In Vancouver, property tax is determined by the city budget. It has nothing to do with property values. So, if city government wants to spend $1.2B this year, they will spend $1.2B. The property tax for each household is determined by dividing that $1.2B by the total assessed values of all properties in the city to get a per dollar mill rate. That mill rate is then multiplied by your personal housing assessment value to get the property tax.
Eg) if total assessed property value is $240B then the per assessed dollar value mill rate = $1.2B / $240B = 0.5%.
If your house is assessed at $1M then your property tax bill is 0.5% * $1M = $5000.
This is the simplified explanation.
In US, the situation is reversed. The city gets its money based on a pre-set mill rate and if it wants to spend more $$$ then it either has to raise the mill rate or issue bonds subject to restrictions.
This is also why Vancouver keeps advertising that it has the lowest property tax rate (as a %, not actual $ amount) and why this means it NEEDS to raise property tax higher. Really stupid reasons but thank goodness they don't teach simple math and logic reasoning anymore in school.
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