What is Property Assessment?
Property assessment for taxation purposes and its administration is a complex and technical process that is vital to the financial health of local government. Property Assessment is the process of establishing a dollar value for property for property tax purposes. Property tax is an “ad valorem” tax based on the principle that the amount of tax paid should depend on the value of the property owned. Although income and sales taxes are the main sources of revenue for the provincial and federal governments, property tax remains the major source of local government revenue. Generated from within the community, property tax helps to finance such local government services as garbage collection, water and sewer, parks and leisure and fire protection.
Assessed values of properties for tax purposes must be accurate so that the tax burden will be distributed fairly and the public will have confidence in the Municipal Council and the local tax administration.
Property Assessment in Newfoundland & Labrador
Real Property Assessment (as we call it today) for the province is administered by the Municipal Assessment Agency. The Agency is an independent corporation established under the “Corporations Act.” It is owned by the Crown and is governed by a twelve person Board of Directors. Taxpayers, the municipal sector and the provincial government all have representation on the board. The legislation that governs the assessment system is called:
“An act respecting the assessment of property for the purposes of the imposition of real property taxes”
The Assessment Act, 2006
228 municipalities in the province are involved in provincial property assessment system. More than 175,000 properties, commercial and residential, have been assessed to date.