The City of St. John’s determines the market value of all properties for property tax purposes as of a base date. This is a set date used for assessment, not the current value of your property.

Base dates:

• 2024 and 2025 assessments is January 1, 2022

• 2026 and 2027 assessments is January 1, 2024

Market value is defined as the most probable price which would be paid, as of a specified date, for a property that has been exposed in a competitive market with a buyer and seller each acting prudently, knowledgeably and for self-interest, assuming that neither is under duress. 

Important: The value on your assessment notice is historical, reflecting what your property was worth on the base date, not today.

How Properties Are Valued

Assessors determine market value using three main methods:

1. Direct Comparison – This is the most common valuation approach. Sales of similar properties near or on the base date are analyzed. 

2. Income – Typically used for commercial properties, this method looks at a property's ability to earn revenue to determine its market value.

3. Cost – Calculates the cost to replace buildings or structures, minus depreciation, then adds land value.

Mass Appraisal vs. Individual Property Appraisal

The City of St. John’s uses a mass appraisal process to assess properties. Mass appraisal values many properties at the same time using standardized methods, statistical models, and market data to ensure assessments are fair, consistent and equitable across the city.

The process considers factors such as:

• Recent property sales
• Building type, size, age, and location
• Property characteristics
• Neighbourhood and market trends
• Market-adjusted cost models and mass sales models

Rather than inspect every property each year, the City uses a combination of digital property records, building permit information, aerial imagery, and other data sources to monitor changes and update assessments.

Unlike an individual property appraisal completed for purposes such as a home sale or mortgage, mass appraisal is designed to value all properties using a consistent approach rather than determining the exact market value of a single property at a specific point in time.

Uniformity Does Not Mean Equal

While it may seem that your property is similar to your neighbours, not all homes are truly equal. Some examples of what may cause differences in valuation include:

• Renovations (kitchens, bathrooms, flooring, basements)
• Additions (garages, decks, sheds)
• Interior upgrades (e.g., finished basement)
• Property condition (based on age, reported data, or prior inspections)

Some of these changes may not be visible from the street but still influence valuation if they've been captured through permits, previous inspections, or modelling updates.

While the mass appraisal process aims to be fair and consistent, market conditions, historical valuations, and property-specific data can result in variation.

Why Your Increase May be Higher than “The Average”

There are several possible reasons a property may experience a greater-than-average increase:

• It may have been undervalued in the previous cycle, and the new assessment corrected that.
• The model used for reassessment captured features or upgrades to the property there were not present in other neighbouring homes.
• The area the property is located in experienced stronger sales activity or rising prices.