characteristics and constructing a new building. This assumes the cost of replacing the existing building plus the

value of the land equals market value.

16

The steps in applying the Cost Approach include:

- estimating the site value (land and site improvements) through review of comparable sales;

- estimating the cost of replacing the existing building with one of similar usefulness (reflecting current

building design and materials); and

-

and functional and economic obsolescence. Functional obsolescence is the reduced ability of the building

to perform the function it was originally designed and built for. Economic obsolescence refers to external

forces that affect the ability of the buildings to continue to perform, including changes in transportation

corridors, new types of building design demanded by the market, etc.

The Cost Approach is most often used when the property being appraised is new or nearly new, where there are

no comparable sales, or where the improvements are relatively unique or specialized.

Income Approach

The Income Approach to value is based on the premise that the value of a property is directly related to the

income it will generate. The app

the sales of similar income properties and determining the relationship between the sale price and net income.

The steps in applying the Income Approach are to determine the stabilized, net-operating income by:

- estimating potential gross income from all sources;

- deducting an allowance for vacancy and bad debts; and

- deducting all direct and indirect operating expenses.

The resulting net-operating income is capitalized by a market rate, which reflects the property type and effective

date of valuation, to produce an estimate of overall property value.

To determine the potential gross income, the appraiser determines market rents by analyzing rents in both the

property being assessed and in comparable properties in the neighborhood. The appraiser makes allowance for

vacancy and collection loss.

To determine the effective gross income, the appraiser deducts operating expenses. Generally accepted appraisal

practice is to not deduct mortgage interest from operating expenses, since these vary greatly from property to

property.

17

The appraiser determines the capitalization rate by analyzing sales (comparing net operating income to sale

price) in the same market to determine rates of return. The capitalization rate will vary, depending on the

attractiveness of a property as an investment, income risks and physical factors.

The Income Approach is used when appraising properties that produce a rental income from single or multiple

tenants. The capitalized value of the income stream provides an estimate of the market value of the property

(land and improvements).

Excess Land

In the case of commercial and industrial properties with low building site coverage, the income approach to value

must be augmented to the building and an excess land value for the portion of land not required for the operation

of the existing building. Excess land is designed to account for value provided by significant portions of vacant

land. This land provides value in the form of potential expansion of improvements, or in the case of logistics

companies, adequate outdoor storage for containers.

In the calculation of excess land, BC Assessment reviews relevant zoning bylaws and standard industry

construction to determine an appropriate site coverage. That site coverage is applied to existing improvements

and any additional land is assessed at market values. That excess land value is then added to the income value of

the building and associated lands to establish the total assessed value of the property. An example of this

calculation is provided below:

Building size 10,000 sq. ft.

Parcel size 50,000 sq. ft.

Site coverage 40%

Land required for current improvements

= building size / site coverage

= 10,000 sq. ft. / 40%

= 25,000 sq. ft.

Excess land component

= Parcel size land requirement for the current improvements

= 50,000 sq. ft. - 25,000 sq. ft.

= 25,000 sq. ft.

The building and associated land would be assessed on the income approach, plus the excessive land value of

25,000 sq. ft.

18

Diminishing Marginal Returns

The principal of Diminishing Marginal Returns is applied to parcels of land that are larger than typical investment

parcels. Industrial properties between 1 and 5 acres are considered a typical size, therefore the value per acre of

a 2 acre parcel is the same value per acre of a 5 acre parcel. This is because the utility of the property appeals to

a majority of industrial users. Properties larger than 5 acres begin to have a downward adjustment on a price per

acre basis because investors are unwilling to pay as much per acre for larger parcels. The value per acre of a 10

acre property is less than the value per acre of a 2 acre parcel.

When determining land value BC Assessment uses sales evidence; in our analysis, a standard downward

adjustment of 10% for 10 acres, 20% for 25 acres has been made in order to provide a consistent method of

comparison. These adjustments may change depending on the sales evidence gathered by BC Assessment from

year to year.

19

Highest and Best Use

The principle of highest and best use is fundamental to the concept of value in real estate and is applied in all

assessment considerations. Highest and best use, in general, may be defined as follows:

possible, appropriately supported, financially feasible, and that results in the highest value. The four

criteria the highest and best use must meet are legal permissibility, physical possibility, financial

The Assessment Act mandates that all properties be valued to their Highest and Best Use. In doing so

properties are equitably assessed ensuring that property taxes are dispensed equally among property

owners.

Analysis

Legal Permissibility The current use is a permitted use within the applicable zoning and/or

land use bylaw requirements affecting the property. Legal permissibility

can also be affected by rezoning potential created within an Official

Community Plan. Easements or rights of way which may affect building

construction, covenants which may affect density of construction also

impact legal permissibility.

Physical Possibility The site must be of a sufficient size, configuration, and topography to

accommodate the property's present use or proposed use as improved

in an efficient and functional manner.

Financial Feasibility Does the property provide a sufficient return that the property as

improved is considered to be financially feasible. Is demand in the

market sufficient to support a proposed project to make the final

product financially feasible.

Maximum Productivity Of the various legally permissible, physically possible, and financially

feasible uses available, does the current use or proposed use represent

the maximum productivity of the property.

20

Farm Land Classification

The principal q

agricultural production must be produced from the land and offered for sale. The regulation guiding the farm

requirements states that a farm must produce:

a. $2,500 if the area of land is between 8,000 m2 and 4 ha

b. $2,500 plus 5% of the actual value of the land for farm purposes in excess of 4 ha, if the area of land is

more than 4 ha,

c. $10,000 if the total area of land is less than 8,000 m2, and

d. Despite paragraph (c), $2,500 if the area of land has been reduced to less than 8,000 m2

as a result of

expropriation but only if the land remains in the same ownership.

Classification as a farm is highly beneficial for owners of property. Although the farm millage rate, depending on

the municipality, is not necessarily the lowest, the prescribed land value attributed to the parcel is a fraction of

the actual value.

In 2013, land value for farm class properties ranged from $110 per acre for Class 7 (soil with no capability for

agriculture) and $4,350 per acre for Class 1 (soils with no significant limitations in use for crops). These soil

types relate to the soils ability for agricultural production, weather the soil is improved or naturally occurring as

of July 31st the previous year. The designations for soil type dictated by BC Regulation 276/84 and as outlined in

include:

Class 1 Soils with no significant limitations in use for crops;

Class 2 Soils with moderate limitations that restrict the range of crops or require moderate

conservation practices;

Class 3 Soils with moderately severe limitations that restrict the range of crops or require special

conservation practices

Class 4 Soils with severe limitations that restrict the range of crops or require special conservation

practices or both;

Class 5 Soils with very severe limitations that restrict their capability to producing perennial forage

crops, and improvement practices are feasible;

Class 6 Soils capable only of producing perennial forage crops, and improvement practices are not

feasible;

Class 7 Soils with no capability for arable culture or permanent pasture;

21

Due to the range in soil capability, the agricultural production threshold for farms subject to inferior soil

conditions are lower than farms with higher production capability.

The threshold for a 20 acre farm with Class 1 soils would be calculated as such:

$2,500 + 5% of land value

$2,500 + ($4,350 X 20 acre X 5%)

$2,500 + $4,350

$6,850

The threshold for a 20 acre farm with Class 4 soils would be:


$2,500 + ($2,500 X 20acre X 5%)

$2,500 + $2,500

$5,000

Although not a significant overall amount, the difference in the agricultural production threshold value is 37%

higher for the parcel with Class 1 soils.

Calculations for the agricultural scenarios assumed a Class 4 soil condition and an assessed land value per acre

of $2,500. Since production was not a consideration in the scenarios, all farm class properties are assumed to

have achieved the production quota.

22

Agricultural Scenarios 1. Farm Class Status

Properties within the Agricultural Land Reserve (ALR) with residential housing (2,500 sq. ft.) and a dwelling

improvement value of $150,000, that are 0.8, 2, 4, 10, 20 ha in size, on parcels with and without Farm Class

status

2. Resident Type

Properties within the ALR with residential housing (2,500 sq. ft.) and Farm Class status that are 0.8, 2, 4, 10 and

20 ha in size, on parcels with a farmer resident and non-farmer resident

3. Residential Housing

Properties 4 ha in size with a dwelling improvement value of $0, $100,000, $250,000 and $500,000 on parcels

with and without Farm Class status

4. Farm Buildings

Properties 10 ha in size within the ALR and with Farm Class status with residential housing (2,500 sq. ft.) and

farm building improvement value of $100,000; $250,000; and $500,000 before and after the 2013 tax year (to

illustrate the new changes in assessment)

5. Natural Features

Properties 2 and 4 ha in size with residential housing (2,500 sq. ft.), with dwelling improvement value of

$150,000 with natural features on 1 ha of the land (forest or wetland), on parcels with and without Farm Class

status and within and outside the ALR

6. Split Classification

Properties with residential housing (2,500 sq. ft.), with dwelling improvement value of $150,000 that are 2, 4 and

10 ha in size with a nonfarm businesses on half the land, for parcels within the ALR and outside the ALR

7. Leased Land

Properties with residential housing (2,500 sq. ft.), with improvement value of $150,000 that are 2, 4 and 10 ha in

size with a lease (allowing Farm Class status) and without a lease, on parcels within and outside the ALR.

8. Property Classification

Properties with no residential housing, with improvement value of $150,000 that are 0.8, 2, 4, and 10 ha in size,

with residential, major industry, light industry, other business, recreation and farm property classification, for

parcels outside the ALR.

23

Note: 0.8 ha = 2 acres, 1ha = 2.4 acres, 2ha = 5 acres, 4 ha = 10 acres, 10 ha = 24 acres, 20 ha = 48 acres, 30

ha = 72 acres

The information in the following charts is formatted to demonstrate:

1. The property size

2. The land value per acre, the standard unit of measure in appraisal practice

3. These values are multiplied to determine the total land value

4. The improvement value as provided in the scenario parameters or as calculated by Colliers International.

5. The appropriate millage rate including municipal, regional, and provincial considerations as described

earlier in this report, which are separated to apply to the appropriate component of value.

6. The resulting taxation generated by multiplying the component assessed value (land or improvements)

with the appropriate millage rate.

7. The total tax revenue generated by the individual components.

The intent of these charts are to demonstrate the relationship between assessed value and millage rate to

determine the property taxation for the various scenarios. Where appropriate, the above considerations are

augmented to account for variances as described in each of the scenario parameters.

24

Scenario 1 Farm Class Status

Scenario 1 is designed to highlight the influence farm class has on properties located within the Agricultural Land

Reserve. In this analysis Colliers International has relied on conversations with agents of the BC Assessment

Authority in the Fraser Valley and North Fraser Regions.

In this analysis, Colliers International has made the following assumptions:

1) Land not given farm class is considered to be classified as residential.

2)

the various municipalities.

3) Residential values are assumed to be $150,000 as per the scenario outline

4) The valuation difference between 10 acres and 25 acres (4 ha to 10 ha) has been extrapolated from

the Corporation of Delta to apply to other municipalities due to lack of assessment evidence. The

difference has been calculated to a 50% downwards adjustment.

Discussions with agents of the BC Assessment authority and relevant legal precedence indicate that no

distinction is made for properties that achieve farm class status within the ALR and outside of the ALR. The

purpose of the farm classification is to provide a consistent method of value for farm properties across the

province, and therefore does not discriminate between properties within or outside of the Agricultural Land

Reserve.

25

Properties With Farm Class Status Burnaby

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0133936 0.0042806 $66.19 $642.09 $708.28

2 4.942 $2,500 $12,355 $150,000 0.0133936 0.0042806 $165.48 $642.09 $807.57

4 9.884 $2,500 $24,710 $150,000 0.0133936 0.0042806 $330.96 $642.09 $973.05

10 24.71 $2,500 $61,775 $150,000 0.0133936 0.0042806 $827.39 $642.09 $1,469.48

Delta

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.021757 0.0055421 $107.52 $831.32 $938.84

2 4.942 $2,500 $12,355 $150,000 0.021757 0.0055421 $268.81 $831.32 $1,100.12

4 9.884 $2,500 $24,710 $150,000 0.021757 0.0055421 $537.62 $831.32 $1,368.93

10 24.71 $2,500 $61,775 $150,000 0.021757 0.0055421 $1,344.04 $831.32 $2,175.35

Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0211752 0.0052633 $104.65 $789.50 $894.14

2 4.942 $2,500 $12,355 $150,000 0.0211752 0.0052633 $261.62 $789.50 $1,051.11

4 9.884 $2,500 $24,710 $150,000 0.0211752 0.0052633 $523.24 $789.50 $1,312.73

10 24.71 $2,500 $61,775 $150,000 0.0211752 0.0052633 $1,308.10 $789.50 $2,097.59

Township of Langley

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0139787 0.0056905 $69.08 $853.57 $922.65

2 4.942 $2,500 $12,355 $150,000 0.0139787 0.0056905 $172.71 $853.57 $1,026.28

4 9.884 $2,500 $24,710 $150,000 0.0139787 0.0056905 $345.41 $853.57 $1,198.99

10 24.71 $2,500 $61,775 $150,000 0.0139787 0.0056905 $863.53 $853.57 $1,717.10

Maple Ridge

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0318001 0.0067711 $157.16 $1,015.67 $1,172.82

2 4.942 $2,500 $12,355 $150,000 0.0318001 0.0067711 $392.89 $1,015.67 $1,408.56

4 9.884 $2,500 $24,710 $150,000 0.0318001 0.0067711 $785.78 $1,015.67 $1,801.45

10 24.71 $2,500 $61,775 $150,000 0.0318001 0.0067711 $1,964.45 $1,015.67 $2,980.12

Pitt Meadows

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.033813 0.006394 $167.10 $959.10 $1,126.20

2 4.942 $2,500 $12,355 $150,000 0.033813 0.006394 $417.76 $959.10 $1,376.86

4 9.884 $2,500 $24,710 $150,000 0.033813 0.006394 $835.52 $959.10 $1,794.62

10 24.71 $2,500 $61,775 $150,000 0.033813 0.006394 $2,088.80 $959.10 $3,047.90

Port Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.027163 0.0060313 $134.24 $904.70 $1,038.93

2 4.942 $2,500 $12,355 $150,000 0.027163 0.0060313 $335.60 $904.70 $1,240.29

4 9.884 $2,500 $24,710 $150,000 0.027163 0.0060313 $671.20 $904.70 $1,575.89

10 24.71 $2,500 $61,775 $150,000 0.027163 0.0060313 $1,677.99 $904.70 $2,582.69

Richmond

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.016191 0.00416741 $80.02 $625.11 $705.13

2 4.942 $2,500 $12,355 $150,000 0.016191 0.00416741 $200.04 $625.11 $825.15

4 9.884 $2,500 $24,710 $150,000 0.016191 0.00416741 $400.08 $625.11 $1,025.19

10 24.71 $2,500 $61,775 $150,000 0.016191 0.00416741 $1,000.20 $625.11 $1,625.31

Surrey

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0065188 0.00460163 $32.22 $690.24 $722.46

2 4.942 $2,500 $12,355 $150,000 0.0065188 0.00460163 $80.54 $690.24 $770.78

4 9.884 $2,500 $24,710 $150,000 0.0065188 0.00460163 $161.08 $690.24 $851.32

10 24.71 $2,500 $61,775 $150,000 0.0065188 0.00460163 $402.70 $690.24 $1,092.94

Colliers ,," .• 0''''

26

Properties Without Farm Class Status Burnaby

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $825,000 $1,630,860 $150,000 0.0042806 0.0042806 $6,981.06 $642.09 $7,623.15

2 4.942 $550,000 $2,718,100 $150,000 0.0042806 0.0042806 $11,635.10 $642.09 $12,277.19

4 9.884 $400,000 $3,953,600 $150,000 0.0042806 0.0042806 $16,923.78 $642.09 $17,565.87

10 24.71 $210,000 $5,189,100 $150,000 0.0042806 0.0042806 $22,212.46 $642.09 $22,854.55

Delta

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $400,000 $790,720 $150,000 0.0055421 0.0055421 $4,382.25 $831.32 $5,213.56

2 4.942 $230,000 $1,136,660 $150,000 0.0055421 0.0055421 $6,299.48 $831.32 $7,130.80

4 9.884 $140,000 $1,383,760 $150,000 0.0055421 0.0055421 $7,668.94 $831.32 $8,500.25

10 24.71 $70,000 $1,729,700 $150,000 0.0055421 0.0055421 $9,586.17 $831.32 $10,417.49

Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $305,000 $602,924 $150,000 0.0052633 0.0052633 $3,173.37 $789.50 $3,962.86

2 4.942 $162,000 $800,604 $150,000 0.0052633 0.0052633 $4,213.82 $789.50 $5,003.31

4 9.884 $97,500 $963,690 $150,000 0.0052633 0.0052633 $5,072.19 $789.50 $5,861.68

10 24.71 $73,000 $1,803,830 $150,000 0.0052633 0.0052633 $9,494.10 $789.50 $10,283.59

Township of Langley

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $250,000 $494,200 $150,000 0.00569048 0.00569048 $2,812.24 $853.57 $3,665.81

2 4.942 $105,000 $518,910 $150,000 0.00569048 0.00569048 $2,952.85 $853.57 $3,806.42

4 9.884 $75,000 $741,300 $150,000 0.00569048 0.00569048 $4,218.35 $853.57 $5,071.92

10 24.71 $37,500 $926,625 $150,000 0.00569048 0.00569048 $5,272.94 $853.57 $6,126.51

Maple Ridge

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $150,000 $296,520 $150,000 0.0067711 0.0067711 $2,007.77 $1,015.67 $3,023.43

2 4.942 $125,000 $617,750 $150,000 0.0067711 0.0067711 $4,182.85 $1,015.67 $5,198.51

4 9.884 $75,000 $741,300 $150,000 0.0067711 0.0067711 $5,019.42 $1,015.67 $6,035.08

10 24.71 $37,500 $926,625 $150,000 0.0067711 0.0067711 $6,274.27 $1,015.67 $7,289.94

Pitt Meadows

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $200,000 $395,360 $150,000 0.006394 0.006394 $2,527.93 $959.10 $3,487.03

2 4.942 $110,000 $543,620 $150,000 0.006394 0.006394 $3,475.91 $959.10 $4,435.01

4 9.884 $75,000 $741,300 $150,000 0.006394 0.006394 $4,739.87 $959.10 $5,698.97

10 24.71 $37,500 $926,625 $150,000 0.006394 0.006394 $5,924.84 $959.10 $6,883.94

Port Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $388,000 $766,998 $150,000 0.0060313 0.0060313 $4,626.00 $904.70 $5,530.69

2 4.942 $215,600 $1,065,495 $150,000 0.0060313 0.0060313 $6,426.32 $904.70 $7,331.02

4 9.884 $124,000 $1,225,616 $150,000 0.0060313 0.0060313 $7,392.06 $904.70 $8,296.75

10 24.71 $94,400 $2,332,624 $150,000 0.0060313 0.0060313 $14,068.76 $904.70 $14,973.45

Richmond

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $500,000 $988,400 $150,000 0.00416741 0.00416741 $4,119.07 $625.11 $4,744.18

2 4.942 $300,000 $1,482,600 $150,000 0.00416741 0.00416741 $6,178.60 $625.11 $6,803.71

4 9.884 $240,000 $2,372,160 $150,000 0.00416741 0.00416741 $9,885.76 $625.11 $10,510.87

10 24.71 $120,000 $2,965,200 $150,000 0.00416741 0.00416741 $12,357.20 $625.11 $12,982.32

Surrey

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $275,000 $543,620 $150,000 0.00460163 0.00460163 $2,501.54 $690.24 $3,191.78

2 4.942 $180,000 $889,560 $150,000 0.00460163 0.00460163 $4,093.43 $690.24 $4,783.67

4 9.884 $100,000 $988,400 $150,000 0.00460163 0.00460163 $4,548.25 $690.24 $5,238.50

10 24.71 $65,000 $1,606,150 $150,000 0.00460163 0.00460163 $7,390.91 $690.24 $8,081.15

Colliers ,," .• 0''''

27

2 acres (0.8 hectares)

Comparison with and without farm class

Comparison of with and without farm class - 0.8 ha

Municipality With Farm Class Without Farm Class

Burnaby $708.28 $7,623.15

Delta $938.84 $5,213.56

Coquitlam $894.14 $3,962.86

Langley Township $922.65 $3,665.81

Maple Ridge $1,172.82 $3,023.43

Pitt Meadows $1,126.20 $3,487.03

Port Coquitlam $1,038.93 $5,530.69

Richmond $705.13 $4,744.18

Surrey $722.46 $3,191.78

28

5 acres (2.0 hectares)


Comparioson of with and without farm class - 2.0 ha


Burnaby 807.57$ 12,277.19$

Delta 1,100.12$ 7,130.80$

Coquitlam 1,051.11$ 5,003.31$

Langley Township 1,026.28$ 3,806.42$

Maple Ridge 1,408.56$ 5,198.51$

Pitt Meadows 1,376.86$ 4,435.01$

Port Coquitlam 1,240.29$ 7,331.02$

Richmond 825.15$ 6,803.71$

Surrey 770.78$ 4,783.67$

$14,000.00 512,000.00 510,000.00

58,000.00 56,000.00 $4,000.00 52,000.00

5-• With Farm Class

• Without Farm Class

29

10 acres (4 hectares)


Comparison of with and without farm class - 4.0 ha


Burnaby $973.05 $17,565.87

Delta $1,368.93 $8,500.25

Coquitlam $1,312.73 $5,861.68

Langley Township $1,198.99 $5,071.92

Maple Ridge $1,801.45 $6,035.08

Pitt Meadows $1,794.62 $5,698.97

Port Coquitlam $1,575.89 $8,296.75

Richmond $1,025.19 $10,510.87

Surrey $851.32 $5,238.50

30

Conclusions

Scenario 1 demonstrates that properties used for agricultural purposes with farm class status pay significantly

less in property taxes than those which are classified as residential properties. This is especially true for larger

properties in municipalities with high residential land values such as Vancouver and Burnaby.

Taxes for properties with farm class status in Scenario 1 are primarily driven by residential value and the

corresponding residential mill rate. It is important to note that residential structures are typically valued based on

a market adjusted cost approach, and depending on the age and quality of the structure, assessed values can

vary. This is discussed in greater detail in Scenario 4.

Taxes for properties without farm class status are primarily driven by the land value of the property. This is

especially apparent in the City of Burnaby, where parcels 10 acres (4.0 hectares) in size pay over 28 times the

amount paid by similar sized properties which are classified as farm. This is a combination of exceptionally high

land values and an average residential mill rate.

31

Scenario 2 Resident Type

Scenario 2 is designed to determine the difference between properties that have farm class status, are located in

the Agricultural Land Reserve, and the farmer is a resident on the property; and properties that have farm class

status are located in the Agricultural Land Reserve, but do not have a farmer resident on the property.

The farm classification, and the benefits provided therein, only applies to land used for agricultural purposes.

Buildings, whether occupied by the farmer or not, are assessed und 1 -

the actual building assessment, no taxable benefit is incurred from having a farmer as a resident.

