Ld |

Living costs rise to record
high after new increase

Ii was reported from Ottawa this week that living costs
in Canada had reached a record high in November.

The Dominion Bureau of Statistics reported that the
consumer price index rose by one-tenth of a point to 129.8
at December 1. At November 1 the index stood at 129.7.

The Bureau attributed the rise to higher prices ox food,

housing ang health costs.

Cont'd from pg.

graduated business tax and
more money from_ senior
governments to forestall a
tax increase.

The CRA also proposes
that the present .machinery
tax for school purposes be
applied for general tax pur-
poses. and the greatly in-
creased grants be sought for
education, roads and social
welfare.

CRA secretary Mona Mor-
gan said ‘‘a home. exemption
of some $2500 would make a
big difference in our taxes
and a graduated business tax
would help transfer the load:
to those able to pay.”

She pointed out the provin-
cial and federal governments
do not pay taxes on their city
properties but enjoy the same
services that others pay for.

The CRA is appealing to
City Council to seek a char-
ter amendment to allow for|
a homeowner exemption. It/
has called on taxpayers to|

write council and the Pe

/ | vincial government.
i 1
2; FARMERS HIT |

From farming areas in the!

| Fraser Valley also came pro-
| tests
| high
| Particularly hard hit are the|
/ small farmers who estimate)
| that they may have to pay,
| about $6 more per acre in)

this week against the)
assessments on land.)

taxes this year on the basis |
of higher assessments alone.
Some farm land assessments |
are expected to go up as |
much as 110 percent under
the new formulae.

Deeply disturbed over the!
situation, Surrey municipal}

council, in which large ‘tracts,
of Fraser Valley farm ‘land|
are located, announced that a|

Tax protest sweeps B.C.

delegation will interview the
government in Victoria on
Wednesday.

C.P. Convention meets in
Toronto January 19-2]

Delegates from all over Canada will gather

in

Toronto next weekend for the 17th National Convention

of the Communist Party.

Meeting for three days—{
January 19, 20 and 21,- the!
delegates will. be engaged in
intensive and earnest discus-
sions of the great issues fac-
ing our country — peace, in-
dependence, democracy, .and
the people’s vital needs.

It will be a very special
occasion in the history of the
party because this convention

will mark its 40th annivers-
ary. This convention will be
important not only for its
tribute to the past but for
its attention to the present
and future.

The Convention is expected
to: give particularly close at-
tention to the vital issue of
peace.

Tale of two a

the PT received in its mail:

1955—$750; 1961—-$1700:

jump this year over 1961.
°

to have their land assessmen
percent.

What is happening to assessments on worker’s homes in
Vancouver is seen by the following two examples which

1. A worker living in the thirty hundred block E,
45th, sent us these figures on the assessment on his land.

One of the hardest hit areas in the city has been South
Vancouver. The above example shows almost a 60 percent

2. Effie Jones, well-known civic figure, living at 5038
Sherbrooke St., which is also in South Vancouver, sends
us the following figures on her land assessment:

1961—-$1740; 1962—$2600.

Many homeowners in South Vancouver are reported

ssessments

\

1962—$2500,

t increased as much as 100

¥

HOW YOUR MUNICIPAL TAX BILL IS DETERMINED.

By BRUCE YORKE
The calculation of your municipal tax bill is a com-
plicated affair. Over the years the municipal authorities
have deliberately made it as difficult as possible in order
to discourage protests. How are your taxes actually set?

| The first step is the setting
of the assessed value of the
_land and the improvements.
This is ‘done each year by the
_ Municipal assessor; who has
_the authority to set the as-
Sessment. He notifies each
property owner, by mail ° Os
their assessment.

. If-you are in’ ‘disagreement

on - With the assessment -you have

hort period. of time “in

Which - to: launch ‘an appeal...

_. This year’ there has ‘been a
vote 1g jump in’ the‘ assessments
on ‘land ‘valués. “This is * be-
~. Cause the amendments to the
. Equalization Assessment Act

_Yequire the assessors to set

the assessments at 50% of
the current market value of
‘the land and also at 50% of
the current market value of
the improvements.

