Should I argue about property assessment?

[April Reg]

Recently I received the property assessment notice, and found the price of my property goes up more than $20,000. When I compare with my neighborhood, I found most properties with similar size were assessed with lower price, usually $20,000-$30,000 lower than mine. I am thinking of submit a disagreement to MPAC, but would it help? My concern is the actual sale price is much higher than the assessment price, and my realtor said it would be difficult for me to argue. However, why other properties in my neighborhood are assessed at much lower price?
Does anyone have experience in arguing property assessment? How should I argue my case with MPAC? Is there any chance that the reassessment is even higher? Please share your experience and insights with me! Highly appreciate it!

 

[Thomas Beyer]

Don’t appeal if you recently paid more. They might assess even higher.


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[April Reg]

Don’t appeal if you recently paid more. They might assess even higher.


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But my neighbor bought the house almost at the same time with me, at almost the same price, and their property is about the same size with mine, also built at the same year, while their assessment is $20,000 lower than mine!

 

[Thomas Beyer]

You are not your neighbor.

Don’t major in minors.


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[Cory Sperle]

The bottom line is how much of a difference the 20K makes on your actual tax bill, and is it worth your time and effort, and risk of going even higher if you appeal it. I had the same thing happen to me this year as well.

 

[Andrel10286]

As a ratepayer, you are entitled to the lesser of market value or equity regarding your assessment. Based on your description it sounds like you would have an equity argument if all of the other major attributes of your property are similar to your neighbours (ie. You don't have an addition to your property, larger lot size, finished basement while the neighboring properties do not). Take a look at the detail reports of the neighbouring properties on AboutMyProperty.ca and compare it to yours as it could simply be a data error on your assessment leading to the higher value (which a phone call to MPAC and likely an inspection may fix). However, as said above, do the math to ensure that its worth your time. For example, if the property is in Brampton and is assessed at $400K and the mill rate is 0.01067852 ($400K * 0.01067852), if the assessment is reduced by 20K to $380K ($380K * 0.01067852), the actual tax savings is only about $213. So weigh the costs for yourself as it may not be worthwhile to proceed to a hearing, but it may be worthwhile to simply pick up the phone.

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[Andrew Cameron]

I've often been concerned about having an assessment go up during an appealed. We have over 40 properties in Nova Scotia and every year I appeal them all, simply because I can and it's my one time a year to tackle a large expense. I've never had an assessment increase during my appeal, I just wonder if this has actually happened to anyone or is it a rumour that tax assessors know is wrong, but... they're ok if this threat lingers out there?

 

[Cory Sperle]

I've never had an assessment increase during my appeal

How many appeals have been successful? Do you feel it is worth your time end energy to go though 40 appeals each and every year?

 

[Andrew Cameron]

@CorySperle
It's absolutely worth my time. But, let me re-phrase your question. "You're given one opportunity a year to reduce one of your major expenses, and a major expense that will cost you more every year. Will you make time to take this opportunity?"

Yes, it is worth my time. I don't win many of my appeals but I take satisfaction in wasting the tax assessor's time in preparing their documents for my challenges. Now my initial appeal reason is simply "Value is too high." I don't give them a reason right off the bat, I just submit my appeal and wait for them to get back to me.

 

[Martin1968]

Yes, it is worth my time. I don't win many of my appeals but I take satisfaction in wasting the tax assessor's time in preparing their documents for my challenges.

Really? Odd motivation.
I would think Andrel10286 gave the right motivation to appeal.

 

[Cory Sperle]

"You're given one opportunity a year to reduce one of your major expenses, and a major expense that will cost you more every year. Will you make time to take this opportunity?"

I can't say I agree with this statement. As a business owner you have plenty of opportunities to optimize your expenses and increase revenue, where the real focus of real estate investing should be. In my view this is majoring in minors, and my time is better focuses on looking for deals and attracting capital. Pick your battles, but taxes will always increase regardless.

Fighting every assessment every year because the value is "too high" goes counter to what most of us are trying to achieve, that being to actually increase value and have a "high" value for our properties. I would agree with the above, and the odd satisfaction/motivation to waste the assessors time (and your own) in a seldom winning battle to prove what exactly? At the end of the day I want my assessments to be as realistic as possible, particularly right before it's time to sell. One of the first items any sophisticated investor looks at is the assessment to see if they are paying too much for the property.

 

[Tina Myrvang]

Mine went up over $100K YOWZA

 

[Cory Sperle]

Mine went up over $100K YOWZA

Congrads, thats GOOD news not BAD

 

[Tina Myrvang]

Congrads, thats GOOD news not BAD

Oh I totally agree, I didn't mind the extra $200 it cost me in Tax, I was kinda giddy after that lol

 

[YESMAN]

Don’t appeal if it’s lower - keeps your tax payments lower = better cash flow

The opposite if you think it is too high


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