Annual Tax/Assessment notices are issued in June and are the assessed value of the property as of Dec. 31 of the previous year.
Supplemental Tax/Assessment notices are issued to all new homes, buildings or additions to an existing building or property that have been completed/occupied within the current tax year. This reflects the increase in value of a property throughout the calendar tax year.
A supplementary tax is determined by multiplying the supplementary assessment by the tax rate, and pro-rating this amount based on the period of time the building has been completed or occupied for the current tax year.
A property may have been assessed as vacant land for the current tax year. Therefore, when the construction of the home was fully completed later in the year, a supplemental tax notice is prepared for the months of completion to the end of December.
2013 assessment = 216,920.00 (assessed as vacant land as of Dec.31/12)
February 2013 - construction on the home began.
June 2013 Tax notice = $1,623.53 (taxes based on the vacant land assessment)
September 2013 - house is completed and owners have moved in
November 2013 - Supplemental Tax notice issued:
Supplemental Assessment value = 216,140.00 x (0.007484459) =$1,617.69
$1,617.69 /12 months= $134.81 per month x 4 months (September to December) = $539.23
Supplemental assessments ensure that everyone pays their fair share of municipal taxes according to the current value of their property and the municipal services that they are receiving.