However, a farmer resident is entitled to have the land surrounding the residential improvements be classified as

a farm use, while a non-farmer resident would pay residential millage rates for land associated with residential

improvement value.

In the calculations of Scenario 2 the following assumptions were made:

1. Land associated with the residential improvement (of 2,500 sq ft) ie yard, driveway etc is assumed to be

8,000 sq ft. Although this would vary on a case by case basis, 8,000 sq ft was considered to be an

average land size for such properties.

2.

various municipalities.

32

Properties with a Farmer Resident Burnaby

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTotal Taxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0133936 0.0042806 $66.19 $642.09 $708.28

2 4.942 $2,500 $12,355 $150,000 0.0133936 0.0042806 $165.48 $642.09 $807.57

4 9.884 $2,500 $24,710 $150,000 0.0133936 0.0042806 $330.96 $642.09 $973.05

10 24.71 $2,500 $61,775 $150,000 0.0133936 0.0042806 $827.39 $642.09 $1,469.48

Delta

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTotal Taxation

0.8 1.9768 $2,500 $4,942 $150,000 0.021757 0.0055421 $107.52 $831.32 $938.84

2 4.942 $2,500 $12,355 $150,000 0.021757 0.0055421 $268.81 $831.32 $1,100.12

4 9.884 $2,500 $24,710 $150,000 0.021757 0.0055421 $537.62 $831.32 $1,368.93

10 24.71 $2,500 $61,775 $150,000 0.021757 0.0055421 $1,344.04 $831.32 $2,175.35

Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTotal Taxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0211752 0.0052633 $104.65 $789.50 $894.14

2 4.942 $2,500 $12,355 $150,000 0.0211752 0.0052633 $261.62 $789.50 $1,051.11

4 9.884 $2,500 $24,710 $150,000 0.0211752 0.0052633 $523.24 $789.50 $1,312.73

10 24.71 $2,500 $61,775 $150,000 0.0211752 0.0052633 $1,308.10 $789.50 $2,097.59

Township of Langley

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTotal Taxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0139787 0.0056905 $69.08 $853.57 $922.65

2 4.942 $2,500 $12,355 $150,000 0.0139787 0.0056905 $172.71 $853.57 $1,026.28

4 9.884 $2,500 $24,710 $150,000 0.0139787 0.0056905 $345.41 $853.57 $1,198.99

10 24.71 $2,500 $61,775 $150,000 0.0139787 0.0056905 $863.53 $853.57 $1,717.10

Maple Ridge

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTotal Taxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0318001 0.0067711 $157.16 $1,015.67 $1,172.82

2 4.942 $2,500 $12,355 $150,000 0.0318001 0.0067711 $392.89 $1,015.67 $1,408.56

4 9.884 $2,500 $24,710 $150,000 0.0318001 0.0067711 $785.78 $1,015.67 $1,801.45

10 24.71 $2,500 $61,775 $150,000 0.0318001 0.0067711 $1,964.45 $1,015.67 $2,980.12

Pitt Meadows

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTotal Taxation

0.8 1.9768 $2,500 $4,942 $150,000 0.033813 0.006394 $167.10 $959.10 $1,126.20

2 4.942 $2,500 $12,355 $150,000 0.033813 0.006394 $417.76 $959.10 $1,376.86

4 9.884 $2,500 $24,710 $150,000 0.033813 0.006394 $835.52 $959.10 $1,794.62

10 24.71 $2,500 $61,775 $150,000 0.033813 0.006394 $2,088.80 $959.10 $3,047.90

Port Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTotal Taxation

0.8 1.9768 $2,500 $4,942 $150,000 0.027163 0.0060313 $134.24 $904.70 $1,038.93

2 4.942 $2,500 $12,355 $150,000 0.027163 0.0060313 $335.60 $904.70 $1,240.29

4 9.884 $2,500 $24,710 $150,000 0.027163 0.0060313 $671.20 $904.70 $1,575.89

10 24.71 $2,500 $61,775 $150,000 0.027163 0.0060313 $1,677.99 $904.70 $2,582.69

Richmond

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTotal Taxation

0.8 1.9768 $2,500 $4,942 $150,000 0.016191 0.00416741 $80.02 $625.11 $705.13

2 4.942 $2,500 $12,355 $150,000 0.016191 0.00416741 $200.04 $625.11 $825.15

4 9.884 $2,500 $24,710 $150,000 0.016191 0.00416741 $400.08 $625.11 $1,025.19

10 24.71 $2,500 $61,775 $150,000 0.016191 0.00416741 $1,000.20 $625.11 $1,625.31

Surrey

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTotal Taxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0065188 0.00460163 $32.22 $690.24 $722.46

2 4.942 $2,500 $12,355 $150,000 0.0065188 0.00460163 $80.54 $690.24 $770.78

4 9.884 $2,500 $24,710 $150,000 0.0065188 0.00460163 $161.08 $690.24 $851.32

10 24.71 $2,500 $61,775 $150,000 0.0065188 0.00460163 $402.70 $690.24 $1,092.94

Colliers ~. , ,~., '0"'

33

Properties with a Non-Farmer Resident Burnaby

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total

Agricultural

Land Value

Residential

Land Value

Residential

area acres

Residential

Land value

Residential

Improvement

Value

Land Millage

Rate

Residential Land

Millage Rate

Residential

Improvement

Millage Rate

Farm Land

Taxes

Residential

Land Tax

Improvement

Tax Total Taxes

0.8 1.7928 $2,500 $4,482 $825,000 0.184 $151,800 $150,000 0.0133936 0.0042806 0.0042806 $60.03 $649.80 $642.09 $1,351.92

2 4.758 $2,500 $11,895 $550,000 0.184 $101,200 $150,000 0.0133936 0.0042806 0.0042806 $159.32 $433.20 $642.09 $1,234.60

4 9.7 $2,500 $24,250 $400,000 0.184 $73,600 $150,000 0.0133936 0.0042806 0.0042806 $324.79 $315.05 $642.09 $1,281.94

10 24.526 $2,500 $61,315 $210,000 0.184 $38,640 $150,000 0.0133936 0.0042806 0.0042806 $821.23 $165.40 $642.09 $1,628.72

Delta

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total

Agricultural

Land Value

Residential

Land Value

Residential

area acres

Residential

Land value

Residential

Improvement

Value

Land Millage

Rate

Residential Land

Millage Rate

Residential

Improvement

Millage Rate

Farm Land

Taxes

Residential

Land Tax

Improvement

Tax Total Taxes

0.8 1.7928 $2,500 $4,482 $400,000 0.184 $73,600 $150,000 0.021757 0.0055421 0.0055421 $97.51 $407.90 $831.32 $1,336.73

2 4.758 $2,500 $11,895 $230,000 0.184 $42,320 $150,000 0.021757 0.0055421 0.0055421 $258.80 $234.54 $831.32 $1,324.66

4 9.7 $2,500 $24,250 $140,000 0.184 $25,760 $150,000 0.021757 0.0055421 0.0055421 $527.61 $142.76 $831.32 $1,501.69

10 24.526 $2,500 $61,315 $70,000 0.184 $12,880 $150,000 0.021757 0.0055421 0.0055421 $1,334.03 $71.38 $831.32 $2,236.73

Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total

Agricultural

Land Value

Residential

Land Value

Residential

area acres

Residential

Land value

Residential

Improvement

Value

Land Millage

Rate

Residential Land

Millage Rate

Residential

Improvement

Millage Rate

Farm Land

Taxes

Residential

Land Tax

Improvement

Tax Total Taxes

0.8 1.7928 $2,500 $4,482 $305,000 0.184 $56,120 $150,000 0.0211752 0.0052633 0.0052633 $94.91 $295.38 $789.50 $1,179.78

2 4.758 $2,500 $11,895 $162,000 0.184 $29,808 $150,000 0.0211752 0.0052633 0.0052633 $251.88 $156.89 $789.50 $1,198.26

4 9.7 $2,500 $24,250 $97,500 0.184 $17,940 $150,000 0.0211752 0.0052633 0.0052633 $513.50 $94.42 $789.50 $1,397.42

10 24.526 $2,500 $61,315 $73,000 0.184 $13,432 $150,000 0.0211752 0.0052633 0.0052633 $1,298.36 $70.70 $789.50 $2,158.55

Township of Langley

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total

Agricultural

Land Value

Residential

Land Value

Residential

area acres

Residential

Land value

Residential

Improvement

Value

Land Millage

Rate

Residential Land

Millage Rate

Residential

Improvement

Millage Rate

Farm Land

Taxes

Residential

Land Tax

Improvement

Tax Total Taxes

0.8 1.7928 $2,500 $4,482 $250,000 0.184 $46,000 $150,000 0.01397868 0.00569048 0.00569048 $62.65 $261.76 $853.57 $1,177.99

2 4.758 $2,500 $11,895 $105,000 0.184 $19,320 $150,000 0.01397868 0.00569048 0.00569048 $166.28 $109.94 $853.57 $1,129.79

4 9.7 $2,500 $24,250 $75,000 0.184 $13,800 $150,000 0.01397868 0.00569048 0.00569048 $338.98 $78.53 $853.57 $1,271.08

10 24.526 $2,500 $61,315 $37,500 0.184 $6,900 $150,000 0.01397868 0.00569048 0.00569048 $857.10 $39.26 $853.57 $1,749.94

Maple Ridge

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total

Agricultural

Land Value

Residential

Land Value

Residential

area acres

Residential

Land value

Residential

Improvement

Value

Land Millage

Rate

Residential Land

Millage Rate

Residential

Improvement

Millage Rate

Farm Land

Taxes

Residential

Land Tax

Improvement

Tax Total Taxes

0.8 1.7928 $2,500 $4,482 $150,000 0.184 $27,600 $150,000 0.0318001 0.0067711 0.0067711 $142.53 $186.88 $1,015.67 $1,345.08

2 4.758 $2,500 $11,895 $125,000 0.184 $23,000 $150,000 0.0318001 0.0067711 0.0067711 $378.26 $155.74 $1,015.67 $1,549.66

4 9.7 $2,500 $24,250 $75,000 0.184 $13,800 $150,000 0.0318001 0.0067711 0.0067711 $771.15 $93.44 $1,015.67 $1,880.26

10 24.526 $2,500 $61,315 $37,500 0.184 $6,900 $150,000 0.0318001 0.0067711 0.0067711 $1,949.82 $46.72 $1,015.67 $3,012.21

Pitt Meadows

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total

Agricultural

Land Value

Residential

Land Value

Residential

area acres

Residential

Land value

Residential

Improvement

Value

Land Millage

Rate

Residential Land

Millage Rate

Residential

Improvement

Millage Rate

Farm Land

Taxes

Residential

Land Tax

Improvement

Tax Total Taxes

0.8 1.7928 $2,500 $4,482 $200,000 0.184 $36,800 $150,000 0.033813 0.006394 0.006394 $151.55 $235.30 $959.10 $1,345.95

2 4.758 $2,500 $11,895 $110,000 0.184 $20,240 $150,000 0.033813 0.006394 0.006394 $402.21 $129.41 $959.10 $1,490.72

4 9.7 $2,500 $24,250 $75,000 0.184 $13,800 $150,000 0.033813 0.006394 0.006394 $819.97 $88.24 $959.10 $1,867.30

10 24.526 $2,500 $61,315 $37,500 0.184 $6,900 $150,000 0.033813 0.006394 0.006394 $2,073.24 $44.12 $959.10 $3,076.46

Port Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total

Agricultural

Land Value

Residential

Land Value

Residential

area acres

Residential

Land value

Residential

Improvement

Value

Land Millage

Rate

Residential Land

Millage Rate

Residential

Improvement

Millage Rate

Farm Land

Taxes

Residential

Land Tax

Improvement

Tax Total Taxes

0.8 1.7928 $2,500 $4,482 $388,000 0.184 $71,392 $150,000 0.027163 0.0060313 0.0060313 $121.74 $430.59 $904.70 $1,457.03

2 4.758 $2,500 $11,895 $215,600 0.184 $39,670 $150,000 0.027163 0.0060313 0.0060313 $323.10 $239.26 $904.70 $1,467.06

4 9.7 $2,500 $24,250 $124,000 0.184 $22,816 $150,000 0.027163 0.0060313 0.0060313 $658.70 $137.61 $904.70 $1,701.01

10 24.526 $2,500 $61,315 $94,400 0.184 $17,370 $150,000 0.027163 0.0060313 0.0060313 $1,665.50 $104.76 $904.70 $2,674.96

Richmond

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total

Agricultural

Land Value

Residential

Land Value

Residential

area acres

Residential

Land value

Residential

Improvement

Value

Land Millage

Rate

Residential Land

Millage Rate

Residential

Improvement

Millage Rate

Farm Land

Taxes

Residential

Land Tax

Improvement

Tax Total Taxes

0.8 1.7928 $2,500 $4,482 $500,000 0.184 $92,000 $150,000 0.016191 0.00416741 0.00416741 $72.57 $383.40 $625.11 $1,081.08

2 4.758 $2,500 $11,895 $300,000 0.184 $55,200 $150,000 0.016191 0.00416741 0.00416741 $192.59 $230.04 $625.11 $1,047.74

4 9.7 $2,500 $24,250 $240,000 0.184 $44,160 $150,000 0.016191 0.00416741 0.00416741 $392.63 $184.03 $625.11 $1,201.78

10 24.526 $2,500 $61,315 $120,000 0.184 $22,080 $150,000 0.016191 0.00416741 0.00416741 $992.75 $92.02 $625.11 $1,709.88

Surrey

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total

Agricultural

Land Value

Residential

Land Value

Residential

area acres

Residential

Land value

Residential

Improvement

Value

Land Millage

Rate

Residential Land

Millage Rate

Residential

Improvement

Millage Rate

Farm Land

Taxes

Residential

Land Tax

Improvement

Tax Total Taxes

0.8 1.7928 $2,500 $4,482 $275,000 0.184 $50,600 $150,000 0.0065188 0.00460163 0.00460163 $29.22 $232.84 $690.24 $952.30

2 4.758 $2,500 $11,895 $180,000 0.184 $33,120 $150,000 0.0065188 0.00460163 0.00460163 $77.54 $152.41 $690.24 $920.19

4 9.7 $2,500 $24,250 $100,000 0.184 $18,400 $150,000 0.0065188 0.00460163 0.00460163 $158.08 $84.67 $690.24 $933.00

10 24.526 $2,500 $61,315 $65,000 0.184 $11,960 $150,000 0.0065188 0.00460163 0.00460163 $399.70 $55.04 $690.24 $1,144.98

34

Comparison with and without farm resident 2 acres (0.8 hectares)

2 Acres (0.8 Hectares)

Non-Farm Resident Farm Resident Difference

Burnaby 1,351.92$ 708.28$ 643.63$

Delta 1,336.73$ 938.84$ 397.89$

Coquitlam 1,179.78$ 894.14$ 285.64$

Langley 1,177.99$ 922.65$ 255.33$

Maple Ridge 1,345.08$ 1,172.82$ 172.25$

Pitt Meadows 1,345.95$ 1,126.20$ 219.75$

Port Coquitlam 1,457.03$ 1,038.93$ 418.09$

Richmond 1,081.08$ 705.13$ 375.95$

Surrey 952.30$ 722.46$ 229.84$

$1,600.00

$1,1\00.00

$1,200.00

$1,000.00

$800.00 $600.00 $400 .00

$200.00 $.

Colliers I " ' E~"'AI I O ~"'I

• No,,-Fdrnl Re sident

• Farm Resident

35




Burnaby 1,234.60$ 807.57$ 427.04$

Delta 1,324.66$ 1,100.12$ 224.53$

Coquitlam 1,198.26$ 1,051.11$ 147.15$

Langley 1,129.79$ 1,026.28$ 103.51$

Maple Ridge 1,549.66$ 1,408.56$ 141.11$

Pitt Meadows 1,490.72$ 1,376.86$ 113.86$

Port Coquitlam 1,467.06$ 1,240.29$ 226.77$

Richmond 1,047.74$ 825.15$ 222.59$

Surrey 920.19$ 770.78$ 149.41$

$1.,800,00

$1,600.00 $1,400.00 $1,200 .00 $1,000.00

$800.00 $600 .00 $400.00

$200.00 $-


• Non-F<lrm Resident

• Farm Resident

36




Burnaby 1,281.94$ 973.05$ 308.89$

Delta 1,501.69$ 1,368.93$ 132.76$

Coquitlam 1,397.42$ 1,312.73$ 84.68$

Langley 1,271.08$ 1,198.99$ 72.10$

Maple Ridge 1,880.26$ 1,801.45$ 78.81$

Pitt Meadows 1,867.30$ 1,794.62$ 72.68$

Port Coquitlam 1,701.01$ 1,575.89$ 125.12$

Richmond 1,201.78$ 1,025.19$ 176.58$

Surrey 933.00$ 851.32$ 81.67$

$2,000.00 $1,800.00 $1.600.00 $1,400 .00 $1,200 .00 $1,000 .00

$800.00 $600.00 $400.00 $200 .00

$-


• Non-Farm Re sident

• Farm Re sident

37




Burnaby 1,628.72$ 1,469.48$ 159.24$

Delta 2,236.73$ 2,175.35$ 61.37$

Coquitlam 2,158.55$ 2,097.59$ 60.96$

Langley 1,749.94$ 1,717.10$ 32.83$

Maple Ridge 3,012.21$ 2,980.12$ 32.09$

Pitt Meadows 3,076.46$ 3,047.90$ 28.56$

Port Coquitlam 2,674.96$ 2,582.69$ 92.27$

Richmond 1,709.88$ 1,625.31$ 84.57$

Surrey 1,144.98$ 1,092.94$ 52.04$

$3,500.00

$3,000 .00

$2,500.00

$2,000.00

$1,500 .00

$1,000.00

$500.00

$-

• Non-Farm Resident

• Farm Resident


38

Conclusions

When comparing properties with a farmer resident and without a farmer resident, the largest difference is for

smaller parcels. This is due to the higher land value per acre for smaller parcels of residential land, as well as

the residential land comprising a larger proportion of the overall parcel value. As land size increases, the value of

the residential land as well as the proportion of value it contributes declines. At 25 acres (10.0 hectares) the

difference between a farm resident and a non-farm resident is negligible.

Assessment of farm class status properties with farmer residents is more significant on smaller properties than

larger ones.

As an aside, under the Taxation Rural Area Act roperty tax. As most areas

within the Metro Vancouver region are incorporated municipalities, farm properties do not fall under the

jurisdiction of the Taxation Rural Area Act. The exception to this is Barnston Island which is subject to the

Taxation Rural Area Act.

39

Scenario 3 Improvement / Residential Building Value

Originally, the question of the difference in improvement values was separated into two scenarios. One involving

residences of different sizes (ie, 1,500 sq ft, 2,500 sq ft, 3,500 sq ft, and 5,000 sq ft) and a separate scenario

involving different property values (ie. Improvement values of $0, $150,000, $250,000 and $500,000). Due to

the method of valuation utilized by BC Assessment to determine improvement value, these two scenarios have

been combined.

In the valuation of the residential building component of a farm property, BC Assessment utilizes a market

improvements, and then depreciating the value based primarily on physical depreciation. Depreciation of a

building is limited to 98% of the replacement cost.

used by BC Assessment closely mirrors

the improvement used by Colliers

International

Marshall and Swift model of valuation for the improvement values of homes ranging from 1,500 sq ft to 5,000 sq

ft and associated building ages and conditions.

Colliers International worked under the following assumptions in the calculation of the taxation base for this

scenario:

1. The valuation of property used by BC Assessment is considered to be similar to that of Marshall and

Swift Valuation Manual. Valuation is as of December 31st, 2013. Any changes in cost models would

2. The location, topography,

various municipalities.

3. Improvement

4. Properties are assumed to be typical two storey buildings of average storey height and a Type 1 area-

perimeter ratio. This is outlined in the following pages.

40

Replacement Cost

Single Family Home 1,500 sq ft- Metro Vancouver

New Construction New Construction Old Construction Old Construction

Occupancy: Single Family Single Family Single Family Single Family

Building Class and Quality: D Class / Average D Class / Excellent D Class / Average D Class / Excellent

Exterior Wall: Wood Frame Wood Frame Wood Frame Wood Frame

No. of Stories: 2 2 2 2

Property Size: 1,500 1,500 1,500 1,500

Average Height per Storey: 10 10 10 10

Average Floor Area: Variable Variable Variable Variable

Average Perimeter: Variable Variable Variable Variable

Building Age: 2000 2000 1970 1970

Building Condition: Average Very Good Average Very Good

Section I Section I Section I Section I

Base Cost per Square Foot: $77.39 $152.40 $77.39 $152.40

Square Foot Refinements

Heating, Ventilation & Cooling: $2.12 $9.50 $2.12 $9.50

Elevator Deduction: $0.00 $0.00 $0.00 $0.00

Miscellaneous: $0.00 $0.00 $0.00 $0.00

Sub-total: $79.51 $161.90 $79.51 $161.90

Height & Size Adjustments

Number of Stories Multiplier: 1.000 1.000 1.000 1.000

Height per Storey Multiplier: 1.000 1.000 1.000 1.000

Floor Area-Perimieter Multiplier: 1.000 1.000 1.000 1.000

Sub-total: 1.000 1.000 1.000 1.000

Final Calculations Section I Section I Section I Section I

Refined Square Foot Cost: $79.51 $161.90 $79.51 $161.90

Current Cost Multiplier: x 1.060 x 1.060 x 1.060 x 1.060

Local Multiplier: x 1.190 x 1.190 x 1.190 x 1.190

Final Square Foot Cost: $100.29 $204.22 $100.29 $204.22

Area SF: 1,500 1,500 1,500 1,500

Replacement Cost: $150,441 $306,331 $150,441 $306,331

Physical Depreciation %: 0.00% 0.00% 98.00% 98.00%

Depreciation $: -$ -$ 147,432$ 300,204$

Depreciated Replacement Cost: $150,441 $306,331 $3,009 $6,127

Land Value: $0 $0 $0 $0

Final building Value Estimate via Cost

Approach(1)

$150,000 $306,000 $3,000 $6,000

(1) Rounded to nearest $1,000

Colliers ,' F,,, ,,O"·

41

Replacement Cost

Single Family Home 2,500 sq ft - Metro Vancouver






Property Size: 2,500 2,500 2,500 2,500




Building Age: 2000 2000 1970 1970







Miscellaneous: $0.00 $0.00 $0.00 $0.00

Sub-total: $79.51 $161.90 $79.51 $161.90





Sub-total: 1.000 1.000 1.000 1.000






Area SF: 2,500 2,500 2,500 2,500



Depreciation $: -$ -$ 245,720$ 500,341$


Land Value: $0 $0 $0 $0

Final Building Value Estimate via Cost

Approach(1)

$251,000 $511,000 $5,000 $10,000



42

Replacement Cost







Property Size: 3,500 3,500 3,500 3,500




Building Age: 2000 2000 1970 1970







Miscellaneous: $0.00 $0.00 $0.00 $0.00

Sub-total: $79.51 $161.90 $79.51 $161.90





Sub-total: 1.000 1.000 1.000 1.000






Area SF: 3,500 3,500 3,500 3,500



Depreciation $: -$ -$ 344,008$ 700,477$


Land Value: $0 $0 $0 $0


Approach(1)

$351,000 $715,000 $7,000 $14,000



43

Replacement Cost







Property Size: 5,000 5,000 5,000 5,000




Building Age: 2000 2000 1970 1970







Miscellaneous: $0.00 $0.00 $0.00 $0.00

Sub-total: $79.51 $161.90 $79.51 $161.90





Sub-total: 1.000 1.000 1.000 1.000






Area SF: 5,000 5,000 5,000 5,000

Replacement Cost: $501,470 $1,021,103 $501,470 $1,021,103


Depreciation $: -$ -$ 491,440$ 1,000,681$

Depreciated Replacement Cost: $501,470 $1,021,103 $10,029 $20,422

Land Value: $0 $0 $0 $0


Approach(1)

$501,000 $1,021,000 $10,000 $20,000



44

As is demonstrated on the preceding analysis, improvement values can range from $3,000 to $20,000 for

improvements that are 98% depreciated and $150,000 to $1,021,000 for newly constructed improvements. For

ease of comparison, Colliers International has assumed improvement values of $0, $150,000, $250,000 and

$500,000 as originally requested.

