Encyclopedia
Assessed value
The value BC Assessment puts on a property for property tax. It's an estimate of market value as of July 1 of the previous year, with physical condition as of October 31.
For example: An owner opens the January notice, sees the assessed value, and compares it with recent sales nearby before deciding whether to appeal. (Illustration only, not a real deal.)
Official source: BC Assessment appeal guide
Example only, not a real client. Say your building’s assessed value rises sharply. Your property taxes are likely to rise too. You review the assessment notice and compare it with similar properties before the appeal deadline.
What I’d tell a friend
Check your assessment each year. It drives your property taxes, and appeals have firm deadlines.
Why it matters to you
It drives your property tax bill, and for most tenants on a net lease, their share of it. An assessment that's too high costs you every year until it's corrected, and there's a short window to challenge it.
How to use it in your deal
Owners should compare assessed value with recent sales of similar properties and appeal by the deadline if it looks wrong. Watch the land and improvement split, especially if you plan to redevelop or claim depreciation. Buyers shouldn't use assessed value as a price guide for commercial property; use income and comparable sales instead. Expect a purchase price above assessment to raise future assessments.
Tenants on net leases pay taxes based on assessed value, so a higher assessment means higher additional rent. Lenders and appraisers rely on their own valuations. Landlords can explain jumps to tenants using BC Assessment's market trends.
For development sites, assessed land value often reflects what zoning allows, which is why an old single-storey shop on a busy corridor can carry a large land value and small improvement value.
That's also why some owners in those areas face taxes based on unused density, and why programs like Vancouver's land averaging and the province's development potential relief exist. Check whether one applies.
Mistakes I see
Using assessed value as market value. Ignoring the land and improvement split. Missing appeal deadlines.
In BC and Vancouver
The Assessment Act sets the valuation date and process.
Official sources: BC Assessment appeal guide · BC Assessment
What it is
Assessed value is the value BC Assessment sets for a property each year, based on market value at a set date. Municipalities use it to calculate property taxes.
It can differ from what a property would sell for today.
What to do
Review your notice when it arrives, check the property details are correct, and compare the value with similar properties.
If you think it is wrong, contact BC Assessment and consider an appeal before the deadline.
Questions to ask before you sign
- What's the land and improvement split?
- How does it compare with sales?
- Should I appeal?
- How will my purchase affect it?
Keep reading
Related terms: BC Assessment, Assessment appeal, Mill rate
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.