Residents of Ladysmith will see an average municipal property tax decrease of 1.06 per cent because of recreation now being taxed as a Cowichan Valley Regional District service.
Town of Ladysmith council unanimously passed its 2023 municipal budget at a council meeting on Tuesday, April 4. The one per cent decrease from last year’s tax requisition came as a surprise to council members who were expecting a 6.7-per cent increase.
“I haven’t been able to say [there’s a decrease] in nine years,” said Mayor Aaron Stone.
The decrease is due to a $695,000 payment to Ladysmith from the CVRD for usage of the Frank Jameson Community Centre after a referendum in 2022 to implement a new funding model based on use of nine recreational facilities in the region. In return, however, Ladysmith property owners will be taxed by the CVRD’s regional recreation function for a total of $660,000 for usage of recreational facilities.
READ MORE: Oct. 15 referendum for funding model for Cowichan Valley recreational facilities
For the average single-family home in Ladysmith, which has an assessed value of $737,000, residents can expect municipal taxes to decrease an average of 1.06 per cent, or $19. Regional taxes, however, will increase, “probably net-rise around $130,” according to Stone.
The town will be using the same collection model that was used in 2022. The alternative municipal tax collection scheme will set a first due date on July 4, 2023 with a two-per cent penalty on outstanding current taxes and unclaimed homeowner grants, and a final due date of Sept. 15, which will see a further eight-per cent penalty.
bailey.seymour@nanaimobulletin.com
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