Property value increases justified, assessment agency says
An official with the agency responsible for property assessments says recent increases are warranted, despite upsetting many homeowners.
Sean Martin, executive director of the Municipal Assessment Agency (MAA), said when it comes to determining value, his organization looks at what's been happening in the market over the last several years as well as any work that's been done to people's property.
"First and foremost, we look at what properties selling for within that community and within adjacent communities," he told CBC's Central Morning Show.
"Within Carmanville, for example, there may be a change in the market — but globally what we've seen is this push out from larger centres to the smaller centres as we get further and further out."
We have widowed seniors in their home who just aren't going to be able to afford to pay it — I mean it's going to hurt me, and I work.- Carmanville homeowner Baxter Russell
He said this creates a situation where many people are looking outside of urban centres for cheap properties.
However, he said as more people build and renovate homes in rural areas, the values of other homes in those areas will go up.
Value increases should not be disincentive for renovations
Property owners throughout the province have been questioning the recent hikes, saying it creates a disincentive to make improvements or additions to their homes.
Martin said that is a flawed way of thinking about it.
"I understand that concern, but it's no more than it being a disincentive to work harder and make more money because you will pay more income tax," he said.
"Your property tax is such a small portion of the value of your property, you would be dollar foolish and penny unwise to make your decisions on your home and where you live on that basis."
Martin said the goal of the MAA is to get assessments right, not to have them go up or down.
He also said a rise in property value does not necessarily mean that property taxes will increase, as there is precedent for towns to lower their mil rate according to how much they need for their budget.
"The reality is, the municipalities will, at the end of the day, look at their budgeting process, go through that process and determine the amount of revenue they need to provide the services the residents want," he said.
Property owners take to social media to question increases
Homeowners in Central Newfoundland joined others throughout the province this week in being surprised at how much their property values went up.
A group in Carmanville has even started a Facebook group to discuss the increase
Carmanville resident and former town councillor Baxter Russell is a part of that group, and saw his property value go up 68 per cent with the most recent assessment.
He still has questions as to why properties like his had substantial increases and others did not.
"It's so out of whack, some properties have gone up $8,000 whereas mine went from $79,900 to $133,700," he said.
"So now we are trying to get some public input and see where everyone stands, just to see what we're dealing with."
Russell wants municipalities to realize tax rates proportionate to the new values will hurt residents, and is hoping they will lower their mil rates so they won't create too much of a financial burden on property owners.
"My question to the town is that if they don't roll back the mil rate where is all of that money going to go?" he said.
"We have widowed seniors in their home who just aren't going to be able to afford to pay it — I mean it's going to hurt me, and I work."