Tax on property is calculated as a percentage of the properties market value. If your government ‘assessed’ value is higher than the ‘market’ value of the property, than you are paying too much tax.
In this situation, property owners are provided the opportunity to appeal the government’s ‘assessed’ value and must present sufficient market-based evidence to support a lower value. Finding similar properties that were sold at or near the assessment date and in close proximity to your property is the best way to determine market price. Note: Some real estate agents provide this service.
The cost savings will vary, however, a simple rule of thumb is that you can save $120/year for every $10,000 reduction in assessed value. Since few property owners take the time to appeal, numerous properties are over-assessed, making it worth the time to consider your properties government assessed value.
Note: This blog includes information specific to Winnipeg, Manitoba.
