Personal Finance

Does the sale price affect future property tax assessment?

  • Last Updated:
  • Jul 30th, 2009 7:54 pm
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[OP]
Jr. Member
Jan 27, 2009
177 posts
2 upvotes

Does the sale price affect future property tax assessment?

Just curious...

A friend is buying a house by private sale. The current assessed value is 253,000$ and his purchase sale agreement shows 300,000$ as the sale price.

Will the province hike the property tax assessment because the sale price is considerably over the assessment value?

The reason I ask is because it's a private sale, they can "fudge" the purchase agreement a little bit if it would be beneficial...

The province is New Brunswick...

Anybody know for sure?
5 replies
Deal Addict
Sep 22, 2007
4599 posts
120 upvotes
They won't change his assessment just because of what he paid. The sale price does affect assessment values however. If houses are assessed at $250,000 but a bunch sell at $300,000, then the next time that values are assessed it will probably shift upwards.
Member
Mar 25, 2006
352 posts
49 upvotes
Victoria
Market value (sale price) and assessed value are not necessarily going to be the same. very rarely are actually. Assessed values are heavily dependant on neighbourhoods (surrounding houses), and any upgrades done (with permit). If a house has upgrades, but done without permits, the municipality is unaware and the assessment may not change much. if however the same house had upgrades with permits drawn, then almost certain the assessed value with increase.
[OP]
Jr. Member
Jan 27, 2009
177 posts
2 upvotes
Cool, thanks for the confirmation guys :)
[OP]
Jr. Member
Jan 27, 2009
177 posts
2 upvotes
spursbob wrote:
Jul 30th, 2009 7:51 pm
Also, have you checked the following link to see recent sale prices and the assessment values in the neighborhood?

https://www.planet.snb.ca/ANONDB/anon002$.startup

We have, but there are very few sales, and the amounts all seem quite lower than what my friend is paying, but he does live on a street that has bigger houses than the surrounding area. None of the big houses have sold recently...

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