What an appeal costs, and what it can save

Fees at each level

Talking to BC Assessment costs nothing. For a PARP complaint, section 33 of the Assessment Act lists what the notice must contain and sets no fee, while section 50(3) requires a "prescribed appeal fee" for a PAAB appeal. None of the official guides consulted mentions a fee for the complaint.

At PAAB, the fee depends on the property class at the time of the appeal. It is charged per folio, by credit card online or by cheque payable to the "Minister of Finance". The province says it is non-refundable regardless of the result.

Costs that are not fees

The real cost is often your time, or a professional's. PAAB is clear: the Assessment Act does not allow your expenses to be reimbursed. On the other hand, if you lose, you do not pay BC Assessment's expenses. An appraiser's report is a cost to weigh against the possible saving; see what a home appraisal costs.

At the B.C. Supreme Court, the last step on a question of law, things change: the Court may charge a filing fee and order the losing party to pay the other side's costs, according to PAAB.

How property tax is calculated

BC Assessment sets the value; it does not set the tax. Each municipality adopts a bylaw every year, before May 15, setting a rate for each property class. The province explains that "tax rates are expressed as a dollar figure per $1,000 dollars of assessed property value". Its example: a rate of $1.02 per $1,000 on a property assessed at $300,000 gives $306.

This is the same idea as a mill rate: a rate per thousand dollars of value. Your tax notice usually adds up several rates (municipal, school, regional district and others): what matters is their total for your class. BC Assessment also notes that "an increase in assessed value does not necessarily mean an increase in your taxes". Rates are set in the spring, after the roll is delivered.

Estimating your saving

The method takes three steps. Take your latest tax notice and add up the rates that apply to your class. Estimate the reduction in value your evidence supports. Multiply the reduction by the total rate, then divide by 1,000.

Fictional example, to illustrate the arithmetic only: a $40,000 reduction with a fictional total rate of $3.00 per $1,000 gives 40,000 × 3.00 ÷ 1,000 = $120 saved for the year. This is neither an average nor a forecast: your rate and your reduction will differ. Then compare that amount with the appeal fee and the cost of any appraisal report.

Two practical reminders. PAAB recommends paying your taxes on time even while an appeal is under way: if the assessment is lowered, any over-payment is refunded or credited. And BC Assessment points to two provincial programs, administered by local governments, that can reduce the bill: the homeowner grant and property tax deferment.

Frequently asked questions