A retired senior appraiser from BC Assessment has launched a province-wide public awareness campaign to highlight what he says is the under-assessment of some commercial and industrial properties by BC Assessment, including properties in the Cowichan Valley.
Derek Holloway, who worked with BC Assessment for 28 years, said many owners of large commercial and industrial properties in B.C. routinely and successfully appeal their assessments from BCA, and then the tax burden may be shifted to residential properties which are then over-assessed, as in the case of many Youbou waterfront property owners in recent years.
He has taken it upon himself to appeal a number of what he said are low assessments of these properties in communities across B.C., including the latest assessment of the Beverly Corners Marketplace in North Cowichan.
Holloway researched the history of Beverly Corners Marketplace and found that it was sold in 2019 for $49.9 million, but was assessed that year at $28,179,000.
In 2022, it was sold again for $59 million and was assessed by BCA that year at $35,155,000, and was $39,410,000 in the assessment for 2024.
“I presented this information in March at the 2024 Property Assessment Review Panel,” Holloway said. “Further, BC Assessment verbally admitted to not knowing anything about this property’s two sales. I worked for BCA for 28 years and never witnessed such situations. The legislation on how properties are assessed needs to be changed.”
Holloway pointed out that the under-assessment of Beverly Corners means that the Municipality of North Cowichan is losing $20 million in assessed taxable value on the property.
He said under-assessments like this across the province are a result of weak provisions within the Assessment Act that compels no one to cooperate with BCA.
“Although the Act says it’s an ‘offence’ to ignore BCA, there are absolutely no penalties or consequences, so the appeal agent industry effectively controls the flow of information for these large [commercial, industrial] properties and BCA is often left in the dark,” Holloway said.
Jason Anson, a realtor with eXp Realty who has successfully helped dozens of homeowners in the Youbou area appeal property assessments that they considered too high.
Anson reiterated Holloway’s contention that when commercial properties are under-assessed, the tax burden may be shifted to residential properties, which are then over-assessed.
“The lines between corporate interests and BCA are becoming blurred, and this is a serious problem,” Anson said. “BCA can’t compete with the resources of commercial-appeal agents who, throughout B.C., flood the system with commercial appeals, ultimately creating backlogs. Knowing this, these commercial-appeal agents capitalize on it, and it is my opinion that local governments are forced to shift the tax burden onto homeowners in the residential sector.”
Anson agreed that the Assessment Act needs to be changed to give greater powers to access vital information necessary for fair and equitable assessments.
A statement from North Cowichan said property assessments and appeals are the jurisdiction of BCA, which is a Provincial Crown Agency, and the municipality’s role is to receive and use their valuations.
“Municipalities in B.C. are required to use the valuations provided by BCA,” the statement said. “All property owners have the right to appeal the valuation of their property by BCA. Should an appeal be successful, North Cowichan is required to use the revised valuation.”
BCA and the Ontario-based Skyline Group of Companies, which owns Beverly Corners, did not comment by press time.
