Property taxes

Regional districts work on a "service area" model. For example, certain parts of Faulder are provided with water from a system operated by the RDOS. Residents within that service area pay for all the costs associated with the Faulder water system whereas residents outside the service area pay nothing towards it. In contrast, the neighborhoods on the west side of Penticton pay for fire protection; however, Faulder does not pay for fire protection because it does not receive this service.

This strict segregation of budgets according to services makes sense in Area F, which has a mix of rural and semi-rural residences, different priorities, and varying access to infrastructure. An implication of this model is that the set of line items on your tax bill (and thus the amount you are expected to pay) varies depending on your location within the regional district and even within Area F.

I have attached a randomly-selected West Bench tax notice and highlighted some of the issues. Click the image below for details.

This overall tax bill can be broken down in a couple of ways.  For example, about 46% of this property tax bill goes to the RDOS.  The other 54% go to the province for school tax (43.7%) and rural tax (10.6%).  Of RDOS tax, fire protection is by far the most expensive single service.  Most neighborhoods in Area F either have no fire service (Faulder) or are serviced by the City of Penticton Fire Department through a contract. 

Just a reminder: The RDOS does not collect its own taxes. This service is provided by the Province through the Surveyor of Taxes. The RDOS sends the Surveyor of Taxes a requisition amount, the Province collects the money (plus other taxes, including school taxes), kicks in subsides for homeowner grants, adds a service fee, and sends the requested amount to the RDOS. The exception is Red Wing, which is on leased land belonging to the Penticton Indian Band (PIB). The PIB has taken over tax collection on its lands so the RDOS sends it requisitions for Red Wing's share of RDOS services to the PIB and the PIB remits the amount to the RDOS.

 

Issues: 

Comments

Trying to find the tax rate so I can calculate what my property taxes will be in July. With the 45%increase I'm a little concerned!!

I am not sure where the 45% tax increase came from.  The total average increase in Area F is more like 6%-7%.  But, as always in the regional district, much depends on where you live.  For example, the increased cost of fire protection from the City of Penticton only applies to residents in the greater West Bench. 

The budget for the RDOS is always available on the RDOS site.  There is currently a link on the top left entitled "2018-2022 5yr Financial Plan".  The front part of the budget contains breakdowns of tax requisition amounts by electoral area and service.  I will also try to do a video walk through like I did last year.  I am just waiting for the budget data in electronic form so I can generate the graphs.

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