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[ Tax ]

Property Assessments and the Gross Income Multiplier By Sara Moosavi

’Tis the season to be jolly! As many Canadians begin to prepare for the holiday season, assessment authorities across the nation are in the midst of mailing out Assessment Notices for the 2014 tax year. The designated assessing authority or authorities (some provinces may have more than one) in each respective province are responsible for accurately assessing and classifying your property in compliance with the applicable statutes and regulations as set by each respective province.

The chart below lists important dates relating to Provincial Assessment Cycles. If you have any questions about your property taxes or assessment you can contact your municipal/local taxing authority. Provincial assessment cycles Schedule

Valuation date

Notices

Appeal deadlines

Assessing authority

BC

Annual assessments

July 1, 2013

Notices sent December 31, 2013

January 31, 2014

BC Assessment

AB

Annual assessments

July 1, 2013

Notices sent early January, 2014

60 days from mailing

Designated Municipal Assessors

SK

4 Year assessment cycles 2013 – 2016

January 1, 2012

Notices sent mid January, 2014

60 days from mailing

Saskatchewan Assessment Management Agency

MB

2 Year assessment cycles 2014 – 2015

April 1, 2012

Notices sent between May 1June 26, 2013

June 23, 2014

Manitoba Assessment Services & City of Winnipeg

ON

4 Year assessment cycles 2013 – 2016

January 1, 2012

Notices sent September – December, 2013

March 31, 2014

Municipal Property Assessment Corporation

QC

3 Year assessment cycles (Municipalities vary*)

18 months prior (July 1, 2010, 2012 – 2014 cycle*)

Notices sent November – December of prior year

April 30th (first year of reassessment cycle only*)

Various Municipalities

NB

Annual assessments

January 1, 2012

Notices sent March 1, 2014

30 days from mailing

Service New Brunswick Property Assessment Services

NS

Annual assessments

January 1, 2012

Notices sent early January 2014

21 days from mailing

Provincial Valuation Services Corporation

PE

Annual assessments

January 1, 2012

Notices sent 1st week of May 2014 90 days from mailing

Provincial Government

NL

3 Year assessment cycles 2013 – 2015

January 1, 2011

Notices sent September – October 2013

Municipal Assessment Agency & City of St. Johns

40 december 2013

30 days from mailing


[ Tax ]

The method generally used by assessing authorities to value multi-residential property is the Gross Income Multiplier (GIM) approach. To determine the GIM, the assessing authorities review sales of comparable properties and divide the sale price by the gross annual rental income to develop an average multiplier. The GIM reflects the relationship among the income, condition, and sometimes the expense ratio of the property, and sale prices of comparables. The assessing authorities then apply the GIM to the Gross Income of the property, which is determined from the Typical Annual Rent (TAR) and suite mixes of the property.

an inaccurate assessment is increased if the assessment is higher than a realistic sale, or if an appeal has not been undertaken for several years.

For more information, contact: Sara Moosavi, Associate, Cushman & Wakefield Ltd., 1.416.359.2641, sara.moosavi@ca.cushwake.com, www.cushmanwakefield.com/knowledge

And what better way to kick off the season than to reduce your tax liability, perhaps significantly. RHB

THE EVOLUTION OF NEWS RHB Newsreel is your connection to the apartment industry audience!

It is important to note that the GIM valuation method is employed on a mass appraisal basis. If a property owner files an appeal relating to the assessment of multi-residential property, that creates an opportunity to discover and address any issues and discrepancies specific to that property as compared to the data applied in the mass appraisal GIM valuation. For instance, the actual rent and suite mixes, expense ratios, income and vacancy rates specific to the property at hand should be reviewed to ensure that an accurate assessment has been made. It would be worthwhile to take a moment out of this busy time of the year to make note of the Property Assessment Notice(s) issued to you and ask yourself these two questions: 1) could you have sold your property for its assessed value on the valuation date listed on your Property Assessment Notice? and 2) Have you ever filed an assessment appeal for your property? If the answer to either of these questions is ‘no’, then you may want to consider appealing your property’s assessment. In both situations, an appeal may function as a valuable gateway for the property owner to access the information utilized by their assessing authority to value their property in order to ensure the correctness and accuracy of the information. As implied in the questions, the likelihood of

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