by Dara Hill

City council approved a zero per cent property tax increase for 2018 at the March 27 general city council meeting.

Shiela Thiessen — director of finance for the city of Merritt — said each item currently in the city’s budget for this year can be covered without raising the tax rate from last year, in part due to an available gas tax fund and reserve for future expenditures.

“During the budget meeting I presented it with a zero per cent tax rate increase and we were able to fund everything,” she said.

Even though property rate taxes are set to remain the same, home owners in Merritt may still be coughing up funds if their house rose in value from last year.

“If the assessment went up on the house and we used last year’s tax rate, then the taxes for that house would go up based on the percentage of their assessment,” Thiessen said.

“If we leave the tax rate at the same as 2017 and the assessed value of their house stays the same, their taxes would stay the same,” she added.

Assessment results depend on factors such as the sales in the area around the property as well as home improvement, Thiessen said.

Across Merritt, the average valuation for a single family home is up about six per cent compared to 2017. 

Meanwhile, Thiessen reported the city can expect to receive a 1.5 per cent increase in revenue from funds due to increased assessment values for some homes in Merritt.

All but one councillor voted in favour of the zero percent increase at the council meeting.

Coun. Linda Brown expressed her concern for those whose house assessments have increased considerably in 2017, and said she’s in favour of lowering taxes this year.

“A zero per cent increase still leaves us with $125,000 more, in taxable income, than we had last year,” she said.

“I would like us to be able to look again at $125,000 somewhere in our budget to reduce [the tax rate],” she added.

Brown said she’s concerned about high taxes deterring newcomers to the community as well.

“If we continue to tax housing and business, we’re not going to be able to bring people in. Nobody’s going to want to come here for high taxation,” she said.

Now that councillors have agreed on a tax rate for 2018, the budget bylaw will be presented at the next regular city council meeting on April 17 for its first three readings.