New Assessments Being Mailed to Property Owners This Week

The City of St. John’s has begun the process of mailing assessments to residential and commercial property owners.

2022 is the first year in a new two-year assessment cycle - mandated by the Provincial Government following a review of the Assessment Act and public consultation - with the goal being that assessed values be more reflective of market values than the previous three-year cycle.

Assessments determine the market value of properties as of a “base date.” This ensures that each property within the city is treated uniformly with all properties being assessed as of the same date.

The base date for the new assessment cycle is January 1, 2020.

“Although there is significant fluctuation in the value of properties in the City, generally speaking assessed values have declined marginally since the last assessment, which was based on January 1, 2017,” explained Councillor Shawn Skinner, lead Councillor for Finance. “Because about 70% of the municipality’s revenue comes from property tax, we need to look closely at how declining property values may impact us as we begin budget planning for the next two years.”

Mil rates for 2022 and 2023 have not yet been set, and the City is preparing a plan for budget engagement to begin this summer.

“It is far too early to speculate on whether or not there will be a mil rate increase in 2022,” said Councillor Skinner. “Our first step will be engaging with the public on their priorities, and we continue to work as an organization on achieving efficiencies in operations.”

The City’s last mil rate increase was in 2019; anticipated increases in 2020 and 2021 were avoided through effective fiscal management and a focus on efficient operations.

Assessments in this municipality are conducted by professional assessors working for the City of John’s. They utilize a variety of industry-standard methods to arrive at a market value for a property, which is “the most probable price which would be paid in terms of money for a property for sale in the open market, with a reasonable time to find a purchaser, buying with full knowledge of all the uses and purposes to which it is adapted and for which it is capable of being used.” For residential properties, factors such as property and lot size; condition; age; type of construction; finished basement area; neighborhood; existence of out-buildings (garage, shed, etc.) may impact the value.
For more on assessments, visit the city's website.