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All properties whether they are class 1 or class 6 were treated the same. Individual class 6 properties did not see a shift in the tax burden. It is logical therefore that the tax rates for these two classes would continue to reflect the same ratio. New construction value is isolated and the same established tax rate is applied to generate new tax revenue to pay for increased municipal services, which the new construction requires.

Table 2 shows the tax rates for residential class 1 and business class 6 properties in 2001 and 2002 along with the corresponding ratios between the tax rates.

Table 2. Tax Rate and Ratio Comparison

Class

2001 Rates

2001 Ratios

2002 Rates

2002 Ratios

1- Residential

2.7067

1.00

2.4346

1.00

6 — Business

8.6763

3.21

7.8122

3.21

In prior years, increases in assessed values have varied widely between the two classes, resulting in ratio shifts despite similar tax policy treatment. For example, last year, the 2001 increase in assessed value for business properties on average was close to 0 per cent, whereas residential properties increased by approximately 20 per cent. To produce an average of 3.8 per cent in taxes equally to each class of property, the tax rate for the residential class had to be lowered while the tax rate for business class remained almost the same. Each class of property on average paid 3.8 per cent more for property taxes in 2001. New construction is considered separately, and is charged at the calculated tax rate. Reclassifications are considered separately so as not to distort rate setting for the affected classes.

Property values vary widely from one year to the next depending on market perception of value as well as the more tangible features of the property. Values for individual strata hotel units are no exception. The Resort Municipality of Whistler does not establish the assessed values upon which property taxes payable are based, or arrive at the classifications. These values are established independently on an annual basis by B.C. Assessment in accordance with provincial legislation.