Previously the assessments
were made on the basis of
_ 60% of the 1955 market value
Of land and 60% of the 1953
market value of improve-
ments. As market values of
land have gone up consider-
ably since 1955 .the result
has been a big increase in the
Jand assessment notices.
- The average taxpayer is
Guite confused at this stage
because of the fact that his-
torically assessments have

rs

been deliberately understat-
ed. In most instances they
have been in the neighbour-
hood of one-third to one-
quarter what. a taxpayer
could realize if he sold his
house and: lot on ‘the. > open
market. ‘Consequently he
feels’ he> is getting a good

deal when vhe® Tooks sat” his

assessment noti¢e. ee

‘The. “municipal ‘authorities
have. deliberately. adopted

‘this. policy. with. regard. to

‘assessments. ‘Not knowing. the
intricacies of the tax system
most people believe that the
assessed values and the mar-
ket values ‘are supposed to be
the same thing. In fact, they.
have been deliberately made
different. Contrary to what

the oridinary taxpayer might’

think, he gets no bargain
from this procedure, since
the understatement is com-
pensated for by a correspond-
ing overstatement in ae mill
rate.

°

~What is important in assess-

ments. is comparison with
other assessments, both with
regard to other property for
the same year and with re-
gard to the same property
from year to year.

year to the next. Hence they.

all. to determine if .their. as-
sessed. value for tax purposes
-are, just. Most people merely
-compare their. assessed values
-with what-they could get:-for| -
‘their . property. (the . market

‘the second for

Clearly most people are in
no position to carry out the
necessary research to estab-
lish comparisons with other
properties. At best they could
check with their neighbours.
But the ordinary working
man does not have the oppor-
tunity to determine how the
boss is getting treated.

It is also true that most
people do not keep their as-
sessment notices. from = one}.

are. really in. no. position .at

value); and if.they are lower,
which is always- the. case,
they do not bother:.with ene
matter any more.

The assessments are the
most important factor in de-
termining taxes because the
other steps are a matter of
mathematical formula.

The second step in deter-
mining taxes is to find the
taxable value of the property.
Municipal taxes are two-fold,
one for general purposes and
Educational
purposes.

The taxable value for gen-
eral purposes is the full as-
sessed value of the land plus
50% of the assessed value of
the improvements. That is|
the formula for the City of}
Vancouver. The percentage of!

setting . of the. mill rate: A
_mill is -1/10th of a- cent. A

cipal councils.

the assessed value of im-
provements varies from
municipality to municipality.

The taxable value for edu-
cational purposes. is the -full
assessed value of the. land
plus 75% of the assessed
value. of the improvements. !
In this-case there is. no varia-
tion from -municipality - to
municipality.

3°

The third step in determin-
ing taxes: has. to-do. with the

mill rate of say 20.. mills
means that on taxable values
of $100, the tax ‘would. he-$2.
There are two mill» rates.
One for general purposes’ ‘and
one for educational purposes.
These rates are set by: muni-

The general purpose - “mill
rate is roughly established by
dividing the total municipal
general purpose budget by
the total taxable values for
general purposes in-the mun-
icipality.

The educational mill rate
is roughly established by div-
iding the net educational
budget by the total taxable
values for education purposes
in the municipality. The fact
that it is the net figure that
is used is very. important.
The provincial government
makes a part payment to. the
municipal education budget.
The larger this payment_ is,
then the lower is the educa-

actual fact,

tional mill rate.

The fourth step is the ap-
plication of the two mill
rates to the respective tax-
able values for each’ indiv-
idual property. The sum of”
these two yields (as they are
called) represents your taxes, -

No wonder most people

‘don’t bother with it!

Under the new assessment
act amendments the base.

“period has been brought up

to current value. However. in,
land » values on:
the open ‘market have risen ~
more sharply. than the corres:
ponding improvement values,

-Hence, ‘with the new assess:

ment formula, a greater pro-

-portion of. the total taxable.

value will be made up from-
land values. But this in turn
means that those properties
which are heavily improved
will bear relatively less .
taxes. For all practical pur--
poses this means business
properties and the stately
mansions of the rich. Con-
sequently, the amendments

!to the Act will result in @

shifting of the tax burden to
the small home owner and
away from the big business
ppopernien:

SHIPPING FLEETS
In 1961 the British Com-
monwealth had. the largest
shipping fleet in the world.
Following were the United
States, Norway, Liberia and
Japan in that order.

January 12, 1962—PACIFIC TRIBUNE—Page 3