Page 8 - REN July-Aug 2021
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Your municipality will also give a detailed breakdown of how your tax dollars are being distributed between things
             such  as  emergency  services,  library  services,  roads  and  traffic,  etc.  Understandably,  rates  differ  broadly  across
             Canadian municipalities based on the types of properties, and density.

             What is a property assessment?
             Property assessments are required to determine the value of your property, which then factors into how much your
             property tax will be. Keep in mind, property assessments are different from a home inspection or appraisal. A property
             assessment is the process of determining the value of a property based on the open market sale averages of other
             properties in the surrounding area. In the case of residential properties, the location (neighbourhood), size of the
             lot, building type, size, age, and the building materials used, plus any updates or additions, are taken into account to
             determine value.

             Why are property assessments necessary?
             Since all properties are different, assessments are necessary to ensure everyone pays a fair share based on the value
             of their property and how said property is being used. First, property values change over time, either appreciating or
             depreciating in value, depending on real estate market trends in those areas. Secondly, population sizes change when
             urban and suburban centres expand with new construction. Property assessments also play a part in determining
             taxation rates. If property values increase more in comparison to the municipality’s budgetary needs, a tax rate
             reduction may result.

             Who assesses properties, and how often?
             Assessments are handled differently in each province and territory and are conducted by either the municipalities, a
             specific branch of the provincial government, or by independent organizations commissioned by provinces and/or
             municipalities. Assessment intervals also differ from province to province.
             For instance, in British Columbia, BC Assessment was formed to assess all properties annually in the province. Ontario
             has  a  similar  organization,  MPAC  (Municipal  Property  Assessment  Corporation),  a  non-profit  corporation  whose
             members are made up of Ontario municipalities, and who conduct assessments every four years.
             To dig a little deeper into assessments for your specific province, check out the links below.

              British Columbia    Quebec (Consult your municipal website for more information.)  Yukon Territory
              Alberta             New Brunswick                                      Northwest Territories
              Saskatchewan        Nova Scotia                                        Nunavut Territory
              Manitoba            Prince Edward Island
              Ontario             Newfoundland and Labrador
             What can I do if I don’t agree with my assessment?

             Since assessments are applied based on averages for your area, it’s possible your property could end up valued higher
             than it should. Factors such as volume of sales, final selling price, volume of building upgrades or additions, or even
             densification can increase the perceived value of your home in an assessment. If, for instance, you have been living in
             your home for a long time without making updates, you can appeal your assessment if you feel it’s too high.
             The appeal process differs based on your province. You can request a reassessment in the province or territory where
             you own property, but if the reassessment maintains the value you believe to be incorrect, then you can submit an
             appeal.
             By now your head may be spinning with all this new information, and that’s OK! Now, you’re better equipped to tackle
             this important aspect of homeownership. Plus, you’re making a positive impact by supporting the important services
             to keep your community safe, clean, and a great place to call home.  g


               8   |  REAL ESTATE NOW  |  denise@BCislandhomes.ca
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