Properties values hit all-time high in Montreal; will taxes increase?
The City of Montreal announced it is increasing properties values across the island, based on the sales figures from July 1st, 2012.
“This increase of nearly 19.5 per cent in property value for the agglomeration, compared to the previous roll, is evidence of the economic vitality of Montreal,” the city said.
The hardest hit sector is Ile-Dorval with an increase of 28 per cent, followed by Plateau at 26 per cent, and the Town of Mont-Royal at 25 per cent.
While the city does base tax bills on property values, it will be up to the next administration to decide whether to adjust the taxation rate or not.
“There are tools that are at our disposition,” admitted Alan De Sousa, Mayor of Ville-St-Laurent. “One would be to reduce the tax rate such that on an average basis, the city would get about the same quantum of revenue.”
With this most recent increase, the smallest in the last decade, there are now four areas where the average home evaluation is over $1 million: Hampstead, Town of Mount-Royal, Westmount and Outremont.
- The average evaluation of a condo: $313,300
- The average evaluation of a single-family home: $484,600
- The average evaluation of single-family homes is over $1 million is four areas.
- The most expensive home is evaluated at $18.7 million, in Westmount.
- The airport has the most expensive annual tax bill: $1.814 billion.
The city said property owners can dispute their valuation increase, or consult it here, in French only.
Terry Kilakos, a chartered mortgage broker with North East Mortgages, said part of the problem is the formula used to arrive at the property valuations.
"They will look at comparables that have sold in the past three years as opposed to looking at current market conditions," Kilakos previously said.
Pierre Pagé is with the citizens' advocacy group, Montreal pour tous, said people watching the Charbonneau Commission are wondering where their money is going and are calling for a tax freeze.
"No more tax increases unless there's a plan to correct all those problems," Pagé said.
DeSousa dismisses said a tax freeze would be unfeasible.
"The city does have costs that go up, whether it be through increases in hydro, increases in gasoline, increases in wages and so on and so forth. So clearly a freeze on taxes would mean a significant impact on expenses and you have to make up the expenses," DeSousa said.
Graphics and statistics from the City of Montreal:
With files from Shu Yee Lee, CJAD News.