This year's tax increase surprised some Yellowknife property owners when they opened their 2014 final tax notices last week.

Ian Mathers was shocked to learn the tax on his industrial property in Kam Lake was increasing by 48 per cent.

Ian Mathers

Ian Mathers was shocked to learn the tax on his industrial property in Yellowknife's Kam Lake area was increasing by 48 per cent when he opened his 2014 final tax notice last week. (CBC)

"I can accept six to 10 per cent, but I find 48 or 50 per cent pretty unreasonable," he said.

The city did a general property assessment in 2013 in which everyone's property values increased. In the Kam Lake area, values went up by more than 60 per cent.

Carl Bird, the city's director of Corporate Services, says since the last general assessment in 2006, people have been paying more for properties in Kam Lake. 

"We identified that in those areas, more recent sales in land — some of it private, a lot of it from the city — had resulted in an increased market value of the land in those areas,"  he said.

The city lowered mill rates to compensate for the higher value assessments, but even with the adjustment Mathers will still be paying well over $3,000 more in property tax this year.

"I suppose I have to come up with it somehow," he said.

"It just means that businesses out in Kam Lake will have to increase their prices."

Mathers plans to meet with the city to discuss reassessing his property for 2015.