Real Property Tax Assessment Practices in Canada

Abstract

Tax revenues are derived by applying a tax rate to a tax base. In the case of property taxes revenue normally is produced by multiplying the assessed value of taxable property (the tax base) by a tax rate expressed in terms of mills. This paper is concerned with the way the property tax base is determined in each of the ten provinces. More specifically, our intentions are threefold: to discuss very briefly some of the more important features which we feel should be built into a property tax assessment system; to highlight present assessment practices by province; and to offer some observations about the directions in which assessment practices in Canada appear to be heading. The paper accepts the premise that current market value assessment of all real property is desirable; thus it does not consider the pros and cons of alternative property tax assessment bases such as site value (which excludes buildings from the tax base) or non-monetary bases such as square footage of buildings and/or land parcels. Moreover, it does not deal with the assessment of special purpose properties such as hydro and gas distribution systems and railroad trackage.