CHAP 03 REVIEW Q&A

Question 1

Story from Assignment 3 #3:
Marry was considering the purchase of a small office building in which to carry on her accounting business. She was concerned about expected increase in property taxes and approached the assessor for assistance. The assessor informed Marry that “the expected increase in taxes is about 15 percent”. Behind the counter was a notice stating, in part:
“The employees of this office cannot provide accurate information about expected property taxes. Any taxpayers who relies on such advice does so at their on risk”.
Mary purchased the office building and six months later received a tax bill that was double the previous year’s bill. The assessor was unaware that the municipality had intended to shift the tax load to business property. Mari is forced to relocate.
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From the above situations, what could the assessor have done to avoid this situation

Answer 1

The assessor could have explained in general terms how the property assessment and taxation system operates. He or she could have then reviewed the past relationship between value and property taxes.
Marry could have been directed to the municipality for more information or the assessor could have contacted the municipality on her behalf. At no time should the assessor have given Marry an estimate of property taxes on her specific property without first contacting the municipality.

Question 2

The functions an assessor performs can be broadly classified as either judicial (including quasi-judicial) or administrative.
Why is the distinction between judicial and administrative functions important?

Answer 2

Judicial decisions can be appealed to courts and tribunals for review.
Administrative actions are not subject to review by courts unless specifically provided for in the statute.

Question 3

In a situation in which an appraiser must assign a market value, indicate whether or not each of the following restrictions in use should be taken into consideration and discuss why or why not.

1. A registered right of way in favour of the provincial hydro authority.
2. Rents restricted by provincial rent control.
3. An unregistered agreement with the owner of neighbouring property to allow access along the driveway of the property.

Answer 3

Given the decision reached in Consolidated Shelter Corp, v. Rural Municipality of Fort Garry (1965) 49 O.L.R. (2d) 565 (Man.C.A), assessors can ignore the effect of any restrictions on use that have been placed there by the owner.

1. The assessor will, however, consider all restrictions that affect market value and bind subsequent owners. Taken into consideration; restricts the current and all future owners’ use of the property; alternative answer : if a student specifically states that the interest to be valued is the fee simple interest (e.g. as required in the B.C. Assessment Act), then it would be correct to state that this interest is not to be taken into consideration. Reference must be given to valuing the full fee simple interest.
2. Taken into consideration; ultimately, the effect on value would be reflected in lower sale prices for rental properties;
3. ignored; unregistered and therefore does not affect subsequent owners.