Nova Scotia releases preliminary assessment values for 2023

How do I find my 2023 preliminary value?

Taxpayers can access the 2023 preliminary assessment valuation and calculation of their property (if available) on the PVSC website, using this link. You will need the account number and PIN provided on your 2022 assessment notice.

The preliminary values have been released more than 2 weeks later than in prior years, therefore the window to review and discuss the published preliminary 2023 assessment values is short.

What tax changes are expected for 2023?

Multi-residential

Based on a preliminary review of a sample of Halifax properties, we expect the assessments of multi-residential properties to increase by 12%, and industrial by 8%. These increases were anticipated given strong market fundamentals.

Retail

Assessments of food-anchored strip plazas and single-tenant retail are also slated to increase, and our preliminary analysis shows 6% growth in this sector. We strongly recommend careful examination of assessed values in this asset class, as the market impacts and pandemic influences were highly individualized in 2022.

Office

We expect office assessments to remain largely unchanged from the previous year. Our preliminary analysis shows a modest 0.2% increase in values. The post-pandemic reality for office space is still in question, with the adoption of remote and hybrid work models.

Hospitality

Also in question is the value of the hospitality sector. The PVSC has not released preliminary values for this sector as of the date of this article. For 2022, values of hospitality properties were discounted by -25% in HRM and +/- 15% in more seasonal markets to account for the negative effects of COVID-19. It remains to be seen how PVSC will treat hotel values for 2023 given the effective date is January 1st, 2022: at the height of the third pandemic wave.

What to expect: Reassessment changes for 2023

Valuations are going up in:

• Multi-residential

• Industrial

• Retail

No change/reductions in:

• Office

• Hospitality - pending

Halifax tax changes

Halifax Regional Municipality (HRM) has adopted tax mitigation proposals for 2023 that could magnify increases for a number of property types.

How do I know if my assessment is accurate?

It is important to not only consider the value change from the previous assessment but also variables such as chronic vacancy and collection loss, physical changes, or external market factors which may negatively impact your property’s value.

In addition, the assessed value of your property should reflect the impact of the COVID-19 pandemic. According to assessment legislation, the date the condition of the property is measured is December 1, 2022. The effective date of the value is January 1, 2022 – well within the pandemic’s third wave.

How can Altus Group help?

Our team has extensive experience with pre-negotiation of assessments, as well as appeals. We will work with you to identify any issues and leverage our professional relationships with the assessment authority to negotiate an appropriate value. If we are unable to achieve a settlement during this period, we will still have the opportunity to appeal in the New Year when the assessments are finalized.