Par Megan Martin - exclusif à The Gazette 2014-01-29

With a marked average increase of 19.7 per cent across the island, Montreal's most recent property assessment roll left many homeowners feeling uneasy about their 2014, 2015 and 2016 tax bills. Released last September, the assessment is conducted by the City of Montreal's Direction de l'Evaluation Fonciere (DEFVM), and is meant to represent properties' market value, defined as the most probable selling price in a free and open market.

Tax rates are calculated based in part on the property assessments, so one of the biggest concerns homeowners have is how much their taxes will increase alongside the elevated assessments. Property taxes are reinvested in the community, and help fund services such as snow removal, organized recreational activities, water treatment, mass transit and police services. Regardless, no one wants to pay more than their fair share. The Gazette sat down with John Deakin, a broker at Deakin Realty, to understand what options homeowners have in order to ensure their property assessment, and the subsequent tax bill, are accurate.

"Most people think that if their assessment goes up 25 percent, so too will their taxes," Deakin said. "That simply isn't the case - in fact, taxes are only determined when the municipal budgets are adopted."

Individual property taxes are calculated using a range of factors including the increase in a borough's budget from one year to the next, and the updated property assessment.

"We have been getting many calls from clients whose evaluations have increased a lot," Deakin said. "There are a few simple things people have to keep in mind."

It's important to take the property assessment with a grain of salt.

"The assessment is basically a determined purchase price of a property, but it's not an accurate reflection of the market value 100 per cent of the time," Deakin said. That's because the evaluators use recent sales to adjust what real estate is worth, and don't take each individual property's condition into account.

"They don't look at elements such as the status of a home's roof, furnace, windows, insulation, flooring, and so on," he said.

Renovations and upgrades done in the homes that were completed without the required permits aren't included in the assessment either. “A house may have brand new bathrooms and a completely renovated kitchen and the evaluators just aren't aware because of the lack of paperwork," Deakin said.

For these reasons, it's important to speak up if you feel that your property assessment is off the mark. "Right now, I have several examples of properties we are selling and recently sold ones with inflated assessments," Deakin said. "I'm finding they are being overvalued by about 10 per cent in some cases."

Deakin recommends taking swift action if you feel your property has been overvalued in the most recent assessment. "You want to contest it as soon as possible. That being said, homeowners will likely have to pay their taxes at the new rate anyway, and if or when they're successful in contesting the initial assessment, they'll receive a credit or cheque."

To contest your assessment, it's necessary to file an application for review with the DEFVM, which includes paying a non-refundable fee. For that reason, it's recommended homeowners have a solid case for reassessment before filing. "People need to really examine the details of their evaluation," Deakin said.

According to the DEFVM, once a request for revision is filed, an assessor will communicate his or her evaluation in writing, modifying the assessment if required.

However, Deakin's experiences thus far have been somewhat different. "In my own dealings, they've been willing to negotiate with the homeowner over the phone," he said.

"I think it's related to the fact that there will be many more contestations in 2014 than in previous assessments rolls."

When it comes to property assessments, it's important to arm yourself with information by speaking to knowledgeable industry professionals to help avoid wasting your time and money.

"People should definitely consult with their broker if they have concerns," Deakin said. "It's tough to do it on your own and brokers have much more knowledge about the Montreal market and industry in general."