Residential property taxes in the city will increase an average of 7.2 per cent this year after city council approved the 2007 tax rates Monday.
Heavy industrial, light industrial and business class properties will see an average 7.54 per cent increase.
Of that increase, four per cent will be a separate road rehabilitation levy, city financial services manager Sandy Stibrany said.
For an average Prince George home valued at $166,099, the tax increase will amount to $99 per year. For an average commercial property valued at $654,213, the increase will be $811 per year.
Strong growth helped to reduce the overall increase paid by home and business owners, she said.
“We saw growth in all of the classes,” Stibrany said.
Property values in the city grew approximately $1 billion from $4.47 billion in 2006 to $5.45 billion this year.
Residential properties saw an average increase of nearly 25 per cent in 2007.
The majority of the growth was due to rising property values, but the city saw $83.8 million in new construction last year.
Councillor Don Zurowski, chairman of the city’s finance and audit committee, said despite the increase in tax dollars collected up to $63.24 million from $58.27 million in 2006 property tax mill rates have declined.
“All property classes received a mill rate decrease except heavy industry and farm,” Zurowski said. “This is a year of not much change in terms of where the tax burden is carried.”
The mill rate dollars paid per $1,000 of property value for residential and seasonal properties dropped from 9.28476 to 7.988.
Business properties saw their mill rate drop from 17.60484 to 17.20703 and light industry’s rate went to 18.43285 from 19.76726,
The mill rate for major industry increased from 45.31011 to 47.61195.
By value residential properties comprised 76.28 per cent of the city’s land values, but pay 52.87 per cent of the property taxes.
Major industry, makes up 4.44 per cent of the total property value in the city but pays 18.53 per cent of the property taxes collected.
Business properties carry 25.21 per cent of the tax burden, but only comprise 16.87 per cent of the city’s total property values.
“This is challenging work,” councillor Don Bassermann said. “The community’s interest is always top of mind.”
More details of the 2007 tax rates and assessment can be found online at www.city.pg.bc.ca.