Homeowners protected from large jumps in their assessment over last year

For the 2011 and 2012 tax years, the provincial government introduced a 3% cap – or upper limit – on certain assessment values. This means that the assessment of eligible owner-occupied properties can only increase by a maximum of 3% over the previous year.

The goal of the cap is to protect homeowners from large increases in the market value of their properties due to price increases in the local real estate market.

In June 2011, Government completed a public consultation on alternatives to the current property tax system in the province. Prior to the 2013 taxation year, a decision will be made on how to best move forward with improvements to the system.

Exceptions to the cap

There are situations where the assessed value of a property could still grow by more than 3%. New construction or major renovations are not covered by the cap. Also, any physical changes to a property discovered during an inspection in 2011 - that occurred previously - are not included in the cap.

Does your property qualify for the cap?

To be eligible for the cap, a property must be currently receiving the Provincial Residential Property Tax Credit.

A property that was sold or transferred in 2011 will be assessed at the Real Property Assessment value (market value) as of January 1, 2012.

More questions about the cap?