Territory talks property taxes
Assessment values expected to increase
April Hudson
Northern News Services
Thursday, January 19, 2017
LIIDLII KUE/FORT SIMPSON
After a year of assessing property values in Fort Simpson, the territorial Department of Municipal and Community Affairs held a two-day public session to address questions and concerns from taxpayers.
Kyle Galbaransingh, senior property assessor for the department, said his goal is to educate residents, which could help avoid tax appeals.
Every 10 years, the department conducts a general re-assessment for property values, a process legislated through the Properties and Taxation Act. The last general assessment was done in 2006.
Galbaransingh said the worth of land is calculated using market value, and then improvements are factored in.
"Between 2007 and 2015, if you had not done anything to your house (the value) would stay (the same). If you added a garage, it would change," he explained.
"What we've done this year is reflect 2015 costs, so that's why there's been an increase in assessment value."
Galbaransingh said one of the common concerns he hears is from people who see a big jump in the assessed value of their property and are worried that will result
in a corresponding tax hike.
"Some people say, 'I haven't even painted my house and it's gone up 60 per cent, or 40 per cent,' " he said. "That's a common misconception."
In reality, an increase in the assessed value of properties in Fort Simpson should correspond with a decrease in the mill rate so the village takes in the same amount of tax revenue as it did before the assessment.
In 2015, the village passed a new mill rate bylaw setting a rate of $16 per $1,000 assessed value for developed residential lots, and $26 per $1,000 for vacant residential lots.
Galbaransingh said those mill rates were based on the 2006 general assessment.
"Now that the entire (assessment) pool has gone up, the mill rate should be adjusted accordingly," he said.
Coun. Sean Whelly said he expects most people will see a small monetary drop in the overall property taxes they pay, thanks in part to the new assessments and also to the village's decision to collect less in tax revenues than in 2016.
"We're basically collecting about $50,000 less in tax revenues . than we did last year," he said.
The village will need to hold a board of revision in the future to adjust its mill rate.
