2017 Assessment: Answering Property Owners’ Top Question

The 2017 Assessment Notices were mailed to residents January 9, 2017 and by now, most property owners in Saskatoon will have received their 2017 Assessment Notice.

“The top question we’ve received has focused on the provincial government’s shifting of the ‘percentage of value’ from 70 per cent to 80 per cent for residential properties,” says Darcy Huisman, City Assessor.  “In order for us to be open, accountable and transparent, we want to explain this complex process to anyone who is unsure of what it means.”

Assessment Values

As legislated by the provincial government, the City of Saskatoon (and all municipalities in the province) must conduct a reassessment of all property classes every four years. The purpose of a property reassessment is to recalculate property assessment values so they reflect a more current market value assessment on a base date.  Assessment is a way of trying to balance out the tax load so that owners of similar properties pay similar taxes.

The property assessments in place from 2013 to 2016 were based on January 1, 2011 market levels.  The 2017 assessments are based on market levels as of January 1, 2015, and these assessed values will be in place until the next reassessment in 2021.

“Your property’s 2017 assessed value is not the value of what you’d sell your property for today,” Huisman says. “It is calculated to reflect the market value assessment, or what it might have sold for as of January 1, 2015.”

Changes in the real estate market after January 1, 2015 will be reflected in the next province-wide reassessment in 2021.  As per legislation, market data or information that surfaced after January 1, 2015 cannot be considered in the 2017 Reassessment. 

What does “percentage of value” mean, and because it changed for 2017, will I pay more property taxes?

The Province of Saskatchewan undertakes a review of the “percentage of value” to be applied to the assessed values of properties every four years in conjunction with a reassessment.  This allows for the shifting of the tax burden on a province-wide basis to different property classes.

“For the 2017 Reassessment, the Province changed the percentage of value for the residential and multi-unit residential tax class from 70% to 80% and this created questions from many property owners,” Huisman says.

The new percentage is then applied to the assessed value of a property to arrive at the taxable assessment which is used for taxation.

“This is a crucial point.  The Province’s change in percentage of value has no impact on the amount of taxes collected by the City of Saskatoon,” Huisman says.

Huisman notes this may seem to be the total opposite but explains that the City ensures all changes to property values at a property class level, including the percentage change from 70% to 80%, are revenue neutral.  This means when the taxable assessment increases, the tax rates – or the multipliers the City uses – are decreased to ensure the same dollar amounts are used as the starting point for any tax increase or decrease.

To achieve revenue neutrality, the mill rate (the multiplier) is adjusted downwards by the use of mill rate factors to account for all of the above circumstances.  This calculation ensures that the City collects the same tax revenue as it had the previous year from each property class, with the exception of any changes that have occurred due to the 2017 budget deliberations. 

Because of the tax tools available, the City of Saskatoon can apply its own mill rate factors to shift the tax burden back to how it was, from 80% back to 70%. This keeps the taxes collected by the City the same. The following is an example and is for illustrative purposes only.  It shows the effect that a change in residential assessment and ‘percentage of value’ has on the mill rate based on a revenue neutral state.

*Tax rates are rounded.
**In spring 2017, budget changes are added to the revenue neutral tax rates to determine the new tax rates for 2017.

2017 Assessment Roll

As a result of updating the assessed values to a more current valuation date, it is common for property values to change in response to supply and demand factors within the market.  Generally speaking, in Saskatoon the 2017 assessed values have not increased in value as much as they had in the last reassessment in 2013. 

The 2017 Assessment Roll is currently open for the 60-Day Customer Review Period from January 9, 2017 to March 10, 2017.  This period gives property owners the opportunity to review their assessment, ask questions about their property’s assessment and file formal appeals if deemed necessary by whomever has an interest in the property.  Information about filing a formal appeal is provided on the back of the 2017 Assessment Notice as well as on saskatoon.ca, or call 306-975-3227 to speak with an assessment appraiser who will be pleased to speak with you.

Supporting Resources to Further Assist with Property Owners’ Assessment Related Questions

The 2017 Assessment Notice contains detailed assessment information. View Your Guide to Information Found on the 2017 Assessment Notice on saskatoon.ca, or pick one up at the Assessment display in the lobby of City Hall.

Property owners can also find informative 2017 Assessment brochures at all Saskatoon Public Library locations and at Leisure Facilities throughout the city.  A timeline insert also accompanied all 2017 Assessment notices, giving property owners a detailed timeline, phone numbers, information on the formal appeal process, and online resource information.

Property owners can preview the effect of the 2017 Reassessment on their property taxes (not including the 2017 budget changes) by using the Revenue Neutral Property Tax Estimator.  The information you need to get started is found on your 2017 Assessment notice.

The Property Assessment & Tax Tool shows information specific to your property. Enter your property address to check the property details that may have been used in the 2017 Reassessment. You can also review market area sales, check neighbourhood properties similar to yours, and see your property’s tax history.

The factors used to determine your residential property’s assessed value are varied.  To learn more about the factors that do or do not influence your property’s assessed value, view the informative video Understanding Your Residential Property Assessment at saskatoon.ca/assessment.

Most assessment related concerns can be addressed by reviewing the Frequently Asked Questions on saskatoon.ca/assessment, or by calling 306-975-3227 and speaking with an assessment appraiser prior to filing a formal appeal with required fees.

Property taxes are never displayed on Assessment Notices, as only assessments may be appealed on the basis of assessment values, and not taxes.  As well, taxes are never recalculated on a property basis. 

In March 2017, the Standing Policy Committee on Finance and City Council will be presented with an Administrative Report on tax policy issues, including recommendations for appeal contingencies and phase-in for the commercial tax class.

The 2017 Property Tax Notice will be mailed to property owners in May 2017, and property tax payments are due June 30, 2017.

Residents are encouraged to visit saskatoon.ca/assessment or call 306-975-3227 for any assessment related inquiries they may have.