Disputing property tax assessment help.

[spikerS]

Well, I just looked up my assessment online, and found out what value I have been assessed with, and I am kinda shocked!

I was assessed at $301k, for a half duplex. The other half of the duplex was assessed at $285.5k. Granted the other side is a bit smaller. We purchased the house in June for $268k, and last year, the assessment was $280k. I was expecting to have no change or a slight increase in my taxes, but a jump of $21k is kinda crazy.

So as I am a first time home buyer, and have not even owned my house for 6 months, I am somewhat befuddled. What should I be doing here? What kind of reference materials should I be looking for to dispute this, what kind of material is considered relevant?

Any help and information Beyond can provide would be greatly appreciated.

[Skyline_Addict]

Originally posted by spikers
Well, I just looked up my assessment online, and found out what value I have been assessed with, and I am kinda shocked!

I was assessed at $301k, for a half duplex. The other half of the duplex was assessed at $285.5k. Granted the other side is a bit smaller. We purchased the house in June for $268k, and last year, the assessment was $280k. I was expecting to have no change or a slight increase in my taxes, but a jump of $21k is kinda crazy.

So as I am a first time home buyer, and have not even owned my house for 6 months, I am somewhat befuddled. What should I be doing here? What kind of reference materials should I be looking for to dispute this, what kind of material is considered relevant?

Any help and information Beyond can provide would be greatly appreciated.

From what I understand is that they will send an assesor to your property to determine the reasoning for the numbers. It is obviously a good thing to do your research beforehand to be able to dispute the claims.

On that regard, many people's property assessments went up. You went up less than 10%. Mine went up 18% (about 80k)!

[JordanAndrew]

So am I lucky because my condo unit didn't change in price? :dunno:

[Chandler_Racing]

Your assessment went up less than 8%.

Your actually tax liability should remain flat.

Don't bother to dispute it.

[spikerS]

Originally posted by Chandler_Racing
Your assessment went up less than 8%.

Your actually tax liability should remain flat.

Don't bother to dispute it.

Can you explain my tax liability for me? I am unfamiliar with this term. I know that makes me sound like a FOB, but I am not sure what that means...

[lint]

http://www.calgary.ca/portal/server.pt/gateway/PTARGS_0_0_780_237_0_43/http;/content.calgary.ca/CCA/City+Hall/Business+Units/Assessment/Property+Assessment/Residential+Property/Revenue+Neutral/Revenue+Neutral+Property.htm

[ExtraSlow]

Originally posted by spikers


Can you explain my tax liability for me? I am unfamiliar with this term. I know that makes me sound like a FOB, but I am not sure what that means...
the short story is that there are two things that determine your total tax bill.
1) your property assessment, which is pretty clearly laid out on th3e assessment notice.
2) the tax RATE. The city hasn't decided what rate it's going to charge next year, but all indications are that it's going to be about 5% higher than last year, in terms of total revenue.

[Tik-Tok]

Originally posted by ExtraSlow

2) the tax RATE. The city hasn't decided what rate it's going to charge next year, but all indications are that it's going to be about 5% higher than last year, in terms of total revenue.

4.6% was the last number Nenshi reported in December. So Spikers, look at your "Revenue Neutral" number at the bottom, and x that by 4.6%. That'll be your tax increase. Personally my house went up $27,500, and my taxes will go from $1940 to $2027, only $87/year. Not much to complain about since we now enjoy curb side recycling, and nice clean looking garbage cans.

[bbcustoms]

Originally posted by Tik-Tok


4.6% was the last number Nenshi reported in December. So Spikers, look at your "Revenue Neutral" number at the bottom, and x that by 4.6%. That'll be your tax increase. Personally my house went up $27,500, and my taxes will go from $1940 to $2027, only $87/year. Not much to complain about since we now enjoy curb side recycling, and nice clean looking garbage cans.

Your curb side recycling actually comes with a separate bill, look at your Enmax bill and you will find it there.
I get a "blue cart recycling charge" of $8.40 every month

[ExtraSlow]

the curb side recycling and fancy new garbage cans are paid on your enmax bill though, not by the property taxes.
edit: looks like bbcustoms beat me to it.

[eblend]

Mine went up 23%....anyone ever actually dispute thieir thing successfully?

Went from 330 to 400k....retarded.

[Vdubbin]

I bought a new house in September for $310,000 and they have valued it now at $345,00 and both units on either side of me are $20,000 lower. and my house doesn't have any more upgrades or anything special. WTF?

[Tik-Tok]

Originally posted by bbcustoms


Your curb side recycling actually comes with a separate bill, look at your Enmax bill and you will find it there.
I get a "blue cart recycling charge" of $8.40 every month

Oh yeah, forgot about that. Still, cost of living (and doing business) in Calgary has gone up fairly evenly with my own property taxes, so I have nothing to complain about. I haven't seen any outrageous jumps myself.