The following tables are organized to demonstrate the results of the three variables presented: Location, Property

Size and Improvement Value. Within each municipality, the information is grouped by improvement value

corresponding with various requested property sizes. For example, properties within Burnaby with no

improvement value range between $66.19 and $827.39 in tax for parcel sizes of 2 acres (0.8 hectares) to 25

acres (10.0 hectares).

45

Properties With Farm Class

Burnaby

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $2,500 $4,942 $0 0.0133936 0.0042806 $66.19 $0.00 $66.19

2 4.942 $2,500 $12,355 $0 0.0133936 0.0042806 $165.48 $0.00 $165.48

4 9.884 $2,500 $24,710 $0 0.0133936 0.0042806 $330.96 $0.00 $330.96

10 24.71 $2,500 $61,775 $0 0.0133936 0.0042806 $827.39 $0.00 $827.39

0.8 1.9768 $2,500 $4,942 $150,000 0.00996879 0.00460163 $49.27 $690.24 $739.51

2 4.942 $2,500 $12,355 $150,000 0.00996879 0.00460163 $123.16 $690.24 $813.41

4 9.884 $2,500 $24,710 $150,000 0.00996879 0.00460163 $246.33 $690.24 $936.57

10 24.71 $2,500 $61,775 $150,000 0.00996879 0.00460163 $615.82 $690.24 $1,306.07

0.8 1.9768 $2,500 $4,942 $250,000 0.00996879 0.00460163 $49.27 $1,150.41 $1,199.67

2 4.942 $2,500 $12,355 $250,000 0.00996879 0.00460163 $123.16 $1,150.41 $1,273.57

4 9.884 $2,500 $24,710 $250,000 0.00996879 0.00460163 $246.33 $1,150.41 $1,396.74

10 24.71 $2,500 $61,775 $250,000 0.00996879 0.00460163 $615.82 $1,150.41 $1,766.23

0.8 1.9768 $2,500 $4,942 $500,000 0.00996879 0.00460163 $49.27 $2,300.82 $2,350.08

2 4.942 $2,500 $12,355 $500,000 0.00996879 0.00460163 $123.16 $2,300.82 $2,423.98

4 9.884 $2,500 $24,710 $500,000 0.00996879 0.00460163 $246.33 $2,300.82 $2,547.14

10 24.71 $2,500 $61,775 $500,000 0.00996879 0.00460163 $615.82 $2,300.82 $2,916.64

Delta

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $2,500 $4,942 $0 0.021757 0.0055421 $107.52 $0.00 $107.52

2 4.942 $2,500 $12,355 $0 0.021757 0.0055421 $268.81 $0.00 $268.81

4 9.884 $2,500 $24,710 $0 0.021757 0.0055421 $537.62 $0.00 $537.62

10 24.71 $2,500 $61,775 $0 0.021757 0.0055421 $1,344.04 $0.00 $1,344.04

0.8 1.9768 $2,500 $4,942 $150,000 0.021757 0.0055421 $107.52 $831.32 $938.84

2 4.942 $2,500 $12,355 $150,000 0.021757 0.0055421 $268.81 $831.32 $1,100.12

4 9.884 $2,500 $24,710 $150,000 0.021757 0.0055421 $537.62 $831.32 $1,368.93

10 24.71 $2,500 $61,775 $150,000 0.021757 0.0055421 $1,344.04 $831.32 $2,175.35

0.8 1.9768 $2,500 $4,942 $250,000 0.021757 0.0055421 $107.52 $1,385.53 $1,493.05

2 4.942 $2,500 $12,355 $250,000 0.021757 0.0055421 $268.81 $1,385.53 $1,654.33

4 9.884 $2,500 $24,710 $250,000 0.021757 0.0055421 $537.62 $1,385.53 $1,923.14

10 24.71 $2,500 $61,775 $250,000 0.021757 0.0055421 $1,344.04 $1,385.53 $2,729.56

0.8 1.9768 $2,500 $4,942 $500,000 0.021757 0.0055421 $107.52 $2,771.05 $2,878.57

2 4.942 $2,500 $12,355 $500,000 0.021757 0.0055421 $268.81 $2,771.05 $3,039.86

4 9.884 $2,500 $24,710 $500,000 0.021757 0.0055421 $537.62 $2,771.05 $3,308.67

10 24.71 $2,500 $61,775 $500,000 0.021757 0.0055421 $1,344.04 $2,771.05 $4,115.09

Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $2,500 $4,942 $0 0.0211752 0.0052633 $104.65 $0.00 $104.65

2 4.942 $2,500 $12,355 $0 0.0211752 0.0052633 $261.62 $0.00 $261.62

4 9.884 $2,500 $24,710 $0 0.0211752 0.0052633 $523.24 $0.00 $523.24

10 24.71 $2,500 $61,775 $0 0.0211752 0.0052633 $1,308.10 $0.00 $1,308.10

0.8 1.9768 $2,500 $4,942 $150,000 0.0211752 0.0052633 $104.65 $789.50 $894.14

2 4.942 $2,500 $12,355 $150,000 0.0211752 0.0052633 $261.62 $789.50 $1,051.11

4 9.884 $2,500 $24,710 $150,000 0.0211752 0.0052633 $523.24 $789.50 $1,312.73

10 24.71 $2,500 $61,775 $150,000 0.0211752 0.0052633 $1,308.10 $789.50 $2,097.59

0.8 1.9768 $2,500 $4,942 $250,000 0.0211752 0.0052633 $104.65 $1,315.83 $1,420.47

2 4.942 $2,500 $12,355 $250,000 0.0211752 0.0052633 $261.62 $1,315.83 $1,577.44

4 9.884 $2,500 $24,710 $250,000 0.0211752 0.0052633 $523.24 $1,315.83 $1,839.06

10 24.71 $2,500 $61,775 $250,000 0.0211752 0.0052633 $1,308.10 $1,315.83 $2,623.92

0.8 1.9768 $2,500 $4,942 $500,000 0.0211752 0.0052633 $104.65 $2,631.65 $2,736.30

2 4.942 $2,500 $12,355 $500,000 0.0211752 0.0052633 $261.62 $2,631.65 $2,893.27

4 9.884 $2,500 $24,710 $500,000 0.0211752 0.0052633 $523.24 $2,631.65 $3,154.89

10 24.71 $2,500 $61,775 $500,000 0.0211752 0.0052633 $1,308.10 $2,631.65 $3,939.75


46

Properties With Farm Class continued

Township of Langley

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $2,500 $4,942 $0 0.01397868 0.00569048 $69.08 $0.00 $69.08

2 4.942 $2,500 $12,355 $0 0.01397868 0.00569048 $172.71 $0.00 $172.71

4 9.884 $2,500 $24,710 $0 0.01397868 0.00569048 $345.41 $0.00 $345.41

10 24.71 $2,500 $61,775 $0 0.01397868 0.00569048 $863.53 $0.00 $863.53

0.8 1.9768 $2,500 $4,942 $150,000 0.01397868 0.00569048 $69.08 $853.57 $922.65

2 4.942 $2,500 $12,355 $150,000 0.01397868 0.00569048 $172.71 $853.57 $1,026.28

4 9.884 $2,500 $24,710 $150,000 0.01397868 0.00569048 $345.41 $853.57 $1,198.99

10 24.71 $2,500 $61,775 $150,000 0.01397868 0.00569048 $863.53 $853.57 $1,717.10

0.8 1.9768 $2,500 $4,942 $250,000 0.01397868 0.00569048 $69.08 $1,422.62 $1,491.70

2 4.942 $2,500 $12,355 $250,000 0.01397868 0.00569048 $172.71 $1,422.62 $1,595.33

4 9.884 $2,500 $24,710 $250,000 0.01397868 0.00569048 $345.41 $1,422.62 $1,768.03

10 24.71 $2,500 $61,775 $250,000 0.01397868 0.00569048 $863.53 $1,422.62 $2,286.15

0.8 1.9768 $2,500 $4,942 $500,000 0.01397868 0.00569048 $69.08 $2,845.24 $2,914.32

2 4.942 $2,500 $12,355 $500,000 0.01397868 0.00569048 $172.71 $2,845.24 $3,017.95

4 9.884 $2,500 $24,710 $500,000 0.01397868 0.00569048 $345.41 $2,845.24 $3,190.65

10 24.71 $2,500 $61,775 $500,000 0.01397868 0.00569048 $863.53 $2,845.24 $3,708.77

Maple Ridge

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $2,500 $4,942 $0 0.0318001 0.0067711 $157.16 $0.00 $157.16

2 4.942 $2,500 $12,355 $0 0.0318001 0.0067711 $392.89 $0.00 $392.89

4 9.884 $2,500 $24,710 $0 0.0318001 0.0067711 $785.78 $0.00 $785.78

10 24.71 $2,500 $61,775 $0 0.0318001 0.0067711 $1,964.45 $0.00 $1,964.45

0.8 1.9768 $2,500 $4,942 $150,000 0.0318001 0.0067711 $157.16 $1,015.67 $1,172.82

2 4.942 $2,500 $12,355 $150,000 0.0318001 0.0067711 $392.89 $1,015.67 $1,408.56

4 9.884 $2,500 $24,710 $150,000 0.0318001 0.0067711 $785.78 $1,015.67 $1,801.45

10 24.71 $2,500 $61,775 $150,000 0.0318001 0.0067711 $1,964.45 $1,015.67 $2,980.12

0.8 1.9768 $2,500 $4,942 $250,000 0.0318001 0.0067711 $157.16 $1,692.78 $1,849.93

2 4.942 $2,500 $12,355 $250,000 0.0318001 0.0067711 $392.89 $1,692.78 $2,085.67

4 9.884 $2,500 $24,710 $250,000 0.0318001 0.0067711 $785.78 $1,692.78 $2,478.56

10 24.71 $2,500 $61,775 $250,000 0.0318001 0.0067711 $1,964.45 $1,692.78 $3,657.23

0.8 1.9768 $2,500 $4,942 $500,000 0.0318001 0.0067711 $157.16 $3,385.55 $3,542.71

2 4.942 $2,500 $12,355 $500,000 0.0318001 0.0067711 $392.89 $3,385.55 $3,778.44

4 9.884 $2,500 $24,710 $500,000 0.0318001 0.0067711 $785.78 $3,385.55 $4,171.33

10 24.71 $2,500 $61,775 $500,000 0.0318001 0.0067711 $1,964.45 $3,385.55 $5,350.00

Pitt Meadows

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $2,500 $4,942 $0 0.033813 0.006394 $167.10 $0.00 $167.10

2 4.942 $2,500 $12,355 $0 0.033813 0.006394 $417.76 $0.00 $417.76

4 9.884 $2,500 $24,710 $0 0.033813 0.006394 $835.52 $0.00 $835.52

10 24.71 $2,500 $61,775 $0 0.033813 0.006394 $2,088.80 $0.00 $2,088.80

0.8 1.9768 $2,500 $4,942 $150,000 0.033813 0.006394 $167.10 $959.10 $1,126.20

2 4.942 $2,500 $12,355 $150,000 0.033813 0.006394 $417.76 $959.10 $1,376.86

4 9.884 $2,500 $24,710 $150,000 0.033813 0.006394 $835.52 $959.10 $1,794.62

10 24.71 $2,500 $61,775 $150,000 0.033813 0.006394 $2,088.80 $959.10 $3,047.90

0.8 1.9768 $2,500 $4,942 $250,000 0.033813 0.006394 $167.10 $1,598.50 $1,765.60

2 4.942 $2,500 $12,355 $250,000 0.033813 0.006394 $417.76 $1,598.50 $2,016.26

4 9.884 $2,500 $24,710 $250,000 0.033813 0.006394 $835.52 $1,598.50 $2,434.02

10 24.71 $2,500 $61,775 $250,000 0.033813 0.006394 $2,088.80 $1,598.50 $3,687.30

0.8 1.9768 $2,500 $4,942 $500,000 0.033813 0.006394 $167.10 $3,197.00 $3,364.10

2 4.942 $2,500 $12,355 $500,000 0.033813 0.006394 $417.76 $3,197.00 $3,614.76

4 9.884 $2,500 $24,710 $500,000 0.033813 0.006394 $835.52 $3,197.00 $4,032.52

10 24.71 $2,500 $61,775 $500,000 0.033813 0.006394 $2,088.80 $3,197.00 $5,285.80


47

Properties With Farm Class continued

Port Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $2,500 $4,942 $0 0.027163 0.0060313 $134.24 $0.00 $134.24

2 4.942 $2,500 $12,355 $0 0.027163 0.0060313 $335.60 $0.00 $335.60

4 9.884 $2,500 $24,710 $0 0.027163 0.0060313 $671.20 $0.00 $671.20

10 24.71 $2,500 $61,775 $0 0.027163 0.0060313 $1,677.99 $0.00 $1,677.99

0.8 1.9768 $2,500 $4,942 $150,000 0.027163 0.0060313 $134.24 $904.70 $1,038.93

2 4.942 $2,500 $12,355 $150,000 0.027163 0.0060313 $335.60 $904.70 $1,240.29

4 9.884 $2,500 $24,710 $150,000 0.027163 0.0060313 $671.20 $904.70 $1,575.89

10 24.71 $2,500 $61,775 $150,000 0.027163 0.0060313 $1,677.99 $904.70 $2,582.69

0.8 1.9768 $2,500 $4,942 $250,000 0.027163 0.0060313 $134.24 $1,507.83 $1,642.06

2 4.942 $2,500 $12,355 $250,000 0.027163 0.0060313 $335.60 $1,507.83 $1,843.42

4 9.884 $2,500 $24,710 $250,000 0.027163 0.0060313 $671.20 $1,507.83 $2,179.02

10 24.71 $2,500 $61,775 $250,000 0.027163 0.0060313 $1,677.99 $1,507.83 $3,185.82

0.8 1.9768 $2,500 $4,942 $500,000 0.027163 0.0060313 $134.24 $3,015.65 $3,149.89

2 4.942 $2,500 $12,355 $500,000 0.027163 0.0060313 $335.60 $3,015.65 $3,351.25

4 9.884 $2,500 $24,710 $500,000 0.027163 0.0060313 $671.20 $3,015.65 $3,686.85

10 24.71 $2,500 $61,775 $500,000 0.027163 0.0060313 $1,677.99 $3,015.65 $4,693.64

Richmond

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $2,500 $4,942 $0 0.016191 0.00416741 $80.02 $0.00 $80.02

2 4.942 $2,500 $12,355 $0 0.016191 0.00416741 $200.04 $0.00 $200.04

4 9.884 $2,500 $24,710 $0 0.016191 0.00416741 $400.08 $0.00 $400.08

10 24.71 $2,500 $61,775 $0 0.016191 0.00416741 $1,000.20 $0.00 $1,000.20

0.8 1.9768 $2,500 $4,942 $150,000 0.016191 0.00416741 $80.02 $625.11 $705.13

2 4.942 $2,500 $12,355 $150,000 0.016191 0.00416741 $200.04 $625.11 $825.15

4 9.884 $2,500 $24,710 $150,000 0.016191 0.00416741 $400.08 $625.11 $1,025.19

10 24.71 $2,500 $61,775 $150,000 0.016191 0.00416741 $1,000.20 $625.11 $1,625.31

0.8 1.9768 $2,500 $4,942 $250,000 0.016191 0.00416741 $80.02 $1,041.85 $1,121.87

2 4.942 $2,500 $12,355 $250,000 0.016191 0.00416741 $200.04 $1,041.85 $1,241.89

4 9.884 $2,500 $24,710 $250,000 0.016191 0.00416741 $400.08 $1,041.85 $1,441.93

10 24.71 $2,500 $61,775 $250,000 0.016191 0.00416741 $1,000.20 $1,041.85 $2,042.05

0.8 1.9768 $2,500 $4,942 $500,000 0.016191 0.00416741 $80.02 $2,083.71 $2,163.72

2 4.942 $2,500 $12,355 $500,000 0.016191 0.00416741 $200.04 $2,083.71 $2,283.74

4 9.884 $2,500 $24,710 $500,000 0.016191 0.00416741 $400.08 $2,083.71 $2,483.78

10 24.71 $2,500 $61,775 $500,000 0.016191 0.00416741 $1,000.20 $2,083.71 $3,083.90

Surrey

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $2,500 $4,942 $0 0.00651879 0.00460163 $32.22 $0.00 $32.22

2 4.942 $2,500 $12,355 $0 0.00651879 0.00460163 $80.54 $0.00 $80.54

4 9.884 $2,500 $24,710 $0 0.00651879 0.00460163 $161.08 $0.00 $161.08

10 24.71 $2,500 $61,775 $0 0.00651879 0.00460163 $402.70 $0.00 $402.70

0.8 1.9768 $2,500 $4,942 $150,000 0.00651879 0.00460163 $32.22 $690.24 $722.46

2 4.942 $2,500 $12,355 $150,000 0.00651879 0.00460163 $80.54 $690.24 $770.78

4 9.884 $2,500 $24,710 $150,000 0.00651879 0.00460163 $161.08 $690.24 $851.32

10 24.71 $2,500 $61,775 $150,000 0.00651879 0.00460163 $402.70 $690.24 $1,092.94

0.8 1.9768 $2,500 $4,942 $250,000 0.00651879 0.00460163 $32.22 $1,150.41 $1,182.62

2 4.942 $2,500 $12,355 $250,000 0.00651879 0.00460163 $80.54 $1,150.41 $1,230.95

4 9.884 $2,500 $24,710 $250,000 0.00651879 0.00460163 $161.08 $1,150.41 $1,311.49

10 24.71 $2,500 $61,775 $250,000 0.00651879 0.00460163 $402.70 $1,150.41 $1,553.11

0.8 1.9768 $2,500 $4,942 $500,000 0.00651879 0.00460163 $32.22 $2,300.82 $2,333.03

2 4.942 $2,500 $12,355 $500,000 0.00651879 0.00460163 $80.54 $2,300.82 $2,381.35

4 9.884 $2,500 $24,710 $500,000 0.00651879 0.00460163 $161.08 $2,300.82 $2,461.89

10 24.71 $2,500 $61,775 $500,000 0.00651879 0.00460163 $402.70 $2,300.82 $2,703.51


48

Properties Without Farm Class Burnaby

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $825,000 $1,630,860 $0 0.0042806 0.0042806 $6,981.06 $0.00 $6,981.06

2 4.942 $550,000 $2,718,100 $0 0.0042806 0.0042806 $11,635.10 $0.00 $11,635.10

4 9.884 $400,000 $3,953,600 $0 0.0042806 0.0042806 $16,923.78 $0.00 $16,923.78

10 24.71 $210,000 $5,189,100 $0 0.0042806 0.0042806 $22,212.46 $0.00 $22,212.46

0.8 1.9768 $825,000 $1,630,860 $150,000 0.0042806 0.0042806 $6,981.06 $642.09 $7,623.15

2 4.942 $550,000 $2,718,100 $150,000 0.0042806 0.0042806 $11,635.10 $642.09 $12,277.19

4 9.884 $400,000 $3,953,600 $150,000 0.0042806 0.0042806 $16,923.78 $642.09 $17,565.87

10 24.71 $210,000 $5,189,100 $150,000 0.0042806 0.0042806 $22,212.46 $642.09 $22,854.55

0.8 1.9768 $825,000 $1,630,860 $250,000 0.0042806 0.0042806 $6,981.06 $1,070.15 $8,051.21

2 4.942 $550,000 $2,718,100 $250,000 0.0042806 0.0042806 $11,635.10 $1,070.15 $12,705.25

4 9.884 $400,000 $3,953,600 $250,000 0.0042806 0.0042806 $16,923.78 $1,070.15 $17,993.93

10 24.71 $210,000 $5,189,100 $250,000 0.0042806 0.0042806 $22,212.46 $1,070.15 $23,282.61

0.8 1.9768 $825,000 $1,630,860 $500,000 0.0042806 0.0042806 $6,981.06 $2,140.30 $9,121.36

2 4.942 $550,000 $2,718,100 $500,000 0.0042806 0.0042806 $11,635.10 $2,140.30 $13,775.40

4 9.884 $400,000 $3,953,600 $500,000 0.0042806 0.0042806 $16,923.78 $2,140.30 $19,064.08

10 24.71 $210,000 $5,189,100 $500,000 0.0042806 0.0042806 $22,212.46 $2,140.30 $24,352.76

Delta

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $400,000 $790,720 $0 0.0055421 0.0055421 $4,382.25 $0.00 $4,382.25

2 4.942 $230,000 $1,136,660 $0 0.0055421 0.0055421 $6,299.48 $0.00 $6,299.48

4 9.884 $140,000 $1,383,760 $0 0.0055421 0.0055421 $7,668.94 $0.00 $7,668.94

10 24.71 $70,000 $1,729,700 $0 0.0055421 0.0055421 $9,586.17 $0.00 $9,586.17

0

0.8 1.9768 $400,000 $790,720 $150,000 0.0055421 0.0055421 $4,382.25 $831.32 $5,213.56

2 4.942 $230,000 $1,136,660 $150,000 0.0055421 0.0055421 $6,299.48 $831.32 $7,130.80

4 9.884 $140,000 $1,383,760 $150,000 0.0055421 0.0055421 $7,668.94 $831.32 $8,500.25

10 24.71 $70,000 $1,729,700 $150,000 0.0055421 0.0055421 $9,586.17 $831.32 $10,417.49

0

0.8 1.9768 $400,000 $790,720 $250,000 0.0055421 0.0055421 $4,382.25 $1,385.53 $5,767.77

2 4.942 $230,000 $1,136,660 $250,000 0.0055421 0.0055421 $6,299.48 $1,385.53 $7,685.01

4 9.884 $140,000 $1,383,760 $250,000 0.0055421 0.0055421 $7,668.94 $1,385.53 $9,054.46

10 24.71 $70,000 $1,729,700 $250,000 0.0055421 0.0055421 $9,586.17 $1,385.53 $10,971.70

0

0.8 1.9768 $400,000 $790,720 $500,000 0.0055421 0.0055421 $4,382.25 $2,771.05 $7,153.30

