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2016 Property Taxes, Nova Scotia

If you own property in Nova Scotia, you have probably now received your annual Assessment Notice from the municipally-owned and controlled assessment authority, the Property Valuation Services Corporation (PVSC): it was mailed on Friday, 8th January. Resist the urge to light it on fire, and review it carefully… or risk being unpleasantly surprised (and without recourse!) when your tax bill arrives later this year.

The 2016 appeal period was a scant few hours old on Friday when the PVSC began trumpeting the fact that its average 2016 property assessment increase is only about half of 2015’s. Don’t be lulled into a false sense of security by an assessment that has only increased marginally, remained unchanged, or even declined – particularly in secondary centres and rural locations. Leaving the assessment unchanged is a strategy routinely employed by assessing authorities to discourage appeals. The PVSC is undoubtedly hoping that Nova Scotian taxpayers have short memories, because in spite of a more moderate 2016 rise, assessments have increased by between 20 and 25% over the past five years … and by 30 to 35% in Halifax (where over 50% of Nova Scotia’s assessment base is situated).

And, the comparatively temperate rate of 2016 increase reported by the PVSC (which, of course, is only an average) will be of hollow comfort to property owners who have experienced unforeseen, double-digit increases in value. Early indications are that apartments, retail property, and income-producing industrials have been particularly hard hit for 2016.

The basis for your 2016 Realty Assessment, as mandated by the provincial Assessment Act, is the market value of your property on 1st January 2014 (the “base date”), having regard to its physical state on 1st December 2015 (the “state date”) and the assessments of the other commercial properties in the municipality (the “General Level of Assessment”). Market value then is the first test: if your realty assessment exceeds your property’s market value on 1st January 2014, it is over-assessed and you should file an appeal.

The second test to apply is the General Level of Assessment (“GLA”), calculated by dividing the sum of the 2016 assessments of those properties that sold between 1st July 2013 and 30th June 2014, by the aggregate of their sale prices. PVSC has, on occasion, (and only when prodded!) condescended to divulge their General Level of Assessment. On the occasions where we have formally reviewed PVSC’s calculations, they’ve often proven to be nonsense. It would be reckless in our view, to place any reliance on PVSC’s General Level of Assessment … which it usually insists is 95% to 100%. A more realistic figure is 80% to 90%. So if your investment, commercial or industrial property’s assessment is greater than 80% of its base date market value, file an appeal.

The Bottom Line: You may have to pay taxes … but you don’t have to leave a tip.

Action Required: If you are in any doubt that your property is over-assessed, you should file an appeal on or before 8th February 2016. You will not get another opportunity this year. If you wish, we can file the appeal for you. If you would like to discuss your property assessment with us before you file an appeal, call our Nova Scotia Tax Team, Giselle Kakamousias, Mark Turner, or Greg Kerry at 1-800-567-3033 (429-1811 in HRM).

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