[lint]

Originally posted by eblend
Mine went up 23%....anyone ever actually dispute thieir thing successfully?

Went from 330 to 400k....retarded.

What area? I saw 21% in spruce cliff

[bighead2267]

anyone care to explain how the City determine the assessment? i check current real estate transaction(pre-owned) and the assessment is $50,000 higher than average transaction price.

[eblend]

Originally posted by lint


What area? I saw 21% in spruce cliff

Evergreen for me.

[Tik-Tok]

Originally posted by bighead2267
anyone care to explain how the City determine the assessment? i check current real estate transaction(pre-owned) and the assessment is $50,000 higher than average transaction price.

It says right on your notice.

It's based on the City's estimate of market value in July, 2010, and physical condition at the end of the year.

I'm guessing for the market value part, they probably looked at asking prices during July, and not selling prices.

[Cos]

Originally posted by Tik-Tok


I'm guessing for the market value part, they probably looked at asking prices during July, and not selling prices.

Yeah that sounds right. My place is assessed at mid summer asking prices. I am almost 25k lower now (actual selling) than my new assessment. :(

[R-Audi]

As I mentioned in another thread.. dont bother. The city is given a certain error percentage and IIRC its fairly large.
I tried once, and failed. I bought my house in May for 465, in July the City assessed it at 528, and it fell within the error limits. That plus they charge you $30 for challenging it.

[5.9 R/T]

I've fought, and won a property tax dispute two years ago with the city and here is what I learned.

1. R Audi is right in that there is a percentage error, approx 5 or 10% of the value of the house so 400 000 = 20 000-40 000 dollar range of error, if you are within this range you are SOL

2. The city bases its valuations on SOLD prices as close to July 1st as possible, and then physical condition (did you devlop a basement? add a fence or deck?) until December 31st of the previous year. They also compare your house with other houses on your block, community, quandrant, and finally against everyone in the city to determine property value. Obviously houses in your own neighbourhood carry more weight then those accross the city. The last part of the evaluation is the features of your home, such as a fireplace, attached/detached garage, lot size, and house size. This is where the city "gets" you. They will not tell you how much they value a fireplace or garage or how much every sq/meter adds or subtracts to your value, you have to do all the calculations on your own.

3. If you decide to dispute the assessment you will be contactacted by your local asseser and will have 5 minutes to explain why you disagree with the assessment. They will *almost always* tell you why you are wrong and explain how they arrived at their number. Very very few assessments are changed at this stage unless there was something obviously wrong like a computer error. You then can decide to fight the assessment (30 dollar filing fee, returned IF you win) or forget the whole thing.

4. Fighting the assessment means getting as much information as possible, lots available on the city website but you'll also need access to specific home sale history information for your area which means you'll need a relator to get it for you. There may be a cost involved in this, depending on who you know. The city will send you their brief of how they valued your property and why they think they are right and you are expected to do the same some weeks before your actual hearing.

5. At the hearing you'll be surrounded by mostly old to middle aged men that are totally unprepared and are just there to complain. If you follow this route you will lose. The most important part is to be prepared with actual evidence in the form of sale history that the city has over valued your property. You will argue your points and the city will argue theirs and then the board will make a decision. If you win you get your 30 bucks back plus lower taxes and if you lose your out a whole lot of time and 30 bucks.

6. In the end after many hours researching and putting together a brief and then wasting a morning at the hearing I saved myself about 50 - 100 bucks in property taxes over the course of that year. Not worth it in my opionion, and even though they have gone back to over valuing my house each year since I really cant be bothered to fight them for that small amount of money.

So look at your property and and see how much of a difference fighting and winning would make. In 99% of cases it won't be worth it as in my opinion the time needed to research and prepare to WIN makes the whole thing pointless.

[spikerS]

well, I guess I was fearing the worst here. yes, my house increased to 301k, but for whatever reason, my property taxes dropped from $1656 to $1634, for a savings of $22 a year. Fuck this is confusing as shit.

[ExtraSlow]

Spikers, keep in mind the tax RATE on your assessment isn't the one you'll end up being taxed on.

[mr2mike]

Don't bother fighting for a reassessment. It costs you a whole lot more in the fee associated with it and the time you take on your research, etc.
Just roll with the punches. Bought my house, assessed at $60K less than what I bought for. Now it goes up to $80K more than what I paid. It fluctuates and really, I believe it doesn't mean anything... When you sell it, that's when you'll see what your place is really worth.

I know a slum landlord who's place was assessed at $700K (duplex in inner city).
I've seen it inside... you'd be lucky to get $600K for it maybe even less with the state that it is in. The last time it had repairs done to it was roughly 1995. So the assessments, really mean nothing. IMO.