Huge Property Tax Increases in Alberta

[KenReynolds]

Over the past few weeks, I have gotten tax increase notices from 3 cities in Alberta showing huge jumps in property taxes for the properties that we own. Some of the increases are as high as 50% to 100% (Edmonton taxes rose 100%).

It strikes me that while the cities talk of mill rate and an increase of single digit increases that the real impact on the property has been from escalating property values.

I`d be interested to know if anyone has had any experience with these kinds of increases. If you have, please let me know and also let me know how best to address this with the cities if you`ve had success in reducing the impact.

Thanks, Ken

 

[Thomas Beyer]

QUOTE (KenReynolds @ May 30 2008, 12:59 PM) Over the past few weeks, I have gotten tax increase notices from 3 cities in Alberta showing huge jumps in property taxes for the properties that we own. Some of the increases are as high as 50% to 100% (Edmonton taxes rose 100%).

It strikes me that while the cities talk of mill rate and an increase of single digit increases that the real impact on the property has been from escalating property values.

I`d be interested to know if anyone has had any experience with these kinds of increases. If you have, please let me know and also let me know how best to address this with the cities if you`ve had success in reducing the impact.

Thanks, Ken

likely you bought a property that was assessed VERY low, then you bought it and it thus the price becomes public knowledge. While mill rates in general have been on the decline .. the overall tax bill is up considerably .. yes it is normal .. if you don`t like the assessment you can appeal it .. based on real evidence such as purchase price that it is too high .. if you can`t, swallow your pride and move on ..

 

[samwei]

QUOTE (KenReynolds @ May 30 2008, 12:59 PM) Over the past few weeks, I have gotten tax increase notices from 3 cities in Alberta showing huge jumps in property taxes for the properties that we own. Some of the increases are as high as 50% to 100% (Edmonton taxes rose 100%).

It strikes me that while the cities talk of mill rate and an increase of single digit increases that the real impact on the property has been from escalating property values.

I`d be interested to know if anyone has had any experience with these kinds of increases. If you have, please let me know and also let me know how best to address this with the cities if you`ve had success in reducing the impact.

Thanks, Ken

Hi Ken,

City of Edmonton bumped the assessment on my personal residence by 75% from 2007, so I spoke to an assessor about it. He adjusted the figure by an increase of 45%, but his supervisor turned it down, stating that he was only willing to "adjust" it with a 58% increase. So now, I have to file a complaint, pay a $30 complaint fee, present my case to an assessment board consisting of 4 members, and argue my position.

From July 2006 to July 2007 (City bases its market value assessment as of July 1 of each year), real estate prices jumped 39% in general for single family homes, but in my neighborhood, the increase was about 45%.

On my rental property, the original assessment was for $443,500, but I got it reduced to $390,000 based on the purchase price of $367,000 in October 2007. It`s still a savings about $300 per year, so if you want to appeal yours, you`d have to think about whether the savings are worth it.

If you don`t appeal it, then any adjustments onwards would be based on this year`s figures.

regards,
Sam

 

[brentdavies]

Hi,

Every year the media needs a story and we get blasted with stories of property taxes going to high. Assessment and mill rate are two differnent compenents to the property tax issue. Once again the sky is falling.

My experiance in Edmonton, which is using "market value" or data from the Edmonton MLS system, is that the city is slow to determine the market value, but is fairly close. They tend to reflect what is happening in the edmonton market 18 months ago. This year a 60% increase in assessment resulted in a ZERO increase in property taxes.

Last year, 2007; the south side properties received a large increase in the assessment, and a larger tax increase, and the northside had little or no increase.

This year, the southside had a miniumal assessment increase, and a tax "Decrease", and the Northside had some large increases. Assessments increased on the northside by 94%, and the actual townhouses property taxes went up 27%.

Overall, my 2008 property taxes ( in excess of $30,000) went up $1.93.

However, Sherwood Park continues to have lower taxes. A 3 bedroom house in West Edmonton is $2400 per year and a 3 bedroom home in Sherwood Park is $1900. Both homes are assessed the same.

The hardest part is writing the cheque, so this year we will go on monthly taxes payments to reduce the pain.

Brent
Edmonton Investor & Property Manager

 

[Gerhardt]

Hi Folks,
We have had some similar issues. Some of our properties are now assessed right around market value. However, we have about 5 properties in Edmonton where the taxes actually doubled and the city assessment is well above $100,000 above market value ( I am a real estate appraiser). We will definitely be challenging those ones and as the previous thread points out, it is worth your while as increases next year will be based on your this year`s assessment. Use the help of your realtor or appraiser to get good comparables before you have your hearing. They are actually pretty good about adjusting (our previous experience). They do the best they can, but it`s a tough job to re-assess a whole city!

