Section 19(8) of the Assessment Act
What does Section 19(8) provide?
This section of the Assessment Act allows certain residential land to be assessed at a lower value than its market value where the owner qualifies and the property has potential for development for a more valuable use than its current use.
Is your property eligible?
Section 19(8) deals with a residential property's existing use versus its potential use. Long term residents of properties in areas undergoing redevelopment to more intensive use may wish to consider whether their property is eligible for relief under this section.
Examples of residential land with the potential for development are:
- a house located on land that has been rezoned for commercial use (e.g., allowing for a store or office building),
- a house located on a five-acre parcel which could be developed into one-quarter acre lots, or
- a single family dwelling in an area zoned for multifamily dwellings (eg. bungalow in the west end of Vancouver).
All examples could qualify for reduced assessed values.
Who qualifies?
Residential property owners who have owned and been living on a property which is less than 2.03 hectares (approximately five acres) for at least 10 continuous years, may be eligible for a reduced property value for assessment purposes.
How to qualify?
To qualify for this relief, an owner must:
- submit a completed application form each year,
- reside on the property as the owner's principal residence,
- occupy the property continuously for 10 years, effective October 31 of the year preceding the tax year for which the relief would be applicable, and
- the property's market value for another use must be higher than the property's existing residential value.
Additional qualifying criteria may have to be met.
Who benefits?
Typically, property owners living in communities or neighbourhoods where land use is changing benefit from this special treatment of their properties for assessment purposes. If eligible, the property owner's land will be valued at its current use instead of its potential higher value use. This often results in a tax benefit for the eligible property owner(s).
Do all long-term property owners qualify?
No. To qualify, the land's demonstrated market value must be higher than its current residential value. For example, a home in a large residential subdivision, surrounded by other residential dwellings, might not receive any benefit under this section of the Assessment Act because the current use reflects the most valuable use of the land.
How do property owners apply?
BC Assessment wants to ensure that all eligible owners have the opportunity to continue receiving this benefit.
Applications for Section 19(8) relief must be received in writing by November 30 each year in order for the property owner to receive the benefit in the following assessment/taxation year. For example, if an owner does not apply by November 30, 2006, the result could be a tax increase in 2007.
Note: A new application form must be completed each year. Application forms are available in PDF format.
Where can I get more information?
Application forms and additional information on the special valuation treatment provided under Section 19(8) may be obtained by contacting your local BC Assessment office.
