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March 20, 1997
(Municipal and Provincial Affairs)

Independent Agency Established to Administer Assessments

Municipal and Provincial Affairs Minister Art Reid says government's decision to establish an independent agency to administer property assessments will give municipalities greater input and control over this municipal related function.

The minister was elaborating on the new agency announced in the Budget Speech delivered by Paul Dicks, Minister of Finance and President of Treasury Board.

The new, stand-alone agency will be fully operational by June 1, 1997. It will be administered by a nine-member board of directors including four representing both small and large municipalities, one from the Newfoundland and Labrador Federation of Municipalities, two from the general public and two representing government. The chief executive officer will report to the board on operational issues and to the minister on legislative matters..

Mr. Reid said the agency will be decentralized with eastern, central and western regional offices; a sub-regional office in Labrador and 10 field districts that will be created in the more populated areas of the province.

Excluding St. John's, which conducts assessments on its own, the new agency will provide property assessments for 233 of the province�s 290 incorporated municipalities and any additional municipality which either has or will have property tax implemented by the end of this year. The remaining 57 incorporated municipalities operate under a poll tax system.

The department released a discussion paper to all stakeholders in March of 1996 seeking comment and opinion on various options for the future delivery of assessments.

Mr. Reid said: "The preferred choice favoured an independent, stand-alone agency to administer and deliver assessment services in the future."

Mr. Reid said most of the existing complement of 71 Assessment Division employees (66 full time and five temporary) would be transferred to the new agency on April 1, 1997. The new agency will have 59 positions for an overall loss of 12 positions. Employees will continue to be covered by general service collective agreements.

Government announced last year its decision to have municipalities absorb the full cost of property assessments ($3.9 million) by the year 2000. The minister said the creation of this autonomous agency will allow municipalities direct input into how assessments are provided in the future.

"It will result in consistency of service, uniform service standards and equalized rates across the province regardless of municipality size or geography," said Mr. Reid.

The minister said the agency will explore revenue generating opportunities including the possible sale of data or the provision of other centralized services which could have the effect of reducing future costs associated with property assessments.

By June of 1977 all municipalities and all assessments will be moved to the same base year with reassessments scheduled for every three years thereafter. The minister said this will serve to simplify the assessment process.

Contact: G. Callahan, Director of Communications, (709) 729-3142.