Cheers!

 

[Nicola]

QUOTE (samwei @ May 31 2008, 09:47 AM) Hi Ken,

City of Edmonton bumped the assessment on my personal residence by 75% from 2007, so I spoke to an assessor about it. He adjusted the figure by an increase of 45%, but his supervisor turned it down, stating that he was only willing to "adjust" it with a 58% increase. So now, I have to file a complaint, pay a $30 complaint fee, present my case to an assessment board consisting of 4 members, and argue my position.

From July 2006 to July 2007 (City bases its market value assessment as of July 1 of each year), real estate prices jumped 39% in general for single family homes, but in my neighborhood, the increase was about 45%.

On my rental property, the original assessment was for $443,500, but I got it reduced to $390,000 based on the purchase price of $367,000 in October 2007. It`s still a savings about $300 per year, so if you want to appeal yours, you`d have to think about whether the savings are worth it.

If you don`t appeal it, then any adjustments onwards would be based on this year`s figures.

regards,
Sam

Hi Sam,

Were you able to get the initial reduction just by talking to the assessor on the phone?

We just closed on a house for $280,000 (appraised in April/08 at $298,500), which is assessed at $337,500. I think it is worth appealing(?)

How hard is it to get hold of an assessor? I tried calling today but "all lines were busy" and there is no hold option.

Thanks,
Nicola

 

[samwei]

QUOTE (Nicola @ Jun 4 2008, 06:09 PM) Hi Sam,

Were you able to get the initial reduction just by talking to the assessor on the phone?

We just closed on a house for $280,000 (appraised in April/08 at $298,500), which is assessed at $337,500. I think it is worth appealing(?)

How hard is it to get hold of an assessor? I tried calling today but "all lines were busy" and there is no hold option.

Thanks,
Nicola

Hi Nicola,

I went to talk to an assessor in person. He reduced my rental property from $443,500 to $390,000 because I showed him that it had been listed for $429,900 on July 31 2007, and we had purchased it for $367,000 in October. Even then, he tried to negotiate me to accept $400,000. He still had to get his supervisor`s permission for $390,000, which he did.

On my personal residence, he initially reduced it from $621,500 to $510,000. But then, he called me back a few days later to state that his supervisor would not approve $510,000, and the lowest they were willing to go was $558,000. So now, they`re sending me out a new assessment at $558,000 for which I will have 30 days to appeal. The Assessment Appeal Board has 4 members, so I have to make 4 copies of why my home is worth X dollars as of July 1 2007.

The City is saying on its assessment notices that values for single family homes went up by 65% from July 2006 to July 2007. But the stats from the Edmonton Real Estate Board shows an increase of "only" about 39%, so I`m wondering where they got their stats from.

I`ll be going in again to speak with an assessor to see if I can get a copy of my property file from the assessors, and check up on what stats the City has on my neighborhood as to property values increase.

Good luck on your situation.

sam

 

[Nicola]

QUOTE (samwei @ Jun 5 2008, 11:34 AM) Hi Nicola,

I went to talk to an assessor in person. He reduced my rental property from $443,500 to $390,000 because I showed him that it had been listed for $429,900 on July 31 2007, and we had purchased it for $367,000 in October. Even then, he tried to negotiate me to accept $400,000. He still had to get his supervisor`s permission for $390,000, which he did.

On my personal residence, he initially reduced it from $621,500 to $510,000. But then, he called me back a few days later to state that his supervisor would not approve $510,000, and the lowest they were willing to go was $558,000. So now, they`re sending me out a new assessment at $558,000 for which I will have 30 days to appeal. The Assessment Appeal Board has 4 members, so I have to make 4 copies of why my home is worth X dollars as of July 1 2007.

The City is saying on its assessment notices that values for single family homes went up by 65% from July 2006 to July 2007. But the stats from the Edmonton Real Estate Board shows an increase of "only" about 39%, so I`m wondering where they got their stats from.

I`ll be going in again to speak with an assessor to see if I can get a copy of my property file from the assessors, and check up on what stats the City has on my neighborhood as to property values increase.

Good luck on your situation.

sam

Thanks Sam. I`ll try again by phone since I`m in Korea. If that fails I guess I`ll send in an appeal.

Good luck with your appeal!
Nicola