PEI’s new property tax clear as mud
Market value is not market value until it becomes market value, get it?
The debate about the new property tax rules is more confusing by the day.
At first we were told the buyer of a home would be paying taxes on the market value, which is the amount they pay. Maybe yes and maybe no.
“Market value” to the government is not your market value – what someone pays in a purchase. It represents the average of market prices paid within your assessment zone.
“Market value” on your tax bill has nothing the do with the real market value, according to Treasurer Wes Sheridan. It’s the average price people are paying for similar houses in your area.
You may sell your house for a higher amount. You may sell your home for the same amount or lower. The buyer pays on the “Market value” shown on your last tax bill.
However, each reported sale in the zones can increase the “market value” for all homes in that zone.
Expect to pay higher property taxes.
One Response to 'PEI’s new property tax clear as mud'
Remember the Tories telling us property taxes were not going up? Of course they were going up because the Tories increased the assessment, while not changing the rate.
Ghiz railed at this as a “shell game”.
Now he has his very own shell game.
Not that that will worry him at all. He has made it clear that nothing he said in Opposition actually meant anything.
Which pretty well sums up the value of his word on anything at all.
Semantics Fan
4 Dec 09 at 12:04 pm