Appealing your property tax assessment
By David Gargaro
Impactful changes Most owners of rental property in Canada will be receiving property assessments this year, except for some in Quebec who will be getting their assessments in 2021 and owners in Ontario whose assessments have not changed. Given how property values have increased over recent years, it’s relatively safe to say that the assessed values of most rental properties have increased since the previous assessment, perhaps substantially. This might mean that your property taxes will increase as well. Upon receiving the assessment notice, make sure to carefully review your property assessment. You don’t want to pay more than what is fair and equitable, especially since property taxes are a significant business cost. You have a limited time to appeal the assessed value of your property – see the table on page 28 for the appeal deadline in your city. Appealing the assessment is the key way to adjust your property’s assessment value and reduce your property taxes.
Reviewing your assessment Many factors go into determining the assessment of your rental property. When doing your own review, make sure to consider the following to prepare for an appeal: • The age, location, size, quality, and condition of your property • The property class for your building • Local real estate market conditions in the year in which your property was assessed • How your rental property compares to similar properties
“Apart from mortgage payments, property taxes are usually the largest cost a rental housing provider faces,” said John Dickie, President, Canadian Federation of Apartment Associations (CFAA). “At every new assessment, it is almost always worthwhile to consult a property tax professional to evaluate your assessment, and thus minimize the property tax you pay.”
Appealing your assessment Many owners of rental property don’t appeal because they don’t think it’s worth the time and effort. In some cases, there is no fee to appeal. According to a survey conducted by the Canadian Federation of Independent Businesses, 46 per cent of property owners who chose to appeal their assessment saw their property’s assessed value decrease, which resulted in paying less property tax. So, when should you decide to file an appeal? The key reasons to appeal an assessment are when you believe that the assessed market value of your rental property is too high based on sales of comparable properties, you think that you were not assessed fairly compared to your neighbours or similar properties, or your property was improperly classified during the assessment process. Before you make the appeal, do your homework or consult a property tax professional. Research the value of comparable properties and your neighbours to determine their assessed values. Establish a point of comparison based on the previously stated factors, such as price per square
• Applicable tax exemptions (e.g., municipal, school) In addition to reviewing your current property assessment, you should conduct an annual review. This will enable you to determine whether there are any unusual changes in your property assessment, and to ensure that the assessment reflects the current economic conditions of your rental property.
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foot of land and property class. Rather than just complaining about your property’s assessment value, be prepared with relevant evidence as to why you were assessed over the proper value.
When participating in the appeal, ensure that you provide relevant evidence, along with witnesses or experts where applicable.
In some cases, you can discuss your concerns with the appraiser. If this does not address your concerns, then you can appeal. Make sure to submit your written request for an appeal before the deadline for your city, as stated in the table below. You will have to attend a hearing to explain your reason for requesting the appeal of your assessment.
Every property owner must pay property taxes. However, just because your property is assessed at a certain level does not mean that you have to accept the assessed amount. You can appeal that assessment, and possibly have the assessed value reduced to decrease what you pay in property taxes. The benefit to your bottom line is usually worth the effort.
Conclusion
2020 Canadian Assessment Appeal Deadlines City/Province
Notice Mailed
Appeal Deadline
Valuation Date
Taxation Year
Assessment Cycle (appeal opportunity)
Yukon
December 2019
January 13, 2020
January 1, 2016
2020
Two-year cycle (annual)
Northwest Territories— Inuvik—Norman Wells
January 2020
February 2020
January 1, 2018
2020
Ten-year cycle (annual)
Nunavut
December 2019
January 16, 2020
January 1, 2012
2020
Ten-year cycle (annual)
British Columbia
January 2020
January 31, 2020
July 1, 2019
2020
Annual (annual)
· Edmonton
January 2020
March 10, 2020
July 1, 2019
2020
Annual (annual)
· Calgary
January 2020
March 10, 2020
July 1, 2019
2020
Annual (annual)
- Red Deer / Lethbridge
January 2020
March 2020
July 1, 2019
2020
Annual (annual)
- RM Wood Buffalo (Fort MacMurray)
January 2020
March 2020
July 1, 2019
2020
Annual (annual)
- Rural Alberta
Variable March – July 2020
Variable Mar – Dec 2020
July 1, 2019
2020
Annual (annual)
· Regina
October 2020
December 2020
January 1, 2019
2021
Four-year cycle (annual)
· Saskatoon
January 2020
February 3, 2020
January 1, 2015
2020
Four-year cycle (annual)
· Winnipeg
April-May 2020
June 2020
April 1, 2018
2021
Two-year cycle (annual)
· Remaining Municipalities
Variable August – December 2020
Variable Aug – Dec 2020
April 1, 2018
2021
Two-year cycle (annual)
Ontario
Annual Notices only issued when a change has occurred; Supplementary or Omitted Assessment Notices issued where/when appropriate
March 31, 2020
January 1, 2016
2020
Four-year cycle (annual)
· Montréal
Fall 2019
April 30, 2020
July 1, 2018
2020-2021-2022
Triennial (right of appeal in the first year only for revaluations)
· Q uébec City – Laval – Longueuil – TroisRivières – Sherbrooke – Baie- Comeau – Sept-Îles
Fall 2021
April 30, 2022
July 1, 2020
2022-2023-2024
Triennial (right of appeal in the first year only for revaluations)
· Drummondville – Gatineau and many others
Fall 2020
April 30, 2021
July 1 , 2019
2021-2022-2023
Triennial (right of appeal in the first year only for revaluations)
Nova Scotia
January 14, 2020
February 14, 2020
January 1, 2019
2020
Annual (annual)
New Brunswick
March 1, 2020
March 31, 2020
January 1, 2020
2020
Annual (annual)
· St. John’s
August 31, 2020* May be earlier
Late October, 2020 (60 day appeal window)* May change
January 1, 2017
2021
Three-year cycle (annual)
· Remaining Municipalities
June 2020* May change
Late August, 2020 (60 day appeal window)* May change
January 1, 2020
2021
Annual (annual)
Prince Edward Island
Early May 2020 (must be mailed by May 5)
Early August 2020
January 1, 2020
2020
Annual (annual)
Alberta
Saskatchewan
Manitoba
Québec
Newfoundland – 20192021 reassessment
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