Property Assessments Up $1.5 Billion
The value of commercial and residential properties grew by close to $1.5 billion in Nova Scotia last year, an increase of about 3.7 per cent.
The total value is now $43 billion, up from $41.8 billion in 1999. The figures are reflected in assessment notices that are being sent today to owners of more than 530,000 properties.
"This growth in property values shows the strength of the real estate market in most areas of Nova Scotia," said John MacKay, executive director of Assessment Services at the Department of Housing and Municipal Affairs. "A strong real estate market is a reflection of a strong economy."
Higher assessments do not necessarily mean higher property taxes. Tax rates are set by municipalities across the province.
The year 2000 assessments reflect market data as of Jan. 1, 1998, when commercial and residential real estate sales started to rise in many parts of the province. The growth has been fueled by Sable gas, improved employment and low interest rates.
"The growth is particularly evident in metro, the south shore and the Annapolis Valley," said Mr. MacKay. "But the improvements don't extend across the board. Assessment values are slightly lower in Cape Breton Regional Municipality."
Property owners have until Jan. 31 to appeal their assessment. The number of appeals has declined in the last four years, at least in part because of the move to annual re-assessments. Prior to 1996 assessments were done every three years. Annual re-assessments provide more accurate, up-to-date values, which had been requested by property owners, businesses and municipalities. And property owners whose assessments are expected to change by more than three per cent now receive early notification during the summer.
"These innovations have made the assessments a more accurate reflection of true market value," said Mr. MacKay. "They've also made planning easier for municipalities and property owners."
Once assessments are set, the department provides them to the municipalities which use them to determine the tax rate and how much property owners will pay in taxes. Each municipality sets its own tax rate. The rate depends upon how much money the municipality needs to support services such as police, fire, streets, lighting, schools, garbage, etc. The tax rate is determined by dividing the total amount of money required by the total of all assessments in the municipality. Assessments, therefore, allow the municipalities to fairly apportion the tax burden among all property owners.
The Department of Housing and Municipal Affairs has set up a toll-free Assessment Information Line again this year. Callers can reach the centre at 1-800-667-5727 from 8:30 a.m. to 4:30 p.m.