Tuesday, September 19, 2006

Vernon Utility Tax rates in question !!

The Transmission Station mentioned on the Front Page of the Vernon Daily Courier by Scott Neufeld on Sept 19 will prove very interesting from a property tax viewpoint.

Mr Rob Maynes (the City’s current finance manager) said ‘while Vernon’s Utility rates are on the low side they are comparable to many other communities in the interior.

To test this statement we must compare the existing valuation of the property and add the proposed 21.7 million improvements to it. When we do this and keep the same ratio of business to Utilities class presently on the building we get a 26.514 million dollar property split 18.036 million to utilities and 8.478 to business. We must then adjust Vernon’s stated utilities rate of 8.76630 (in 2006) provincial stats (at
Gov. of B.C. Stats)
by adding 3.353795 from the other column in these tables to account for the fire component that the previous Finance manager always hid there. Vernon’s effective utilities rate for municipal taxes is 12.1201 for 2006 and this number has been used to put Vernon in the best light in the comparison below.

Utilities municipal property tax on a 26.514 Million Property with a 18.036 Utilities and a 9.478 business component: (School tax, R.D. and Hospital tax not included)

Vernon
$321,352
Penticton
$473,499
Kelowna
$474,501
Salmon Arm
$752,207
Coldstream
$348,553
Kamloops
$1,047.345

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