The Region's tax base is the total amount of property values.
Assessment growth is the sum of all the changes that happen to the Region's tax base during a year, including:
- New construction
- Major renovations
- Property value appeals
At the end of the year, all final property values are added up and subtracted from the original tax base. The year-over-year difference is our assessment growth.
That growth becomes part of the tax base in the following year, and is planned for in the budget.
It is important to note that assessment growth does not immediately result in more income for the Region. New or changing home values in a community may redistribute how much each homeowner must pay, but no new money is collected. The only time more money is collected through property taxes is when the budget increases in size.
Watch this video to learn more.
Calculating Assessment Growth
Assessment growth is forecasted at the beginning of every year and factored into the budget.
Tax base at the end of the year
- tax base at the beginning of the year
= Assessment growth