Client Profile

Energy services company with holdings throughout Canada.

The Challenge

Following an appeal of the client’s larger industrial properties in Newfoundland, we reached out to the assessment authority and negotiations and positioning commenced. The assessment authority was initially resistant to reduction as they felt the assessment was fair and even below that of market value. Nonetheless we analyzed the assessment calculations provided by the assessment authority, vetted them, and developed our own positioning in support of a reduction.

In Newfoundland our arguments are largely based on equity positioning. We tabulate all assessment calculations on our files and benchmark them against the subject to ensure that the assessor is using consistent valuation parameters. The assessment act specifies that all properties within the same municipality must be equitable with each other and as such we adventure to exploit any such disparities. We do consider the income approach, direct comparison and cost approach as indicators of market value of use as potential recourse. However generally the assessment authority’s valuation parameters are significantly more conservative than the market place and as such market information is oftentimes moot or best left out of our justifications for reduction.

Therefore, we focused our efforts on building our arguments around equity, relating to both an income approach methodology employed by the assessment authority as well as assessment comparisons on a per unit basis within the region.

The Result

In the end, we were successful in achieving a 22% reduction in assessment that resulted in $90,970 in tax savings over the remainder of the 3 year assessment cycle