If you own a home in Calgary, you likely just received your annual Property Assessment from the city.
The city determines the value of your home based on location, quality, size, age, lot size, site influences, and renovations. They compare your property to similar properties that have sold within Calgary in the past 3 years.
A few important things to remember about your assessment:
- An increase (or decrease) in your assessed value doesn’t necessarily mean the same will occur with your taxes. Taxes are determined by the year-to-year value change compared to the typical value change of all residential properties as well as the budgetary needs of the City and the Province.
- Factors determining the value are very vague. They compare general characteristics not specifics of one property to another.
- Tax assessment value is not the same as market value. Market value is typically higher than the assessed value. Market value takes additional factors into account when determining a price. For example, market value is influenced by replacement value, inventory levels, buyer/seller motivation, cosmetic condition, and even the smell of the property.
- It’s rarely worth appealing the tax assessment, especially if the assessed value seems low. If you do wish to contest the assessed value, you will be required to contact the city and provide comparable sales to justify your position within the Customer Review Period.
Property tax revenue is divided between City of Calgary services receiving approx 65% and The Government of Alberta receiving approx 35%. Municipal property tax dollars make up 46% of The City’s annual operating budget. The other 54% is collected through user fees, permits and licensing, etc.
If you’re interested in knowing the market value of your home, contact us and we’ll provide you with a detailed real estate review and, if you’re interested in selling, a strategic marketing plan to get you started.