Despite the overall increase in the value of houses in the agglomeration of Quebec, the City of Quebec assures that the impact on residential and commercial taxes will be limited. Hotels and shopping centers recorded a decline in value due to the health crisis.
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This is what emerges from the new 2022-2023-2024 assessment roll filed Thursday and in effect from January 1, 2022. This document gives a photograph of the value of buildings in Quebec City on July 1, 2020, ie at the start of the pandemic.
We learn that the increase in the value of residences was 3.5%, two and a half times more than in the previous role. However, marked differences are recorded when comparing single-family homes to the condominium market, for example.
Adjusted tax rate
The City swears that it “does not use the (assessment) roll to increase its income”.
Thus, the municipality “will proceed as usual to cancel the effect of the variation in property values on the City’s tax revenues”, it was promised.
Concretely, the treasurer Chantal Pineault explained that “if we had not adjusted the (tax) rate, we would have had additional revenues of around $ 26 million”.
According to Luc Monty, City Manager, the average annual tax bill for single-family homes will increase by $ 19, compared to an average decrease of $ 65 for condo owners.
The next mayor will decide
To be precise, the next municipal administration resulting from the November 7 election will have to confirm – or reverse – the decision to adjust the tax rate.
Note that the new valuation roll does not take into account the strong effervescence of recent months on the real estate market in Quebec.
The City therefore warned homeowners that they “may perceive a significant difference” between these numbers and their own estimates of the current value of their home.
Mayor Labeaume was pleased to note that the photograph of the market was taken before the real estate overheating. In his eyes, this provides a more real picture of the current market.
The non-residential
For non-residential buildings, the health crisis had a significant impact, even if the average value is up by 2.7%.
Shopping centers and hotels must have suffered a sharp drop. Here again, certain nuances are in order. “Large shopping centers are more affected than small”, according to Éric Racine, director of the Evaluation Service.
Mayor Labeaume did not hesitate to speak of “the end of a model” for these centers, since consumers are buying more and more products online. This trend has been accelerated by the pandemic, he argued.
Marked differences
Change in value in residential
- Single-family: +3,3 % *
- Condos : -0,6 %
- 2 to 5 units: +3,4 %
Change in value in the non-residential sector
- Hotels and motels: -10,3 %
- Shopping centers and buildings: 7 %
- Restaurants : +0,4 %
- Wholesale : +13,1 %
- Retail : +4,5 %
In the agglomeration of Quebec, the total value of the building stock rose from $ 88 billion to $ 91 billion, an overall increase of 3.5%.
Source: Quebec City
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