Castlegar has adopted a residential tax increase of 5.66 per cent, which is a bit higher than the previous two years, which both fell below four per cent.
This year’s rates, which passed unanimously this week, will see residential properties taxed at $2.81 per $1,000 of assessed value. So a $300,000 home will pay $844; a $400,000 home will get a bill for $1,125 and a $500,000 home will pay $1,406.
The rate for major industry was set at 6.22 per cent and for light industry and business it’s 5.75 per cent.
The residential rate in 2021 was 3.88 per cent and in 2020 it was 3.36 per cent.
Kirk Duff says whether next year’s rate is higher or lower will depend on the inflation rate.
“We have to keep up with that at a minimum,” he says. “How we’re going to deal with that if it goes too much higher, I’m not sure. We don’t want to start playing around with reducing things we need to do to grow as a community and provide a stable place for housing.”
Duff says along with every other municipality in Canada, they will have to play things by ear, because they don’t know what the world situation will be in the near future. Construction costs are rising, and so are borrowing costs for developers and homeowners.
“If they go up any great amount it’s going to put a real strain on our whole economy,” Duff says. “Some say it will help keep inflation down, but on the other hand it’s not good for investment.”
However, no matter what the situation is, Duff says they don’t want to fall behind with their infrastructure requirements.