2 4.942 $230,000 $1,136,660 $500,000 0.0055421 0.0055421 $6,299.48 $2,771.05 $9,070.53

4 9.884 $140,000 $1,383,760 $500,000 0.0055421 0.0055421 $7,668.94 $2,771.05 $10,439.99

10 24.71 $70,000 $1,729,700 $500,000 0.0055421 0.0055421 $9,586.17 $2,771.05 $12,357.22

Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $305,000 $602,924 $0 0.0052633 0.0052633 $3,173.37 $0.00 $3,173.37

2 4.942 $162,000 $800,604 $0 0.0052633 0.0052633 $4,213.82 $0.00 $4,213.82

4 9.884 $97,500 $963,690 $0 0.0052633 0.0052633 $5,072.19 $0.00 $5,072.19

10 24.71 $73,000 $1,803,830 $0 0.0052633 0.0052633 $9,494.10 $0.00 $9,494.10

0

0.8 1.9768 $305,000 $602,924 $150,000 0.0052633 0.0052633 $3,173.37 $789.50 $3,962.86

2 4.942 $162,000 $800,604 $150,000 0.0052633 0.0052633 $4,213.82 $789.50 $5,003.31

4 9.884 $97,500 $963,690 $150,000 0.0052633 0.0052633 $5,072.19 $789.50 $5,861.68

10 24.71 $73,000 $1,803,830 $150,000 0.0052633 0.0052633 $9,494.10 $789.50 $10,283.59

0

0.8 1.9768 $305,000 $602,924 $250,000 0.0052633 0.0052633 $3,173.37 $1,315.83 $4,489.19

2 4.942 $162,000 $800,604 $250,000 0.0052633 0.0052633 $4,213.82 $1,315.83 $5,529.64

4 9.884 $97,500 $963,690 $250,000 0.0052633 0.0052633 $5,072.19 $1,315.83 $6,388.01

10 24.71 $73,000 $1,803,830 $250,000 0.0052633 0.0052633 $9,494.10 $1,315.83 $10,809.92

0

0.8 1.9768 $305,000 $602,924 $500,000 0.0052633 0.0052633 $3,173.37 $2,631.65 $5,805.02

2 4.942 $162,000 $800,604 $500,000 0.0052633 0.0052633 $4,213.82 $2,631.65 $6,845.47

4 9.884 $97,500 $963,690 $500,000 0.0052633 0.0052633 $5,072.19 $2,631.65 $7,703.84

10 24.71 $73,000 $1,803,830 $500,000 0.0052633 0.0052633 $9,494.10 $2,631.65 $12,125.75


49

Properties Without Farm Class continued

Township of Langley

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $250,000 $494,200 $0 0.00569048 0.00569048 $2,812.24 $0.00 $2,812.24

2 4.942 $105,000 $518,910 $0 0.00569048 0.00569048 $2,952.85 $0.00 $2,952.85

4 9.884 $75,000 $741,300 $0 0.00569048 0.00569048 $4,218.35 $0.00 $4,218.35

10 24.71 $37,500 $926,625 $0 0.00569048 0.00569048 $5,272.94 $0.00 $5,272.94

0.8 1.9768 $250,000 $494,200 $150,000 0.00569048 0.00569048 $2,812.24 $853.57 $3,665.81

2 4.942 $105,000 $518,910 $150,000 0.00569048 0.00569048 $2,952.85 $853.57 $3,806.42

4 9.884 $75,000 $741,300 $150,000 0.00569048 0.00569048 $4,218.35 $853.57 $5,071.92

10 24.71 $37,500 $926,625 $150,000 0.00569048 0.00569048 $5,272.94 $853.57 $6,126.51

0.8 1.9768 $250,000 $494,200 $250,000 0.00569048 0.00569048 $2,812.24 $1,422.62 $4,234.86

2 4.942 $105,000 $518,910 $250,000 0.00569048 0.00569048 $2,952.85 $1,422.62 $4,375.47

4 9.884 $75,000 $741,300 $250,000 0.00569048 0.00569048 $4,218.35 $1,422.62 $5,640.97

10 24.71 $37,500 $926,625 $250,000 0.00569048 0.00569048 $5,272.94 $1,422.62 $6,695.56

0.8 1.9768 $250,000 $494,200 $500,000 0.00569048 0.00569048 $2,812.24 $2,845.24 $5,657.48

2 4.942 $105,000 $518,910 $500,000 0.00569048 0.00569048 $2,952.85 $2,845.24 $5,798.09

4 9.884 $75,000 $741,300 $500,000 0.00569048 0.00569048 $4,218.35 $2,845.24 $7,063.59

10 24.71 $37,500 $926,625 $500,000 0.00569048 0.00569048 $5,272.94 $2,845.24 $8,118.18

Maple Ridge

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $150,000 $296,520 $0 0.0067711 0.0067711 $2,007.77 $0.00 $2,007.77

2 4.942 $125,000 $617,750 $0 0.0067711 0.0067711 $4,182.85 $0.00 $4,182.85

4 9.884 $75,000 $741,300 $0 0.0067711 0.0067711 $5,019.42 $0.00 $5,019.42

10 24.71 $37,500 $926,625 $0 0.0067711 0.0067711 $6,274.27 $0.00 $6,274.27

0.8 1.9768 $150,000 $296,520 $150,000 0.0067711 0.0067711 $2,007.77 $1,015.67 $3,023.43

2 4.942 $125,000 $617,750 $150,000 0.0067711 0.0067711 $4,182.85 $1,015.67 $5,198.51

4 9.884 $75,000 $741,300 $150,000 0.0067711 0.0067711 $5,019.42 $1,015.67 $6,035.08

10 24.71 $37,500 $926,625 $150,000 0.0067711 0.0067711 $6,274.27 $1,015.67 $7,289.94

0.8 1.9768 $150,000 $296,520 $250,000 0.0067711 0.0067711 $2,007.77 $1,692.78 $3,700.54

2 4.942 $125,000 $617,750 $250,000 0.0067711 0.0067711 $4,182.85 $1,692.78 $5,875.62

4 9.884 $75,000 $741,300 $250,000 0.0067711 0.0067711 $5,019.42 $1,692.78 $6,712.19

10 24.71 $37,500 $926,625 $250,000 0.0067711 0.0067711 $6,274.27 $1,692.78 $7,967.05

0.8 1.9768 $150,000 $296,520 $500,000 0.0067711 0.0067711 $2,007.77 $3,385.55 $5,393.32

2 4.942 $125,000 $617,750 $500,000 0.0067711 0.0067711 $4,182.85 $3,385.55 $7,568.40

4 9.884 $75,000 $741,300 $500,000 0.0067711 0.0067711 $5,019.42 $3,385.55 $8,404.97

10 24.71 $37,500 $926,625 $500,000 0.0067711 0.0067711 $6,274.27 $3,385.55 $9,659.82

Pitt Meadows

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $200,000 $395,360 $0 0.006394 0.006394 $2,527.93 $0.00 $2,527.93

2 4.942 $110,000 $543,620 $0 0.006394 0.006394 $3,475.91 $0.00 $3,475.91

4 9.884 $75,000 $741,300 $0 0.006394 0.006394 $4,739.87 $0.00 $4,739.87

10 24.71 $37,500 $926,625 $0 0.006394 0.006394 $5,924.84 $0.00 $5,924.84

0.8 1.9768 $200,000 $395,360 $150,000 0.006394 0.006394 $2,527.93 $959.10 $3,487.03

2 4.942 $110,000 $543,620 $150,000 0.006394 0.006394 $3,475.91 $959.10 $4,435.01

4 9.884 $75,000 $741,300 $150,000 0.006394 0.006394 $4,739.87 $959.10 $5,698.97

10 24.71 $37,500 $926,625 $150,000 0.006394 0.006394 $5,924.84 $959.10 $6,883.94

0.8 1.9768 $200,000 $395,360 $250,000 0.006394 0.006394 $2,527.93 $1,598.50 $4,126.43

2 4.942 $110,000 $543,620 $250,000 0.006394 0.006394 $3,475.91 $1,598.50 $5,074.41

4 9.884 $75,000 $741,300 $250,000 0.006394 0.006394 $4,739.87 $1,598.50 $6,338.37

10 24.71 $37,500 $926,625 $250,000 0.006394 0.006394 $5,924.84 $1,598.50 $7,523.34

0.8 1.9768 $200,000 $395,360 $500,000 0.006394 0.006394 $2,527.93 $3,197.00 $5,724.93

2 4.942 $110,000 $543,620 $500,000 0.006394 0.006394 $3,475.91 $3,197.00 $6,672.91

4 9.884 $75,000 $741,300 $500,000 0.006394 0.006394 $4,739.87 $3,197.00 $7,936.87

10 24.71 $37,500 $926,625 $500,000 0.006394 0.006394 $5,924.84 $3,197.00 $9,121.84


50

Properties Without Farm Class continued

Port Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $388,000 $766,998 $0 0.0060313 0.0060313 $4,626.00 $0.00 $4,626.00

2 4.942 $215,600 $1,065,495 $0 0.0060313 0.0060313 $6,426.32 $0.00 $6,426.32

4 9.884 $124,000 $1,225,616 $0 0.0060313 0.0060313 $7,392.06 $0.00 $7,392.06

10 24.71 $94,400 $2,332,624 $0 0.0060313 0.0060313 $14,068.76 $0.00 $14,068.76

0.8 1.9768 $388,000 $766,998 $150,000 0.0060313 0.0060313 $4,626.00 $904.70 $5,530.69

2 4.942 $215,600 $1,065,495 $150,000 0.0060313 0.0060313 $6,426.32 $904.70 $7,331.02

4 9.884 $124,000 $1,225,616 $150,000 0.0060313 0.0060313 $7,392.06 $904.70 $8,296.75

10 24.71 $94,400 $2,332,624 $150,000 0.0060313 0.0060313 $14,068.76 $904.70 $14,973.45

0.8 1.9768 $388,000 $766,998 $250,000 0.0060313 0.0060313 $4,626.00 $1,507.83 $6,133.82

2 4.942 $215,600 $1,065,495 $250,000 0.0060313 0.0060313 $6,426.32 $1,507.83 $7,934.15

4 9.884 $124,000 $1,225,616 $250,000 0.0060313 0.0060313 $7,392.06 $1,507.83 $8,899.88

10 24.71 $94,400 $2,332,624 $250,000 0.0060313 0.0060313 $14,068.76 $1,507.83 $15,576.58

0.8 1.9768 $388,000 $766,998 $500,000 0.0060313 0.0060313 $4,626.00 $3,015.65 $7,641.65

2 4.942 $215,600 $1,065,495 $500,000 0.0060313 0.0060313 $6,426.32 $3,015.65 $9,441.97

4 9.884 $124,000 $1,225,616 $500,000 0.0060313 0.0060313 $7,392.06 $3,015.65 $10,407.71

10 24.71 $94,400 $2,332,624 $500,000 0.0060313 0.0060313 $14,068.76 $3,015.65 $17,084.41

Richmond

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $500,000 $988,400 $0 0.00416741 0.00416741 $4,119.07 $0.00 $4,119.07

2 4.942 $300,000 $1,482,600 $0 0.00416741 0.00416741 $6,178.60 $0.00 $6,178.60

4 9.884 $240,000 $2,372,160 $0 0.00416741 0.00416741 $9,885.76 $0.00 $9,885.76

10 24.71 $120,000 $2,965,200 $0 0.00416741 0.00416741 $12,357.20 $0.00 $12,357.20

0.8 1.9768 $500,000 $988,400 $150,000 0.00416741 0.00416741 $4,119.07 $625.11 $4,744.18

2 4.942 $300,000 $1,482,600 $150,000 0.00416741 0.00416741 $6,178.60 $625.11 $6,803.71

4 9.884 $240,000 $2,372,160 $150,000 0.00416741 0.00416741 $9,885.76 $625.11 $10,510.87

10 24.71 $120,000 $2,965,200 $150,000 0.00416741 0.00416741 $12,357.20 $625.11 $12,982.32

0.8 1.9768 $500,000 $988,400 $250,000 0.00416741 0.00416741 $4,119.07 $1,041.85 $5,160.92

2 4.942 $300,000 $1,482,600 $250,000 0.00416741 0.00416741 $6,178.60 $1,041.85 $7,220.45

4 9.884 $240,000 $2,372,160 $250,000 0.00416741 0.00416741 $9,885.76 $1,041.85 $10,927.62

10 24.71 $120,000 $2,965,200 $250,000 0.00416741 0.00416741 $12,357.20 $1,041.85 $13,399.06

0.8 1.9768 $500,000 $988,400 $500,000 0.00416741 0.00416741 $4,119.07 $2,083.71 $6,202.77

2 4.942 $300,000 $1,482,600 $500,000 0.00416741 0.00416741 $6,178.60 $2,083.71 $8,262.31

4 9.884 $240,000 $2,372,160 $500,000 0.00416741 0.00416741 $9,885.76 $2,083.71 $11,969.47

10 24.71 $120,000 $2,965,200 $500,000 0.00416741 0.00416741 $12,357.20 $2,083.71 $14,440.91

Surrey

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

Taxes Taxation

0.8 1.9768 $275,000 $543,620 $0 0.00460163 0.00460163 $2,501.54 $0.00 $2,501.54

2 4.942 $180,000 $889,560 $0 0.00460163 0.00460163 $4,093.43 $0.00 $4,093.43

4 9.884 $100,000 $988,400 $0 0.00460163 0.00460163 $4,548.25 $0.00 $4,548.25

10 24.71 $65,000 $1,606,150 $0 0.00460163 0.00460163 $7,390.91 $0.00 $7,390.91

0.8 1.9768 $275,000 $543,620 $150,000 0.00460163 0.00460163 $2,501.54 $690.24 $3,191.78

2 4.942 $180,000 $889,560 $150,000 0.00460163 0.00460163 $4,093.43 $690.24 $4,783.67

4 9.884 $100,000 $988,400 $150,000 0.00460163 0.00460163 $4,548.25 $690.24 $5,238.50

10 24.71 $65,000 $1,606,150 $150,000 0.00460163 0.00460163 $7,390.91 $690.24 $8,081.15

0.8 1.9768 $275,000 $543,620 $250,000 0.00460163 0.00460163 $2,501.54 $1,150.41 $3,651.95

2 4.942 $180,000 $889,560 $250,000 0.00460163 0.00460163 $4,093.43 $1,150.41 $5,243.83

4 9.884 $100,000 $988,400 $250,000 0.00460163 0.00460163 $4,548.25 $1,150.41 $5,698.66

10 24.71 $65,000 $1,606,150 $250,000 0.00460163 0.00460163 $7,390.91 $1,150.41 $8,541.32

0.8 1.9768 $275,000 $543,620 $500,000 0.00460163 0.00460163 $2,501.54 $2,300.82 $4,802.35

2 4.942 $180,000 $889,560 $500,000 0.00460163 0.00460163 $4,093.43 $2,300.82 $6,394.24

4 9.884 $100,000 $988,400 $500,000 0.00460163 0.00460163 $4,548.25 $2,300.82 $6,849.07

10 24.71 $65,000 $1,606,150 $500,000 0.00460163 0.00460163 $7,390.91 $2,300.82 $9,691.72


51

2 acres (0.8 hectares) with farm class


Municipality $0 Improvement Value $150,000 Improvement Value $250,000 Improvement Value $500,000 Improvement Value

Burnaby $66.19 $739.51 $1,199.67 $2,350.08

Delta $107.52 $938.84 $1,493.05 $2,878.57

Coquitlam $104.65 $894.14 $1,420.47 $2,736.30

Langley Township $69.08 $922.65 $1,491.70 $2,914.32

Maple Ridge $157.16 $1,172.82 $1,849.93 $3,542.71

Pitt Meadows $167.10 $1,126.20 $1,765.60 $3,364.10

Port Coquitlam $134.24 $1,038.93 $1,642.06 $3,149.89

Richmond $80.02 $705.13 $1,121.87 $2,163.72

Surrey $32.22 $722.46 $1,182.62 $2,333.03

Colliers I~TEIINATIO NA. l

$4,000.00

$3,500.00

$3,000.00

$2,500.00 • $0 Improvement Value

$2,000.00 • $150,000 Improvement

$1,500.00 Value

$1,000.00 l-• $250,000 Improvement

$500.00 1--1 ~ Value

$0.00 l,-I L,-' • $500,000 Improvement

A "!Co.'/> ~ .,Q ~ ~<, ~ r:f''O q.~ Value iP ~ .~'1> q' ~'S ~o .~'1> ~ ,$0" ~~<:),y.~~e. '1>&~ '-;

<¢.::> GO~ ",0 i~ ~q; GO ~(.; £oz,4.. ~ <:i.~ 0<--~ .

"

52




Burnaby $165.48 $813.41 $1,273.57 $2,423.98

Delta $268.81 $1,100.12 $1,654.33 $3,039.86

Coquitlam $261.62 $1,051.11 $1,577.44 $2,893.27

Langley Township $172.71 $1,026.28 $1,595.33 $3,017.95

Maple Ridge $392.89 $1,408.56 $2,085.67 $3,778.44

Pitt Meadows $417.76 $1,376.86 $2,016.26 $3,614.76

Port Coquitlam $335.60 $1,240.29 $1,843.42 $3,351.25

Richmond $200.04 $825.15 $1,241.89 $2,283.74

Surrey $80.54 $770.78 $1,230.95 $2,381.35

$4,000.00

$3,500.00

$3,000.00

$2,500.00

$2,000.00

$1,500.00

$ 1,000.00

$500.00

$0.00

• $0 Improvement Value

• $150,000 Improvement Value




53




Burnaby $330.96 $936.57 $1,396.74 $2,547.14

Delta $537.62 $1,368.93 $1,923.14 $3,308.67

Coquitlam $523.24 $1,312.73 $1,839.06 $3,154.89


Maple Ridge $785.78 $1,801.45 $2,478.56 $4,171.33

Pitt Meadows $835.52 $1,794.62 $2,434.02 $4,032.52

Port Coquitlam $671.20 $1,575.89 $2,179.02 $3,686.85

Richmond $400.08 $1,025.19 $1,441.93 $2,483.78

Surrey $161.08 $851.32 $1,311.49 $2,461.89

$4,500.00

$4,000.00

$3,500.00

$3,000.00

$2,500.00

$2,000.00

$1,500.00

$1,000.00

$500.00

$0.00






54




Burnaby $827.39 $1,306.07 $1,766.23 $2,916.64

Delta $1,344.04 $2,175.35 $2,729.56 $4,115.09

Coquitlam $1,308.10 $2,097.59 $2,623.92 $3,939.75


Maple Ridge $1,964.45 $2,980.12 $3,657.23 $5,350.00

Pitt Meadows $2,088.80 $3,047.90 $3,687.30 $5,285.80

Port Coquitlam $1,677.99 $2,582.69 $3,185.82 $4,693.64

Richmond $1,000.20 $1,625.31 $2,042.05 $3,083.90

Surrey $402.70 $1,092.94 $1,553.11 $2,703.51

$6,000.00

$5,000.00

$4,000.00

$3,000.00

$2,000.00

$1,000.00

$0.00





Colliers I~TE~N"'TIO N"' l

55

Conclusions

Scenario 3 demonstrates the importance of improvement value in two ways;

1. The interplay between farm and residential millage rates.

2. Proportion of improvement value relative to land value under the calculation of farm property value.

In the relationship between Farm and Residential millage rates, municipalities with the highest taxation rates,

namely Maple Ridge, Pitt Meadows, and Port Coquitlam, have the highest farm class millage rates of all the

municipalities. Traditionally, residential millage rates are amongst the lowest of the nine classes. This is primarily

due to the significant proportion of overall municipal value residential properties represent. Those municipalities

with larger commercial bases, namely Surrey, Burnaby, and Richmond, are able to achieve budgetary

requirements while offering a farm millage rate that is somewhat comparable to the residential rate. The result is

a consistently lower tax burden on farming enterprises (due to the lower assessed value of farm land).

In the City of Surrey, with one of the lowest Farm Class millage rates, a 2 acre (0.8 hectare) property with a

$500,000 improvement value is subject to $2,333.03 in property tax or 72.40 times more in taxes than a 2 acre

(0.8 hectare) parcel with no improvement value which is subject to $32.22 in property taxes.

Conversely, in the City of Pitt Meadows, with the highest Farm Class millage rate, a 2 acre (0.8 hectare) property

with a $500,000 improvement value is subject to $3,364.10 or 20.13 times more in taxes than a 2 acre (0.8

hectare) parcel with no improvement value which is subject to $167.10 in property taxes.

Using land classified as Farm also demonstrates how significant the proportion of improvement value is to the

overall tax burden. Since their locational factors do not influence the value of farm land, nor is there any

consideration for diminishing value due to size, the tax burden of larger farming properties is proportionally

greater than smaller farming properties. The land value component of a 10 acre (4.0 hectare) parcel is exactly

five times greater than that of a 2 acre (0.8 hectare) parcel.

By valuing dwelling improvements on farms as Class 1 Residential properties, based on the Cost Approach to

Value, a significant portion of the incurred property taxes are related to newer improvements. The effect of

improvement values for older properties depreciated at a rate of 98% is negligible.

56

Scenario 4 2013 Improvement Value Revision

The purpose of Scenario 4 is to demonstrate the significant change in the valuation of farm related buildings,

property taxes.

p to $50,000

of assessed value. As intensification of farm uses, and greater need for improvements like greenhouses and

barns for livestock, owners were exposed to a significant increase in their tax burden. In response to this, as of

2013 farm buildings are granted an exemption the greater of $50,000 or 87.5% of the total assessed value of

farm buildings.

For the purposes of this scenario, Colliers International has studied farm building improvement values of

$100,000, $250,000 and $500,000. For all scenarios the property is assumed to have a Farm Class Status, is

within the ALR, and the property is 25 acres (10.0 hectares) in size. This is outlined on the following pages.

