Apportionment is the re-distribution of the taxes from the parent (developer) property to the new child (new owner) properties.
Advance taxes: Thursday, February 2
Main taxes: Wednesday, July 5
Home owner grant: Wednesday, July 5
Each year, a number of strata developments are completed in Vancouver and in some cases, the new strata plan does not get registered in time (by November 30) to be included on BC Assessment’s annual assessment roll. The result is:
Apportionment requests can only be made by the owner of the parent property (developer).
The developer has the option to either:
When a strata unit is sold, the lawyer or notary will draw up a Statement of Adjustments (SA) at the time of conveyance. The SA will outline the proportionate share of taxes between the vendor (developer) and purchaser (new owner).
New owners may be advised by their lawyer or notary to contact us about taxes owing. However, the taxes are levied on the parent property folio only, as there is no individual tax account for the new strata properties.
New owners should confirm with the developer whether an apportionment has been requested.
If a developer chooses not to apportion, any outstanding taxes after the due date will be subject to a 5% penalty.
It is important at the time of conveyance to determine who pays the taxes as part of the legal agreement between the vendor and the purchaser.
If the penalty and/or taxes still remain outstanding on the parent folio at the end of the year, we will distribute the balance to the child properties (new owners). The new owners will not be eligible to claim the home owner grant for the current year.
As a developer, you are required to:
Requests are reviewed for approval by the Collector of Taxes.
You may choose to apportion for:
All classes of property qualify for apportionment of taxes.It is most often applicable for Residential Class 1 due to the ability to claim the home owner grant by new strata owners, but may also be useful for Business and Other Class 6.
Multi-class properties may also be apportioned on a per class basis, where applicable.
The following criteria must be met prior to an apportionment of current year taxes being considered by the Collector of Taxes:
The written request may be a letter delivered to the Property Tax Office, a faxed or e-mailed copy of a letter, which must be signed by a registered owner as listed on the current year tax roll (the parent folio).
Purchasers may not request the Collector to apportion.
The advance tax amount must be paid before an apportionment request can be approved. Any penalties resulting from late payment of the advance tax amount must be paid in full.
If the taxes on the parent folio have been paid by the due date in July, there would not be any amounts to apportion.
If the taxes have been not been paid on the parent folio, penalties will apply.
An apportionment request will be considered only if the penalties are paid.
The fee for apportionment is set annually by Council.
Currently, the fee is $40 per child folio.
For example, a single parent folio is redeveloped into 10 new child folios: the fee is $40 x 10 for a total of $400.
As the fee is subject to change, confirm the current cost with the Property Tax office.
As required under the Vancouver Charter, the parent folio’s tax notice will always be issued, regardless of whether an apportionment is requested and approved.
If an apportionment request has been received and is approved by the Collector by May 1, owners may receive an apportioned tax notice as early as the end of May with a July due date.
For all other approved apportionment requests, the new owner's tax notices will be issued as soon after mid-July as possible.
What will be apportioned:
Examples of other charges include:
You should check with your lawyer/notary to determine their proportion of the taxes and whether the developer has made an apportionment request.
If a request has been made, have your lawyer contact us to determine the status of that request.
If the status of an apportionment request is pending, we will accept payments on the parent folio before an apportionment has been completed.
Any amount paid by the new strata owner will be transferred to the appropriate child folio*.
* If you intend to claim a home owner grant, you may choose to leave a portion of the taxes unpaid (equal to the home owner grant claim amount) to ensure the full benefit of the grant is realized.
If the status of an apportionment request is approved, we do not recommend payment on the parent folio.
Tax notices to the new strata owners will be issued and payment can then be applied directly to the child tax account.
The Vendor’s Statement of Adjustments (VSA) forms part of the legal agreement between the vendor and the purchaser, and is unique for each transaction. In some cases, the vendor will pay the taxes to us, and in other cases it will be the purchaser (typically it depends on who owns the property on the due date).
The VSA allocates the tax notice between the two parties based on the portion of the year that each party owned the property.
To fully understand your VSA and understand who will be paying the taxes to us, talk to your conveyancing lawyer or notary.
A property changes hands on May 1. The vendor is responsible for the first 120 days (1 Jan – 30 April), and the purchaser for 245 days (1 May – 31 December) using 365 days as the denominator.
Taxes can be paid to us by any of the parties.
If you, as a new owner, intend to claim the home owner grant, please advise your lawyer or notary to ensure there are outstanding taxes to be paid.A grant cannot be claimed against a property which does not have taxes owing.
Apportionments are a cost-recovery service performed at the request of and benefit for developers.
The Collector is responsible for collecting the taxes. The apportionment process does not change the total amount of taxes to be collected by us.
The content of this page is subject to change without notice
This information is to the best of our knowledge complete and up to date.
However, we assume no responsibility should any information be inaccurate or misleading as a result of negligence or otherwise.
We shall not be estopped from enforcing its rights to the fullest, as though this information had not been relied upon.
You must claim your home owner grant each year, even if you are paying through your mortgage or deferring your payment.
Some banks do not forward the remittance stub that contains your home owner grant application to us. If this is the case, claim your home owner grant.