Proposed Eligibility Criteria (subject to change with final by-law)
The proposed program will be eligible to commercial property owners in the Halifax region:
- in an area serviced by municipal water and sewer (provincial legislative requirement);
- have an increase in commercial assessment more than 5% above the commercial average.
In 2022/23, the 2022 increase would be measured over the 2021 (base year) value. The commercial average for 2022 is not yet known but would be calculated as the average value change of all taxable commercial properties (without a tax agreement). In 2021, the commercial average was 2.6%, so the program threshold would have been 7.6% for 2021 (if the proposed program were in place).
Other Program Features
Properties with annual assessment increases over the program threshold will have their annual market increase phased in over three years.
No application is required (by the property owner). All eligible properties will automatically be averaged, if their annual increase exceeds that year’s program threshold.
It is estimated that approximately 10% of all commercial properties would see their assessment “averaged” (reduced) in any given year. So, roughly 600 of the total 5,600 commercial properties. This is expected to vary, year by year.
Assessment Phase-in Examples