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Municipal Assessment/Taxes - 2009, Year to Act
2009 is a critical year for property owners to review their Notices of Assessment. Assessment Notices sent out this year will set the assessable value for the 2010, 2011 and 2012 tax years, as this province is on a three year assessment cycle. Therefore, appeals made this year affect the taxes payable in three future tax years. Consequently, ratepayers should be sure to review their Assessment Notices this year and ratepayers must note that they have only 21 days in which to appeal Consideration should be given to having the assessment reviewed by a qualified real estate appraiser/advisor.
Why should I review my Municipal Assessment Value
The boom of the 1970s and 1980s saw the market value for commercial real estate soar. It was a time of high interest rates, high inflation, with an influx of cash and demand for commercial real estate. During those times, governments poured money into this sector of the market to encourage job development and a vibrant economy. Well, it couldn't last, we now have an abundance of space and a lack of tenants. The end result, lower rental rates, higher vacancy rates and a sharp decline in market values. To compensate for their losses, resourceful commercial property owners have had their assessment values reviewed to determine if they are in line with market value as of the base date of the assessment.
Our experience in the review of assessment values dates back to 1989 and our track record speaks for itself. We have been successful for our local and national clients in assessment appeals throughout the Province, from St. John's to Port-aux-Basques and all points in between. Through this our clients have reduced their tax burden and added thousands of dollars to their bottom line. If you have any questions, concerning the process or a general question, email us at: info@kba.ca or give us a call at (709)738 -1000
Municipal Assessment Appeal Process
Initial Review
The initial review process typically requires approximately five hours to complete. This process consists of, a review of the assessment record, and a review of the financial information for income producing properties. After completing this process, we inform our clients if it is feasible to proceed with the appeal process and the probability of success.
Correspondence/Negotiation with the Assessor
If we feel that it is justified to proceed with the appeal, we will present a position paper on the valuation to the assessment authority. We will then meet with the assessor to discuss our position and present evidence which has attributed to the difference in opinions. If a compromise is met, we will consult with our client and discuss the tax savings, while weighing the cost to proceed against potential further success.
Appeal Hearing
If an agreement is not reached, the case will proceed to an assessment appeal hearing, which will be presided over by a Commissioner. Each party will give evidence, then both parties will be given an opportunity for cross examination. Upon completion of the hearing, the Commissioner will weigh the evidence presented and render a decision.
If one of the parties is not satisfied with the Commissioner's decision, there will be an opportunity to appeal the decision to the Supreme Court of Newfoundland.
Sample Reductions
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Property Type
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Initial
Assessment
Value
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Revised
Assessment
Value
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Tax
Savings
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| Bottling Plant | $3,558,600 | $2,000,000 | $158,976 |
| Large Warehouse | $4,148,600 | $3,089,500 | $88,074 |
| Office Tower | $14,123,610 | $12,725,000 | *$71,328 |
| Warehouse | $2,185,000 | $1,346,900 | $59,538 |
| Bottling Plant | $2,064,000 | $1,644,000 | $44,100 |
| Gander - Office | $1,827,700 | $1,175,200 | *$18,402 |
| Grand Falls - Warehouse | $3,504,500 | $3,000,000 | $17,658 |
| Warehouse | $861,600 | $664,200 | $16,581 |
| Carbonear - Retail | $768,300 | $485,000 | $15,124 |
| Apartment Complex | $2,409,500 | $1,816,000 | $11,870 |
| Grand Falls - Warehouse | $686,300 | $466,400 | $7,696 |
| Clarenville - Retail | $609,500 | $530,600 | $4,300 |
| Marystown - Retail | $256,600 | $150,000 | $3,944 |
| Retail | $277,900 | $233,000 | $2,514 |
| Fortune - Retail | $115,800 | $97,400 | $1,215 |
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* Realty taxes only. Business Occupancy Taxes not included.
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