Encyclopedia
School tax (non-residential)
The provincial school tax charged on property, including non-residential classes.
For example: A tenant sees school tax in operating costs. (Illustration only, not a real deal.)
Official source: Assessment Act (BC Laws)
Example only, not a real client. Say you own a commercial building. Part of your property tax bill is the school tax for non-residential property, set by the province. You plan for it along with municipal taxes.
What I’d tell a friend
Look at the full tax bill, including provincial school tax, when budgeting.
Why it matters to you
It's often a large share of the property tax bill on commercial property, and it's set by the province. Tenants on net leases usually pay their share without any say in the rate.
How to use it in your deal
Owners should read the tax notice line by line, so you know which part your council controls and which part it doesn't; that's useful when you're deciding whether an assessment appeal is worth it. Buyers should use the latest actual notice in their numbers, then think about how the sale price could lift next year's assessment.
Tenants on net leases pay their share through additional rent, so ask the landlord for the notice and check your share. Landlords should explain big jumps before the bill reaches tenants; a short note in May saves a lot of awkward phone calls in June.
Mistakes I see
Lobbying city council about a rate it doesn't set. Leaving school tax out of a pro forma because the seller's summary showed "municipal taxes" only. Missing that a property split between residential and business classes pays different school rates on each part. Forgetting the January appeal deadline, which is the only practical way to challenge the value the tax is based on.
In BC and Vancouver
The School Act lets the province set school tax rates by property class. BC Assessment sets values and classes; your municipality collects the tax. Rates change yearly, so check the current provincial figures rather than last year's.
Official sources: BC Assessment appeal guide · BC Assessment · Prescribed Classes of Property Regulation (BC Laws)
What it is
The school tax is a provincial property tax that helps fund education. Non-residential properties pay it at rates set by the province.
It appears on your property tax notice.
What to know
Tenants in net leases often pay it as part of property taxes.
Rates can change, so check current figures each year on your notice or with the municipality.
Questions to ask before you sign
- What portion of my bill is school tax?
- Which property class or classes apply?
- Did the assessed value rise a lot this year?
- Is an appeal worth filing before the deadline?
- Who pays this under the lease?
Keep reading
Related terms: 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.