Property Assessment

The Property Assessment Process

The MRC Pontiac’s property assessment department is responsible for preparing and updating the assessment rolls for the 18 local municipalities and the TNO. Approximately 20,000 files make up the MRC Pontiac’s assessment rolls, and each unit is represented on a map.

In effect for three municipal fiscal years, the property assessment roll is a summary of the inventory of properties located on a municipality’s territory, assessed on the same basis and at the same date. It is a basic element of the municipal and school tax system in Quebec.

You can learn more about the municipal assessment process in this video produced by the Association des évaluateurs municipaux du Québec.

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Responsibilities With Regards to the Roll

The various responsibilities for preparing and maintaining the roll are shared between 3 parties.

First, the municipal body responsible for assessment (MRC Pontiac) must :

  • prepare a roll for each municipality on its territory every 3 years;
  • appoint the assessor.

The assessor (FQM – Québec Federation of Municipalities), for its part, must :

  • prepare and draw up the roll using the information prescribed for this purpose;
  • sign the roll in accordance with regulatory formalities;
  • file the roll by sending it, within the prescribed time, to the clerk of the local municipality concerned.

The clerk of the local municipality is then responsible for :

  • certifying that the assessor has filed the roll;
  • giving public notice of the filing;
  • making the roll available to anyone wishing to consult it.

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Median proportion, comparative factor and standardized value

The median proportion and comparative factor are established based on sales on the municipality’s territory during the previous year, compared with the value deposited during the first year of the triennial roll. These data are prepared by the appraiser and approved by the MAMH (Ministère des Affaires municipales et de l’Habitation). This data changes each year according to sales and is used to establish the “standardized value“. This shows where the municipality’s assessment roll stands in relation to sales on its territory. The appraiser’s goal is to aim for a factor of 1.00 as closely as possible, i.e., to ensure that the sale price is as close as possible to the property assessment value (assessment roll). If sales prices are higher than the assessment roll value, the comparative factor is greater than 1.00. 

 

For example: If the comparative factor is set at 1.10 and your property is valued at $100,000, the standardized value is obtained by multiplying the roll value by the comparative factor: i.e. $100,000 x 1.10 = $110,000. If sales prices are lower than the municipal assessment, the factor is less than 1.00. So, if the municipality’s properties (homes, land, woodlots) sell for much more than their roll value, the comparative factor will be higher. If, the following year, there isn’t as much difference between the municipal assessment and the sales value, the comparative factor will decrease. 

 

The median proportion, on the other hand, indicates in percentage terms what the municipal property assessment is in proportion to the so-called market value. It should tend towards 100%, but if, for example, the previous year’s sales amounts were on average 10% higher than the municipal assessment of these properties, the median proportion would be 91% (municipal value corresponds to 91% of market value). 

 

The standardized value (market value of the property) is the actual market price at the beginning of the year if you were to sell your property (This is true in general, because let’s not forget that the comparative factor is unique for the entire municipality.). Since the market changes every year, the standardized value is adjusted accordingly. The annual taxation of your property is not based on the standardized value, but rather on the value entered on the assessment roll. This is called “taxable municipal assessment”. School boards, on the other hand, use the standardized value as the basis for their taxation calculations. In the case of a property sale, the transfer tax is based on the standardized value or the sale price, whichever is higher. The standardized value is also used by certain banks, credit unions and financing companies when applying for financing. The government uses it to calculate a municipality’s property wealth when it comes to subsidies or billing for services.

Determination of the building value

When it comes to municipal taxation, a distinction is made between the value of the land and that of the building. However, it is the global value of the property that is considered for municipal taxation purposes.

 

How is the building value determined?

The municipal evaluator performs two assessments for all constructed properties. First, he determines a property’s value by analyzing comparable transactions in the sector. By law, the assessor must then determine the value of the land as if it were vacant. It is during this assessment that he examines sales of vacant land.

The value of the building is the result of a mathematical operation: the value of the property (first assessment) minus the value of the land (second assessment).

An example is worth a thousand words

Property value based on constructed sales:                                 $337,000

Land value based on vacant lot sales:                                             $158,000

Building value:                                             $337,000 – $158,000 =   $179,000

 

Consequence of this assessment

The consequence of this mathematical assessment may, in some cases, be a lower building value than on the previous roll. In conclusion, the value of the building is given for information purposes only and to meet a legal obligation. It is the total value of your property that serves as the basis for municipal taxation purposes.

