Statistics
As explained in my last post Understanding Residential Property Assessment in Ontario the assessment world uses statistical analysis in determining your property assessment. If the information used in that statistical analysis is flawed or incomplete then the analysis itself will be flawed and resulting assessments will be incorrect.
Benjamin Disraeli once said there are three kinds of lies: lies damned lies and statistics. Evan Esar is credited with the statement that statistics is the only science that enables different experts using the same figures to draw different conclusions.
Meanwhile Garbage In, Garbage Out even if it is taken as gospel it can still be grabage.
"Garbage In, Garbage Out (abbreviated to GIGO) is a phrase in the field of computer science or ICT. It is used primarily to call attention to the fact that computers will unquestioningly process the most nonsensical of input data and produce nonsensical output, ......."
" ........ Decision-makers increasingly face computer-generated information and analyses that could be collected and analyzed in no other way. Precisely for that reason, going behind that output is out of the question, even if one has good cause to be suspicious. In short, the computer analysis becomes the gospel."
from Wikipedia, the free encyclopedia
The proof as they say is in the pudding
In a recent letter to the editor A. Summerhayes was questioning the "absurd" assessment on his property. The property he described as being a 30 acre lot that is low with about 6 acres being flooded by a beaver dam. His assessment went from $50,000 in 2005 to $380,000 in 2008. That is an increase of $330,000 or a 660% increase. Needless to say several questions as to the rational for this immediately came to mind. At first I wondered if the figures quoted were incorrect then I wondered if a new home or building had been added to the property?
Finally my curiosity got the best of me and I contacted Mr. Summerhayes to verify the information in his letter.
What he told me just floored me.
While the information in the letter was correct it was not the end of the story, Not only was there no buildings on the property but it was virtually landlocked and subject to an Environmental Protection zoning. Later in our conversation he also informed me that to their credit the assessment department informed him later that it was incorrect and that it would be reduced back to the 2005 level.
This begs the question was it garbage in garbage out or was the formula, or the assessment model, that was used to determine the assessment poorly done or is there some other explanation how this could happen?
You might think that this rarely happens but I would disagree as this is not the first time that assessments in Georgina were terribly skewed. During an earlier reassessment thirty-two property owners in the Catering Road area received Assessments showing increases as high as 389%. While Officials with the MPAC said a clerical error had been made in "classifying" the properties. An error of this magnitude should never have happened or if as they say it was a clerical error it should have stood out like a sore thumb and been rectified long before the assessments were released to the public.
With the average assessed home in Georgina going up 14.5% you should be looking very closely at what they say your home went up. If you are unhappy then make sure no errors were made in the calculation of your assessment. When checking for errors do not just answer questions about your property ask questions about how the assessment was calculated and what factors were used and the effect they had in determining your assessment
Stay Tuned --- .
Earlier posts in the series
Understanding Residential Property Assessment in Ontario - #7 in a series on property taxes
You and "YOUR" Property Tax Bill -- Is Your Assessment Fair and Equitable
You and "YOUR" Property Tax Bill -- OUCH!!!!!
You and "YOUR" Property Tax Bill -- Your Assessment Notice Is In The Mail
You and "YOUR" Property Tax Bill -- Mill Rate Idiosyncrasy's
You and "YOUR" Property Tax Bill -- Is Current Value Assessment (CVA) A Better Way?
You and "YOUR" Property Tax Bill -- Who Takes The Biggest Bite?
It will be interesting to watch what happens to
"Your" Property Tax Bill
With province wide re-assessment taking place
for your 2009 property tax bill.
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