This $2.5M Kelowna industrial site could be yours for $116K at city tax sale
Each year cities and towns throughout B.C. advertise properties for sale for unpaid taxes. The sales have to happen on the last Monday of September.
Back in 2019, the most expensive house in Kelowna made headlines because it had been assessed higher than any home in the Interior by B.C. Assessments at $10.6 million but the owner was three years behind in taxes, owing $161,638 to the city. At least some of the outstanding taxes were paid in time to keep that house from going to the tax sale and it is no longer on the list.
READ MORE: Most expensive house in B.C. Interior could be sold for property taxes owed
Now a light industrial property at 9025 Jim Bailey Rd. in the north end of Kelowna near Lake Country could be picked up for a mere $116,156.89.
According to B.C. Assessments, its assessed value is almost $2.5 million. It sits on almost one acre of land with 14,220 square feet of leasable space in that fast growing industrial area of the city.
But its availability could change at any moment.
“We update the list every day and we’ll continue to update as we move along,” Patrick Gramiak, revenue supervisor for the City of Kelowna, told iNFOnews.ca, Sept. 24. “Things happen hour to hour.”
Property owners have until 10 a.m. Monday, when the tax sale starts, to pay off their delinquent taxes. If they’re not paid, anyone can give the city a cheque for the full amount owing and cross their fingers that nothing gets paid over the next year.
In order to go to a tax sale, a property needs to have unpaid taxes for three years. That means, the full taxes weren’t paid on the Jim Bailey site since the 2018 tax year. But only the 2019 taxes have to be paid to avoid the sale.
If the sale goes ahead, prospective purchasers have to pay at least the “upset” price, which includes the taxes owing, interest and fees. The city will accept the highest bidder, as long as they prove capable of paying.
If it’s not sold, the city gets the property.
While the current owner only has to pay the 2019 taxes to avoid the tax sale, if they don’t pay and it is sold, they still have another year to pay up. In that case, they will have to pay the full upset price plus interest, rather than just the 2019 taxes.
Last year, everyone paid their taxes on time so there was no sale, Gramiak said.
There are currently 31, mostly residential, properties on the list.
That includes 10 manufactured homes, five of which are on Beaver Lake Road. Those owners owe taxes ranging from $1,711 to $5,853 each.
The second highest unpaid tax bill is for a house at 411 Francis Ave. with $16,615 outstanding. According to B.C. Assessments, it’s a four-bedroom, two-bathroom house built in 1959 and is assessed at $934,000. It’s near Kelowna General Hospital.
See the full list of properties here and more information about how tax sales work here.
READ MORE: Why some Okanagan luxury homeowners pay less property tax than they should
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