a WV pair ta Michael Becker News Editor michacl@nsnews.com A West Vancouver couple is challenging the inclusion of Goods and Services Tax (GST) in the assessed value of their Deer Ridge Drive condominium. William and Joan Ann Wedley took their beef to the B.C Supreme Court and questioned a practice by the assessment authori- ty to include GST in the calculation of the value of new homes. In a decision released Aug. 18, Honorable Madam Justice Risa E. Levine found that the Assessment Appeal Board Of B.C. should reconsider the Wedlevs’ evidence to determine the appropriateness of including GST in the assessment of their property and properties in general. The Wedleys bought a pent- house condominium in the 3]00- block of Deer Ridge Drive in 1994 for $660,000. According to the Wedieys, che purchase price included $616,822.43 for the condominium and $43,177.57 for GST. The purchase was registered at the Land Title Office with a market value $616,822.43. The assessor calculated the value of the property based on the pur- chase price with GST at $660,000. The Wedleys argue that the assessed value should be based on the purchase price, excluding the GST. . The B.C. Assessment Act sets out the guidelines for the valuation of property for local taxes. Subsection 19(1) of the act defines “actual value” as “the mar- ket value of the fee simple interest in land and improvements.” Subsection 19(3) notes that the assessor “may” consider a wide variety of factors in determining actual value, including “any other circumstances affecting: the value of the land and improvements.” The act also provides a frame- work for the appeal of assessments. An owner who believes that an Friday, September 4, 1898 — North Shore News - 3 | 4 NEWS photo Brad Ledwidge WILLIAM Wedley is questioning an assessment practice that saw the price of the Gcods and Services Tax paid on his West Van condominium included as part of the value of his home. error or omission exists in an assessmen: can choose to appeal to the Court of Revision. A disputed decision at this level may be appealed before the Assessment Appeal Board. The board may seek guidance from the Supreme Court on questions of law arising in the appeal. The federal Excise Tax Act set» out the conditions for levying GST GST must be paid on purchases of new homes. Buyers of propertics that cost more than $450,000, such as the Wedleys’ case, get no rebate and have to pay the full 7% GST. No GST is paid when used resi- dential property is resold. The assessor and the board maintain that an owner of new res- idential property on which GST has been paid will usually recover the including the GST in the assessed value of the property. The policy follows a recommendation of the Appraisal Institute of Canada But according to the Supreme Court decision the Wedleys argue that putting the GST into the value of a property is “irrational and inequitable.” The board has an economic rationale for its policy. Because GST is payable on the purchase of new construction, and not on the resale of a home, the only fair way of arriving at actual value for assessment and property tax purposes is to include net GST in the estimate of market value for new construction, The board recognized thar the GST is not part of the purchase orice, but it found that its payment adds value to the property. GST by including it in the resale ice. They work with a policy of price. New teachers hired From page 1 terms of the agreement translated to the hiring of nine new kinder- arten-to-Grade 3 teachers and 5.591 non-enrolling staff at a combined additional funding of $1,953,545. The non-enrolling staff category includes counsel- lors, librarians, special education and ESL teach Meanwhile in West Vancouver, the agrcement result- ed in the hiring of four additional kindergarten-to-Grade 3 teachers and 2.655 non-enrolling teachers at a combined additional funding of $386,651. To sell the agreement, Ramsey himself made an appearance in North Vancouver yesterday. less than a week away, teachers, administrators and trustees are tying up loose ends to ensure schools are ready when students return from their holidays, said Rarnsey. “Despite the inevitable contu- sion that occurs every September, right now we are in an envi position in B.C.,” said Ramsey in his specch at Ridgeway clemen- rary school. “We have more money, more teachers and a long- term. commitment to improving, the ways our students learn.” North Vancouver District 44 School Board chairman Pat Heal said the additional amounts pro- vided by Ramsey and the ministry ” School Board should cover the expense of implementing, the deal and con- firmed implementation will cake some doing. One possible scenario, said Heal, has kids in the affected grades starting out with one teacher but moving to another as the year wears on. Many of the new teachers have yet to be hired, and in some cases the jobs won't even be posted until after the start of the school year. “It could be quite disruptive in September, but hopefully we'll have everything in place