Are you looking to buy a home in the near future? Or, do you currently own a home and simply want to learn more about how property tax works in Regina? Whatever the reason, if you’re looking to buy a property, you need to understand the associated taxes.
Recently, property owners in Regina have witnessed a rapid increase in property taxes. In 2018 alone, property taxes shot up by 4.5 percent. And while property tax is applicable on all types of real estate, the specific amounts vary depending on certain criteria, including location and assessment value.
But is there a chance that you could be overpaying your taxes? Or, could you be eligible for a tax abatement? Well, let’s find out! The following is everything you need to know about property tax in Regina.
Expensive Properties are Subject to Higher Taxes
As already mentioned, property taxes will vary based on various factors. One such factor is assessment. This means that a more expensive property will have higher property taxes. This is based specifically on the city of Regina’s assessment.
An example of this would be a property valued at $269,900 in Rosemont. This property will have taxes of $2,637 every year. On the other hand, a homeowner in Lakewood Addition will need to pay about $6,000 in property taxes every year.
You Can Challenge the City’s Assessment
The assessment on your property should always be lower than your home’s value. It should never at any point be above it.
No standard difference exists between market value and the assessed value. So, if the city has done an assessment that exceeds the home’s selling price, you should fight the assessment. In such a case, you’d need to request that the city of Regina conduct a reassessment of your property taxes for that year.
Check to See if You Qualify for a Tax Abatement
Are you building on an infill lot? If you are, chances are that you qualify for a tax abatement. Regina encourages improvements in older neighborhoods and will approve a certain number of infill properties every year.
So, if you’re building an infill, you may be eligible for a 5-year tax exemption. The application for the exemption can be made once you have acquired the building permit and before the occupancy limit has been issued.
Improvements to Your Regina Home Will Attract More Taxes
Are you considering adding a deck to your property? Or, are you currently finishing the basement area of your property? You should know that those ongoing improvements will increase the value of your home. And remember that the higher the value of the property the higher the property taxes.
There are several reasons this makes pulling permits for improvements so crucial to the city. First and foremost, they require permits in order to ensure that any improvements being done meet the code. And secondly, to ensure that they are able to keep track of properties for tax reassessment purposes.
You Could Qualify for a Tax Incentive Program
Plenty of condos are available in Regina and some are even offered with a 5-year tax abatement program. Some home builders like Porchlight Developments offer a tax incentive program. You should check with them to see if you qualify.
Tax Payment Options
There are a variety of options when it comes to the payment of taxes. Such options include paying your taxes in full or paying them through a monthly payment plan called a Tax Installment Payment Plan Service (TIPPS).
If you choose to pay them in full, then you must do so by June 30th by any of the following three ways. You can do it online, in person at City Hall, or by mail. Please note that you cannot pay your property taxes using a credit card.
If you choose to pay using TIPPS, then you’ll have to do so in 12 monthly installments. You can enrol in the payment plan at any time. If you choose to do so for the following year, then ensure you have paid off your account balance by December 15th.
Please note that all payments you make using the Tax Installment Payment Plan Service are non-refundable.
Updating a Property Tax Account
The City of Regina gets an owner’s mailing address when you registered with the Information Services Corporation. You have two options when it comes to updating your mailing address. You can do so online via eProperty, or by filling out a form to change your mailing address and send it to the city.
The other requirement when updating a property tax account has to do with your school tax declaration. This is a declaration of faith. It applies to all properties under your name. You can do so online, or by completing an individual or organization declaration form and mailing it to the city.
Under The Education Act, if you don’t complete the school tax declaration with the city, you’ll be deemed to be a taxpayer of the public school system.
Property Tax Penalties
Outstanding balances after the tax deadline will attract a late fee penalty of 1.50%. However, if you participate in the TIIPS program, no penalties will apply.
If you fail to pay your property taxes after December 31, your property will be in arrears. Consequently, you’ll be penalized at 1.75 percent per month. What’s more, the address of your property, as well as the outstanding amount, will be included in a Leader-Post advert of accounts with tax arrears. This will be done in accordance with the Tax Enforcement Act.
If your account is still in arrears by April of the following year, a tax lien will be registered by the City of Regina. The city will then have authority, under the Tax Enforcement Act, to pursue taking your property’s title.
Non-profit organizations are exempt from the payment of taxes. To qualify, non-profit organizations must comply with all the requirements under the City’s Community Non-Profit Tax Exemption Policy.
As a property owner or soon-to-be owner, it’s important that you familiarize yourself with property tax rules and exemptions.
If you have a specific question in regards to property tax in Regina get in touch with Jennica George right away. I’m an experienced realtor that can make your real estate experience a walk in the park!