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Property values updated

Peter Crnogorac
Northern News Services
Wednesday, January 31, 2007

YELLOWKNIFE - Although there will be new property assessments based on a 2006 assessment by the city, homeowners should see only a 3.7 per cent jump in their property taxes this year.

"My understanding is that we need 3.7 per cent more in property taxes over last year to balance the 2007 budget," said Coun. Mark Heyck.

"This means if values of property goes up, then we will only collect enough on property taxes to equal 3.7 per cent."

Council passed the property tax hike in December when it approved the 2007 budget.

The city assessed all properties within its boundaries last year for the first time since 2002. Dave Devana, director of corporate services for the city, said that the land and building values in the new property assessments will be based on the 2005 market value of the properties.

Yellowknife homeowners should receive their new property assessment along with the amount of their property tax for 2007 in the next few weeks.

However, according to Devana, it is possible a few property owners will pay more than 3.7 per cent and some less, depending on how the market value of the property changed compared to other properties within the city.

Each year homeowners pay what is called a mill rate, a tax per thousand dollars of the assessed value of their property, that is currently set at $8.47.

The 2007 mill rate will be calculated in May.

Devana said that, depending on whether the property assessment has gone up, the rate will be adjusted so most people will only pay 3.7 per cent more in property taxes.

"Let's say your property assessment goes up 20 per cent this year, that would mean your mill rate would be adjusted down by 16.3 per cent to equal out to a 3.7 per cent rise in property taxes," Devana explained. He went on to explain that by using the above calculation, a person's mill rate would be adjusted by about $1.40 less thaqn the usual $8.47.