57

Exemption up to $50,000 & 87.5%

Burnaby $50,000 Exemption 87.5% Exemption

Land Size

(HectaresValue / Acre Land Value

Farm Millage

Rate

Residential

Millage Rate

Improvement

Value

Value after

exemptionTotal Value Property Taxes

Value after

ExemptionTotal Value Property Taxes

Difference

10 $2,500 $61,775 0.0133936 0.0042806 $100,000 $50,000 $111,775 $1,041.42 $12,500 $74,275 $880.90 $160.52

10 $2,500 $61,775 0.0133936 0.0042806 $250,000 $200,000 $261,775 $1,683.51 $31,250 $93,025 $961.16 $722.35

10 $2,500 $61,775 0.0133936 0.0042806 $500,000 $450,000 $511,775 $2,753.66 $62,500 $124,275 $1,094.93 $1,658.73

Delta $50,000 Exemption 87.5% Exemption

Land Size

(HectaresValue / Acre Land Value Millage Rate

Residential

Millage Rate

Improvement

Value

Value after


Value after


Difference

10 $2,500 $61,775 0.0217569 0.0055421 $100,000 $50,000 $111,775 $1,621.14 $12,500 $74,275 $1,413.31 $207.83

10 $2,500 $61,775 0.0217569 0.0055421 $250,000 $200,000 $261,775 $2,452.45 $31,250 $93,025 $1,517.22 $935.23

10 $2,500 $61,775 0.0217569 0.0055421 $500,000 $450,000 $511,775 $3,837.98 $62,500 $124,275 $1,690.41 $2,147.56

Coquitlam $50,000 Exemption 87.5% Exemption

Land Size


Residential

Millage Rate

Improvement

Value

Value after


Value after


Difference

10 $2,500 $61,775 0.0211752 0.0052633 $100,000 $50,000 $111,775 $1,571.26 $12,500 $74,275 $1,373.89 $197.37

10 $2,500 $61,775 0.0211752 0.0052633 $250,000 $200,000 $261,775 $2,360.76 $31,250 $93,025 $1,472.58 $888.18

10 $2,500 $61,775 0.0211752 0.0052633 $500,000 $450,000 $511,775 $3,676.58 $62,500 $124,275 $1,637.05 $2,039.53

Langley Township $50,000 Exemption 87.5% Exemption

Land Size


Residential

Millage Rate

Improvement

Value

Value after


Value after


Difference

10 $2,500 $61,775 0.0139787 0.0056905 $100,000 $50,000 $111,775 $1,148.06 $12,500 $74,275 $934.66 $213.39

10 $2,500 $61,775 0.0139787 0.0056905 $250,000 $200,000 $261,775 $2,001.63 $31,250 $93,025 $1,041.36 $960.27

10 $2,500 $61,775 0.0139787 0.0056905 $500,000 $450,000 $511,775 $3,424.25 $62,500 $124,275 $1,219.19 $2,205.06

Maple Ridge $50,000 Exemption 87.5% Exemption

Land Size


Residential

Millage Rate

Improvement

Value

Value after


Value after


Difference

10 $2,500 $61,775 0.0318001 0.0067711 $100,000 $50,000 $111,775 $2,303.01 $12,500 $74,275 $2,049.09 $253.92

10 $2,500 $61,775 0.0318001 0.0067711 $250,000 $200,000 $261,775 $3,318.67 $31,250 $93,025 $2,176.05 $1,142.62

10 $2,500 $61,775 0.0318001 0.0067711 $500,000 $450,000 $511,775 $5,011.45 $62,500 $124,275 $2,387.64 $2,623.80

Pitt Meadows $50,000 Exemption 87.5% Exemption

Land Size


Residential

Millage Rate

Improvement

Value

Value after


Value after


Difference

10 $2,500 $61,775 0.033813 0.006394 $100,000 $50,000 $111,775 $2,408.50 $12,500 $74,275 $2,168.72 $239.78

10 $2,500 $61,775 0.033813 0.006394 $250,000 $200,000 $261,775 $3,367.60 $31,250 $93,025 $2,288.61 $1,078.99

10 $2,500 $61,775 0.033813 0.006394 $500,000 $450,000 $511,775 $4,966.10 $62,500 $124,275 $2,488.42 $2,477.68

Port Coquitlam $50,000 Exemption 87.5% Exemption

Land Size


Residential

Millage Rate

Improvement

Value

Value after


Value after


Difference

10 $2,500 $61,775 0.0271631 0.0060313 $100,000 $50,000 $111,775 $1,979.57 $12,500 $74,275 $1,753.39 $226.17

10 $2,500 $61,775 0.0271631 0.0060313 $250,000 $200,000 $261,775 $2,884.26 $31,250 $93,025 $1,866.48 $1,017.78

10 $2,500 $61,775 0.0271631 0.0060313 $500,000 $450,000 $511,775 $4,392.09 $62,500 $124,275 $2,054.96 $2,337.13

Richmond $50,000 Exemption 87.5% Exemption

Land Size


Residential

Millage Rate

Improvement

Value

Value after


Value after


Difference

10 $2,500 $61,775 0.0161905 0.00416741 $100,000 $50,000 $111,775 $1,208.54 $12,500 $74,275 $1,052.26 $156.28

10 $2,500 $61,775 0.0161905 0.00416741 $250,000 $200,000 $261,775 $1,833.65 $31,250 $93,025 $1,130.40 $703.25

10 $2,500 $61,775 0.0161905 0.00416741 $500,000 $450,000 $511,775 $2,875.50 $62,500 $124,275 $1,260.63 $1,614.87

Surrey $50,000 Exemption 87.5% Exemption

Land Size


Residential

Millage Rate

Improvement

Value

Value after


Value after


Difference

10 $2,500 $61,775 0.0065188 0.00460163 $100,000 $50,000 $111,775 $632.78 $12,500 $74,275 $460.22 $172.56

10 $2,500 $61,775 0.0065188 0.00460163 $250,000 $200,000 $261,775 $1,323.02 $31,250 $93,025 $546.50 $776.53

10 $2,500 $61,775 0.0065188 0.00460163 $500,000 $450,000 $511,775 $2,473.43 $62,500 $124,275 $690.30 $1,783.13

Colliers ,~'''~ ,'' o" ''

58

Improvement Value $100,000

Taxes for $100,000 of Improvement Value

$50,000 87.50%

Burnaby $1,041.42 $880.90

Delta $1,621.14 $1,413.31

Coquitlam $1,571.26 $1,373.89

Langley Township $1,148.06 $934.66

Maple Ridge $2,303.01 $2,049.09

Pitt Meadows $2,408.50 $2,168.72

Port Coquitlam $1,979.57 $1,753.39

Richmond $1,208.54 $1,052.26

Surrey $632.78 $460.22

59



$50,000 87.50%

Burnaby $1,683.51 $961.16

Delta $2,452.45 $1,517.22

Coquitlam $2,360.76 $1,472.58


Maple Ridge $3,318.67 $2,176.05

Pitt Meadows $3,367.60 $2,288.61

Port Coquitlam $2,884.26 $1,866.48

Richmond $1,833.65 $1,130.40

Surrey $1,323.02 $546.50

$4,000.00

$3,500.00

$3,000.00 t---------II$2,500.00

$2,000.00

$1,500.00 +II-$1,000.00

$SOD.OO

$0.00

. $50,000

. 87.50%

60



$50,000 87.50%

Burnaby $2,753.66 $1,094.93

Delta $3,837.98 $1,690.41

Coquitlam $3,676.58 $1,637.05


Maple Ridge $5,011.45 $2,387.64

Pitt Meadows $4,966.10 $2,488.42

Port Coquitlam $4,392.09 $2,054.96

Richmond $2,875.50 $1,260.63

Surrey $2,473.43 $690.30

61

Conclusions

The impact of the new exemption for Class 9 Farm Class buildings is very significant for higher value farming

uses.

The effect of the new exemptions is greatest in higher value improvements because the previous method of

exemption was fixed at $50,000 of assessed value. In Scenario 4 improvements valued at $100,000 received a

50% exemption while improvements valued at $500,000 received only 10%. This diminishing proportion of

exempt assessed value caused a disproportionate tax burden on larger, high cost improvements. The new 87.5%

exemption maintains the same proportion of exemption for high value improvements as low value improvements

which corrects any inequity. This new exemption results in a direct loss of revenue to municipalities due to the

impact on the assessed value. This may also encourage the purchase and use of Class 7 Soils with no capability

for arable culture or permanent pasture for intensive farm use, since improvements such as greenhouses do not

make use of existing topsoil.

62

Scenario 5 Natural Features

Scenario 5

typically forested, wetlands, water courses and riparian areas which are unsuitable for farming purposes in their

current state. In the study of this scenario, 4 potential outcomes were deemed possible.

Within ALR Outside ALR

With Farm

Class

1. That the whole parcel is located

within the Agricultural Land

Reserve, the majority of the land

is used as a farm, and a portion

of the parcel is covered by the

3. That the whole parcel is located outside

of the Agricultural Land Reserve, but the

majority of the land is used as a farm, and

a portion of the parcel is covered by the

Without

Farm Class

2. That the whole parcel is located

within the Agricultural Land

Reserve, none of the land is used

as a farm, and a portion of the

4. That the whole parcel is located outside

of the Agricultural Land Reserve, none of

the land is used as a farm, and a portion

In general practice, if the parcel is owned by a farmer, and the farm earns enough income to account for the

unusable land, the entire parcel is considered farm class and the beneficial method of value is applied.

In regards to the first and third potential scenarios, land that is associated with a farm, which has no present use,

and is not specifically zoned nor held for business, commercial, or industrial purposes must be classified as a

farm. In this respect, using the standardized values per acre of land.

For this scenario, the following assumptions are made:

1. That the only impact on the land is the natural feature, as opposed to topographical issues, and that the

(Cost to cure is a measure used to calculate the

costs involved for curing a physical deterioration and curable functional obsolescence)

2. Improvement value is $150,000 and the land sizes are only 5 acres (2.0 hectares) and 10 acres (4.0

hectares) in size.

63

3. of 2.471 acres (1.0 hectare), containing 500 mature

ncompass a 15% adjustment to value according to

conversations with agents of BC Assessment.

Cost to cure is the term used for properties that are subject to specific detrimental effects. Properties subject to

contamination (ie gas stations or heavy manufacturing) building conditions (ie asbestos) or other adverse

these affects is then deducted from the market value to determine the value of the property.

In regards to land within the Agricultural Land Reserve, but is not used for farming purposes, the value of land

will be similar to that of Scenario 1. However, land impacted by the natural feature will have approximately a 15%

reduction in value , the following charts demonstrate the impact a

natural feature will have on property taxes for properties within the ALR.

64

Residential Properties Without a Natural Feature

Burnaby

Land SizeResidential Land

Value per acre

Adjusted

Residential Land

value per acre

Total Land ValueImprovement

Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $550,000 $550,000 $2,718,100 $150,000 0.004281 0.004281 $11,635.10 $642.09 $12,277.19

4 ha $400,000 $400,000 $3,953,600 $150,000 0.004281 0.004281 $16,923.78 $642.09 $17,565.87

Delta


Value per acre

Adjusted

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $230,000 $230,000 $1,136,660 $150,000 0.005542 0.005542 $6,299.37 $831.30 $7,130.67

4 ha $140,000 $140,000 $1,383,760 $150,000 0.005542 0.005542 $7,668.80 $831.30 $8,500.10

Coquitlam


Value per acre

Adjusted

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $162,000 $162,000 $800,604 $150,000 0.005263 0.005263 $4,213.58 $789.45 $5,003.03

4 ha $97,500 $97,500 $963,690 $150,000 0.005263 0.005263 $5,071.90 $789.45 $5,861.35

Township of Langley


Value per acre

Adjusted

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $105,000 $105,000 $518,910 $150,000 0.005691 0.005691 $2,952.86 $853.58 $3,806.43

4 ha $75,000 $75,000 $741,300 $150,000 0.005691 0.005691 $4,218.37 $853.58 $5,071.94

Maple Ridge


Value per acre

Adjusted

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $125,000 $125,000 $617,750 $150,000 0.006771 0.006771 $4,182.79 $1,015.65 $5,198.44

4 ha $75,000 $75,000 $741,300 $150,000 0.006771 0.006771 $5,019.34 $1,015.65 $6,034.99

Pitt Meadows


Value per acre

Adjusted

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $125,000 $125,000 $617,750 $150,000 0.006771 0.006771 $4,182.79 $1,015.65 $5,198.44

4 ha $75,000 $75,000 $741,300 $150,000 0.006771 0.006771 $5,019.34 $1,015.65 $6,034.99

Port Coquitlam


Value per acre

Adjusted

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $215,600 $215,600 $1,065,495 $150,000 0.006031 0.006031 $6,426.32 $904.70 $7,331.02

4 ha $124,000 $124,000 $1,225,616 $150,000 0.006031 0.006031 $7,392.06 $904.70 $8,296.75

Richmond


Value per acre

Adjusted

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $300,000 $300,000 $1,482,600 $150,000 0.004167 0.004167 $6,178.60 $625.11 $6,803.71

4 ha $240,000 $240,000 $2,372,160 $150,000 0.004167 0.004167 $9,885.76 $625.11 $10,510.87

Surrey


Value per acre

Adjusted

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $180,000 $180,000 $889,560 $150,000 0.004602 0.004602 $4,093.43 $690.24 $4,783.67

4 ha $100,000 $100,000 $988,400 $150,000 0.004602 0.004602 $4,548.25 $690.24 $5,238.50

65

Residential Properties With a Natural Feature Burnaby


Value per acre

Adjusted 85%

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $550,000 $467,500 2,514,243$ 150,000$ 0.004281 0.004281 $10,762.47 $642.09 $11,404.56

4 ha $400,000 $340,000 3,805,340$ 150,000$ 0.004281 0.004281 $16,289.14 $642.09 $16,931.23

Delta


Value per acre

Adjusted 85%

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $230,000 $195,500 1,051,411$ 150,000$ 0.005542 0.005542 $5,826.92 $831.30 $6,658.22

4 ha $140,000 $119,000 1,331,869$ 150,000$ 0.005542 0.005542 $7,381.22 $831.30 $8,212.52

Coquitlam


Value per acre

Adjusted 85%

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $162,000 $137,700 740,559$ 150,000$ 0.005263 0.005263 $3,897.56 $789.45 $4,687.01

4 ha $97,500 $82,875 927,552$ 150,000$ 0.005263 0.005263 $4,881.70 $789.45 $5,671.15

Township of Langley


Value per acre

Adjusted 85%

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $105,000 $89,250 479,992$ 150,000$ 0.005691 0.005691 $2,731.39 $853.58 $3,584.97

4 ha $75,000 $63,750 713,501$ 150,000$ 0.005691 0.005691 $4,060.18 $853.58 $4,913.75

Maple Ridge


Value per acre

Adjusted 85%

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $125,000 $106,250 $571,419 $150,000 0.006771 0.006771 $3,869.08 $1,015.65 $4,884.73

4 ha $75,000 $63,750 $713,501 $150,000 0.006771 0.006771 $4,831.12 $1,015.65 $5,846.77

Pitt Meadows


Value per acre

Adjusted 85%

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $110,000 $93,500 $502,849 $150,000 0.006394 0.006394 $3,215.21 $959.10 $4,174.31

4 ha $75,000 $63,750 $713,501 $150,000 0.006394 0.006394 $4,562.13 $959.10 $5,521.23

Port Coquitlam


Value per acre

Adjusted 85%

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $215,600 $183,260 $985,583 $150,000 0.006031 0.006031 $5,944.35 $904.70 $6,849.04

4 ha $124,000 $105,400 $1,179,655 $150,000 0.006031 0.006031 $7,114.86 $904.70 $8,019.55

Richmond


Value per acre

Adjusted 85%

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $300,000 $255,000 $1,371,405 $150,000 0.004167 0.004167 $5,715.21 $625.11 $6,340.32

4 ha $240,000 $204,000 $2,283,204 $150,000 0.004167 0.004167 $9,515.05 $625.11 $10,140.16

Surrey


Value per acre

Adjusted 85%

Residential Land

value per acre


Value

Residential Land

Millage Rate

Improvement

Millage Rate

Residential

Land Tax

Improvement

TaxTotal Taxes

2 ha $180,000 $153,000 $822,843 $150,000 0.004602 0.004602 $3,786.42 $690.24 $4,476.66

4 ha $100,000 $85,000 $951,335 $150,000 0.004602 0.004602 $4,377.69 $690.24 $5,067.94

66


With Natural Feature Without Natural Feature

Burnaby $11,404.56 $12,277.19

Delta $6,658.22 $7,130.67

Coquitlam $4,687.01 $5,003.03


Maple Ridge $4,884.73 $5,198.44

Pitt Meadows $4,174.31 $5,198.44

Port Coquitlam $6,849.04 $7,331.02

Richmond $6,340.32 $6,803.71

Surrey $4,476.66 $4,783.67

$14,000.00

$ 12,000.00

$10,000.00

$8,000.00

$6,000.00

$4,000.00

$2,000.00

$0.00

. 5 Acres (2.0 Hectares) With Natural Feature

. 5 Acres (2.0 Hectares) Without Natural Feature

Colliers I+.I TE II NATIO N A. l

67


With Natural Feature Without Natural Feature

Burnaby $16,931.23 $17,565.87

Delta $8,212.52 $8,500.10

Coquitlam $5,671.15 $5,861.35


Maple Ridge $5,846.77 $6,034.99

Pitt Meadows $5,521.23 $6,034.99

Port Coquitlam $8,019.55 $8,296.75

Richmond $10,140.16 $10,510.87

Surrey $5,067.94 $5,238.50

68

Conclusions

The difference in the calculated tax is purely based on the difference in value between the unaffected land value

and affected land value. The value difference between 5 acre (2.0 hectare) and 10 acre (4.0 hectare) parcels is

the combination of the adjustment between the affected and unaffected land value, as well as the adjustment for

size on a per acre basis.

Should the parcel be located outside of the Agricultural Land Reserve, and not be used as a farm property, the

Similar to the scenario within the Agricultural Land Reserve, the primary effect on property tax will be the

15% difference between the impacted area and the un-impacted area. Unfortunately, due to the large variety of

residential land values outside the Agricultural Land Reserve, a general tax implication is difficult to predict.

69

Scenario 6 Split Classification

Scenario 6 is designed to demonstrate the taxable value of a prevalent trend of properties dividing uses between

a residential use and farming use. Certain farm properties owned by non-farmers lease portions of their land to

famers while residing in the residential home. As these residential homes do not qualify for farm class they are

typically assessed using residential values and Class 1 millage rates and the farmed land is assessed using farm

values and Class 9 millage rates.

The following assumptions are made by Colliers International:

1. The parcel is located in an area which permits farm uses.

2.

the millage rates

3. Improvement value of the residence is assumed to be $150,000.

70

Split Classification

Burnaby

Land Size

Farm Land

Value per acre

Total Farm

Land Value

Residential

Land Value per

acre

Total Residential

Land Value

Residential

Improvement

Value

Total

Residential

value

Total Assessed

Value

Farm Mill

Rate

Residential Mill

Rate Farm Tax Residential Tax Total Taxes

2 ha $2,500 $12,355 $825,000 $2,038,575 $150,000 $2,188,575 $2,200,930 0.013394 0.004281 $165.48 $9,368.41 $9,533.89

4 ha $2,500 $24,710 $550,000 $2,718,100 $150,000 $2,868,100 $2,892,810 0.013394 0.004281 $330.96 $12,277.19 $12,608.14

10 ha $2,500 $61,775 $400,000 $4,942,000 $150,000 $5,092,000 $5,153,775 0.013394 0.004281 $827.39 $21,796.82 $22,624.20

Delta

Land Size

Farm Land

Value per acre

Total Farm

Land Value

Residential

Land Value per

acre

Total Residential

Land Value

Residential

Improvement

Value

Total

Residential

value

Total Assessed

Value

Farm Mill

Rate

Residential Mill


2 ha $2,500 $12,355 $400,000 $988,400 $150,000 $1,138,400 $1,150,755 0.013394 0.004281 $165.48 $4,873.04 $5,038.51

4 ha $2,500 $24,710 $230,000 $1,136,660 $150,000 $1,286,660 $1,311,370 0.013394 0.004281 $330.96 $5,507.68 $5,838.63

10 ha $2,500 $61,775 $140,000 $1,729,700 $150,000 $1,879,700 $1,941,475 0.013394 0.004281 $827.39 $8,046.24 $8,873.63

Coquitlam

Land Size

Farm Land

Value per acre

Total Farm

Land Value

Residential

Land Value per

acre

Total Residential

Land Value

Residential

Improvement

Value

Total

Residential

value

Total Assessed

Value

Farm Mill

Rate

Residential Mill


2 ha $2,500 $12,355 $320,000 $790,720 $150,000 $940,720 $953,075 0.013394 0.004281 $165.48 $4,026.85 $4,192.32

4 ha $2,500 $24,710 $190,000 $938,980 $150,000 $1,088,980 $1,113,690 0.013394 0.004281 $330.96 $4,661.49 $4,992.44

10 ha $2,500 $61,775 $100,000 $1,235,500 $150,000 $1,385,500 $1,447,275 0.013394 0.004281 $827.39 $5,930.77 $6,758.16

Township of Langley

Land Size

Farm Land

Value per acre

Total Farm

Land Value

Residential

Land Value per

acre

Total Residential

Land Value

Residential

Improvement

Value

Total

Residential

value

Total Assessed

Value

Farm Mill

Rate

Residential Mill


2 ha $2,500 $12,355 $250,000 $617,750 $150,000 $767,750 $780,105 0.013394 0.004281 $165.48 $3,286.43 $3,451.91

4 ha $2,500 $24,710 $105,000 $518,910 $150,000 $668,910 $693,620 0.013394 0.004281 $330.96 $2,863.34 $3,194.29

10 ha $2,500 $61,775 $75,000 $926,625 $150,000 $1,076,625 $1,138,400 0.013394 0.004281 $827.39 $4,608.60 $5,435.99

Maple Ridge

Land Size

Farm Land

Value per acre

Total Farm

Land Value

Residential

Land Value per

acre

Total Residential

Land Value

Residential

Improvement

Value

Total

Residential

value

Total Assessed

Value

Farm Mill

Rate

Residential Mill


2 ha $2,500 $12,355 $150,000 $370,650 $150,000 $520,650 $533,005 0.013394 0.004281 $165.48 $2,228.69 $2,394.17

4 ha $2,500 $24,710 $125,000 $617,750 $150,000 $767,750 $792,460 0.013394 0.004281 $330.96 $3,286.43 $3,617.39

10 ha $2,500 $61,775 $75,000 $926,625 $150,000 $1,076,625 $1,138,400 0.013394 0.004281 $827.39 $4,608.60 $5,435.99

Pitt Meadows

Land Size

Farm Land

Value per acre

Total Farm

Land Value

Residential

Land Value per

acre

Total Residential

Land Value

Residential

Improvement

Value

Total

Residential

value

Total Assessed

Value

Farm Mill

Rate

Residential Mill


2 ha $2,500 $12,355 $200,000 $494,200 $150,000 $644,200 $656,555 0.013394 0.004281 $165.48 $2,757.56 $2,923.04

4 ha $2,500 $24,710 $110,000 $543,620 $150,000 $693,620 $718,330 0.013394 0.004281 $330.96 $2,969.11 $3,300.07

10 ha $2,500 $61,775 $75,000 $926,625 $150,000 $1,076,625 $1,138,400 0.013394 0.004281 $827.39 $4,608.60 $5,435.99

Port Coquitlam

Land Size

Farm Land

Value per acre

Total Farm

Land Value

Residential

Land Value per

acre

Total Residential

Land Value

Residential

Improvement

Value

Total

Residential

value

Total Assessed

Value

Farm Mill

Rate

Residential Mill


2 ha $2,500 $12,355 $350,000 $864,850 $150,000 $1,014,850 $1,027,205 0.013394 0.004281 $165.48 $4,344.17 $4,509.64

4 ha $2,500 $24,710 $185,000 $914,270 $150,000 $1,064,270 $1,088,980 0.013394 0.004281 $330.96 $4,555.71 $4,886.67

10 ha $2,500 $61,775 $112,000 $1,383,760 $150,000 $1,533,760 $1,595,535 0.013394 0.004281 $827.39 $6,565.41 $7,392.80

Richmond

Land Size

Farm Land

Value per acre

Total Farm

Land Value

Residential

Land Value per

acre

Total Residential

Land Value

Residential

Improvement

Value

Total

Residential

value

Total Assessed

Value

Farm Mill

Rate

Residential Mill


2 ha $2,500 $12,355 $500,000 $1,235,500 $150,000 $1,385,500 $1,397,855 0.013394 0.004281 $165.48 $5,930.77 $6,096.25

4 ha $2,500 $24,710 $300,000 $1,482,600 $150,000 $1,632,600 $1,657,310 0.013394 0.004281 $330.96 $6,988.51 $7,319.46

10 ha $2,500 $61,775 $240,000 $2,965,200 $150,000 $3,115,200 $3,176,975 0.013394 0.004281 $827.39 $13,334.93 $14,162.31

Surrey

Land Size

Farm Land

Value per acre

Total Farm

Land Value

Residential

Land Value per

acre

Total Residential

Land Value

Residential

Improvement

Value

Total

Residential

value

Total Assessed

Value

Farm Mill

Rate

Residential Mill


2 ha $2,500 $12,355 $275,000 $679,525 $150,000 $829,525 $841,880 0.013394 0.004281 $165.48 $3,550.86 $3,716.34

4 ha $2,500 $24,710 $180,000 $889,560 $150,000 $1,039,560 $1,064,270 0.013394 0.004281 $330.96 $4,449.94 $4,780.90

10 ha $2,500 $61,775 $100,000 $1,235,500 $150,000 $1,385,500 $1,447,275 0.013394 0.004281 $827.39 $5,930.77 $6,758.16

~

~

71

5 acres

Split Class - 5 Acres (2.0 Hectares)

Burnaby $9,533.89

Delta $5,038.51

Coquitlam $4,192.32

Langley Township $3,451.91

Maple Ridge $2,394.17

Pitt Meadows $2,923.04

Port Coquitlam $4,509.64

Richmond $6,096.25

Surrey $3,716.34

72

10 acres


Burnaby $12,608.14

Delta $5,838.63

Coquitlam $4,992.44





Richmond $7,319.46

Surrey $4,780.90

Taxes Payable $15,000.00 ~------------

$10,000.00

$5,000.00

$0.00

73

25 acres


Burnaby $22,624.20

Delta $8,873.63

Coquitlam $6,758.16





Richmond $14,162.31

Surrey $6,758.16

74

Conclusions

Due to the significant increase in land value for residential parcels, those parcels which have a residential

component increases the property tax in all municipalities analyzed. This relationship also can be seen as highly

beneficial to residential land owners who lease a portion of their parcel in order to achieve farm class status.

