A BC property's assessed value rises from $800,000 to $1,000,000. If the municipal tax rate stays at 0.5% of assessed value, how much do the annual municipal property taxes change?
Correct Answer
B) $1,000 increase
Taxes at 0.5% rise from $4,000 ($800,000 x 0.5%) to $5,000 ($1,000,000 x 0.5%). The change is 0.5% x the $200,000 increase = $1,000.
Why This Is the Correct Answer
With the rate fixed at 0.5%, the tax change equals 0.5% x the $200,000 rise in assessed value, a $1,000 increase.
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