Halifax condominium assessments driven by market values, council told

Condo owners should be prepared to pay higher tax assessment rates than apartment building owners, Halifax regional council was told this morning.

That isn't likely to change, at least over the next year.

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In a report requested by council on the issue, Halifax finance staff agreed condominiums are treated differently.  

Assessments of apartment buildings are based on rental income.  Condos tend to be newer and sell more frequently, so 60 per cent of them don't get the benefit of the provincial assessment cap, unlike single family homes.  

The report outlines a long list of possible changes, one being reducing taxes for condo owners.

However, "any significant reduction in condo taxes will lead to higher taxes on other homeowners," the report warned. 

Tax break difficult

None of the possible options are appealing to Coun. Russell Walker.

"It doesn't have a solution. If they get a break, someone else isn't getting a break."

That didn't sit well with Cou. Tim Outhit.

"But just to say its difficult — it wouldn't be easy — is not satisfactory.  Let's put something in place now where we continue the investigations," he said. 

Coun. Waye Mason did ask for a follow-up report on some programs in Regina for first-time buyers.  

"One of them is a tax relief for the first five years and another one is apparently, they help with the down payment —  condos or single family homes."

Regional council will hold another debate on what, if any, changes should be made to the provincial assessment cap. But no changes to the current tax system are planned.

Market value key factor

The report agreed that larger condo buildings, even though they are very similar to apartment buildings, are assessed at much higher values by the Property Valuation Services Corporation.

"While an apartment building has an average assessed value of $87,000, condos are assessed much higher," the report said.

"In 2015, the average condo was assessed at $226,000, which is slightly more than the average single family home."

There isn't a different taxation rate but they are assessed differently, said Bruce Fisher, the acting chief financial officer.

Fisher says the assessment rate for condos is driven by market value and that seems to be on target.

According to real estate sales figures for 2013, 57 per cent of condos sold at prices within 10 per cent of their tax rate assessments. The rest sold at 33 per cent higher and 10 per cent at lower prices.

CBC's municipal affairs reporter Pam Berman live tweeted from Halifax council this morning.