The City of Saskatoon has issued a simple guideline for homeowners wondering what effect a change in property value will have on their taxes: check your percentage increase against the overall increase in the city.
According to the city, the overall increase in property values for 2013 was 83 per cent.
However, it does not mean everyone's taxes will go up by 83 per cent.
It depends on how much your own property value changed, relative to everyone else.
If your property value increased by more than 83 per cent, you can expect to pay more taxes. If your property value increased by less than 83 per cent, you can expect a drop.
Here are two examples, provided by the city:
- If your previous assessment was $150,000 and your new assessment went to $300,000, you can expect to pay more because the 100 per cent increase is greater than 83 per cent. The city says it works out to a property tax hike of about $128 or 9.6 per cent. (The example does not include the effect of the city's budget increase).
- If your previous assessment was $150,000 and your new assessment went to $255,000, you can expect to pay less because the 70 per cent increase is less than 83 per cent. The city says it works out to a decrease in property taxes of about $90 or 6.8 per cent. (Again, this is before the city's budget increase is factored in.)
The city also noted that any increases or decreases due to reassessment will be phased in over next four years.
Saskatoon is planning to send out complete 2013 property tax bills in May once officials know what the education tax will be.
The education portion of the property tax bill is set by the province.
The 2013 assessments are based on market values as of January 2011. The previous values were based on market figures from June of 2006.
Taxpayers will have four years to get used to the new numbers and then another reassessment is due to take place.