Municipal tax rates are set annually by bylaw. The level at which the tax rates are set is largely dependent on the City's operational requirements as dictated by service levels, planned capital expenditures and debt repayment. Once set, municipal tax rates are applied to the assessed value of a property, as determined by BC Assessment, to calculate the municipal tax payable.
Other public agencies also require revenue for the services they provide to the residents of Fernie. Each public agency with taxing authority sets a budget for the amount of tax revenue it requires. Tax rates vary among agencies and are calculated by dividing the revenue requirements of the agency by its assessment base. The resulting tax collection for the other agencies is subsequently remitted to the respective agency and is not retained by the City for its own use.