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You and "YOUR" Property Tax Bill - Environmental Impacts On Property Assessments

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Environmental Impacts on Property Assessments

 

Municipalities  considering wind farms have something else to consider now when reaching their decision. How much will it impact their assessment base. With one successful appeal on the records it will not be to hard for others in a similar situation to successfully get their assessments reduced.

Any thing that affects the value of your property should also affect the assessment of your property. In light of this landmark case it is possible that MPAC (The Municipal Property Assessment Corporation) will reduce the value of other properties that are similarly affected but don't count on it.

 

 

 

Original content by Marg Scheben

Even with the new proposed regulations surrounding their installations, the debate about wind turbines continue to rage in Ontario and certainly here in the Blue Mountain area.

A recent column by Bob Aaron in the Toronto Star caught my attention as he described the case of a taxpayer who challenged the Municipal Property Assessment Corporation (MPAC) in September, 2008. (How did we miss that!?)  This case set a landmark precedent attaching a dollar value to potential impacts of industrial wind installations on surrounding land owners.

A fellow by the name of Paul Thompson of Amaranth Township in the Shelburne area, appealed the assessed value of his home on the basis that it was located opposite a hydro substation that served an area wind farm.  His appeal was not actually based on the existence of the turbines but rather, on the noise produced by the substation.  He entered evidence that showed it emitted noise at a decibel level exceeding the normally acceptable  range.

In its ruling, the board member wrote that, "The Board finds that the constant hum alleged by Mr. Thompson does exist and significantly reduces the current value of the subject property."  They also said, "Having heard this nuisance, apparently sanctioned by the Municipality, the Board accepts Mr. Thompson's testimony that the stigma of noise contamination has a negative impact on the value and marketability of the property, and that after learning of the hum, prospective purchasers will quickly lose interest in purchasing the property. The Board is satisfied that a very substantial reduction is warranted."
 
The Board cut Mr. Thompsons assessed value of his property in half from $255,000 to $127,000.  What I find troubling about this case is that the number was not quantified and I read no evidence to suggest what the new property value should be.  Does this mean that a property affected by noise is impacted by $127,000 in that location?  Is that the new number?  If the house were originally valued at $150,000 or at $750,000, how would the value have changed?

Only time will answer the question as the free market adjusts for new conditions emerging in a new world.
The map featured here comes from the Canadian Wind Energy Association website which lists on the site, all of the current wind farm operations in Canada.

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Comments (2)

Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Barrie,

 

This is very interesting. What is the general size of the catchment area?

 

Brian

Feb 17, 2010 10:51 PM
Barrie Clulow
My Time Is My Own - Uxbridge, ON

Brian - Sorry I don't know any more than what is written here as it is a reblog of Marg's post but from what I read here and in the article in the paper it was one individual property.

Feb 18, 2010 11:34 AM