as soon as possible — by October on the outside,” said Heal. West Vancouver District’ 45 chairman Clive Bird is on holidays and along with other district officials did not return News calls to press itme Thursday. Earlier this year, the majority of the province’s 60 school dis- tricts, including, North and West Vancouver, rejected the teachers’ contract in’ individual district votes. When Ramsey legislated the recent contract, local trustees expressed concerns over their ability to implement its rigid for- mat. The provincial education min- istry has tried to case trustecs” fears and maintains it has done an adequate job of providing addi- tional funds to pay for the legis- lated changes. According to the Supreme Court document, the market has reacted to the imposition of GST on the sale of new construction by discounting the price of a new home by the amount of tax payable. The approach is meant to keep the price in line with a com- parable home being resold. The judge ruled that the assess- ment appeal board should take another look at the Wedleys’ evi- dence. The judge found the board made mistakes on three points of law and awarded the Wedieys their court costs, Both sides have the option of appealing the Supreme Court deci- sion, They have until Sept. 18 to do so. Said William Wedley of the court outcome, “Pm relatively happy. I would have liked it if Madam = Justice Levine had answered the most crucial issue: is the GST part of the value?” NEWS photo Terry Peters EDUCATION Minister Paul Ramsey (ieft) addresses an audience at Ridgeway school yesterday as Carol James of the school trustees association: and Kit Kreiger of the teachers’ federation look on. | | Police seize sex videos Anna Marie D’Angelo News Reporter dangelo@nsnews.com NORTH Vancouver RCMP offi- cers raided a Lower Lonsdale ~ rooming house last week in search of child pornography. According to search warrant informa- tion, police have investigated ar of the rooming house, Marck Richer, twice before after complaints about his “actions towards young boys.” Both pre- vious police investigations were complet- ed without charges. The investigations toak place earlier this year and in December of 1997. After a third complaint, three Mounties went to speak to Richer, who is in his 50s, in his room in the 400-block of East 2nd Street. Police went there after receiving 2 complaint on Aug. 24 that Richer had an “eight to 10-year-old boy in his room” and that Richer had young boys in his room on other occasions. According to the search warrant, con- stables James Jesmer, Clarence Dykema and Jordan Dupuis saw more than 168 video tapes in Richer’s room. The major- itv of tapes were in plain black cases. Richer told police the tapes were “of males engaged in sexual activity” were “all legal,” according to the search warrant information. One of the officers noted that there was a picture of a young juvenile male placed in a collector card holder sitting on a desk in the room. Another officer noted that there were pictures of a younger male musician on a wall in Richer’s room. There was a small roy truck on a shelf in the room. A picture of a young boy estimated by police at being age 12 to 14 and dressed in “trendy clothes” was glued to the cover of a video case. Richer stated that he did not know who the boy was, but later admitted to a police officer that he knew the boy, according to the search warrant. In December 1997, North Vancouver RCMP Const. Sue Cowan went to Richer’s home in connection with anoth- er complaint about Richer’s interaction with young boys. The search warrant states chat Cowan saw Richer come home with a young boy in his car. The boy rode off on a skate- board. Later, the nine-year-old boy rold police thar he mer Richer through a friend. The boy said that on the first day ¢ met Richer, Richer bought the young- ster a lock for his bicycle and the boy went to Richer’s home to “lock at his fish and his bedroom.” Richer also bought the boy a $200 skateboard after knowing the boy for three weeks, according to the search war- rant. The boy told police Richer had video taped him skateboarding and that the video tape was to be given to the boy's mother for Christmas. The boy’s friend was not allowed to “hi out™ with Richer because that boy’s mother thought it odd that Richer gave her son money and gifts, according to the search warrant. A police investigation was launched this year after a woman complained that Richer had given her son $25 and cwo cans of pop tor delivering newspapers for a short time. Richer, the mother com- plained, had given her son gifts such as magazines and had left notes for the buy at the boy’s home. rch warrant states that the ved two complaints regarding Richer’s interaction with young males. Richer routinely paid young males unusually amounts of money to help him deliver papers. The News was unable to contact Richer to press time. Richer is not charged with any crime. The North Vancouver RCMP declined to comment on the investigation or material s through the search warrant.