In the fall of 2025, the City of Montreal will publish the three-year property assessment roll for 2026-2027-2028. All property owners will receive a municipal notice informing them of the new assessment of their property that will come into effect in January 2026. It is important to read this notice to ensure that the new assessment reflects the real value of the property, as this value is used to establish the municipal tax bill.
A word about property assessment
The purpose of property assessment is to inventory the properties (buildings and land) on the territory of a municipality in order to establish their real value. The real value of your property allows the municipal administration to set the appropriate tax rate.
To do this, the assessor or his representative must obtain up-to-date information on all properties. A questionnaire or any other means deemed necessary may be sent to you to collect information relating to your unit. Please note that if you refuse to provide this information or access to your unit to the assessor or his representative without valid reason, you may be liable, under the Municipal Taxation Act, to a fine of $100 to $50,000.
Property value: mystical or mathematical?
The real value of your property is established based on its exchange value on the market on a given date. For the 2026-2027-2028 property assessment roll of the City of Montreal, for example, the reference date is July 1, 2024. The actual value that will serve as the basis for the property assessment will be calculated according to market conditions on that date. This value represents the probable price that would have been offered to you on that date.
Under article 1052 of the Civil Code of Québec, when a building is declared a co-ownership, each part of the building that is under divided co-ownership (i.e. each individual unit) is considered a separate unit for the municipal assessment. Each unit therefore has its own assessment value and is entered separately on the municipal roll under the name of its owner. In other words, each co-owner is responsible for the value of his or her own unit (private portion and common portion of his or her share) and not for the entire building. However, in the case of an undivided co-ownership, the entire building is considered a single assessment unit for tax and property assessment purposes, unlike divided co-ownership where each unit is assessed separately. Note that sometimes, in certain specific cases, the assessment is treated differently.
When preparing the budget, the municipal council may choose to mitigate the effects of the role. This principle, called spreading out values, consists of spreading out the changes in the value of a property over a given period rather than applying them in the first year of the role, thereby reducing the immediate financial impact for owners. The tax increases or decreases related to the role are then spread out over the three years.
Accept or contest your property assessment?
Since the value of your co-ownership has increased over the years (especially over the last two decades), the assessment amount entered on your new notice may surprise you! Although it may also increase, the amount of your tax bill will not be proportional to the increase in the value of your co-ownership. Municipal taxes are generally established equitably for each property, taking into account the budget adopted by the municipality and the borough, which allows, in particular, the sharing of services offered to the population. If you think that the assessment does not correspond to the value of your unit, you can contest it with the City’s assessor by filing an administrative review request before May 1 following the entry into force of the role. During this process, the assessor in charge examines your request and determines whether the assessment is fair; you can express your point of view and receive additional explanations from him or her. This process could lead to an agreement if your request is accepted. However, it entails costs, including non-refundable fees for the review, and its settlement may be delayed due to administrative delays. You must therefore have serious reasons for committing to it; the amount of taxes to be paid, for example, is not a reason that justifies a change to the assessment roll.
It is therefore suggested that, before undertaking this process, you consult an independent certified appraiser to obtain an informed opinion. This expert will be able to assess your property based on similar properties in your neighbourhood and thus examine the relevance of contesting or not the value entered on the roll.
Each situation is unique; it is recommended to be well informed and to assess the relevance of the contestation based on its reality.
“The first equality is fairness.” Victor Hugo
Yvon Rudolphe, MBA fin., É.A., CMC, F.Adm.A.
Consultant and wealth administrator
Chartered appraiser
Rudolf Groupe Conseil
Tel.: 514 362-8008
Email: [email protected]
