By Giselle Kakamousias – Vice President, Property tax division
Turner Drake & Partners Ltd.
Chair of the CSSA Atlantic Canada property tax task force
www.turnerdrake.com
To follow is a brief synopsis of important dates and deadlines and a summary of issues facing owners and operators of Self-Storage businesses in each of the four Atlantic Provinces:
NOVA SCOTIA
Assessment Appeal Deadline:
21 days after mailing of assessment notice (for 2011, deadline was 7th February)
Date of Valuation:
Two years prior to assessment date (i.e. for 2011, 1st January 2009)
Frequency of Re-Assessment:
Annual
Next Opportunity to Challenge Assessments:
Pre-roll negotiations for 2012 assessment year in Fall 2011, or appeal in January 2012
Method(s) Used by Assessing Authority:
Generally Cost Approach. Intermittent use of Income Approach as a check and balance on appeal.
Current Assessment Issues:
Recent sales (i.e. during 2010/2011) of going concerns may give rise to increased assessments for 2012 and 2013. Any such increases should be challenged.
Economic climate and industry conditions at 2011 and 2012 valuation dates can potentially support reductions in assessed values.
Assessors may request information to assess property based on Income. Failure to answer such requests where they are made under authority of the Assessment Act will result in loss of right to appeal, so any requests received should be complied with. Notwithstanding, all business value must first be removed from income stream.
NEW BRUNSWICK
Assessment Appeal Deadline:
30 days after mailing of assessment notice (for 2011, deadline was 31st March)
Date of Valuation:
January 1st of year prior to assessment date (i.e. for 2011, 1st January 2011)
Frequency of Re-Assessment:
Annual
Next Opportunity to Challenge Assessments:
Pre-roll negotiations for 2012 assessment year in Fall 2011, or appeal in March 2012
Method(s) Used by Assessing Authority:
Generally Cost Approach. Increasing use of Income Approach, particularly on appeal.
Current Assessment Issues:
Recent sales (i.e. during 2010/2011) of going concerns may give rise to increased assessments for 2012 and 2013. Any such increases should be challenged.
Economic climate and industry conditions at 2011 and 2012 valuation dates can potentially support reductions in assessed values.
Assessors may request information to assess property based on Income. Failure to comply with such requests where they are made under authority of the Assessment Act will result in loss of right to appeal, so any requests received should be complied with. Notwithstanding, all business value must first be removed from income stream.
PRINCE EDWARD ISLAND
Assessment Appeal Deadline:
90 days after mailing of assessment notice (for 2011, mailing was 6th May; deadline therefore doesn’t expire until August 4th
Date of Valuation:
January 1st of year prior to assessment date (i.e. for 2011, 1st January 2011)
Frequency of Re-Assessment:
Annual
Next Opportunity to Challenge Assessments:
Window is open until August 4th
Method(s) Used by Assessing Authority:
Generally Cost Approach. Increasing use of Income Approach, particularly on appeal.
Current Assessment Issues:
Economic climate and industry conditions at 2011 and 2012 valuation dates can potentially support reductions in assessed values.
NEWFOUNDLAND
Newfoundland and Labrador has two assessing authorities: the City of St. John’s (which assesses property within City limits), and the Municipal Assessment Agency, a.k.a. the “MAA” (responsible for assessment of the remainder of the Province).
The two jurisdictions assess property in a similar fashion, and their Assessment Acts are very similar. Where differences exist, they are discussed below.
Assessment Appeal Deadline:
30 days after mailing of assessment notice. Neither the MAA nor the City of St. John’s has a set mailing date. The mailing of notices can be somewhat random.
The MAA mailed its 2011 notices on 4th October 2010; deadline expired November 3rd.
City of St. John’s mailed its 2012 notices in February 2011; deadline expired 2nd March 2011.
Date of Valuation:
January 1st two years prior to first year in assessment cycle (i.e. for 2011, 1st January 2008). Valuation date will shift to 1st January 2010 for the 2013 assessment year.
Frequency of Re-Assessment:
Every three years. Next re-assessment will be for the 2013-2015 assessment cycle.
Next Opportunity to Challenge Assessments:
Fall 2011 for 2012 (NL) and (likely) Fall 2011 for 2013 (St. John’s)
Method(s) Used by Assessing Authority:
Increasing use of Income Approach. Now the predominant methodology, particularly for larger operations.
Current Assessment Issues:
Industry conditions at valuation date beginning with 2013 cycle can potentially support reductions in assessed values. Any reduction secured for 2013 will endure for three years due to triennial nature of the assessment cycle.
The issue of assess ability of self-storage operations for business occupancy in NL is presently before Assessment Review Commissions and the Court in both St. John’s and Mount Pearl. Decisions are pending. ALL NL owners would be prudent to protect their interests by filing appeals at their next opportunity (2012 for NL, 2013 for St. John’s). Elimination of occupancy could reduce tax burdens by as much as 50%.