THE NUTS AND BOLTS ABOUT PROPERTY ASSESSMENTS
By Laura Kemp, P.App., CRA
Recently, many property owners in Manitoba received their Property Assessment Notices. According to the Municipal Assessment Act, properties must be reassessed every two years. Property Assessments are based on the property's value as of April 1st, two years prior. Consequently, the 2027 reassessment reflects property values as of April 1, 2025, while the 2025 assessment was based on values as of April 1, 2023, etc. Many homeowners have recently reported significant increases in their property’s assessed values for 2027 as compared to the past 5-years.
Instead of focusing on the difference in your property’s assessed value over the previous one,
consider only whether the new assessed value is reasonable for what
your property could have sold for on April 1, 2025?
When conducting appraisals in the Eastern Beaches of Lake Winnipeg, I have noticed that sales prices have often exceeded assessed values in recent years. Similarly, estate and family property accounting appraisals have shown higher market values than assessed values, raising questions about the accuracy of previous old assessments. Large increases may be in fact due to inaccurate old assessments finally being more accurate. Just because your assessment value goes up it does not necessarily mean your taxes go up by an equal amount.
SHOULD I HIRE AN APPRAISER?
Possibly, but I wouldn’t hire one as the first step. For an RM of Alexander property-tax assessment appeal, an independent appraisal is most worthwhile when the assessment is substantially higher than what you believe the property was worth on the relevant reference date, and the potential tax savings justify the appraisal fee.
Ask yourself whether the assessed value is reasonable based on what your property could have sold for on April 1, 2025? If the answer is yes, then your assessment is likely accurate. If the answer is no, consider how far off the assessment is. Generally, I advise homeowners not to go to the length of a formal appeal unless the assessment is off by at least $70,000. A professional certified cottage appraisal costs at minimum $685 (lakefront, acreages, or unique properties are more). To justify a formal appeal, you should aim to save at least this amount in taxes, that is, if your assessment is successfully lowered.
STEPS TO TAKE BEFORE YOU APPEAL A PROPERTY ASSESSMENT:
Login to the Property Assessment and review the comparable sales used to support your assessment www.manitoba.ca/myproperty. Click on Assessment Notice and Property Details. Here you can click on roll # to see the details about your property. Check for any inaccuracies in property details. You can see your current assessment notice and past historical ones. If available, click the sales icon ($) to view sales information.
If you disagree with your assessment, the first step is to talk to your assessor. Your assessor can explain the basis of your property assessment and why it has changed. Call 204-785-5092 or Email assessment@gov.mb.ca
If you still do not agree with your assessment, even after talking to your assessor, you may apply for a revision of the assessment to the Board of Revision, established annually by your municipality. For the RM of Alexander, the 2027 Assessment Roll Board of Revision is October 7, 2026, and the deadline to submit an assessment appeal is September 21, 2026. Here is a link to information you will need to appeal appealing_property_assessments.pdf
Collect evidence to support your claim that the assessment is incorrect. This can include:
Photographs and documentation of any property conditions that might affect its value
Recent sales data of comparable properties in your area
A professional appraisal report from a designated appraiser may be necessary
For the hearing and you may require to bring your appraiser as an expert witness which usually starts at fees of $1,000 or more.
Assessors typically use mass appraisal techniques to value properties. This method involves evaluating groups of properties at once using standard formulas and data sets, rather than conducting individual assessments for each home. While this approach is efficient and ensures consistency, it may not account for unique features, upgrades, or improvements specific to your property. As a result, the assessed value may be higher or lower than what a potential buyer would be willing to pay.
Education Tax!
The Province of Manitoba has made a major change to education property-tax relief beginning in 2025, and it matters especially for people who own cottages, second homes, rental properties, higher-value homes, commercial property, or multiple properties. The new Homeowners Affordability Tax Credit (HATC) only applies to your principal residence. Suppose, purely as an illustration, a cottage had $2,000 of gross school taxes. Under the 2024 system, the 50% School Tax Rebate could reduce that by approximately $1,000. In 2026, if that cottage is not the owner's principal residence, it doesn't qualify for the $1,600 HATC. The owner can therefore experience a substantial increase in the net education taxes actually payable, even without an equivalent percentage increase in the property's assessment. That's why comparing only the bottom line of a 2024 tax bill with a 2026 bill can be misleading. Part of the increase may come from provincial rebate policy rather than from an assessment increase or municipal tax-rate increase. School Taxes are in Pink, Municipal Taxes are in Blue on your tax bill.
Market Value vs. Assessed Value
It's important to understand the distinction between market value and assessed value. Market value is the price a willing buyer will pay for your home in the open market, considering its unique attributes and current market conditions. Assessed value, on the other hand, is a value determined by the local taxing authority for the purpose of calculating property taxes. This value is designed to be fair and equitable within the context of the broader community, rather than a precise reflection of individual market transactions.
Reasons to Consider an Appeal
There are several reasons why you might consider appealing your property tax assessment:
Overvaluation: If you believe your property’s assessed value is higher than its actual market value, an appeal could result in a lower tax bill.
Inaccurate Property Details: Errors in property details, such as incorrect measurements or outdated information, can lead to incorrect assessments.
Comparable Properties: If similar properties in your area are assessed at lower values, it may indicate that your assessment is too high.
Appealing your property tax assessment in Manitoba can lead to significant savings if your property has been grossly overvalued. Understanding the process and gathering the right evidence are key to a successful appeal. At Kemp Appraisal, we are committed to helping you achieve a fair and accurate property assessment. Contact us today to learn more about our services and how we can assist you with your property tax assessment appeal.
Laura Kemp, P.App.,CRA, has been appraising homes in Manitoba for 18 years and specializes in appraisals for legal matters such as division of assets, family property accounting, and estate matters.
Laura Kemp, P. App, CRA
Kemp Appraisal Ltd.
Phone: 204-791-1746
Email: laura@kempappraisal.ca
Website: www.kempappraisal.ca
