The typical Calgary residential property owner will see a 12 per cent increase in the value of their property, as the city’s assessment roll is valued $38.2 billion more than 2022.
The City of Calgary mailed out roughly 567,000 property assessment notices to city property owners on Wednesday. The city’s customer review period is now open until March 13.
City assessor and Director of Assessment and Tax, Eddie Lee, said the value growth reflects the strong sales and strong demand for properties in Calgary. The total assessed value is $351.7 billion.
“Assessment Roll key findings highlight that from July 2021 to July 2022 the real estate market in Calgary reflected strength, resilience, and growth, especially in the single residential, multi-residential, industrial, and retail markets,” Lee said.
Single-residential properties saw a 13 per cent increase over 2022. Residential condominiums rose in value by seven per cent. Townhouses increased by nine per cent and apartment-style condos increased in value by six per cent.
The biggest value increase was seen in the suburban areas, where property value growth was in the 16 per cent range, Lee said.
“Similar to last year, people are looking for larger homes and typically you would find those larger homes in suburban communities,” he said.
“With more remote working and the hybrid working, getting close to the downtown is not as important as it used to be, or pre pandemic.”
According to the city, roughly 95 per cent of revenue neutral taxes will stay within 10 per cent of last year’s tax.
In 2022, the typical single median assessed home was valued at $555,000, up from $485,000 in 2021. The typical condo increased to $255,000, up from $235,000.
Tax implications for Calgary homeowners
Late last year, the city estimated that the projected 5.5 per cent property tax increase would cost the typical single-detached homeowner roughly $10.49 per month more.
According to Lee, if you’re assessed value comes in at less than the 12 per cent increase, you’ll pay less than the $10.49 per month. If it increased by greater than 12 per cent, you’ll pay more.
Same goes for residential condominiums, but the
According to a revenue-neutral tax map provided by the city, homes closer to the downtown will pay less tax than last year. Suburban homes, where the values grew by more, will pay more property tax than last year.
“As a result, inner-city homes, in general, will be seeing a revenue-neutral tax decreases, whereas suburban homes will be seeing increases,” Lee said.
Property tax rates won’t be finalized until later in the spring. At that time, the city will have a better idea of the provincial tax that’s required. Then Calgary city council will approve the property tax bylaw.
Non-residential properties see modest growth
The city’s non-residential properties saw an overall value increase of two per cent. But, Lee said the increase wasn’t uniform across all property types.
Industrial and warehousing properties saw roughly five per cent growth in value, and the downtown office value grew by four per cent. On the flip side, general office properties saw a decline of three per cent in assessed value. Suburban office buildings are seeing growing vacancy, Lee said.
Again, properties that increased by more than two per cent will see a greater revenue-neutral tax impact. Properties that didn’t rise as much, or declined, will see their taxes decrease in 2023.
Lee said value increases in the downtown were driven largely by tenants upgrading their spaces.
“What we have seen is, we’ve seen a flight to quality where tenants are moving from lower class properties to flagship double A class properties,” he said.
“It’s really driven by those higher quality buildings where we are seeing decreasing vacancy and a slight increase in rents.”
You have your assessment – what’s next?
Once you get your assessment, Lee advises to look over it carefully. Check the property information on the page. Look at the value.
“Does the value on the notice reflect what your property could have sold for as of July 1, 2022?” Lee said.
He said Calgarians can look at the assessment tools at Calgary.ca/assessment. You can look at your own property and similar properties to compare values.
A reminder: This isn’t a property tax bill. Those will come later in the spring once the final tax rate is set. You can however, look at the property tax calculator to get a rough idea of what you’ll pay in 2023 (go to the above link).
The city is also holding a Go Paperless contest for property owners from Jan. 1 to March 31. Winners will get one of 12 Visa gift cards valued at $250.