By way of example, below are the charts showing total taxation used for 10 acre (4 hectare) properties located

within the ALR but without Farm Class and the 10 acre (4 hectare) properties which utilize split classification.

Non-Split Class - 10 Acres (4.0 Hectares)

Burnaby $17,565.87

Delta $8,500.25

Coquitlam $5,861.68





Richmond $10,510.87

Surrey $5,238.50


Burnaby $12,608.14

Delta $5,838.63

Coquitlam $4,992.44





Richmond $7,319.46

Surrey $4,780.90

75

Scenario 7 Leased Land

Scenario 7 is designed to demonstrate the effect of land which is leased for farming purposes from a residential

land owner. Scenario 7 highlights the significant tax implications of farm uses on land.

In the classification of land BC Assessments primary consideration is actual use. Therefore, if a parcel is used as

a farm, despite zoning or official community plan bylaws, it must be valued as a farm. However, it is worth noting

that the minimum required production for the farmed area is not related to ownership. If the farmer produces

above the quota for farm classification on their own parcel by actively farming it, but simply leases a parcel of

land from a residential owner and pursue reasonable but not intensive farming endeavors, the result as it relates

to property taxes is the same the entire farm receives farm class status.

The threshold for a 20 acre farm with Class 1 soils would be calculated as such:


$2,500 + ($4,350 X 20 acre X 5%)

$2,500 + $4,350

$6,850

If the farmer were to lease an additional 5 acres from a neighboring property the calculation for the minimum

quota would be calculated as such:


$2,500 + ($4,350 X 25 acre X 5%)

$2,500 + $5,437.50

$7,937.50

Therefore, for an additional $1,087.50 of agricultural production, 5 acres of residential land can be classified as

Class 9 Farm Class and receive the beneficial rate.

The following assumptions are made by Colliers International:

1. The parcel is located in an area which permits both residential and farm uses within the ALR.

2.

the millage rates.

3. Improvement value of the residence is assumed to be $150,000.

76

Properties with Lease Creating a Farm Classification

Burnaby

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0133936 0.0042806 $66.19 $642.09 $708.28

2 4.942 $2,500 $12,355 $150,000 0.0133936 0.0042806 $165.48 $642.09 $807.57

4 9.884 $2,500 $24,710 $150,000 0.0133936 0.0042806 $330.96 $642.09 $973.05

10 24.71 $2,500 $61,775 $150,000 0.0133936 0.0042806 $827.39 $642.09 $1,469.48

Delta

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.021757 0.0055421 $107.52 $831.32 $938.84

2 4.942 $2,500 $12,355 $150,000 0.021757 0.0055421 $268.81 $831.32 $1,100.12

4 9.884 $2,500 $24,710 $150,000 0.021757 0.0055421 $537.62 $831.32 $1,368.93

10 24.71 $2,500 $61,775 $150,000 0.021757 0.0055421 $1,344.04 $831.32 $2,175.35

Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0211752 0.0052633 $104.65 $789.50 $894.14

2 4.942 $2,500 $12,355 $150,000 0.0211752 0.0052633 $261.62 $789.50 $1,051.11

4 9.884 $2,500 $24,710 $150,000 0.0211752 0.0052633 $523.24 $789.50 $1,312.73

10 24.71 $2,500 $61,775 $150,000 0.0211752 0.0052633 $1,308.10 $789.50 $2,097.59

Township of Langley

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0139787 0.0056905 $69.08 $853.57 $922.65

2 4.942 $2,500 $12,355 $150,000 0.0139787 0.0056905 $172.71 $853.57 $1,026.28

4 9.884 $2,500 $24,710 $150,000 0.0139787 0.0056905 $345.41 $853.57 $1,198.99

10 24.71 $2,500 $61,775 $150,000 0.0139787 0.0056905 $863.53 $853.57 $1,717.10

Maple Ridge

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0318001 0.0067711 $157.16 $1,015.67 $1,172.82

2 4.942 $2,500 $12,355 $150,000 0.0318001 0.0067711 $392.89 $1,015.67 $1,408.56

4 9.884 $2,500 $24,710 $150,000 0.0318001 0.0067711 $785.78 $1,015.67 $1,801.45

10 24.71 $2,500 $61,775 $150,000 0.0318001 0.0067711 $1,964.45 $1,015.67 $2,980.12

Pitt Meadows

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.033813 0.006394 $167.10 $959.10 $1,126.20

2 4.942 $2,500 $12,355 $150,000 0.033813 0.006394 $417.76 $959.10 $1,376.86

4 9.884 $2,500 $24,710 $150,000 0.033813 0.006394 $835.52 $959.10 $1,794.62

10 24.71 $2,500 $61,775 $150,000 0.033813 0.006394 $2,088.80 $959.10 $3,047.90

Port Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.027163 0.0060313 $134.24 $904.70 $1,038.93

2 4.942 $2,500 $12,355 $150,000 0.027163 0.0060313 $335.60 $904.70 $1,240.29

4 9.884 $2,500 $24,710 $150,000 0.027163 0.0060313 $671.20 $904.70 $1,575.89

10 24.71 $2,500 $61,775 $150,000 0.027163 0.0060313 $1,677.99 $904.70 $2,582.69

Richmond

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.016191 0.00416741 $80.02 $625.11 $705.13

2 4.942 $2,500 $12,355 $150,000 0.016191 0.00416741 $200.04 $625.11 $825.15

4 9.884 $2,500 $24,710 $150,000 0.016191 0.00416741 $400.08 $625.11 $1,025.19

10 24.71 $2,500 $61,775 $150,000 0.016191 0.00416741 $1,000.20 $625.11 $1,625.31

Surrey

Property Size

(hectares)

Property Size

(Acres)

Land Value

per acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $2,500 $4,942 $150,000 0.0065188 0.00460163 $32.22 $690.24 $722.46

2 4.942 $2,500 $12,355 $150,000 0.0065188 0.00460163 $80.54 $690.24 $770.78

4 9.884 $2,500 $24,710 $150,000 0.0065188 0.00460163 $161.08 $690.24 $851.32

10 24.71 $2,500 $61,775 $150,000 0.0065188 0.00460163 $402.70 $690.24 $1,092.94

Colliers , ... ,.", ON '

77

Properties Without a Lease, Residential Classification

Burnaby

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $825,000 $1,630,860 $150,000 0.0042806 0.0042806 $6,981.06 $642.09 $7,623.15

2 4.942 $550,000 $2,718,100 $150,000 0.0042806 0.0042806 $11,635.10 $642.09 $12,277.19

4 9.884 $400,000 $3,953,600 $150,000 0.0042806 0.0042806 $16,923.78 $642.09 $17,565.87

10 24.71 $210,000 $5,189,100 $150,000 0.0042806 0.0042806 $22,212.46 $642.09 $22,854.55

Delta

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $400,000 $790,720 $150,000 0.0055421 0.0055421 $4,382.25 $831.32 $5,213.56

2 4.942 $230,000 $1,136,660 $150,000 0.0055421 0.0055421 $6,299.48 $831.32 $7,130.80

4 9.884 $140,000 $1,383,760 $150,000 0.0055421 0.0055421 $7,668.94 $831.32 $8,500.25

10 24.71 $70,000 $1,729,700 $150,000 0.0055421 0.0055421 $9,586.17 $831.32 $10,417.49

Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $305,000 $602,924 $150,000 0.0052633 0.0052633 $3,173.37 $789.50 $3,962.86

2 4.942 $162,000 $800,604 $150,000 0.0052633 0.0052633 $4,213.82 $789.50 $5,003.31

4 9.884 $97,500 $963,690 $150,000 0.0052633 0.0052633 $5,072.19 $789.50 $5,861.68

10 24.71 $73,000 $1,803,830 $150,000 0.0052633 0.0052633 $9,494.10 $789.50 $10,283.59

Township of Langley

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $250,000 $494,200 $150,000 0.00569048 0.00569048 $2,812.24 $853.57 $3,665.81

2 4.942 $105,000 $518,910 $150,000 0.00569048 0.00569048 $2,952.85 $853.57 $3,806.42

4 9.884 $75,000 $741,300 $150,000 0.00569048 0.00569048 $4,218.35 $853.57 $5,071.92

10 24.71 $37,500 $926,625 $150,000 0.00569048 0.00569048 $5,272.94 $853.57 $6,126.51

Maple Ridge

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $150,000 $296,520 $150,000 0.0067711 0.0067711 $2,007.77 $1,015.67 $3,023.43

2 4.942 $125,000 $617,750 $150,000 0.0067711 0.0067711 $4,182.85 $1,015.67 $5,198.51

4 9.884 $75,000 $741,300 $150,000 0.0067711 0.0067711 $5,019.42 $1,015.67 $6,035.08

10 24.71 $37,500 $926,625 $150,000 0.0067711 0.0067711 $6,274.27 $1,015.67 $7,289.94

Pitt Meadows

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $200,000 $395,360 $150,000 0.006394 0.006394 $2,527.93 $959.10 $3,487.03

2 4.942 $110,000 $543,620 $150,000 0.006394 0.006394 $3,475.91 $959.10 $4,435.01

4 9.884 $75,000 $741,300 $150,000 0.006394 0.006394 $4,739.87 $959.10 $5,698.97

10 24.71 $37,500 $926,625 $150,000 0.006394 0.006394 $5,924.84 $959.10 $6,883.94

Port Coquitlam

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $388,000 $766,998 $150,000 0.0060313 0.0060313 $4,626.00 $904.70 $5,530.69

2 4.942 $215,600 $1,065,495 $150,000 0.0060313 0.0060313 $6,426.32 $904.70 $7,331.02

4 9.884 $124,000 $1,225,616 $150,000 0.0060313 0.0060313 $7,392.06 $904.70 $8,296.75

10 24.71 $94,400 $2,332,624 $150,000 0.0060313 0.0060313 $14,068.76 $904.70 $14,973.45

Richmond

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $500,000 $988,400 $150,000 0.00416741 0.00416741 $4,119.07 $625.11 $4,744.18

2 4.942 $300,000 $1,482,600 $150,000 0.00416741 0.00416741 $6,178.60 $625.11 $6,803.71

4 9.884 $240,000 $2,372,160 $150,000 0.00416741 0.00416741 $9,885.76 $625.11 $10,510.87

10 24.71 $120,000 $2,965,200 $150,000 0.00416741 0.00416741 $12,357.20 $625.11 $12,982.32

Surrey

Property Size

(hectares)

Property Size

(Acres)

Land Value per

acre

Total Land

Value

Improvement

Value

Land Millage

Rate

Improvement

Millage Rate

Farm Land

Taxes

Improvement

TaxesTaxation

0.8 1.9768 $275,000 $543,620 $150,000 0.00460163 0.00460163 $2,501.54 $690.24 $3,191.78

2 4.942 $180,000 $889,560 $150,000 0.00460163 0.00460163 $4,093.43 $690.24 $4,783.67

4 9.884 $100,000 $988,400 $150,000 0.00460163 0.00460163 $4,548.25 $690.24 $5,238.50

10 24.71 $65,000 $1,606,150 $150,000 0.00460163 0.00460163 $7,390.91 $690.24 $8,081.15


78


Comparison of with and without farm class 0.8 ha

Municipality Farm Class Without Farm Class

Burnaby $708.28 $7,623.15

Delta $938.84 $5,213.56

Coquitlam $894.14 $3,962.86

Langley Township $922.65 $3,665.81

Maple Ridge $1,172.82 $3,023.43

Pitt Meadows $1,126.20 $3,487.03

Port Coquitlam $1,038.94 $5,530.69

Richmond $705.12 $4,744.18

Surrey $722.46 $3,191.78



Burnaby $807.57 $12,277.19

Delta $1,100.12 $7,130.80

Coquitlam $1,051.11 $5,003.31


Maple Ridge $1,408.56 $5,198.51

Pitt Meadows $1,376.86 $4,435.01

Port Coquitlam $1,240.30 $7,331.02

Richmond $825.15 $6,803.71

Surrey $770.78 $4,783.67



Burnaby $973.05 $17,565.87

Delta $1,368.93 $8,500.25

Coquitlam $1,312.73 $5,861.68


Maple Ridge $1,801.45 $6,035.08

Pitt Meadows $1,794.62 $5,698.97

Port Coquitlam $1,575.90 $8,296.75

Richmond $1,025.18 $10,510.87

Surrey $851.32 $5,238.50



Burnaby $1,469.48 $22,854.55

Delta $2,175.35 $10,417.49

Coquitlam $2,097.59 $10,283.59


Maple Ridge $2,980.12 $7,289.94

Pitt Meadows $3,047.90 $6,883.94

Port Coquitlam $2,582.70 $14,973.45

Richmond $1,625.28 $12,982.32

Surrey $1,092.94 $8,081.15


79

Conclusions

The current criteria to determine farm class status, as it relates to overall production and area leased by a

farmer, may not be encouraging intensive farming of leased parcels by farmers. The additional production

requirement is not equitable with the difference in property taxes between Class 1 Residential and Class 9

Farm properties. As an example, the $1,087.50 additional income required for 5 acres of farmed property would

result in $6,030.68 of property tax savings in the Corporation of Delta. In becomes financially feasible for parcel

owners to lease their property to farmers without cost in order to achieve savings on property tax.

80

Scenario 8 Property Classification

Scenario 8 is designed to show the potential taxable value for various classifications within the Metro Vancouver

region. The primary influences on the taxation

classification. The following assumptions are made by Colliers International:

1. Residential parcels are assumed subdivided and no size adjustment is made

2. Major Industry, Light Industry, Commercial, and recreational land uses all have a similar value within the

same municipality

3. Size adjustment for industrial and commercial land uses, 10 acres (4.0 hectares) and 25 acres (10.0

hectares) in size, are assumed to be 10% and 20% respectively due to the principals of diminishing

marginal returns as explained earlier in this report.

The results are on the following pages.

81

Property Classification by size and municipality

Burnaby 2 Acres (0.8 Hectares) Land Value per acre Total Land Value Millage Rate Total Taxes

Class 1 Residential $5,227,200 $10,454,400 4.2806 $44,751.10

Class 4 Major Industrial $1,400,000 $2,800,000 50.4098 $141,147.44

Class 5 Light Industrial $1,400,000 $2,800,000 15.9794 $44,742.32

Class 6 Business / Other $1,400,000 $2,800,000 17.477 $48,935.60

Class 8 Recreations $1,400,000 $2,800,000 5.3109 $14,870.52

Class 9 Farm $2,500 $5,000 13.3936 $66.97

Burnaby 5 Acres ( 2.0 Hectares) Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $12,500 13.3936 $167.42

Burnaby 10 Acres (4.0 Hectares) Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $25,000 13.3936 $334.84

Delta 2 Acres (0.8 Hectares) Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $5,000 21.7569 $108.78







Class 9 Farm $2,500 $12,500 21.7569 $271.96



Class 4 Major Industrial $900,000 $9,000,000 39.7099 $357,389.10

Class 5 Light Industrial $900,000 $9,000,000 17.2965 $155,668.50

Class 6 Business / Other $900,000 $9,000,000 18.7924 $169,131.60

Class 8 Recreations $900,000 $9,000,000 11.1394 $100,254.60

Class 9 Farm $2,500 $25,000 21.7569 $543.92


82

Property Classification by size and municipality continued

Coquitlam 2 Acres (0.8 Hectares) Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $5,000 21.1752 $105.88

Coquitlam 5 Acres (2.0 Hectares) Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $12,500 21.1752 $264.69

Coquitlam 10 Acres (4.0 Hectares)Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $25,000 21.1752 $529.38

Langley 2 Acres (0.8 Hectares) Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $5,000 21.175 $105.88







Class 9 Farm $2,500 $12,500 21.175 $264.69







Class 9 Farm $2,500 $25,000 21.175 $529.38


83


Maple Ridge 2 Acres (0.8 Hectares)Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $5,000 31.8 $159.00







Class 9 Farm $2,500 $12,500 31.8 $397.50







Class 9 Farm $2,500 $25,000 31.8 $795.00

Pitt Meadows 2 Acres (0.8 Hectares) Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $5,000 33.813 $169.07







Class 9 Farm $2,500 $12,500 33.813 $422.66







Class 9 Farm $2,500 $25,000 33.813 $845.33


84


Port Coquitlam 2 Acres (0.8 Hectares)Land Value per acre Total Land Value Millage Rate Total Taxes


Class 4 Major Industrial $1,400,000 $2,800,000 N/A N/A




Class 9 Farm $2,500 $5,000 30.6131 $153.07



Class 4 Major Industrial $1,400,000 $7,000,000 N/A $0.00




Class 9 Farm $2,500 $12,500 30.6131 $382.66



Class 4 Major Industrial $1,260,000 $12,600,000 N/A $0.00




Class 9 Farm $2,500 $25,000 30.6131 $765.33

Richmond 2 Acres (0.8 Hectares) Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $5,000 16.1905 $80.95







Class 9 Farm $2,500 $12,500 16.1905 $202.38







Class 9 Farm $2,500 $25,000 16.1905 $404.76


85


Surrey 2 Acres (0.8 Hectares) Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $5,000 6.5188 $32.59

Surrey 5 Acres (2.0 hectares) Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $12,500 6.5188 $81.49

Surrey 10 Acres (4.0 Hectares) Land Value per acre Total Land Value Millage Rate Total Taxes






Class 9 Farm $2,500 $25,000 6.5188 $162.97


86

Property Classification 2 acre (0.8 hectare) Summary


Burnaby Delta Coquitlam Langley Maple Ridge Pitt Meadows Port CoquitlamRichmond Surrey

Class 1 - Residential $44,751.10 $28,969.67 $33,473.32 $14,213.89 $34,213.59 $32,308.63 $31,525.24 $10,891.94 $10,022.28

Class 4 - Major Industrial $141,147.44 $79,419.80 $97,037.92 $64,113.60 $79,000.55 $79,538.90 N/A $63,634.37 $40,488.96

Class 5 - Light Industrial $44,742.32 $34,593.00 $56,329.28 $37,218.30 $34,706.00 $43,129.05 $74,300.52 $46,884.45 $30,662.40

Class 6 - Business / Other $48,935.60 $37,584.80 $60,959.36 $40,276.35 $37,469.90 $37,246.05 $55,664.56 $50,060.61 $36,012.96

Class 8 - Recreations $14,870.52 $22,278.80 $51,997.40 $34,356.35 $29,474.20 $26,166.40 $50,536.36 $18,542.43 $14,703.84

Class 9 - Farm $66.97 $108.78 $105.88 $105.88 $159.00 $169.07 $153.07 $80.95 $32.59

S11O,ODO.OO

S.1O.00000

• (1.»0 I R"""""'loi

• (l.ou' M.p _,101 • o.u ~_ U&hI """"",101 . (1 .... 6 .......... /01 ... '

• (1.»0, _,e.l""" . cu..9 r..-m

Colliers '".,,,. ,.

87

Property Classification 5 acre (4.0 hectare) Summary

5 Acres (2.0 Hectares )

Burnaby Delta Coquitlam Langley Maple Ridge Pitt Meadows Port CoquitlamRichmond Surrey

Class 1 - Residential 111,877.76$ 72,424.16$ 83,683.31$ 35,534.72$ 85,533.98$ 80,771.57$ 76,186.00$ 27,229.86$ 25,055.71$

Class 4 - Major Industrial 352,868.60$ 198,549.50$ 242,594.80$ 160,284.00$ 197,501.38$ 198,847.25$ -$ 159,085.92$ 101,222.40$

Class 5 - Light Industrial 111,855.80$ 86,482.50$ 140,823.20$ 93,045.75$ 86,765.00$ 107,822.63$ 185,751.30$ 117,211.12$ 76,656.00$

Class 6 - Business / Other 122,339.00$ 93,962.00$ 152,398.40$ 100,690.88$ 93,674.75$ 93,115.13$ 139,161.40$ 125,151.52$ 90,032.40$

Class 8 - Recreations 37,176.30$ 55,697.00$ 129,993.50$ 85,890.88$ 73,685.50$ 65,416.00$ 126,340.90$ 46,356.08$ 36,759.60$

Class 9 - Farm 167.42$ 271.96$ 264.69$ 264.69$ 397.50$ 422.66$ 382.66$ 202.38$ 81.49$

88

Conclusions

The millage rate for Class 1 Residential properties tends to be lower in the Metro Vancouver region due to the

significant overall value within each municipality. As an example, in the City of Vancouver, residential properties

accounted for $187 Billion in property value, or 84.2% of the total assessed value in 2013. Similar to Vancouver,

most municipalities consist of primarily residential property value. Therefore, the taxation gained from additional

residential development would tend to be lower than that of additional commercial and industrial uses which

traditionally has higher millage rates.

