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Putting a price on cottage life

Biggest assessment increase ever for some

By: Bruce Owen

30/05/2009 1:00 AM | Comments: 7

That sound from Lake Winnipeg's cottage country this weekend isn't the call of the wild; it's the sound of jaws hitting the ground as cottagers find out what the province thinks their property is worth.

The highest assessment increase is at Victoria Beach -- its summer residents are seeing an average increase of 93 per cent in the market value of their properties.

It's the biggest assessment increase ever for these cottagers and one that will likely have a big impact on their 2010 tax bills.

"It doesn't surprise me," said longtime summer resident Al Whicker. "We're getting screwed."

"I'm sick," said another 'VBer,' who's owned a cottage since 1974. "It's just such a huge jump. But I guess that's the privilege of owning a summer home."

The average provincewide increase in assessment for single-family residences is 46 per cent, but it's lake country, particularly the south basin of Lake Winnipeg, that's seeing the biggest jump since the last provincial assessment in 2006.

How big is the hike? Take a two-bedroom Victoria Beach cottage in the restricted area -- where no cars are allowed in the summer -- built in the late 1920s, several blocks from the beach. The old assessment, based on 2003 market values, was $88,300 for land and building.

The new assessment is $203,900 for land and cottage -- a number based on what it would have sold for on April 1, 2008. To compare, the total assessment for the same cottage in 1974 was $1,250.

What's driving this increase in assessment? It's due to the wild real estate market in Victoria Beach cottages over the past couple of years.

With roughly only 1,600 cottages -- with the most sought-after in the restricted area -- it's been a sellers' market as buyers fleeing astronomical cottage prices in Alberta and Eastern Canada bid against each other for the few desirable cottages that come up for sale each year.

Driving the rise in cottage real estate prices, too, are baby boomers knocking down older cottages to build retirement homes.

RM of Victoria Beach chief administrative officer Raymond Moreau said the recession hasn't dulled the market; an older cottage recently sold for $175,000 to make way for a new cottage, meaning the lot alone was worth $175,000 to the buyer.

One lakefront lot recently fetched $500,000, he said.

The higher assessments in cottage country likely mean a hefty municipal tax hike starting next year, one that may be phased in.

News about increasing cottage property taxes has mobilized some lakeside residents.

President David Crabb said the Manitoba Association of Cottage Owners is holding a rally at the legislature June 10 to protest the continued use by the province to fund schools through property taxes.

A provincial spokeswoman said the assessments only reflect what's happened in the market and should not be viewed as a tax bill.

She said if cottage owners have questions, they should speak to an assessor in their municipality. Open houses are also being held.

For more information, go to www.gov.mb.ca/assessment

bruce.owen@freepress.mb.ca

 

Republished from the Winnipeg Free Press print edition May 30, 2009 A3

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7 Commentscomment icon

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I'll add that if there was a government-caused catastrophe and compensation was offered, the VB'ers would demand every last penny of this new assessment.

People forget that when properties get reassessed, the municipalty will also review and adjust (downwards) the mill rate, which then determines the property tax bill. Doubling the assessment of every cottage does not mean the RM will double its property tax take. If it did, I'd suggest those cottage owners vote in a new municipal government.

"it's been a sellers' market as buyers fleeing astronomical cottage prices in Alberta and Eastern Canada bid against each other..."

umm, there are no cottages in Alberta. Albertans come to BC cottage country and increasingly Montana. Might want to correct that one.

VB is great...especially now that they allow our semitic brethren to enjoy their beaches.

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Cry, cry, cry. I work my fingers to the bone 24/7 and barely can maintain my little city house, and I've got to listen to people who have 9-5 jobs complain that traffic was brutal getting out over the weekend, the lake was a bit choppy so they had to settle for a fishing spot closer to shore, then when they got back to the city, they had to do laundry for hours. Boo friken hoo.

This is what happens when you own property. The only thing they should rightfully complain about is the crappy services they get from the RM for those taxes. Better roads, a fire hall, things like that will improve as the money for that comes in, so in a way, it's all for the better of that community.

Me, I enjoy the city in the summer when it's empty.

Doer's broke, and someone's gonna pay.

If your value is increasing that much what's the problem. But then again I could never afford a second home worth as much as my present home. I guess I could not afford a second home. These people should be happy not upset. So what would the yearly taxes be up there?

... speak to an assessor??? What's the saying? Ten thousand comedians out of work and she's trying to be funny!

I own a quarter section [all agricultural]. The quarter was subdivided before I bought it.... a small field, on one of the titles, is cut off from the main part by a large swamp, with the only [realistic] access through a neighbour's property. A few years back this 7 acre field was assessed at $24,000, when its true market value would be almost negligible... possible useful for pasture, when it would be accessible in dry years. If it was on the market, the only offer would come from the adjoining landowner, and it would be a lowball offer. I appealed the assessment...and, joy 'o joy, was successful... reduced to $22,000. Rather than talk to an assessor, the advice should be "save your breath to blow your porrigde."

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