Supplementary Property Assessment / Tax

Who does it affect?

The supplementary assessment / tax will affect property owners of newly constructed buildings, additions, and renovations in the same year that they are occupied.

How does it work?

For example: If you are planning to occupy a building that was incomplete or not started as of December 31, 2007, your property may receive two tax notices during 2008. One on May 23rd and another on October 31st. The May billing is based on the completeness of your property as of December 31, 2007. The October 31st billing is based on the difference between the final assessment and the assessment as of December 31, 2007. The difference is then pro-rated based on the number of months of occupancy.

Example:

Assessment as of December 31, 2007 on a progressive home = 95,000

Final assessment based on inspection after occupancy of July 1, 2008 = 165,000

Calculation:

    Assessment Difference = 165,000 - 95,000 = 70,000

Tax Bills

May 23, 2008 tax bill = 95,000(assmt as of Dec. 31) x 8.6823 (City of GP res mill rate)/1000= $824.82

October 31, 2008 tax bill= (165,000-95,000) x 8.6823/1000 x 6/12 (occupied 6 out of 12 mths)= $303.90

Why is a supplementary assessment / tax necessary?

If there was no supplementary assessment / tax in place, tax inequities would exist amongst properties based on the date of construction. For example if the supplementary assessment was not in place: A property owner who started construction in November of 2007 and was to occupy in July would be assessed and taxed on May 23, 2008 based on the stage of completion on December 31, 2007. Whereby a property owner who started construction in January of 2008 and as well was to occupy in July would not be assessed until December 31, 2008 and taxed in May 2009.  In order to achieve equity in taxation a supplementary assessment bylaw was first introduced in 1995.