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City of Vancouver approves property tax hike of 10.7 per cent

Click to play video: 'Vancouver City Budget Reaction'
Vancouver City Budget Reaction
WATCH: Vancouver City Council surprised many by voting on and passing their 2023 budget Tuesday night – a week earlier than anticipated. – Mar 1, 2023

In a surprise move Tuesday night at Vancouver City Hall, council approved the biggest tax increase in more than a decade.

The city approved the 2023 operating budget, putting homeowners on the hook for a 10.7-per-cent increase in property taxes.

The double-digit figure is even higher than the 9.7-per-cent hike that city staff proposed last week, ahead of the first public meeting to discuss the budget earlier on Tuesday, where it also passed at the same time.

Click to play video: 'Metro Vancouver’s property tax equation'
Metro Vancouver’s property tax equation
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Mayor Ken Sim released a statement Tuesday night, saying Vancouver “has been placed in a very challenging position.”

“In an effort to keep taxes artificially low, previous administrations chose to severely underfund public safety, road upkeep, sanitation services, and critical infrastructure maintenance for over a decade,” Sim said.

“We have inherited a half-billion-dollar infrastructure deficit, and the City’s cash reserves have been almost completely depleted due to the previous Council’s spending during the pandemic.”

The newly approved budget is $29 million higher than the previous proposal, with amendments made during Tuesday’s public hearing.

Property taxes will be around $326 more for a single-family home and business property owners could pay around $549 more in 2023.

The average condo owner will now pay around $124 more, based on the assessed value of the property starting this year.

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