The property tax assessment is a value placed on a property for municipal and provincial taxation purposes; this is an estimated value of your property’s market value on July 1st of the previous year, and it is also adjusted for any changes in exterior physical condition and or upgrades submitted through the building permit process. For example, developed basement, garage addition or square footage as of December 31st of the previous year. Many people would look at the assessed value and assume that the number represents the current market value. While there are a few instances where the assessment might equal the current value, this would only be a coincidence.
Officials say the 2019 median price for a single-family home is now $475,000, which is down from $480,000 in 2018. The median price for condos in the city also took a hit, falling from $260,000 in 2018 to $255,000, reported by CTV News.
The increases have homeowners worried about their property taxes, and some may be considering appealing their assessments. The property assessment is sent out earlier in the year and prior to the city determining the property tax amount so the homeowner can appeal their assessment.
#1: Understand the System and Situation
In order to appeal your increasing property taxes, make sure you understand how the system works. The two common arguments for an appeal are either the assessed market value of your property is too high based on comparable sales, or that you were unfairly assessed in comparison to your neighbours.
The assessed value and market value are calculated differently, for different purposes and at different times. Market value is a much more extensive and precise report which adjusts for features such as the number of bathrooms, upgrades and basement development. The market value uses the most recent comparable sales and thus is a much more accurate assessment of the value of your property.
#2: Do Your Research
Make sure you have the supporting evidence to back up your argument. Hire a professional like a realtor or appraiser to help assess your home value. If you are curious as to what the market value of your home is, it’s free for you on our website at https://www.jdrealestatecalgary.ca/book-home-evaluation/.
#3: Be Aware of the Risk
The risk of appealing your property assessment is that it could backfire; having a second look at your assessment may determine that your property was under-assessed.
For a COMPLIMENTARY home evaluation, please visit Jesse Davies Real Estate Calgary.
For more information, please visit www.calgary.ca/assessment/
Calgarians can ask questions about their assessments by calling 403-268-2888