From the proceeding charts and graphs, it is quite apparent that, given any property size, the Class 4 - Major

Industrial Classification pays the highest taxes. However, municipal services provided to different classes of

properties vary, as well as associated costs.

Because of the Provincial 50% school tax rebate, Light Industrial properties currently pay slightly less tax than

Class 6 Business / Other properties. In 2013, the provincial government began to eliminate the rebate with the

intention of removing it entirely by 2014. Although municipalities can adjust their millage rates to account for this

shift, generally the Class 5 Light Industrial millage rate is anticipated to exceed the Class 6 millage rate by 2014.

Colliers International anticipates that Class 5 Light Industrial properties will be the second highest revenue

generator for property taxes on a per acre basis.

Class 8 Recreational properties generally consist of a very low percentage of total property value within a

municipality. These park areas also tend to be tax exempt as they are owned by the municipalities themselves.

Privately owned recreation facilities, soccer fields, wooded hiking trails etc, tend to have a millage rate similar to

residential properties. Recreational properties tend to be a less significant form on income for municipalities.

Due to the method of valuation, farm class properties are by far the lowest income producing taxation class,

generally incurring less than 1.00% of the taxable income from other property classes. Although some

municipalities, namely Pitt Meadows, Maple Ridge, and Port Coquitlam have a high farm mill rate, the income

achieved on a per acre basis is by far the lowest of the various property uses.

89

Overall Conclusions for Agricultural Land Scenarios

The most significant factor influencing property taxation levels is weather the property is classified as a farm, or

as another use. Properties classified as farm pay lower property taxes relative to other land uses.

The 2013 revision to the exemption of farm related improvements (greenhouses, barns, etc) may result in greater

investment into intensification of agricultural land as farmers are better protected from significant tax shifts.

Size has a significant effect on property value; smaller parcels (between 1 and 5 acres) have a greater value per

acre because the number of potential purchasers is much greater than larger parcels (between 10 and 25 acres).

With less competition to purchase, larger parcels will trade for less per acre and the effects of either partial

residential or industrial uses are diminished.

The next most influential factor in land value is the location of the property. Smaller (1 3 acres) properties

located near urban centers, despite being located in the Agricultural Land Reserve, are often purchased for use

as a single family residence as the convenience to access amenities is not diminished. This trend significantly

increases the land value of parcels beyond the ability for farmers to justify purchase for agricultural use.

90

Industrial Scenarios

All of the following are scenarios for a 5 acre site:

1. Older single-tenant warehouse / distribution centre building (65,000 sq ft)

2. New single-tenant warehouse / distribution centre building (90,000 sq ft)

3. Modern cross-dock facility building (45,000 sq ft)

4. Single level multi-tenant flex-space industrial building (90,000 sq ft)

5. Two level multi-tenant flex-space industrial building (158,000 sq ft)

6. Multi-level industrial building with office component (office 45,000 sq ft/industrial 97,000 sq ft)

7. Office business park two level building (200,000 sq ft office)

8. Large format retail development single level (65,000 sq ft)

9. Townhouse Development (typical density)

10. Low Rise Apartment Development

11. High Rise Apartment Development

91

Scenario 1 Older Single Tenant Warehouse

The purpose of Scenario 1 is to compare the property tax for an older single tenant distribution centre of 65,000

square foot on a 5 acre site (0.3 FSR (floor space ratio). Distribution centre buildings tend to have a lower site

coverage, typically 30% 45% which incur excess land considerations for assessment purposes. Older buildings

tend to trade at lower values per square foot due to functional obsolescence, primarily because of lower clear

heights which affect storage capacity.

Colliers International set the parameters of gathering evidence for Scenario 1 as follows:

1. Building age is drawn from 1965 1980

2. Building size range for evidence gathering was from 40,000 to 80,000 square feet.

3. Please note that evidence for the specific industrial scenarios in North Vancouver was gathered from

both the City and District of North Vancouver, however in graphs provided throughout this report only

the mill rates for the District of North Vancouver were applied.

The following assumptions have been made:

1. Typical site coverage for industrial developments is 40%; as the land component of value is 5 acres the

65,000 square foot building (0.3 FSR) will have a significant portion of excess land.

2. The municipalities of District of North Vancouver and Vancouver did not have sufficient data; values are

assumed to be similar to those of smaller distribution centres.

3. Land values used for excess land calculations as determined by Colliers International from conversations

with BC Assessment and analysis of vacant land parcels per acre are as below:

Land Value per acre

Vancouver 2,225,000$

Burnaby 1,300,000$

Richmond 1,200,000$

Surrey 1,300,000$

Langley City 1,000,000$

Delta 985,000$

North Vancouver 2,200,000$

92

Municipality

Property

Size acres

Building

size sq ft

Improvement

Value psf

Improvement

Value

Site

coverage

permitted

Excess

Land

(acres)

Land Value

per acre

Total Excess

land Value Total Value

Total Mill

Rate- Class 5

Property

Taxes

Vancouver 5 65,000 130.00$ 8,450,000$ 40% 1.270 2,225,000$ $2,824,667 $11,274,667 15.21151 171,505$

Burnaby 5 65,000 115.00$ 7,475,000$ 40% 1.270 1,300,000$ $1,650,367 $9,125,367 15.9794 145,818$

Richmond 5 65,000 95.00$ 6,175,000$ 40% 1.270 1,200,000$ $1,523,416 $7,698,416 14.65139 112,792$

Surrey 5 65,000 100.00$ 6,500,000$ 40% 1.270 1,300,000$ $1,650,367 $8,150,367 12.77602 104,129$

Langley City 5 65,000 95.00$ 6,175,000$ 40% 1.270 1,000,000$ $1,269,513 $7,444,513 16.3195 121,491$

Delta 5 65,000 95.00$ 6,175,000$ 40% 1.270 985,000$ $1,250,471 $7,425,471 17.2965 128,435$

North Vancouver 5 65,000 120.00$ 7,800,000$ 40% 1.270 2,200,000$ $2,792,929 $10,592,929 17.43628 184,701$

Older Distribution

Centre

Vancouver 171,504.71$

Burnaby 145,817.89$

Richmond 112,792.49$

Surrey 104,129.26$

Langley City 121,490.74$

Delta 128,434.65$

North Vancouver 184,701.28$

Conclusions

Scenario 1 demonstrates that the total taxation for a 65,000 sq ft single tenant warehouse / distribution centre

building. The average property taxes within the municipalities researched is $136,008, with the highest amount in

North Vancouver at $184,701 and the lowest in the City of Surrey at $104,129. The main factors for this

difference are the significantly lower improvement values attributed to older industrial property in the City of

Surrey compared to the District of North Vancouver, along with the large variance in the Class 5 mill rate within

each municipality. The City of Surrey Class 5 mill rate for 2013 is 12.77602 whereas in North Vancouver the mill

rate is 17.43628.

93

Scenario 2 New Single-Tenant Warehouse

Scenario 2 is designed to determine the taxation by a newer, single tenant distribution center with improvements

of 90,000 square feet on a 5 acre parcel (0.4 FSR). Newer distribution centres tend to have a site coverage of

30% - 40% and have a significant clear height for product storage, trending towards 24 feet. Although less

prevalent in older, established industrial areas such as Vancouver, larger distribution developments are becoming

increasingly common in outlying municipalities such as Delta, Surrey, and Langley.

Colliers International set the parameters of gathering evidence for Scenario 2 as follows:

1. Building age is drawn from 1990 Current Developments

2. Building size ranges from 70,000 to 120,000 square feet




The following assumptions were made:


90,000 square foot building will not have a significant portion of excess land.

2. The municipalities of North Vancouver and Vancouver did not have sufficient data; values are assumed to

be similar to those of smaller distribution centres.

Municipality

Property

Size Acres

Improvement

Value psf

Improvement

Value

Millage Rate-

Class 5

Property

Taxes

Vancouver 5 150.00$ 13,500,000$ 15.21151 205,355.39$

Burnaby 5 120.00$ 10,800,000$ 15.9794 172,577.52$

Richmond 5 105.00$ 9,450,000$ 14.65139 138,455.64$

Surrey 5 105.00$ 9,450,000$ 12.77602 120,733.39$

Langley City 5 105.00$ 9,450,000$ 16.3195 154,219.28$

Delta 5 110.00$ 9,900,000$ 17.2965 171,235.35$

North Vancouver 5 140.00$ 12,600,000$ 17.43628 219,697.13$

94

Newer Distribution Centre

Municipality


Burnaby 172,577.52$


Surrey 120,733.39$


Delta 171,235.35$


Conclusions

Scenario 2 demonstrates that the greater the density of a parcel (ie a 90,000 sq ft improvement versus a 65,000

sq ft improvement) the greater the property taxes as there is greater value associated with new building area

than exposed land. Scenario 2 also demonstrates the taxation difference of newer parcels versus older ones.

Newer developments result in a higher property value, which equates to higher taxes. The average taxes within

all the municipalities researched is $168,896, with the highest taxes in North Vancouver at $219,697 and the

lowest in the City of Surrey at $120,733, a trend similar to older distribution centre buildings.

Colliers I "H~''''.TlO'''''

Newer Distribution Centre $250,000

$200,000

$ 150,000

$100,000

$50,000

,

95

Scenario 3 Modern Cross-Dock Facility Building

Scenario 3 is designed to determine the taxation for newer cross dock facilities of 45,000 sq ft on a 5 acre parcel

(0.21 FSR) within the various municipalities located within Metro Vancouver. Cross dock facilities tend to have

the lowest site coverage, typically 20%-40% which incur excess land considerations for assessment purposes.

Colliers International set the parameters for Scenario 3 as follows:

1. Building age is drawn from 1990 2013

2. Building size ranges from 30,000 and 60,000 sq ft






45,000 square foot building will have a significant portion of excess land.



3. Land values used for excess land calculations as determined by Colliers International from conversations

with BC Assessment and analysis of vacant land parcels per acre are as below:

Land Value per


Burnaby 1,300,000$

Richmond 1,200,000$

Surrey 1,300,000$

Langley City 1,000,000$

Delta 985,000$


The results are summarized on the following pages.

96

Municipality

Property

Size Acres

Improvement

Value psf

Improvement

Value

Density

Permitted

Excess

Land

(acres)

Land Value

per acre

Total Excess

land Value Total Value

Millage Rate-

Class 5

Property

Taxes

Vancouver 5 160.00$ 7,200,000$ 40% 2.417 2,225,000$ $5,378,616 $12,578,616 15.21151 191,339.74$

Burnaby 5 150.00$ 6,750,000$ 40% 2.417 1,300,000$ $3,142,562 $9,892,562 15.9794 158,077.20$

Richmond 5 110.00$ 4,950,000$ 40% 2.417 1,200,000$ $2,900,826 $7,850,826 14.65139 115,025.52$

Surrey 5 130.00$ 5,850,000$ 40% 2.417 1,300,000$ $3,142,562 $8,992,562 12.77602 114,889.15$

Langley City 5 105.00$ 4,725,000$ 40% 2.417 1,000,000$ $2,417,355 $7,142,355 16.3195 116,559.67$

Delta 5 115.00$ 5,175,000$ 40% 2.417 985,000$ $2,381,095 $7,556,095 17.2965 130,694.00$

North Vancouver 5 150.00$ 6,750,000$ 40% 2.417 2,200,000$ $5,318,182 $12,068,182 17.43628 210,424.20$

Modern Crossdock

Class 5


Burnaby 158,077.20$


Surrey 114,889.15$


Delta 130,694.00$


$250,000

$200,000

$150,000

$100,000

$50,000

$-

Modern Cross-Dock Facility- Class 5

Colliers IN TF~NArIO"'AI

97

Conclusions

Scenario 3 demonstrates the taxation for a 45,000 sq ft cross dock facility. The District of North Vancouver

applies the highest taxes for Class 5 Light Industrial, while the City of Surrey has the lowest taxes. The average

taxation for a 5 acre development improved with a 45,000 sq ft cross dock facility is $144,078 for Class 5 Light

Industrial.

Relative to Scenarios 1 and 2, Scenario 3 produces an average tax revenue. The evidence demonstrates that

newer developments generate a higher tax revenue than older developments (Scenario 1 versus Scenario 3) and

that properties with greater site coverage pay more taxes than properties with lower site coverage (Scenario 2

versus Scenario 3).

98

Scenario 4 Single Level Multi-Tenant Flex Space

Scenario 4 is designed to determine the taxation for a typical large format multi-tenant industrial development of

90,000 sq ft on a 5 acre site (0.41 FSR). These improvements tend to have a site coverage of approximately

50% - 60% and are larger to accommodate more tenants. Due to the high site coverage, multi-tenant flex

buildings are not typically assessed with an excess land calculation.

Classifications for such properties vary between Class 5 Light Industrial and Class 6 Business / Other

depending on the product produced by various tenants. For the purposes of this scenario, Colliers International

has provided calculations for both classifications.

In this analysis Colliers International made the following assumptions:



3. Office component typically amounts to 10% of overall building.





1. Typical site coverage for industrial developments is 50% to 60%; as the land component of value is 5

acres the 90,000 square foot building will not have a calculation for excess land.



The results are outlined on the following pages.

99

Class 5 Light Industry

Municipality

Property

Size Acres

Improvement

Value psf

Improvement

Value

Millage Rate-

Class 5

Property

Taxes

Vancouver 5 130.00$ 11,700,000$ 15.21151 177,975$

Burnaby 5 115.00$ 10,350,000$ 15.9794 165,387$

Richmond 5 90.00$ 8,100,000$ 14.65139 118,676$

Surrey 5 90.00$ 8,100,000$ 12.77602 103,486$

Langley City 5 85.00$ 7,650,000$ 16.3195 124,844$

Delta 5 100.00$ 9,000,000$ 17.2965 155,669$

North Vancouver 5 140.00$ 12,600,000$ 17.43628 219,697$

Single Level Flex

Industrial

Municipality Class 5

Vancouver 177,975$

Burnaby 165,387$

Richmond 118,676$

Surrey 103,486$

Langley City 124,844$

Delta 155,669$

North Vancouver 219,697$

Single Level Flex Industrial Class S $250,000 ,--

$200,000

$150,000

$100,000

$50,000

$0


100

Class 6 Business Other

Municipality

Property

Size Acres

Improvement

Value psf

Improvement

Value

Millage Rate-

Class 6

Property

Taxes

Vancouver 5 130.00$ 11,700,000$ 16.48542 192,879$

Burnaby 5 115.00$ 10,350,000$ 17.477 180,887$

Richmond 5 90.00$ 8,100,000$ 15.64394 126,716$

Surrey 5 90.00$ 8,100,000$ 15.00537 121,543$

Langley City 5 85.00$ 7,650,000$ 16.8007 128,525$

Delta 5 100.00$ 9,000,000$ 18.7924 169,132$

North Vancouver 5 140.00$ 12,600,000$ 16.62269 209,446$

Single Level Flex

Industrial


Vancouver 192,879$

Burnaby 180,887$

Richmond 126,716$

Surrey 121,543$


Delta 169,132$


Single Level Flex Industrial Class 6 $250,000 .,--------------

$200,000

$150,000

$100,000

$50,000

$0


101

Conclusions

Scenario 4 demonstrates that in areas with higher land values, industrial properties with higher FSR with no

excess land trade for a similar value to single level distribution centres with excess land value. Industrial buildings

of reasonable size (ie greater than 20,000 sq ft) and of similar age will trade for similar values per square foot.

Therefore areas with low land value benefit from properties with greater density due to greater value attributed

to the building improvements.

The District of North Vancouver applies the highest taxation rate for both Class 5 Light Industrial and Class 6 -

Business / Other classifications due to the higher value per square foot of improvement and scarcity of industrial

land. The City of Surrey, having a relatively lower millage rate and lower improvement values, applies the lowest

taxes. The average taxes for 5 acre developments, improved with a 90,000 square foot building are $152,784 for

Class 5 Light Industrial and $162,819 for Class 6 Business / Other.

102

Scenario 5 Two Level Multi-Tenant Flex Space

Scenario 5 is designed to estimate the taxes for a two level, multi-tenant industrial flex space. Such a

development would maximize density in municipalities that have limited area for industrial parks.

Improvements are assumed to be approximately 160,000 square feet in size, and are comprised of two levels of

warehouse / manufacturing industrial space on a 5 acre property (0.73 FSR). In order to construct such a

development, the lower floor would require tighter column spacing to support the upper floor. The specific

spacing would depend on very specific property features and is difficult to forecast in a general exercise. Column

spacing is an important consideration for distribution type tenancies, and developments with closer columns are

less attractive. For the purposes of Scenario 5, Colliers International has assumed a 10% downwards adjustment

to the value per square foot of the multi-level improvement to account for a smaller tenant pool and less

attractive column spacing.

Classifications for such properties vary between Class 5 Light Industrial and Class 6 Business / Other

depending on the product produced by various tenants. For the purposes of this scenario, Colliers International

has provided calculations for both classifications.

In this analysis Colliers International made the following assumptions:

1. Building age is drawn from newer 1990 + Current Developments

2. Evidence for values per square foot ranges from 90,000 to 250,000 square feet where available


1. Typical site coverage for industrial developments is 50% to 60%; as the land component of value is 5

acres the 160,000 square foot building will not have a calculation for excess land.

2. The municipalities of District of North Vancouver and Vancouver did not have sufficient data; values are

assumed to be similar to those of smaller distribution centres.

The results are outlined on the following pages.

103

Class 5 Light Industrial

Municipality

Property

Size Acres

Improvement

Value psf

Improvement

Value Total Value

Millage Rate-

Class 5 Property Taxes

Vancouver 5 108.00$ 17,064,000$ 17,064,000$ 15.21151 259,569.21$

Burnaby 5 99.00$ 15,642,000$ 15,642,000$ 15.9794 249,949.77$

Richmond 5 81.00$ 12,798,000$ 12,798,000$ 14.65139 187,508.49$

Surrey 5 81.00$ 12,798,000$ 12,798,000$ 12.77602 163,507.50$

Langley City 5 72.00$ 11,376,000$ 11,376,000$ 16.3195 185,650.63$

Delta 5 81.00$ 12,798,000$ 12,798,000$ 17.2965 221,360.61$

North Vancouver 5 99.00$ 15,642,000$ 15,642,000$ 17.43628 272,738.29$

Two level multi-

tenant flex-space

industrial building


Vancouver 259,569$

Burnaby 249,950$

Richmond 187,508$

Surrey 163,508$


Delta 221,361$


Two Level Flex Industrial Class 5 $300,000 -,-------------

$250,000

$200,000

$150,000

$100,000

$50,000

$0


104

Class 6 Business Other

Municipality

Property

Size Acres

Improvement

Value psf

Improvement

Value Total Value

Millage Rate-


Vancouver 5 108.00$ 17,064,000$ 17,064,000$ 16.48542 281,307.21$

Burnaby 5 99.00$ 15,642,000$ 15,642,000$ 17.477 273,375.23$

Richmond 5 81.00$ 12,798,000$ 12,798,000$ 15.64394 200,211.14$

Surrey 5 81.00$ 12,798,000$ 12,798,000$ 15.00537 192,038.73$

Langley City 5 72.00$ 11,376,000$ 11,376,000$ 16.8007 191,124.76$

Delta 5 81.00$ 12,798,000$ 12,798,000$ 18.7924 240,505.14$

North Vancouver 5 99.00$ 15,642,000$ 15,642,000$ 16.62269 260,012.12$

Two level multi-

tenant flex-space

industrial building


Vancouver 281,307$

Burnaby 273,375$

Richmond 200,211$

Surrey 192,039$


Delta 240,505$


105

Conclusions

As an exercise, Scenario 5 yields interesting results. Properties of this caliber would be valued based on the

Income Approach. Because BC Assessment values income producing properties based on the income a property

can produce, divided by a market generated capitalization rate, the assessed value of a two level industrial

building would be twice the value of a single level building less any adjustments due to column spacing or access

to the 2nd

floor, due to increased density. Although Colliers International has used an adjustment of 10%, this

adjustment may be greater in areas where access is the primary function of value or non-existent where location

is the primary function of value.

106

Scenario 6 Multi-Level Industrial Building with Office

Scenario 6 is designed to estimate the taxes for a multi-level industrial building with an office component. The 5

acre property is improved with 97,000 sq ft of industrial space on the ground level with 45,000 sq ft of office

space on the upper level (0.65 FSR).

In order to construct such a development, part of the lower floor would require slightly tighter column spacing in

order to support the office on the second floor. The specific spacing, although not as severe as in Scenario 5,

would depend on very specific property features and is difficult to forecast in a general exercise.

It is accepted that Light Industrial properties require some office in order to operate, generally around 10%.

However, properties with a greater than 10% office component are typically centralized office areas for a national

business. Although values per sq ft for such properties are generally reported using a blended rate, office

functions such as human resources, accounting, etc which are not necessarily associated with light industry, are

assessed using the Class 6 Business / Other mill rate. Colliers International has delineated between the

industrial portion of the building and the office portion of the building to account for the greater percentage of

office in Scenario 6.

Colliers International set the parameters of gathering evidence for scenario 6 as follows:

1. Building age is drawn from newer 1990 2013






1. Given the building size is 142,000 sq ft no excess land has been added

2. The property is valued using split class, 76% Class 5 Light industry and 24% Class 6 Business / Other



107

Municipality

Property

Size Acres

Improvement

Value psf

Improvement

Value Total Value

Split Class % -

Class 5 76%

Split Class % -

Class 6 24%

Millage Rate-

Class 5

Millage Rate-

Class 6

Property

Taxes

Vancouver 5 120.00$ 17,040,000$ 17,040,000$ 12,950,400$ 4,089,600$ 15.21151 16.48542 264,414$

Burnaby 5 110.00$ 15,620,000$ 15,620,000$ 11,871,200$ 3,748,800$ 15.9794 17.477 255,212$

Richmond 5 90.00$ 12,780,000$ 12,780,000$ 9,712,800$ 3,067,200$ 14.65139 15.64394 190,289$

Surrey 5 90.00$ 12,780,000$ 12,780,000$ 9,712,800$ 3,067,200$ 12.77602 15.00537 170,115$

Langley City 5 80.00$ 11,360,000$ 11,360,000$ 8,633,600$ 2,726,400$ 16.3195 16.8007 186,701$

Delta 5 90.00$ 12,780,000$ 12,780,000$ 9,712,800$ 3,067,200$ 17.2965 18.7924 225,637$

North Vancouver 5 110.00$ 15,620,000$ 15,620,000$ 11,871,200$ 3,748,800$ 17.43628 16.62269 269,305$

Multi level

industrial with

Municipality Class 5&6


Burnaby 255,212.43$


Surrey 170,115.40$


Delta 225,637.49$


Multi Level Industrial with Office - Class 5&6

$300,000 ,-------------

$250,000 $200,000 $150,000 $100,000

$50,000 $0


108

Conclusions

Improvement values per sq ft for larger, multi-level industrial developments tend to be slightly lower than smaller

industrial developments due to no excess land being associated with the property. The most significant influence

on taxable income for properties with a higher component of office as opposed to properties designed for

distribution is the inclusion of the Class 6 Business / Other millage rate. The average tax for 5 acre

developments, improved with a 142,000 square foot building is $223,342 using the class 5 & 6 split.

