Assessed value just one factor in future property tax bill: city

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The City of Winnipeg-assessed value of many homes jumped in January, but it’s just one factor in determining future tax bills, officials say.

Residential property owners began receiving city assessment preview letters earlier this month. Overall, average assessed prices rose between four and 13 per cent, depending on location.

Coun. Jeff Browaty, council’s finance committee chairman, noted value is just one component of the formula used to determine property tax bills.

“The important thing to remember is a higher assessment does not necessarily mean higher taxes,” Browaty said Tuesday.

The latest assessment is based on April 1, 2023, market values and is slated to begin affecting property tax bills in 2025.

Browaty noted several factors are considered in assessing a home’s value, including size, extra features/renovations, nearby traffic and proximity to amenities (such as Transit bus routes).

“The city will look at sales in the area of similar properties and make adjustments,” said Browaty.

Winnipeg hiked property taxes by an average of 3.5 per cent in 2023, and plans to do so again in 2024.

However, a 13 per cent hike in assessed value does not mean an owner will be charged a 13 per cent tax increase in 2025.

In 2023, for example, 2021 property assessment values began being applied to tax bills, with an average increase of eight per cent.

At that point, if a home’s assessed value was lower than the average eight per cent increase for that time, its municipal tax increase would have likely been lower than average 3.5 per cent hike for that year, according to the city’s website.

If it equaled eight per cent, the increase was likely about equal to 3.5 per cent. If it was higher than eight per cent, the property taxes would likely rise more than 3.5 per cent.

Browaty noted the civic formula for assessed value is only one element in determining each property tax bill, which also includes frontage levies and a municipal mill rate.

He stressed the City of Winnipeg works to determine a fair market value for each individual home. “It really depends on the market sales of similar properties. (The assessed value) quite literally should reflect what the value would be, if your property was sold… on the open market.”

One Winnipeg homeowner, however, questions the city’s numbers.

Bennetta Benson said the assessed value of her single-family bungalow in the Fort Richmond neighbourhood rose 12 per cent over the past two years (to $476,000 from $426,000) — which she deems “way too high.”

“For this year, for 2025 (tax bills), it just seems like (a) huge property (assessment) increase… I don’t think it’s going to sell for (nearly) $500,000… They’re actually appraising it, somehow, above the market values,” said Benson.

She also owns a rental home, for which the assessed value shot up 16 per cent (to $326,000 from $280,000).

“I think it’s excessively high, given economic circumstances,” said Benson.

The property owner said she’s not personally concerned the assessed values will trigger a 2025 tax bill she can’t afford, though she worries others could struggle to pay.

Benson said she’s also frustrated the city expects her to provide ample information, such as comparable home values, for a telephone appointment with Winnipeg assessment staff she booked to oppose the number on her rental home.

“I’m the one who has to provide all the documents… It seems a little unreasonable. Usually, when there’s a reassessment, there’s some obligation on the part of the (city)… to say why they’re justifying their increases.”

While homeowners are encouraged to provide information to challenge an assessed value, Browaty said the city would also provide information at such appointments.

“(Staff) will actually explain to you… some of the comparable properties that sold,” he said.

Telephone appointments are available until March 8 for Winnipeg property owners concerned about an assessed value in their preview letter.

Official assessment notices will be mailed June 5.

Browaty said property owners can still formally appeal the values following that event.

joyanne.pursaga@freepress.mb.ca

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