News Release Archive
HOUSING/MUNICIPAL AFFAIRS--DOING HOME WORK ----------------------------------------------------------------- At the office, over the neighbor's fence, or around the kitchen table, people are talking about more than just the weather. Property assessment has also sparked a conversation or two. The province recently began extensive changes to the assessment process, in order to give homeowners a more accurate picture of what their property is worth. Despite the recent attention assessment has been getting, the process still remains a mystery for some. Just how and why do assessors value property? The Department of Housing and Municipal Affairs' assessment services division is responsible for assessing all property in Nova Scotia. Residential and commercial assessors must complete the Appraisal Institute of Canada's four-year program in property assessment, administered through St. Francis Xavier University. They also must attain a Canadian Residential Appraiser (CRA) and Accredited Appraiser Canadian Institute (AACI) designation. Recently, the department was awarded a presidential citation from the Appraisal Institute of Canada (AIC) for its contribution to the growth and enhancement of the appraisal profession. It was the first provincial government department ever to receive an award from AIC. Rob Flanigan, a residential assessor with the Kentville office, has been assessing property for 15 years. He says he's gotten lots of feedback about the changes, some of it negative and some positive. "I was at the dentist office yesterday, and the receptionist just wanted to tell me she thought she and her neighbour's assessments this year were right on the money." He says assessors are legislated to value property under the provincial Assessment Act. They look at three things when trying to determine the value of a property: land, buildings and any improvements the homeowner might have made. In some ways, this is similar to homeowner's insurance for the replacement cost of their homes with the difference being the assessors subtracting any loss in value as a result of normal wear and tear, such as painting, carpeting, cabinets, etc. They then add the value of the land and compare this amount to what other similar properties are selling for. Like other assessors, Mr. Flanigan says he spends a lot of time explaining the difference between a rise in assessments and a rise in taxes. "Everyone pays taxes - it's something that everyone's concerned about and that's understandable. But people think if their assessment goes up 25 per cent, their taxes will automatically go up 25 per cent and that's not the case. In the past, we've had assessments where the values went up and the taxes went down." The process begins when assessors divide areas into neighborhoods and look at what land is selling for in a particular area. Next, they examine the building to find out what the house is worth. They consider things like the size of the structure, whether or not it has a full or partial basement, what shape the building is in, where it is located, and the quality of materials used in construction. They then take into consideration other items the homeowner has added, such as sheds, garages, decks, swimming pools, barns, or paved driveways. A value is set based on Nova Scotia construction costs, depreciated loss in value to wear and tear and other things that may detract from the value. "When we're assessing homes, we rebuild the house from the ground up - on paper. We look at how much it would cost to replace that house brand new as of a certain time. Next year, that date will be January, 1995, instead of 1988 as it was in the past," Mr. Flanigan says. "We consider the age, condition, and other physical attributes of the building, then reduce it by a dollar amount to allow for wear and tear'," he said. "If it is an older home, the wear and tear' will be much higher. It may have a leaky roof, a low or wet basement or worn out carpet, for example. We take all that into consideration and allow a dollar amount based on what we believe would restore the property to like new' condition." Todd Gratto is a residential assessor with the Truro office. His background in real estate led him to his current position. "I've always had an interest in land and property," he said. He notes that all assessors strive for uniformity and equity when completing their assessments. "We have to be fair. If there are two houses side by side, and they're relatively similar, they should be assessed the same." He said that consistency is the key to maintaining this fairness. "With property assessment, it's important to compare apples to apples. Someone may wonder why his property is assessed at a much higher value than his neighbor's, but the neighbor might have a one-storey house and his might be a two-storey structure. He then would be in line with other two-storey buildings in the same area." Mike Musycsyn, a commercial assessor with the Sydney office, says some of his closest friends are still a bit confused about exactly what he does for a living. "I've known people for 15 years who still call me The Tax Assessor'," he laughs. "I keep telling them - I don't assess taxes - I assess property." He agrees that maintaining accuracy and fairness is top priority in his line of work. "If we say a property is worth a certain amount of money, that's because we've checked it thoroughly, based on a very structured, analytical system designed to make the process as precise as possible." For Todd Gratto and the other assessors, making sure the process is open and accountable is just as important. "If anyone has a question about their assessment, they can come in and go over it line-by-line with an assessor. This one-on-one contact we have with people gives them a better understanding of the process," he said. "Once they get an understanding of the how's and why's behind it, they usually look at the whole process differently. They seem to have a little more confidence that what we're doing is valid and a necessity." For general information about the assessment process, call 1-800-667-5727. For more specific information about your assessment value, call your regional assessment office. -30- Contact: John MacKay 902-424-5671 trp August 09, 1996 - 9:45 a.m.