The taxable assessment on owner-occupied residential property will remain frozen in 2010, says Minister of Finance and Municipal Affairs Wes Sheridan.
The freeze is keeping with government's commitment to fair taxation, Sheridan said Friday.,
"The assessment freeze program we introduced in 2007 has saved
Island homeowners an estimated $5.5 million since its introduction two
and a half years ago," Sheridan said. "I am very pleased to
announce that frozen assessments will be maintained for another year -
this supports our program of fair taxation."
In the fall of 2009, legislation was passed to ensure that any
future increase in assessment on owner-occupied residential property for
purposes of taxation will be tied to the Consumer Price Index (CPI) for
the previous year.
As a result of the legislation, recent stability in CPI dictates that no increase is permitted for 2010.
"That legislation is built around the idea of fairness and
predictability for Island homeowners. Given the worldwide economic
uncertainty that has challenged all jurisdictions, I am pleased that the
new legislation reflects the need to maintain taxes at the lowest
possible level," Sheridan said.
"Under the previous administration, property taxes increased
dramatically and abruptly. Our new system will prevent these shocks -
and continue to offer much-needed breaks to Island homeowners."
Between 1996 and 2007, property tax revenues increased from $38
million to $64 million. Since 2007, taxable assessments have remained
relatively stable - due mainly to the three-year freeze and the
legislation passed in 2009.
