This week in the mail you should have received, or should be receiving your Property Assessment notices from the City of Calgary. Opening that envelope some of you may be disappointed in the value of your home, while others may be delighted. But, have you ever wondered how this value is calculated and determined? Considering the timing, we thought we’d shed some light on this topic.
The value you see on your 2018 assessment notice is based on the value your home would have been sold for in the open market on July 1st the previous year, so in 2017. It is not reflective of any changes in real estate market conditions, and any changes from July 1st 2017 will be reflected in your 2019 notice.
Should you disagree with something on the notice, you are permitted a sixty-seven period where you can contact and question or appeal your assessment. There is more than one way to assess a property in the City of Calgary, and the most common approach is the Sales Comparison approach, which compares sales of similar properties. Factors such as age, location, additions, lot size, renovations and sales of similar properties in the vicinity over the last three years are included in determining the assessment of your property. There is also the approach using Income, which capitalizes the income being generated from the property and this is most commonly used to assess multi-residential properties. Lastly, the Cost method is an approach which looks at the land value ‘plus the depreciated replacement cost of the improvement’ (City of Calgary 2018). Non-residential properties may use a combination of these methods.
If you’re curious what happens with the funds collected from the payment of your property taxes, be sure to read our blog entry here on Making Sense of your Property Tax Bill. As always, we are here to answer any questions you may have.