What is Market Value Assessment?
"Market Value Assessment" was mandated by the Provincial Government in 1998 as a new method of assessing the value of properties. Simply put, it is the value your property would likely sell for in the marketplace.
The M.V.A. will reflect the market value of the land and the market value of the building or buildings on that land. Residential homeowners should find it easier to understand because assessments will closely relate to housing sale prices.
The more a property is worth, the higher its market value assessment and the more the owner is expected to contribute to municipal and provincial education taxes.
The most Important thing about assessment is that it should provide an accurate and consistent value for property.
Please Note: A Market value Assessment is the most likely selling price of a property, and is not necessarily the actual purchase price.
M.V.A. is the preferred choice of valuation for most governments in North America.
How is my assessment calculated?
Assessments are calculated using information from property files, verified sales data, field surveys, building permits and site visits. Qualified assessors also value properties based on variables including lot and home size, basement finish, construction quality and location. These same factors are used by other real estate specialists in valuing property.
Why did my assessment change?
Under Market Value Assessment, property values are now updated every year. This means your property assessment may change each year. That’s because market assessment reflects changes in home sale trends like location, property and neighborhood improvements, and general economic trends. If the value of properties in your community changed in the past year, you can expect your property assessment to change accordingly.
Although assessors do not inspect every property, they continually inspect a broad sample of properties and areas to keep values current.
How does property assessment relate to property taxes?
Property taxes are used to fund, in part, municipal services that are of overall benefit to people who live in the Crowsnest Pass. Every property in the Crowsnest Pass is assessed to determine the amount of municipal tax each property owner should pay. The rate of tax (called mill rate) is set each year by Municipal Council.
Will my taxes go up?
Your taxes are based on the assessed value of your house and the tax rate (mill rate) set by Municipal Council. You will not know if your taxes are going up or down until your assessed value and the new mill rate are both established.
How are taxes calculated?
Your total property tax is made up of a municipal levy and a provincial education (school) levy. The municipal and provincial education levies are based on the assessed market value of your property.
For municipal taxes, each property’s assessed value is divided by 1,000 and multiplied by the tax rate (called a mill rate) to determine that property’s municipal tax levy.
Municipal Tax = Your assessed property value / 1000 x Municipal Mill Rate
Provincial Education Tax = Your assessed property value / 1000 x Education Mill Rate
Municipal Tax + Provincial Education Tax = Your Property Taxes
The provincial government sets the education levy. The Municipality is required to collect this tax on behalf of the province.
In addition, local improvement charges may apply to some properties.
What if I’m unsure my assessment is accurate?
Compare with others. Is your assessment in line with neighbors who have similar properties or with properties for sale in your neighborhood?
You could check the newspaper’s real estate listings for comparisons.
Ask yourself: “If I were to sell my property today, approximately what value could I expect to receive for it?”
Are there any special features of your property that might affect the value i.e., Basement suite, pool, its size or location.
If your Market Value Assessment of your property is within ten percent of your estimated selling price, it would be considered a fair valuation. If you are still of the opinion that your assessment is not accurate, please…
- Talk to us. You may ask for assessment of three comparable properties in your neighborhood when you call. If we agree that your assessment is inaccurate, we can send you a corrected assessment.
- File a Formal Appeal. If you are still certain that this assessment is not what your property would probably sell for, you may appeal to the Assessment Review Board, indicated on the enclosed Complaint (Appeal Form) Your appeal must be received by the date indicated on your tax notice. The form details the particulars of the $25.00 fee, deadlines and what steps you are to take to file a formal appeal.
If you are appealing you must still pay your taxes on or before the due date. If your appeal is successful, an adjustment will be made to your tax account.
For further information and or Staff assistance please call 403-562-8833.
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