How you might be able to trim your property tax bill
As annual property tax assessments arrive in the mail, some will no doubt be a bit panicked by the increase in their home’s value — something that may or not equate to a tax hike.
Annual property tax assessments have been arriving in home owner's mailboxes in the recent weeks, and a common reaction has been shock. The assessed value of many properties has risen, however, this does not necessarily mean the property taxes will follow. In this article from the Financial Post, we learn how many home owners may be able to keep property tax costs low.
It is important to remember that an increase of a certain amount in the value of your property does not automatically equate to the same percentage increase in property tax. The increases are determined from the average increase for the city. For example, if the value of your property increased by 10%, but the average increase in your city was higher, your taxes will not go up. Only those who see an increase in value higher than that of the average will see higher taxes.
In essence, if you are facing an assessment that will bump up property taxes, you must prove your home is not worth as much as the assessment states to avoid a tax hike. Appealing an assessment is a common practice, and can cost between $30 - $1,000, depending on your province of residence. Before considering an appeal, ensure you are doing adequate research regarding the market values in your area. For more information, talk to an Ottawa Mortgage Broker.