2013 Revaluation Outcomes and Expectations

Transcription

1 2013 Revaluation Outcomes and Expectations

2 Presentation Overview Assessment policy changes Tax class changes Revaluation assessment trends Highlights regarding application of the market valuation standard Revaluation milestones and follow-up SAMAView Questions

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4 Legislative Changes For 2013 Assessment policy stable from the 2009 to 2013 revaluations. Shortening of the based date time lag revaluation base date is January 1, month lag to implementation revaluation base date was June 30, month lag to implementation.

5 2013 Revaluation Board Orders Revaluation base date of January 1, Market value evidence limited to December 31, Regulated Manual established. Quality assurance standards regarding the market valuation standard.

6 Quality Assurance Standards SAMA Board Order May 23, Ministerial Approval August 22, ASR between 0.95 and 1.05 for two groupings - Residential and Other.

7 Quality Assurance Standards are reported on the SAMA Website Quality Assurance Standards

8 Primary Valuation Publications Saskatchewan Assessment Manual (2011 Base Year) (Manual). Market Value Assessment in Saskatchewan Handbook (Handbook). SAMA s 2011 Cost Guide (Guide). Marshall and Swift/Boechk LLC. Marshall Valuation Service (MVS) Residential Cost Handbook (RCH)

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10 Manual Changes for 2013 Agricultural Land Valuation models stabilized with minor refinements. Continue to use a soil productivity model. Review of the productivity models occurred with the 2009 revaluation. Arable and Pasture model provincial factors increased 48%. Waste remains at $10/ac. Hay land model removed as no longer used.

11 Manual Changes for 2013 Agricultural Mixed Use Land Provisions in Manual revised to ensure land used as agricultural land is assessed as agricultural land. Heavy Industrial Property Definition revised to clarify property stays in this category when closed or not in operation. Additional rules created to address situations when a property is closed for an extended period. Consultations on these changes included SARM, RMAA, affected municipalities, heavy industrial property owners and provincial government.

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13 Market Value Assessment in Saskatchewan Handbook Highlights of the Handbook Update SAMA established a working committee comprised of assessment service providers and industry (member of SAMA Commercial Advisory Committee). Removed out of province appeal references. Revised restrictive wording to make the document more flexible and less regulatory in nature. Clarified assessor vs assessment appraiser terms.

14 Market Value Assessment in Saskatchewan Handbook Highlights of the Handbook Update Removed references that suggest using a property s own market data to value the property. Revisions ensure the Handbook is in line with current legislation and the recent Court of Appeal decision. Implementation with 2013 revaluation base date valuation models prepared by assessment service providers.

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16 Tax Class Changes for Property Tax Class Percentage Non Arable(Range) Land and Improvements 40 Other Agricultural Land and Improvements 55 Residential 70 Seasonal Residential 70 Multi-Unit Residential 70 Commercial and Industrial 100 Pipeline and Railway (was 75%) 100 Elevators (was 75%) 100

17 Education Property Tax Mill Rates 2103 education mill rates announced by provincial government, March 20 th, Goal is to be revenue neutral between and within property classes Mill Rates 2012 Mill Rates Agriculture 2.67 Agriculture 3.91 Residential 5.03 Residential 9.51 Com/Ind 8.28 Com/Ind 12.25/14.75/18.55 Resource (3 tiers based on assm t)

18 2013 Revaluation Assessment Trends

19 Strong Provincial Economy Annual Expenditure Capital Spending (Billions) Year Capital Spending (Billions)

20 2013 Revaluation Trends

21 Residential Assessment to Sale Price Ratio By Municipality

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24 Intra-jurisdictional Assessment Shifts

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26 Revaluation Milestones April 1 st : Preliminary values to Government June - October: SAMA delivered preliminary value reports to 756 client municipalities November: Percentages of value and education mill rate categories announced August to December: Preliminary value preview by municipalities

27 Municipal Assessed Value Trend Report Municipal Assessed Value Trend Report (100% Value) Rural Municipality of XXXXXXX # 200 February 29, Preliminary Municipal Municipal Municipal Provincial Tax Class (As defined in Regulations) Totals Totals Trend Trend Residential 48,848,200 96,230,954 97% 90% Seasonal Residential 125% Multi Unit Residential 5,864,900 10,439,522 78% 85% Non Arable (Pasture) 2,703,200 4,000,736 48% 48% Other Agricultural (Arable) 84,777, ,471,144 48% 48% Commercial & Industrial 53,793,800 99,518,530 85% 75% Elevators 8,656,700 12,552,215 45% 50% Railway R/W & Pipeline 76,648, ,175,888 32% 35% Total 281,293, ,388,989 60% 65% 140% 2013 Revaluation Preliminary Value Trend 120% By Tax Class 100% 80% 60% 40% 20% 0% Provincial Trend Municipal Trend

