Property Tax Assessment Review Period Begins Today

Close to a half million Property and Business Assessment Notices were mailed out today, beginning this year’s Assessment Customer Review Period.

Assessed values are used as the basis for determining property and business taxes.

According to the City of Calgary website:

In 2010, The City of Calgary mailed 439,000 Property Assessment Notices to Calgary taxpayers, which is an increase of 8,000 from 2009. The total value of the 2010 Property Assessment Roll is $218 billion, compared to $245 billion in 2009.

As a result of the 2010 assessment, the typical assessment change between the 2009 and 2010 Property Assessment Rolls is -13% for residential properties and -15% for non-residential properties.

Due to the 2010 assessment, 92% of residential properties’ revenue neutral taxes will be within plus or minus 10% of their 2009 taxes.

Over two-thirds of residential properties, will experience a revenue neutral tax decrease due to the 2010 assessment, while about one-third, will experience an increase in their taxes due to the 2010 assessment.

Median assessments are down from last year:

The 2010 median single residential assessment (excluding condominiums) is $374,000 compared to $427,500 in 2009.

The 2010 median residential condominium assessment is $233,000 compared to $278,500 in 2009.

Key 2010 Assessment Dates:

  • July 1, 2009 -Valuation date for 2010 Property and Business Assessment values
  • October 1 – November 13, 2009 – 2010 Advance Consultation Period
  • December 31, 2009 – Physical Condition date for 2010 Property Assessments
  • January 4, 2010 – 2010 Property and Business Assessment Notices mailed andstart of 2010 Customer Review Period
  • January 4 – March 5, 2010 – 2010 Customer Review Period
  • January 29, 2010 – 2010 Business Tax Notices mailed
  • March 5, 2010 – Deadline for filing an assessment complaint with the Assessment Review Board
  • March 31, 2010 – 2010 Business Taxes due
  • May, 2010 – 2010 Property Tax Notices mailed
  • June 30, 2010 – 2010 Property Taxes due

For more information please visit the City of Calgary website

Click to Enlarge

8 responses to “Property Tax Assessment Review Period Begins Today

  1. Wondering how the newly released assessments compare with prices of homes sold so far this month?

    Ogden
    Sold Price: $235,000
    Assessed: $251,000

    Dover
    Sold Price: $238,000
    Assessed: $276,000

    Collingwood:
    Sold Price: $265,000
    Assessed: $272,000

    Capital Hill
    Sold Price: $300,000
    Assessed: $267,000

    Whitehorn
    Sold Price: $304,000
    Assessed: $288,500

    Coventry Hills
    Sold Price: $325,000
    Assessed: $308,000

    Taradale
    Sold Price: $335,200
    Assessed: $310,000

    Marlborough
    Sold Price: $336,500
    Assessed: $308,500

    Shawnessy
    Sold Price: $380,000
    Assessed: $364,000

    Brentwood
    Sold Price: $425,000
    Assessed: $422,500

    Royal Oak
    Sold Price: $622,500
    Assessed: $535,500

    Signal Hill
    Sold Price: $745,000
    Assessed: $733,500

    Altadore:
    Sold Price: $830,000
    Assessed: $272,500
    Reason: Infill

    As you can see, city assessed values do not reflect up-to-date market conditions and can’t be relied on to set current market value (Assessment is an estimate as of July 1, 2009)

  2. Canada To Surpass The United States in Residential Mortgage Debt in Q2-3, 2010, Marked-to-Market

    http://americacanada.blogspot.com/2010/01/canada-to-surpass-united-states-in.html

    “Also note that US average incomes are higher than Canada’s and they are taxed less. Furthermore, their mortgages are tax deductible. So the media was right. Canada is different. We’ll be more indebted to housing than the US ever was.”