Act Respecting Municipal Taxation

The Act respecting municipal taxation (R.S.Q., c. F-2.1) sets out the rules for preparing municipal assessment and taxation rolls. From the outset, it dictates the professional qualifications required of the assessor signing the roll, and defines the value to be attributed to each assessment unit, as well as the immovables that must or must not be entered on the roll. It also defines the rights and obligations of the assessor in the performance of his duties, and the rights of the municipal taxpayer. It also prescribes the mechanisms enabling the latter to obtain a review of the assessment filed and, in the event of persistent dispute, to have recourse to the courts.

Have Questions?

If you cannot find the answer to your question on this page, or if you would like to meet with an evaluation technician, please call 819-648-5689 ext. 231 or send an email to evaluation@mrcpontiac.qc.ca.

CONTACT THE MRC PONTIAC

The assessment roll is an inventory of all residential, industrial, commercial, institutional and agricultural properties on the territory. It indicates the value of each property on the basis of its real value, i.e., its exchange value on a free and open competitive market. In other words, it is the most likely price a buyer could pay for a property in a private sale. This value, which is entered on the assessment roll, serves as the basis for the application of municipal and school taxes.

The assessment roll is reviewed every three years to eliminate, as much as possible, any discrepancies between the market value of a property and the value entered on the roll.

The appraiser bases the value on what the market value of the property was 18 months prior to the effective date of the roll, e.g. the value on July 1, 2022 for the roll effective January 1, 2024. This value represents the most probable price a buyer could pay for the property in a normal private sale.

In the field of valuation, the following three methods are recognized to establish the real value of a property:

  • The cost method -The appraiser adds the value of the land to the cost of new construction less depreciation, such as wear and tear caused by the age of the building.
  • Comparison method-Appraiser estimates the value of the property by comparing it to the selling prices of properties with similar characteristics.
  • The income method-For industrial, commercial or multiple-unit residential properties, the appraiser must take into account the potential gross income of the property, less losses for bad debts and vacancy of the property, less operating expenses (taxes, insurance, maintenance, etc.).

The property assessment roll is an inventory of the buildings in the territory that indicates the value of each property based on its actual value and real estate market conditions on a given date.

Taxation establishes the revenue to be collected on each property by multiplying the municipal assessment of a property by the municipal tax rate.

As an example:

  • Municipal property value ABC as established by the assessment roll = $25 million
  • Annual expenditure by the municipality = $2 million
  • Annual revenues of the municipality including rate revenues (flat rate services, e.g. water, sewer, waste…) = $1,750,000
  • Amount collectible (general tax) = $250,000
  • Tax in $/100 of evaluation = $1.00
    [ 250,000 / 25,000,000 x 100]
  • Therefore, for a property valued at $200,000 in Municipality ABC, the general tax will be $2,000, or 1% of the value of the property as established on the assessment roll.

A taxpayer may request a review of his or her entry on the assessment roll in the first year of the three-year roll, or if changes to the property warrant a new assessment, in which case, only those items that have changed may be subject to a request for review.

If you disagree with the assessment of your property, we recommend that you consult with our appraisers before initiating a formal review process to avoid unnecessary and costly steps.

To initiate a formal review procedure:

  1. Beware of delays – The request for review must be made before May 1st of the first year of the three-year roll or, in the case of a notice of amendment, within 60 days of the notice being sent.
  2. Complete the Request for Review form and submit it in person to the Assessment Department of the MRC in Campbell’s Bay, or send it by registered mail to: 602 Route 301, Campbell’s Bay, Quebec J0X 1K0, with your payment.
  3. Pay the required fee according to MRC bylaw 287-2023. The fee schedule can be seen below, and the payment can be made by cash, interac debit or by cheque.

Role Value: Less than or equal to $500,000; Rate: $91.35.

Role Value: More than $500 000 and less than or equal to $2 million; Rate: $365.10.

Role Value: More than $2 million and less than or equal to $5 million; Rate: $608.60.

Role Value: Over $5 million; Rate: $1,217.50.

For more information, please visit the Quebec Government website. (French only)

  • First, the appraiser must check the application for the merits of the dispute. (Note that, by law, the amount of fees payable is not a valid reason for review).
  • The appraiser must then render a decision to the applicant before September 1 of the first year of the assessment roll, or 4 months after the filling of the application if it is an administrative review following the issuance of a notice of amendment or an automatic correction by the MRC appraiser.
  • In case of disagreement with the assessor’s decision, the Municipal Taxation Act allows the applicant a last recourse before the Administrative Tribunal of Québec.
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