Property Tax Experts
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Property tax in Canada is generally based on two factors:
1. The property’s assessed value, as determined by the local assessing authority; and
2. A tax rate, as set by the local municipality or taxing authority.
The property’s assessed value is multiplied by the tax rate to determine the applicable
property tax.
A prime objective of municipal taxation is the equitable distribution of the tax burden
according to the value of each property. If equity in taxation is to be achieved then it
must result from equity in assessment. A fair and accurate property assessment will
ensure a property will not have a higher property tax than what it ought to.
The general basis for property assessment is the market value of the property, which
is typically defined as “the value a property would realize if offered on the open market
by a willing seller to a willing buyer”. Market value is subjective related to each
property’s characteristics and specifications. Market value property assessment is
based on an effective valuation date set either by legislation or the local assessment
authority. The tax rate is based on the budgetary requirements of the taxing authority.
All provinces have property assessment hearing boards where appeals may be filed
by property owners who believe their properties are improperly assessed and where
discussions/ negotiations failed. These boards are independent from the assessment
agency.
1. The property’s assessed value, as determined by the local assessing authority; and
2. A tax rate, as set by the local municipality or taxing authority.
The property’s assessed value is multiplied by the tax rate to determine the applicable
property tax.
A prime objective of municipal taxation is the equitable distribution of the tax burden
according to the value of each property. If equity in taxation is to be achieved then it
must result from equity in assessment. A fair and accurate property assessment will
ensure a property will not have a higher property tax than what it ought to.
The general basis for property assessment is the market value of the property, which
is typically defined as “the value a property would realize if offered on the open market
by a willing seller to a willing buyer”. Market value is subjective related to each
property’s characteristics and specifications. Market value property assessment is
based on an effective valuation date set either by legislation or the local assessment
authority. The tax rate is based on the budgetary requirements of the taxing authority.
All provinces have property assessment hearing boards where appeals may be filed
by property owners who believe their properties are improperly assessed and where
discussions/ negotiations failed. These boards are independent from the assessment
agency.
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Canadians pay the second highest property tax behind Britain, as a proportion of
gross domestic product
gross domestic product
