Hampden homeowner 'shocked' by $41K jump in property assessment

A homeowner in the western Newfoundland community of Hampden says he can't believe how his most recent property assessment could climb by $41,400, when he hasn't done any significant renovations to his home since the previous assessment period.

"I was quite surprised — shocked, actually," Gary Gale told The Corner Brook Morning Show.

"I don't get it, I don't understand it. Everybody knows the last couple of years we've experienced a downturn in the economy. I'm at a loss here to explain what's going on."

Gale, who is retired, estimates he will now have to pay an additional $400 a year in property taxes.

Double whammy

Gale said this marks his third big jump in property assessments. For the 2008 assessment, Gale's property value climbed by about $20,000. In 2013 it increased again, by $18,900. 

People are basically penalized for improving their properties.- Gary Gale, homeowner

Gale said during that period, he added new siding and windows to his home, and has since paid the price. 

"People are basically penalized for improving their properties. And I don't think that's right, and I don't think its fair," said Gale.

Corner Brook-based real estate appraiser Brian Brewer said homeowners in rural areas are at the mercy of a small housing market.

"It can only take one or two sales in a small community to affect the overall market. That could make it come up sharply, or drop sharply. It all depends on the volume," said Brewer.

'It's a cycle'

Dean Ball, chair of the Municipal Assessment Agency, said it's received numerous complaints since assessments were mailed during the first week of October as people's property values rose across Newfoundland and Labrador.

"It's a reflection of what's happening in your [region]. The western region this year is up on an average of just over 17 per cent. In Labrador, it's up 28, 29 per cent. It's happening all over our province, and it's not a bad thing when you see your property values go up. It's how you deal with them after the fact," said Ball.

Ball said the assessments are a reflection of property values as of Jan. 1, 2014, also known as a 'base date', despite what may have happened to the provincial economy since then.

"It's a cycle that we have to put up with," said Ball.

What homeowners can do

Gary Gale said he will appeal his latest assessment. A homeowner has 30 days from the date the assessment was mailed to make that move. 

But appraiser Brian Brewer said there's an even easier step to take if something about the assessment isn't sitting right.

"One thing I would suggest is to call the agency, and find out exactly what does the agency have on file on their house. That way they can compare notes, to see if everything is correct that they have on file, "said Brewer. "Because it is possible that an error could've been made on the assessment, on the physical characteristics of the house."

Brewer said the agency will often send out an assessor to double check a property. 

Brewer said it's important for homeowners to keep in mind the base date, and for homeowners to reach back and consider what has happened to their property in that three-year period.

Brewer added having a little patience with the assessor is often helpful. For each assessment period, they have to check out about 200,000 properties across the province.

"When you look at the amount of properties they got to look at over a year, and they got to assess, it's a tough job," said Brewer. "And for the most part, I think they do get it pretty much right. "