Have Questions About Your Most Recent Tax Assessment?
It’s that time of year again—the property tax assessment notices are rolling in across Manitoba, and if you're like many homeowners, you might be looking at your latest assessment and wondering: Is this an accurate reflection of my home’s true market value?
If your assessment is leaving you with more questions than answers, you’re not alone! The property tax assessment process can be a bit tricky to navigate, especially if you’re trying to figure out how your home's assessed value compares to its current market value. Understanding how your assessment is calculated and what it means for your property taxes is essential.
What Is a Property Tax Assessment?
A property tax assessment is an estimate of your property’s market value, conducted by the municipality (or region) to determine how much you’ll pay in property taxes. In Manitoba, property assessments are carried out by local municipalities every two years.
For example, in Winnipeg, assessments reflect the market value of your home as of April 1 in the assessment year. This can sometimes lead to discrepancies between the assessed value and the current market value of your home—especially in areas where property values have been rising or fluctuating.
The assessed value, while useful for tax purposes, doesn’t always align with the price your home would fetch if you sold it today. But it plays a significant role in determining how much you’ll pay in property taxes for the next assessment period.
Why Might Your Tax Assessment Be Different from Your Home’s Market Value?
There are several reasons why your property’s assessment might not align with its current market value, including:
Assessment Timeframe: In Manitoba, property values are based on a snapshot of the market taken on April 1 of the assessment year. If the real estate market has shifted since that date, your assessment might not reflect recent trends or changes in property values.
Local Market Conditions: If you live in an area where homes have been selling quickly or prices have surged, the assessment might lag behind. In areas where property values have dropped, your assessment might be higher than expected compared to recent sale prices.
Home Improvements: Significant renovations or additions to your home might not yet be reflected in your assessment, meaning the current value of your home could be higher than what’s stated in the assessment.
What Can You Do If You Think Your Assessment Is Off?
If you believe your tax assessment is too high or too low, there are steps you can take to challenge it. The good news is that in Manitoba, you have the ability to appeal your property tax assessment if you think it’s inaccurate.
Here’s how to go about it:
Review Your Assessment Notice: Take a close look at the details on your assessment notice. Check for any errors, such as incorrect square footage, missing property features, or misclassification of your property type.
Compare to Similar Properties: Research the sale prices of comparable homes in your neighborhood. If your assessment is significantly higher or lower than homes similar to yours, that might be an indication that your assessment is off.
Appeal the Assessment: If you’re confident your property’s assessed value is incorrect, you can file an appeal. In Winnipeg, you have 30 days from the date of receiving your notice to file an appeal with the Board of Revision. If you're outside Winnipeg, each municipality has its own process and deadlines for filing appeals, so be sure to check with your local municipality for details.
How Property Taxes Are Affected by Your Assessment
Once your home’s assessed value is determined, the municipality uses that number to calculate your property taxes. If your home’s assessed value increases, your taxes may go up as well. If it decreases, your taxes may be lower. The key thing to remember is that property taxes are a function of both the assessed value and the municipal mill rate (the tax rate applied per $1,000 of assessed value).
Since your property’s value is not always in sync with current market trends, your tax assessment can either be too high or too low compared to what your home might sell for on the open market.
How We Can Help
We understand that property tax assessments can be confusing and even a bit stressful, especially when they don’t seem to reflect what’s happening in the real estate market. Whether you’re looking for clarity on your assessment, considering an appeal, or simply want to better understand your property’s value, we’re here to help!
As local real estate experts, we can provide valuable insight into the market trends in your area and assist you in reviewing your assessment. We can even help guide you through the appeal process if you believe the assessment is inaccurate. We’re committed to helping you make informed decisions and ensuring you’re confident about your property’s value and tax responsibilities.
If you have questions or need assistance, don’t hesitate to reach out! You can contact us at 204-960-6872 for personalized support and advice.
We’re here to make sure you have all the information you need to feel empowered in your real estate decisions.
Kindly,
The Marcia Bergen Group