28 Municipal Taxable Value Trend Report Municipal Taxable Assessed Value Trend Report City of XXXXXX February 29, (See Graph) Preliminary 2013 Taxable Taxable Taxable Taxable % Change Tax Class Assessed Value % of Total Assessed Value % of Total 2012 to 2013 Non-Arable (Pasture) 73, % 109, % 0.0% Agriculture Other (Arable) 112, % 166, % 0.0% Residential 109,375, % 229,689, % 3.1% Multi-Unit Residential 6,525, % 13,702, % 0.2% Seasonal Residential 0 0.0% 0 0.0% 0.0% Commercial & Industrial 43,285, % 77,913, % -2.8% Elevaltors 351, % 527, % 0.0% Pipeline & Railway RW 1,979, % 2,672, % -0.4% Total 161,703, ,780, % 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% Non-Arable (Pasture) % Change in Taxable Assessment 2012 to 2013 Agriculture Other (Arable) Residential Multi-Unit Residential Seasonal Residential Commercial & Industrial Elevaltors Pipeline & Railway RW % Change 0.0% 0.0% 3.1% 0.2% 0.0% -2.8% 0.0% -0.4%

29 Revaluation Milestones January 2013: New 2013 assessments with completed 2013 maintenance available SAMA ed information in January Many reports included all maintenance indicated status of maintenance February 2013: SAMAView available to public or Municipalities can forward ratepayers to this website Effective tool to examine and compare property assessments

30 Revaluation Milestones January to February, 2013: Government Relations/SAMA sponsored workshops facilitated by RMAA and UMAAS. January 15-24: Assessment Revaluation & Property Tax Policy Workshops for Administrators & Councils February 7-15: 7 Board of Revision workshops

31 Follow-up For RMs, assistance to process 293 exemptions (farm residences) If needed SAMA will attend council meetings and open houses to explain new assessments to ratepayers (set up by appointments) Provide ongoing phone support Regional number for inquiries Support of value SAMAView

32 Risk Areas SAMA preparing for a high level of appeals. Property groups with high taxable assessment shifts such as grain elevators, pipeline, resort property. Physical data errors due to overdue re-inspections. Information on SAMAView may result in requests for updating of physical data.

33 SAMAView Enhancements

34 SAMAView Enhancements SAMAView New Look

35 SAMAView Enhancements Terms of Use have been updated to reinforce the terms for personal and commercial use of the data

36 SAMAView Enhancements Tutorial Videos have been developed to assist users with navigation of the site and searching property

37 SAMAView Enhancements Help videos currently available

38 SAMAView Enhancements Enhanced search options

39 SAMAView Enhancements All legal land descriptions maintained by SAMA Qtr/Sec/Tp/Rg/Mer. Lot/Block/Plan 9 LLD formats in all ISC Parcel No.

40 SAMAView Enhancements Property Reports now available through SAMAView

41 SAMAView Enhancements Profile reports available for residential, commercial, agricultural properties

42 SAMAView Updates Data currently updated in an ad hoc manner Developing automated procedures to maintain current assessment information on SAMA View Updated values will be posted to SAMA View as they are validated

43 Roll Confirmation To account for the provincial government s creation of the new separate education tax class for resource industry properties, SAMA, with input from municipal software vendors in the province, created a framework where properties are now divided into 10 classes for The code letters for Railway Rights of Way and Pipeline within SAMA s assessment reports have changed from P into RW and PL respectively. Commercial and Industrial has changed from C into CR for Resource Commercial and Industrial, and CO for Other Commercial and Industrial.

44 Roll Confirmation Assessment totals will continue to be reported in the existing 8 classes of property established in The Municipalities Regulations, The Cities Regulations, and The Northern Municipalities Regulations for the purposes of the assessment return and assessment roll confirmation. The 8 classes of property defined in the regulations and set out for the assessment return are:

45 Additional Resources SAMA s website On-line manuals, handbooks, FAQs etc SAMAView Ministry of Government Relations website BoR Handbook, provides an overview on changes to assessment policy for Assessment Appeals Manual. Tax policy review documentation

46 Presentation Wrap-up SAMA improving revaluation processes by continuing to look for efficiency gains. Can we help improve the usage of the preliminary value reports by municipalities? Can we do more with SAMAView? - Post sales reports, market reports? Imagery? - Other information? Maintenance? Appeals? Assessment policy considerations for the 2017 revaluation?

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48 Questions? Q