Posted by blood roses at 9:36am Aug 9 '06At least not here (Calgary, AB). Here, the city council decides how much money they need to bring in in property taxes. That amount has no relation to property values. Property values are used to determine how much of the total amount each person should pay.
It's like this:
Municipal Tax Rate =
Total revenue required by the city from property tax
----------------------------------------------------
Total Assessment
Property Tax bill = Assessment x Municipal Tax Rate
So as house prices go up, the tax rate goes down. So even if the value of your propety increases, you may still have a decrease in your property tax bill if the value of your property increased less than the average.
It's like this:
Municipal Tax Rate =
Total revenue required by the city from property tax
----------------------------------------------------
Total Assessment
Property Tax bill = Assessment x Municipal Tax Rate
So as house prices go up, the tax rate goes down. So even if the value of your propety increases, you may still have a decrease in your property tax bill if the value of your property increased less than the average.
Link: source
It doesn't work that way - blood roses