    Mike Fotiou says: US homebuyers also get to keep the same interest rate throughout the entire amortization (fixed 30+ year rates) whereas here in Canada 1, 3, & 5 year fixed rates (and sometimes 10) are the norm after which we need to renew at the current rates available. It certainly would be easier to budget our future if it were the same here!

  3. Good point Mike F, that makes the Canadian market more volatile to swings in interest rates depending on the percentage of US mortgages that are longer term.

  4. Mike but not mike F

    Mike F, take a look at this batch of goodies then after 3 mintues of looking at the new assessments:

    My old house in Scarboro I sold in 2008 was assessed last year at $768k, now it’s $510k! But it’s not just my old house, the house behind was $2.4m, now $1.41m, beside, $985k, now $743, across $1.1m, now $775k. And last year when the neighbourhood was filled with $1m+ assessed homes there are just 1 in 10 left. Our starter home in Millrise dropped from $365k to $293k.

    That’s a huge 25-33+% drop.

    I haven’t seen more than 1 in 20 homes actually up in value myself on the new assessment.

    2009 buyers are NOT going to be happy.

    As for “city assessed values do not reflect up-to-date market conditions and can’t be relied on to set current market value” I could’t disagree more. We have used Assessed values as a primary pricing agent to determine a houses value. I trust a non-baised (city) source over a baised (CREB) source anyday. Plus CREB only goes by what sells, the city goes by EVERY HOUSE.

    Mike

  5. Mike but not mike F

    A note about using the unbiased City Assessment pricing to price a property accurately:

    For us, we put offers in no higher than city assessed value, even if the selling realtor has priced it above city value. If the realtor doesn’t like the offer, we walk to the house for sale at or under city assessment.

    No one in their right mind should pay more than a house is worth, and that’s city value.

    Mike

  6. Not MikeF, whether you disagree with my statement or not is immaterial as I’ve backed it up with properties that sold this week for tens of thousands of dollars above AND below the assessed value. Not to mention, the assessed value is always 6-18 months behind the current market. Even Kevin, writer of EdmontonHousingBust agrees:

    “I never really understood why some put stock in those assessments… they really mean nothing as far as the market is concerned, it only represents your share of the cities tax burden.”

    Second, and this might blow your mind, but the City uses the statistics from CREB to assess value. If you thought a city official visits each of the half a million properties every year to do an actual appraisal and takes into account upgrades, condition & quality, recent renovations, etc…well, then I can’t help you.

    No one in their right mind should pay more than a house is worth, and that’s city value

    Then the market prices in 2008 compared to the 2007 assessment would’ve seemed like an absolute steal! It works both ways.

  7. To prove my point further that the city assessed value isn’t a science, or market value: you would think properties that sold exactly on JULY 1, 2009 – the date of which the assessment was based on – would have a similar assessed value, right? Nope.

    Silverado
    Sold: $512,500
    Assessed: $480,500

    Cranston
    Sold: $484,000
    Assessed: $464,000

    Taradale
    Sold: $310,000
    Assessed: $291,500

    Palliser
    Sold: $571,375
    Assessed: $544,500

    etc…

    So I’m not sure what sort of calculations the city employs to extrapolate prices from CREB stats to the other properties (and then back onto the properties that sold on July 1, 2009 themselves!)

    What is interesting though is that the City assessments reflect Teranet’s House Price Index statistics for July 2009 very closely which had Calgary at a -12.2% drop year-over-year. So it seems the City’s assessment is consistent with the way the market was on a whole back in July (a drop of 12-13% year-over-year) but not as to the actual prices on individual homes.

  8. “Not Mike F”:

    A house could be a grow op full of biohazards and dead bodies and it still wouldn’t show up in the assessed value. If you are buying a million dollar house by looking at the assessed value and deciding it’s fair, you are making a giant mistake.

    Last year when assessments were falsely high were you making the same argument that they were fair? I think I know the answer to that one already

    http://www.bobtruman.com/blogs/bob_truman/archive/2009/12/08/the-biggest-loser.aspx

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