109

Scenario 7 Office Business Park

Scenario 7 is designed to demonstrate the tax revenue generated by a 5 acre parcel improved with a 200,000

square foot office business park (0.91 FSR). Although such improvements are somewhat rare, most

municipalities have some examples of two storey business parks. Due to their high value and the commercial

millage rate, office properties tend to pay much higher taxes relative to other scenarios explored in this report.

Colliers International has set the parameters of evidence gathering for Scenario 7 as follows:







1. Typical site coverage for office developments range depending on location; as the land component of

value is 5 acres the 200,000 square foot building will not have a calculation for excess land.

2. The municipalities of Delta and Langley did not have sufficient data; values are assumed to be similar on

a per square foot basis to those of smaller office developments.

110

Municipality

Property Size

Acres

Improvement

Value psf

Improvement

Value Total Value

Millage Rate-


Vancouver 5 340.00$ 68,000,000$ 68,000,000$ 16.48542 1,121,009$

Burnaby 5 260.00$ 52,000,000$ 52,000,000$ 17.477 908,804$

Richmond 5 200.00$ 40,000,000$ 40,000,000$ 15.64394 625,758$

Surrey 5 220.00$ 44,000,000$ 44,000,000$ 15.00537 660,236$

Langley City 5 190.00$ 38,000,000$ 38,000,000$ 16.8007 638,427$

Delta 5 204.00$ 40,800,000$ 40,800,000$ 18.7924 766,730$

North Vancouver 5 200.00$ 40,000,000$ 40,000,000$ 16.62269 664,908$

Office business park

two level building Class 6


Burnaby 908,804$

Richmond 625,758$

Surrey 660,236$


Delta 766,730$


Colliers "<l '""A " O~A '

I I I I I I

Office Business Park two level $1 ,200,000 TCC-

$1,000,000

""'.~ S<OO.~

$400.000

$200,000

;

111

Conclusions

Due to the high value per square foot for 5 acre office properties, the City of Vancouver achieves the highest

taxation from Office Park Developments, approximately $1,121,000 in taxes. Due to lower values the City of

Richmond yields the lowest taxes of approximately $626,000 for Scenario 7. The average taxes for Scenario 7

are $767,798. This is by far the highest of the scenarios explored.

It is important to note that office properties not located along sky train routes have suffered from significant

vacancy issues and tend to achieve lower lease rates. Industry experts agree that such a trend is likely to

continue for the foreseeable future and may worsen as more competitive properties are built at higher densities

along transit routes.

112

Scenario 8 Large Format Retail Development

Scenario 8 is designed to forecast the taxes generated by a single level retail development with a 65,000 sq ft

improvement on a 5 acre property (0.30 FSR). Large format retail developments tend to have a site coverage of

approximately 30% - 50% and provide generous on-site parking to accommodate customers. Due to the high

parking requirement, typical buildings of this size on a 5 acre site are not generally assessed with an excess land

calculation.

Colliers International set the parameters of evidence gathering for scenario 8 as follows:


2. No excess land has been added due to parking requirements

Municipality

Property

Size Acres

Improvement

Value psf

Improvement

Value Total Value

Millage Rate-


Vancouver 5 440.00$ 28,600,000$ 28,600,000$ 16.48542 471,483.01$

Burnaby 5 315.00$ 20,475,000$ 20,475,000$ 17.477 357,841.58$

Richmond 5 250.00$ 16,250,000$ 16,250,000$ 15.64394 254,214.03$

Surrey 5 240.00$ 15,600,000$ 15,600,000$ 15.00537 234,083.77$

Langley City 5 235.00$ 15,275,000$ 15,275,000$ 16.8007 256,630.69$

Delta 5 250.00$ 16,250,000$ 16,250,000$ 18.7924 305,376.50$

North Vancouver 5 240.00$ 15,600,000$ 15,600,000$ 16.62269 259,313.96$

Large Format Retail



Burnaby 357,841.58$


Surrey 234,083.77$


Delta 305,376.50$


113

Conclusions

Retail properties tend to pay higher taxes than industrial properties because they trade at a higher value per

square foot, but a lower value than office because they are unable to achieve the same density on a parcel.

114

Scenario 9 Townhouse Development

Scenario 9 is designed to demonstrate the taxation generated by a 5 acre parcel improved with a typical

townhouse development. Townhouse developments are typically constructed using wood frame and wood

cladding, although high value properties can include stone cladding. Townhouse developments have the lowest

site coverage of multi-family residential properties, between 0.5 and 0.85 FSR, and due to the larger size of

individual units, sell for the lowest value per square foot.


Townhouse style developments sold in 2013


Typical density of townhouse developments are assumed to be constructed to a 0.75 FSR

115

Municipality

Property Size

Acres FSR

Buildable

area sq ft

Value per sq

ft Total Value

Millage Rate-


Vancouver 5 0.75 163,350 635.00$ $103,727,250 3.79347 393,486.21$

Burnaby 5 0.75 163,350 395.00$ $64,523,250 4.2806 276,198.22$

Richmond 5 0.75 163,350 400.00$ $65,340,000 4.16741 272,298.57$

Surrey 5 0.75 163,350 230.00$ $37,570,500 4.60163 172,885.54$

Langley 5 0.75 163,350 220.00$ $35,937,000 6.2227 223,625.17$

Delta 5 0.75 163,350 230.00$ $37,570,500 5.5421 208,219.47$

North Vancouver 5 0.75 163,350 435.00$ $71,057,250 4.3019 305,681.18$

Townhouse development

Vancouver 393,486$

Burnaby 276,198$

Richmond 272,299$

Surrey 172,886$


Delta 208,219$



I I I I I I I

$450,000 5400,000 $350,000 5300,000 5250,000 $200,000 5150,000 $100,000

550,000 5-

Townhouse Development

116

Conclusions

The highest value per square foot for townhouse developments are found in the Cities of Vancouver, North

Vancouver, and Richmond. This is reflective of proximity to downtown Vancouver and the inventory available to

purchasers and proximity to rapid transit. In cities where the downtown is easily accessible, or there is a limited

inventory of townhouses, the value per square foot of such units is higher. Predictably, the City of Langley has

the lowest value per square foot of townhouse units.

Overall the property tax revenue generated by such developments ranged from $172,885.54 to $393,486.21 for a

5 acre parcel constructed to a density of 0.75 FSR.

117

Scenario 10 Low Rise Apartment Development

Scenario 10 is designed to demonstrate the taxes for by a 5 acre parcel improved with a typical low rise

apartment development. Low rise developments are typically constructed using wood frame and wood cladding,

although some are constructed using a concrete frame. Low rise multi-family developments typically have a

density ranging from 1.0 to 2.0 FSR. They are most common on the fringes of dense urban development.


Condo units below 5 storeys sold in 2013.


Typical density of apartment developments are assumed to be constructed to a 1.5 FSR.

118

Municipality

Property Size

Acres FSR

Buildable area

sq ft

Value per sq

ft Total Value

Millage Rate-

Class 1

Property

Taxes

Vancouver 5 1.5 326,700 640.00$ $209,088,000 3.79347 793,169$

Burnaby 5 1.5 326,700 420.00$ $137,214,000 4.2806 587,358$

Richmond 5 1.5 326,700 430.00$ $140,481,000 4.16741 585,442$

Surrey 5 1.5 326,700 280.00$ $91,476,000 4.60163 420,939$

Langley City 5 1.5 326,700 280.00$ $91,476,000 6.2227 569,228$

Delta 5 1.5 326,700 280.00$ $91,476,000 5.5421 506,969$

North Vancouver 5 1.5 326,700 500.00$ $163,350,000 4.3019 702,715$

Low Rise Development

Vancouver 793,169$

Burnaby 587,358$

Richmond 585,442$

Surrey 420,939$


Delta 506,969$



I I I I I I I

low Rise Development

119

Conclusions

The highest value per square foot for low rise multi-family developments are found in the Cities of Vancouver,

North Vancouver, and Richmond. The Cities of Langley, Surrey, and Delta had the lowest value per square foot of

property value.

Low rise apartment developments tend to achieve a higher value per square foot than townhouse developments

because the units are smaller in size. Similar to industrial parcels, the principle of diminishing marginal returns is

applicable to housing units. Smaller apartment units will trade for a higher value per square foot than larger

townhouse units. The greater density on the parcel also contributes to a higher tax revenue.

Overall, the property taxes for such developments ranged from $420,939 to $793,169 for a 5 acre parcel

constructed to a density of 1.5 FSR.

120

Scenario 11 High Rise Apartment Development

Scenario 11 is designed to demonstrate the taxation for a 5 acre parcel improved with a typical high rise

apartment development. Due the greater height, high rise multi-family developments are constructed using

structural concrete. The concrete construction is desirable for sound proofing, durability, and fire proofing and

therefore trade for a higher price per square foot than wood framed buildings. Units in higher rise residential

developments typically offer better view units, which will also trade for a premium. High rise multi-family

developments typically have a density ranging from 3.0 FSR and above. They are typically located in dense

urban areas and city centers.


Condo units above 5 storeys sold in 2013


Typical density of apartments developments are assumed to be constructed to a 3.0 FSR

The City of Langley did not have any evidence of high rise developments. With no market to

compare to, Colliers International has not included an analysis of this area.

121

Municipality

Property Size

Acres FSR

Buildable

area sq ft

Value per

sq ft Total Value

Millage Rate-


Vancouver 5 3 653,400 720.00$ $470,448,000 3.79347 1,784,630$

Burnaby 5 3 653,400 480.00$ $313,632,000 4.2806 1,342,533$

Richmond 5 3 653,400 500.00$ $326,700,000 4.16741 1,361,493$

Surrey 5 3 653,400 340.00$ $222,156,000 4.60163 1,022,280$

Langley City 5 3 653,400 n/a n/a n/a n/a

Delta 5 3 653,400 340.00$ $222,156,000 5.5421 1,231,211$

North Vancouver 5 3 653,400 610.00$ $398,574,000 4.3019 1,714,625$

High Rise Development


Burnaby 1,342,533$

Richmond 1,361,493$

Surrey 1,022,280$

Langley City n/a

Delta 1,231,211$


122

Conclusions

With the highest value per square foot and the highest density of the three residential scenarios, high rise

residential developments pay the most taxes. Although the residential millage rate is lower than all other

classification, the high density residential development yields the greatest taxes of the scenarios studied.

Although the City of Vancouver has the highest value per square foot, the higher millage rate of the District of

North Vancouver creates a situation where the tax is largely the same, $1,784,630 and $1,714,625 respectively.

The City of Surrey, with the lowest value per square foot and the lowest millage rate, has the lowest taxes with

$1,022,280.

It is worth noting that the density of high density multi-family developments is the largest of all 11 scenarios.

Included below is a chart summarizing the tax payable by all three residential scenarios.

123

Comparison of Industrial Scenarios

This section is designed to compare the previous 11 scenarios within each municipality to determine the relative

taxes. Colliers International feels this is an appropriate study for future highest and best use considerations.

Please note all scenarios are for a 5 acre site.

1. Older single-tenant warehouse / distribution centre building (65,000 sq ft)

2. New single-tenant warehouse / distribution centre building (90,000 sq ft)

3. Modern cross-dock facility building (45,000 sq ft)

4. Single level multi-tenant flex-space industrial building (90,000 sq ft)

5. Two level multi-tenant flex-space industrial building (158,000 sq ft)

6. Multi-level industrial building with office component (office 45,000 sq ft/industrial 97,000 sq ft)

7. Office business park two level building (200,000 sq ft office)

8. Large format retail development single level (65,000 sq ft)

9. Townhouse Development (typical density)

10. Low Rise Apartment Development

11. High Rise Apartment Development

124

Vancouver

Vancouver Total

Taxes

Scenario 1 - Old distribution centre 65,000 sq ft - Class 5 171,505$

Scenario 2 - New distribution centre 90,000 sq ft - Class 5 205,355$

Scenario 3 - Cross-dock 45,000 sq ft - Class 5 191,340$

Scenario 4 - Single level multi-tenant flex industrial 90,000 sq ft - Class 5 177,975$

Scenario 4 - Single level multi-tenant flex industrial 90,000 sq ft- Class 6 192,879$

Scenario 5 - Two level multi-tenant flex industrial 158,000 sq ft - Class 5 259,569$

Scenario 5 -Two level multi-tenant flex industrial 158,000 sq ft - Class 6 281,307$

Scenario 6 - Multi level industrial (office 45,000 sq ft / industrial 97,000 sq ft -

Class 5&6 264,414$

Scenario 7 - Office building two level 200,000 sq ft - Class 6 1,121,009$

Scenario 8 - large format retail 65,000 sq ft - Class 6 471,483$

Scenario 9 - Townhouse development - Class 1 393,486$

Scenario 10 - Low rise apartment - Class 1 793,169$

Scenario 11 - High rise apartment - Class 1 1,784,630$

,Z,OOO.OOO '1,800,000 '1,600,000 $1,400,000

$1,100,000

$1,000,000 -'""~ ~oo_

$~OO.ooo

>


Vancouver Total Taxes

125

Burnaby

Burnaby Total

Taxes








Scenario 6 - Multi level industrial (office 45,000 sq ft / industrial 97,000 sq

ft - Class 5&6 255,212$

Scenario 7 - Office building two level 200,000 sq ft - Class 6 908,804$





$1.600,000 I=== $1.400,000

$1.200,000

$l,OOO)XJO

s=.= t----$400,000 t---$200,000

$


Burnaby Total Taxes

126

Richmond

Richmond Total

Taxes









ft - Class 5&6 190,289$






$1,600,000

$1,400,000

$1,200,000

$1,000,000

$800,000

$800,000

$400,000

$100,000

~


Richmond Total Taxes

127

Surrey

Surrey Total

Taxes









ft - Class 5&6 170,115$






128

Langley City

Langley City Total

Taxes









ft - Class 5&6 186,701$





Scenario 11 - High rise apartment - Class 1 n/a

129

Delta

Delta Total

Taxes









ft - Class 5&6 225,637$






$1,400,000 ~--

$1 ,200,000 +--$1,000,000

S8OO,OOO fs=.= +--$400,000 +--

Delta Total Taxes


130

District of North Vancouver

District of North

Vancouver Total

Taxes









ft - Class 5&6 269,305$






$2,000,000

$1,800,000

$1,600,000

$1,400,000

$1,200,000

$1,000,000

$800,000

S6OO,ooo $400,000

$100,000

~


North Vancouver Total Taxes

131

Overall Conclusions for Industrial Land Scenarios

Scenarios 1 4 demonstrate the variety of considerations in taxation for industrial buildings. The general

conclusion that can be drawn is that the highest taxes are for new improvements that have a high density.

However, older buildings with excess land considerations potentially can pay a similar taxation on a per square

foot basis. Older buildings with a high site coverage tend to generate the lowest taxation, simply because the

assessed values are not high enough to compete with newer developments and without an excess land

component do not achieve high values.

Scenario 5 and 6, as exercises, demonstrate how greater density, achieved through multi-level construction, can

create value that is proportionally greater than current value generated by single level industrial improvements.

However, such developments are highly uncommon in Metro Vancouver and are costly to build.

Of the various scenarios studied, Scenario 7 (Office Building Park) yields the highest tax revenue. Despite most

office buildings being constructed on small parcels with high density, the market does not adjust for two storey

buildings. As density around sky train stations increases, and office developments continue to be constructed

around them, the assessed values of business parks located away from sky train nodes will not increase in value

as quickly. This situation may cause the tax revenue generated by business parks to erode over the coming

years.

Retail developments of Scenario 8 yield a high taxation due to the high value per square foot and the commercial

millage rate. Developments which are able to provide underground, or rooftop parking would pay even greater

taxes. Colliers International forecasts greater demand for such projects as populations in the various

municipalities continue to increase and therefore require more retail developments.

Although residential developments can be built to high densities and are in high demand, they do not provide the

same taxation as commercial properties, primarily due to the low mill rates. Unless a residential project is built to

an FSR greater than 3.5, office and retail uses yield higher tax taxation.

132

Areas for Further Investigation In the scope of this report, Colliers International was asked to propose options to encourage more actively farmed

land in the Agricultural eas, which

are strategies in Metro Vancouver 2040: Shaping our Future, the regional growth strategy. In consultation with

Lawson Lundell LLP, we suggest the following, some requiring legislative or regulatory change, as options

warranting further investigation:

Encouraging Active ALR Land Use: Goals:

o To provide an incentive to encourage more actively farmed land and intensive farming of ALR

lands, and

o To provide a disincentive to not use ALR lands for non-farm residential use.

Intensified Farming Use Incentives:

o There are two existing mechanisms for municipalities to use property tax rates to create an

incentive for more intensive agricultural use of ALR lands:

The first mechanism is the power under section 397(3) of the Community Charter to

set different rates for different property classes:

The ALR land that meets the threshold for Farm Class (Class 9) use receives

Class 9 rates. ALR land that does not meet the threshold is assigned the rate

of a different class. Municipalities can both:

o Seek to increase the active-farming threshold for ALR lands to meet

the Class 9 criteria. To lessen the chance of disqualifying legitimate

farmers from Farm Class rates in difficult years, municipalities could

use a production averaging system (eg. averaging production over 3

to 5 years), akin to City of

would require amending the Farm Class Regulation, and

o Decrease Class 9 rates relative to rates for non-Class 9 property.

The second mechanism is the power under section 379(3)(b) of the Community

Charter to set different property tax rates within a property class, for revenue to be

raised for different purposes, so long as the relationships between the different

property class rates are the same for all purposes:

Municipalities can use this power to create further incentive for more

easing with increasing farming

intensity which can be measured by quotas of production per acre.

133

o A third mechanism (requiring legislative and/or regulatory change) to encourage long-term ALR

perty transfer tax incentives

enjoyed by a land owner over a period of years, if the owner takes the land out of active farming

use or excludes it from the ALR. This could be modelled on the existing retroactive application

of property taxes to Class 7 Managed Forest lands when purchased or used for non-forestry

uses.

Subdivision Policy:

o Municipalities could look to property transfer tax exemptions, property tax exemptions and

property tax rate incentives to discourage subdivision of ALR land for non-farm residential use

and instead encourage consolidation of ALR parcels for larger and intensified farming.

o For the most part, this would require legislative and/or regulatory change.

Encouraging Densification of Industrial Areas

Goals:

o To provide an incentive to intensify industrial use of industrial lands

Intensified Industrial Use Incentives:

o Property Tax-Related Incentives:

As set out earlier, municipalities have two existing tax rate incentive powers to

encourage intensified industrial uses:

Setting lower tax rates for Class 5 Light Industry, the predominant tax class

for industrial use in Metro Vancouver, and

Using Partnership Agreements as set out in the Community Charter section

225, set scale property tax exemptions within Class 5 to

encourage intensified industrial use. The intent of a tiered/sliding scale is to

provide greater tax exemption based on a property s density. Providing tax

incentives based on the density of a development will encourage higher

density, and the partnership agreement on a property by property basis

ensures that it aligns with municipal goals.

A third option which would require regulatory change is expansion of the scope of

industry that qualifies for Class 5. Expansion of the scope of Class 5 to specifically

include additional accessory, which typically occupy less space, would attract through

tax incentives a new range of uses to existing urban industrial lands like Mount

Pleasant and suburban industrial parks.

o Planning Incentives:

Reducing building setback requirements, particularly within industrially zoned areas (as

contrasted to industrial zones bordering non-industrial zones).

134

Facilitating multi-story

the ground floor, but permitting both traditional industrial uses and new industrial uses

or accessory uses on upper floors to encourage more economic activity and

employment in these areas.

Exempting underground space from counting towards permitted density.

Generally restricting residential uses near industrial uses.

Incorporation where appropriate of low impact industrial activities within mixed-use

buildings in non-industrial areas.

Facilitate traditional industrial uses, by encouraging where appropriate, district energy

facilities that make use of waste stream-energy resources.

converted to new higher density industrial uses.

Encouraging specialization such as technology, science and eco-parks and link with

academic institutions.

development approvals and business permits / licenses etc.

Encouraging flexible space designs to allow for a wide variety of industrial-related

uses.

Encouraging the redevelopment of existing industrial lands with outmoded facilities by

increasing permitted density.

Ensuring municipal services (water, sewer etc.) are there to facilitate higher density.

135

Contingent and Limiting Conditions

1. This report has been prepared at the request of Metro Vancouver Planning, Policy, and Environment

Department for the purpose of providing an estimate of property taxation for various scenarios. It is not

reasonable for any person other than those within the organization or those to whom this report is

addressed to rely upon this report without first obtaining written authorization from Metro Vancouver

Planning, Policy, and Environment Department and the author of this report. This report has been

prepared on the assumption that no other person will rely on it for any other purpose and all liability to all

such persons is denied.

2. The estimate of value contained in this report is founded upon a thorough and diligent examination and

analysis of information gathered and obtained from numerous sources. Certain information has been

accepted at face value, especially if there was no reason to doubt its accuracy. Other empirical data

required interpretative analysis pursuant to the objective of this appraisal. Certain inquiries were outside

the scope of this mandate. For these reasons, the analyses, opinions and conclusions contained in this

report are subject to the following Contingent and Limiting conditions.

3. The author of this report is not qualified to comment on environmental issues that may affect the market

value of specific properties under certain scenarios, including but not limited to pollution or contamination

of land, buildings, water, groundwater or air.

4. Property value has been generated on the basis that the real estate is free and clear of all value

influencing encumbrances, encroachments, restrictions or covenants except as may be noted in this

report and that there are no pledges, charges, liens or special assessments outstanding a proposed

property other than as stated and described herein.

5. The data and statistical information contained herein were gathered from reliable sources and are

believed to be correct. However, these data are not guaranteed for accuracy, even though every attempt

has been made to verify the authenticity of this information as much as possible.

6. Should the author of this report be required to give testimony or appear in court or at any administrative

proceeding relating to this report, prior arrangements shall be made beforehand, including provisions for

additional compensation to permit adequate time for preparation and for any appearances that may be

required. However, neither this, nor any other of these assumptions or limiting conditions, is an attempt to

limit the use that might be made of this report should it properly become evidence in a judicial proceeding.

In such a case, it is acknowledged that it is the judicial body which will decide the use of this report which

best serves the administration of justice.

7. Because market conditions, including economic, social and political factors, change rapidly and, on

occasion, without notice or warning, the estimate of market value expressed herein, as of the effective

136

date of this appraisal, cannot necessarily be relied upon as of any other date without subsequent advice of

the author of this report.

8. The values expressed herein are in Canadian dollars.

9. This report is only valid if it bears the original signature(s) of the author(s).

10. These Contingent and Limiting Conditions shall be read with all changes in number and gender as may be

appropriate or required by the context or by the particulars of this mandate.

GStanese

Text Box

8655558

Property Tax Scenario Analysis - Metro Vancouver€¦ · property tax exemptions for higher density buildings. The tax incentive is to encourage new developments to maximize potential

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