FRL Speaks: Newly Constructed Homes and Property Taxes

Published on: 2014-08-29 12:26:52 PM New Constructions

When purchasing a newly constructed home it is important to note that property taxes at the time of closing will likely be based on land only. This means, that the builder is currently only paying taxes on vacant land as the City and province have not yet assessed the value of the newly constructed home and therefore have not set the property taxes based on the property assessments.

For a purchaser of a newly constructed home this means that you should be setting money aside for your future supplementary tax bill(s) which will be retroactive to your possession date. The process to assess properties varies and can take as long as three years, as recently highlighted in the Ottawa Citizen article “Adami: Neighbourhood hit with three years of property taxes” concerning an Ottawa development on Kennacraig Private.

To assist in budgeting for these supplementary tax bills, the City of Ottawa has a “Property Tax Estimator” available on their website. Further, it is recommended to contact the City of Ottawa and/or the province to follow-up on your property assessment to ensure that your assessment is on track and not “overlooked” as might have been the case recently in the Ottawa Kennacraig development.

For more information, please do not hesitate to contact us.

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