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December 15, 1997
(Municipal and Provincial Affairs)

The following statement was issued today by Art Reid, Minister of Municipal and Provincial Affairs. It was also read in the House of Assembly:

I want to make a brief statement today to clear up misunderstandings and misconceptions associated with property assessments.

There have been complaints and criticisms that a number of properties have increased substantially. While this is true in some cases, it is also true that, in other cases, property values have substantially decreased in value or remained the same.

I have directed the Municipal Assessment Agency to do a complete analysis of the property assessments with a view to determining the extent by which properties have either increased or decreased or remained the same. This analysis will be completed over the next two or three days at which time I will make the information available to Members of the House of Assembly.

There are reasons for changes. This recent reassessment is the first in 12 years for some municipalities. As well, changes in the physical make up of certain properties have impacted on their values.

The new assessments reflect the market value as of January of 1996 in each community. In some municipalities circumstances have changed since January of 1996 - such as outmigration - which may have impacted on property values to the extent that today's market value may be completely different. If a person feels that his property value does not accurately reflect the January 1, 1996 market value then he/she has the right to and should in fact appeal.

At the time initial assessments are conducted, all properties are physically visited. All properties are subsequently reviewed in accordance with legislative requirements. If the assessor feels, after the initial review, that there is no need for a revisit, then he may dispense with it. While it may not be generally understood, municipalities would have to incur increased or additional costs if all properties had to be re-inspected for each reassessment.

The assessment is only one component of the municipal tax infrastructure. Property assessments are designed to distribute the tax burden on the basis of the value of the property. The municipality completes another component when the council establishes the tax rates.

The assessor's role is to determine the fair market value of the properties of each municipality. The assessment is used to determine an individual's share of taxes. The council's role is to determine the amount of taxes required to operate, set the tax rate, calculate and send out the tax bills and collect the taxes.

The new Assessment Agency has prepared information, in question and answer format - that I want to distribute today. I believe it will help MHA's in dealing with their constituents on the matter of assessments.