One thing the extra school tax debate has brought to light is how challenging 8th grade math is for people, especially those living in homes valued over $3M. Journalists also seem to have trouble putting outrageously wrong statements into perspective, so here is a simple calculator on how much extra school tax people will owe depending on their home value, years until home is sold, expected changes in the real estate market, interest rates on deferred (through government program or second mortgage) taxes.
Last year we took a detailed look at Single Family teardowns in Vancouver, that is houses in RS or “Single Family” zoning that got torn down. We focused exclusively on those homes in RS zoning because these have to be replaced by another, often bigger, Single Family home. Using historical data we build a probabilistic model to predict future teardowns in Vancouver. If you haven’t taken the time yet to read through the data story, you probably should do that right now.
We have written about the extra school tax before, but in the meantime the discussion about the extra school tax has heated up considerably, cumulating in David Eby cancelling his town hall today. Over the years I also have been spending some time thinking about how people got to the privilege of paying the extra school tax, for example here and here. There is a slight dissonance with people claiming that their homes should not be taxed because they are their homes and not their investment.
Over the past years several people have asked me questions about street frontage of city properties. When I needed similar data for a work project, and Scot Hein asked me a question about frontages of commercial properties for his Urbanarium debate, I decided to finally pull the numbers. The answer to that question is not as straight forward as it might seem, mostly because properties aren’t necessarily square. There are a couple of algorithm that can solve this problem, but in this case we can keep things reasonably simple as the City of Vancouver has property frontages listed on VanMap and make the data available on their Open Data Portal.
The new BC provincial budget had lots of interesting changes. One of them is the additional school tax on residential properties, charged at a rate of 2 basis points (0.002) of the assessed value above $3M and an additional 2 basis points of the assessed value above $4M. After some initial confusion the province clarified that this tax will not to apply to purpose built rental buildings, each of which is typically one single taxable property, which can easily breach the $3M threshold for multi-unit buildings.