Saint John man disputes tax assessment that's triple sale price

Home buyers getting steals on deeply discounted properties in the Saint John area this spring say they're getting robbed themselves by the provincial government on taxes.

Daniel Wheaton got a great deal on a run-down home in Saint John's Morna Heights earlier this month, paying $26,000 for the fixer-upper.

But when he and his partner at Flip Flop Developments went to the provincial government to have the $80,000 tax assessment on the house reduced they were turned away.  

"Basically we're one week late," said Wheaton.

New Brunswick allows property tax bills to be appealed only until April 1 and Wheaton's purchase closed on April 7. 

He was told the $80,000 assessment and the tax bill that went with it wouldn't be changed until next year.

Wheaton said he is unclear how provincial property tax assessors set the value on his property as high as they did.

He said he is unhappy the gap between the assessed value and the purchase price won't be addressed until 2016.   

"As far as I'm concerned the property is maybe worth $40,000, so the bill should be if that's the case $1,250, not $2,500," said Wheaton.

"It's a 900-square-foot bungalow with a cracked carrying beam, leaky roof, drafty windows, ungrounded wiring, dangerous steps, missing flooring, run-down kitchen, dilapidated garage, under-insulated walls and a driveway that doesn't even reach to the house," he said.

Wheaton said any home sale that is significantly above or below a property's assessed value should trigger a review of the assessment whenever it happens, not once a year. 

Rothesay resident faces similar problem

Michael Caissie said he agrees with that idea after he ran into a similar problem.

Caissie bought a home in Rothesay two weeks ago at $56,000 under its assessed value and, like Wheaton, was told his taxes cannot be changed until next year.

"I thought that the price I paid was fair market value and therefore the tax assessment was not accurate," said Caissie.

"I was told that while I could have it reassessed within the next month or two, the results of my assessment would not apply until 2016."

Caissie was told by the provincial government the previous owner should have appealed the assessment.

But he said that is unrealistic since sellers try and promote their properties as being worth more, not less, and don't have to worry about year's tax bill.

Service New Brunswick says its goal is to set assessments at market value which it describes as "what each property would sell for on the open real estate market." 

A department spokesperson couldn't immediately answer why assessments and tax bills can't be adjusted more frequently than once a year.