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Province says city can fix tax assessment mistake; city chooses not to

Aug 29, 2017 | 5:10 PM

 

MEDICINE HAT, AB — A local homeowner who thought issues with her property tax bills would be fixed is back at square one.

In July, Julie Tracey opened her property tax assessment and discovered her taxes would be going up $205.69 per month because assessors said her home’s value increased by $120,000.

The assessment was made based on an assumption that the family had finished their basement and garage as many homes in the area have done, but the family didn’t finish their basement or garage.

“They said well based on the age of your home you should have done this, but I haven’t had the need, I haven’t had the want or the desire,” said Tracey. “Our economic situation has changed, so it hasn’t been a priority.”

CHAT News brought the issues to Mayor Ted Clugston, who said council would look into it, and if an error was made it would be fixed.

“It could be a small amount of money, it could be a rather large amount of money, we will look after it,” Clugston said in July.

City council discussed the matter in a closed council meeting where the media and public are not allowed. Tracey said she was frustrated by that decision as she wanted to speak to the matter.

Following the meeting, Tracey was informed the city would not be doing anything to fix her taxes or assessment.

“They feel that there was no error made because the assessor followed their protocol,” Tracey said she was told.

There was an error made though. The family had an internal assessment of their home recently completed by the city and discovered there was a $104,000 difference in the current value of her home and what they were assessed at.

“So of course I’m still up over last year which is normal, but there’s still a $104,000 difference that I’m now paying property tax on,” she said frustrated.

The city refused talk about the issue on camera, saying they feel they’ve already addressed the problem.

However, over the weekend, some council members said they received legal advice that a change would contravene the Municipal Government Act, but the Ministry of Municipal Affairs said that isn’t true.

“The Municipal Government Act enables municipal councils to cancel, refund or defer property taxes for a property as long as council considers it equitable to do so.” read a statement from the ministry. “Council may not, however, adjust an assessment, as that is the role of the local Assessment Review Board.”

The spokesperson went on to say that the Chief Administrative Officer should be aware of this.

In a statement, the city said that in absence of receiving responses to information requests or property access for physical inspection, assessors will make assumptions about properties based on similar properties in the community using the mass appraisal method.

When it comes to making changes to property taxes the city admits it can cancel, refund or defer property taxes but said that won’t always be done.

“If the only reason for a change in taxes is a difference in opinion of the assessment value for a property, canceling taxes would not be deemed equitable,” the city’s statement reads.

They said this even though the city has completed the two assessments themselves. One based on an assumption of her property, the other a physical walk through in which city assessors deemed she was over assessed by $104,000.

For Tracey, this is more than a difference of opinion, as she is stuck paying out of pocket for a mistake the city previously admitted to.

Tracey admits she made a mistake herself in not thoroughly looking over her property tax assessment, but doesn’t think she should be on the hook for the city’s mistake as well.

“To me I thought at least we could split the difference,” she said. “You know, I’ll own my misunderstanding and you own yours.”

Julie said she’s now weighing what other options she has in this matter.

She adds this whole process has been an eye opening experience and encourages everyone to question any assessed increase on their property value.

“I hope they’re going to like my face because they’re going to see me every spring because I will ask for a print out of how my assessment was formed,” she said. “I’m going to stay on top of it because you’re not going to burn me twice.”