What is the Canadian local tax?

Property tax is one of the main financial revenues of local governments, and property owners must pay property tax every year. However, unlike what China people know, the purpose of Canadian property tax is to provide citizen services, and it has nothing to do with the regulation of real estate prices. Government agencies at all levels in Canada are generally small in scale and limited in power, and their main function is to provide public services.

The amount of property tax is determined according to the actual expenditure of each year. The municipal government should first draw up a detailed annual budget, which will be discussed and approved by the city Council. Important additional projects should hold hearings to listen to public opinions. Then according to the approved annual budget, calculate the share of each household as the basis for tax payment.

Due to the late adoption of the municipal government budget every year, in order not to affect the government operation, the owners will receive tax bills twice a year, and a tax bill at the beginning of the year gives the estimated value of the property tax expected to be paid this year; In the middle of the year, another tax bill was received to inform the final tax payment for the whole year after adjustment.

On the tax bill received by the owner, the details of various projects are listed in detail, such as waste recycling, urban fire protection, garbage disposal, etc., so that every taxpayer can grasp the situation of municipal expenditure and know where every penny he has paid is used. Another point that needs special attention is that the property tax in Canada is levied on owners who own land and real estate, not tenants, and tenants do not bear any property tax or property tax.

It is precisely because of the openness and transparency of Canada's property tax collection and the many convenient services provided by the government for citizens with the collected taxes that people are more and more willing to pay property tax in Canada.

Unexpectedly, the real estate tax rate in Vancouver is the lowest in the country.

According to the research of REALpac Property Association of Canada on Canada 10 big cities, Vancouver's commercial property tax rate is the second lowest among 10 cities, while the residential property tax rate is the lowest.

However, it should be noted that the housing price in Vancouver is the highest in the country. According to the REALpac report, in Vancouver, the tax rate of residential property is 3.68 yuan per 65,438+0,000 yuan of property valuation. The commercial property tax rate is per 1 ten thousand yuan 15.95438+0 yuan, which is lower than the national average residential property tax rate of 9.5 1 and the average commercial property tax rate of 24.25.

| Commercial property tax is four times that of private houses.

The report also said that in Vancouver, the ratio of commercial property tax to residential property tax is 4.33, which means that tenants or owners of retail shops or office buildings pay more than four times as much property tax as owners of residential properties. This rate followed Montreal, far higher than 2.46% in Edmonton and 2.63% in Calgary. However, the proportion in Vancouver has dropped by 0.4% compared with a year ago.

| Vancouver's low tax rate is due to extremely high real estate prices.

Burgess Cowley Sullivan &; Associates Ltd pointed out that it should be noted that Vancouver's tax collection is low, mainly because Vancouver has the highest residential property price in the country.

Similarly, the commercial real estate price in Wenzhou is the highest in China.

For example, in Regina, Saskatchewan, residential owners pay 13.69 yuan for every 1000 yuan, which is more than three times higher than Vancouver. But in August this year, the average house price in Regina was 290,000 yuan, while that in Vancouver was 760,000 yuan.

Comprehensive analysis of Canadian real estate tax

Under the unified fiscal and taxation policy formulated by the Canadian government, provincial and local governments can independently levy real estate taxes. However, there is no uniform real estate tax rate nationwide, because real estate tax is a local tax, and the tax rate is set by the provincial or local government according to the local financial situation.

At the beginning of each year, the financial management department of the local government should make a budget for the total fiscal expenditure of this year, and then subtract other income except real estate tax, and the difference is the total real estate tax payment of this year. Then, according to the ratio of the total taxable amount to the total assessed value of taxable real estate within the jurisdiction, the real estate tax rate of the year is calculated. For example, in Ontario, according to the inflation situation, the local Council determines the real estate tax rate in seven categories on an annual basis, stipulating that the residents' real estate tax should be low and the operating real estate should be high. Generally speaking, the tax rate of industrial and commercial real estate is 2 -3 times that of residential real estate.

When evaluating a house, the government will consider all factors that affect the market value. The following five factors usually account for 85% of the real estate value: the location of the house, the construction area and usable area of the house, the age of the building, the quality of the building, and whether it has undergone major reconstruction, decoration or seal. Other factors that affect the property value include: the number of bathrooms, whether there is a fireplace, whether the basement has been renovated, the number/area of garages, whether there is a swimming pool, heating and air conditioning types, etc. In addition, the mode of transportation, whether it is close to street corners, whether it is close to golf courses, railways and subways, main roads and the size of surrounding green spaces also have a certain impact on the value of real estate.

The municipal government will take the total value of all the properties within its jurisdiction as the tax basis, but all the properties do not include hospitals, schools and churches. Divide the annual budget of the municipal government by the tax base to get the tax rate. Your property valuation multiplied by this tax rate is the property tax you have to pay. For example, the total real estate valuation of a city is $65,438+$00,000,000, and the municipal budget for the next year is $200,000, and $200,000/$65,438+$00,000,000 is equal to 0.02 or 2%. If your property valuation is 6.5438+0.5 million Canadian dollars, then your property tax next year is 6.5438+0.5 million US dollars x 0.02, which is equal to 3,000 US dollars. The municipal annual budget actually consists of two parts: the municipal part and the education part. The municipal part is calculated by the city, and the education part is formulated by the provincial government.

Value of the house: You can compare the value of the house in the same community with the actual sales price of the house in the same community.

If you have any objection to the received notice of property tax assessment, you may apply for reconsideration to the municipal real estate appraisal company. Specific contact telephone number, fax number, e-mail address, web page, etc. Details are listed at the bottom of your property tax assessment notice. Reconsideration is free and there is no need to pay any fees.