Property value increases justified, assessment agency says

An official with the agency responsible forproperty assessments says recentincreases are warranted, despiteupsettingmany homeowners.

• Hampden homeowner 'shocked' by almost $41K jump in property assessment

Sean Martin, executive director of the Municipal Assessment Agency (MAA), said when it comes to determiningvalue, his organization looks at what's been happening in the market over the last several yearsas well as any work that's been done to people's property.

"First and foremost, we look at what properties selling for within that community and within adjacent communities," he told CBC's Central Morning Show.

"Within Carmanville, for example, there may be a change in the market but globally what we've seen is this push out from larger centres to the smaller centres as we get further and further out."

Central Morning13:19Assessing the Assessment

A man in Carmanville says his property value has almost doubled in the latest assessment. We talk to Baxter Russell about his latest property assessment. And then we hear from the executive director of Municipal Assessment Agency Inc.

We have widowed seniors in their home who just aren't going to be able to afford to pay it I mean it's going to hurt me, and I work.- CarmanvillehomeownerBaxter Russell

He said this creates a situation where many people are lookingoutside of urban centres for cheap properties.

However, he said as more people build and renovatehomes in rural areas,the values of other homes in those areas will go up.

Value increases should not be disincentive for renovations

Property owners throughout the province have been questioning the recenthikes, saying it creates a disincentive to make improvements or additions to their homes.

Martin said that is a flawed way of thinking about it.

"I understand that concern, but it's no more than it being a disincentive to work harder and make more money becauseyouwill pay more income tax," he said.

"Your property tax is such a small portion of the value of your property, you would be dollar foolish and penny unwise to make your decisions on your home and where you live on that basis."

Martin said the goal of the MAA is to get assessments right, not to have them go up or down.

He also said a rise in property value does not necessarily mean that property taxes will increase, as there is precedent for towns to lower their mil rate according to how much they need for their budget.

"The reality is, the municipalities will, at the end of the day, look at their budgeting process, go through that process and determine the amount of revenue they need to provide the services the residents want," he said.

Property owners take to social media to question increases

Homeowners in Central Newfoundland joined others throughout the province this week in being surprised at how much their property values went up.

A group in Carmanville has even started a Facebook group to discuss the increase

Carmanville resident and former town councillor Baxter Russell is a part of that group, and saw his property value go up 68 per cent with the most recent assessment.

He still has questions as to whyproperties like his had substantial increases and others did not.

"It's so out of whack, some properties have gone up $8,000 whereas mine went from $79,900 to $133,700," he said.

"So now we are trying to get some public input and see where everyone stands, just to see what we're dealing with."

Russell wantsmunicipalities torealizetax rates proportionate to the new valueswillhurt residents, and is hopingtheywill lower their mil rates so they won'tcreate too much of a financial burden on property owners.

"My question to the town is that if they don't roll back the mil ratewhere is all of that money going to go?" he said.

"We have widowed seniors in their home who just aren't going to be able to afford to pay it I mean it's going to hurt me, and I work."