Property Assessment and Taxation

• Improvements to buildings, mobile units, pipelines and works and transmission lines;
• Any assessable land in Municipal Taxation Communities and assessable land in communities that make up the General Taxation Area (GTA); and,
• All land and improvements that make up the Hinterland  which include things like mines, oil and gas installations and telecommunications infrastructure located outside of community boundaries.

A certified Assessor from the Assessment Services Unit determines the value of each property by taking into account the land and the improvements on it. Assessors assign value to property by following the legal guidelines in the Property Assessment and Taxation Act, the Property Assessment Regulations, and the Property Class Regulations. Following the same guidelines makes sure that all assessments in the NWT are consistent and fair.

A property assessor determines the value of each property by reviewing the land and the improvements on it. Assessors follow guidelines established by law in the Property Assessment and Taxation Act and its Regulations. These guidelines ensure that all assessments in the NWT are fair and equitable.

The total assessed value of your property is based on the value of your land and of the improvements on your land. Land value in the GTA is based on land development costs. Land development costs include such things as the cost of building new roads and providing services such as water, sewer and electricity to this lot. GNWT regulations provide guidelines for determining land developments costs in each region of the NWT.

Improvements are assessed a value that is equal to two thirds of the depreciated replacement cost of a new improvement. Property assessors consider a number of factors when assessing including age, size, type of structure, quality of materials, design, and general condition and others.

An assessor assigns value to your property based on the value of the land and based on any improvements on your land.

In the GTA (General Taxation Area), the value of land is based on development costs which include things like the cost of building new roads and providing services like water, sewer, and electricity to the land in question. The Property Assessment Regulations, and the Property Class Regulations outline clear guidelines to determine what the land developments costs are in each region of the NWT.

To determine what value should be given to improvements, a formula is used that assigns a value to the improvement that is equal to two-thirds of the depreciated replacement cost new.

Only land and improvements are assessed. Improvements include buildings, mobile units, pipelines, works and transmission lines. Personal property such as jewelry, cars, televisions and other personal possessions are not assessed.

An assessment roll is a list of all assessable property in a given community.  Each community’s assessment roll includes the following information for each property or lot:

• the ratepayer’s name and address;
• a legal description of the property;
• the assessed value of the land and any improvements;
• an account number;
• a property classification;
• who owns tenure to the land;
• any taxable and exempt status; and
• an owners code.

Revisions allow you to track differences between multiple versions of your content, and revert back to older versions.

Annual assessments reflect any changes in property value for that year.  Adding or removing improvements may increase or decrease a property’s value, and the annual assessment reflects this.

A general assessment looks at more than improvements to properties, and must happen within 10 years of the previous general assessment.  A general assessment takes into account factors like inflation, deflation, and other factors that can change the value of a property over time that are not necessarily related to the land or improvements (like a change of zoning etc.). Once a general assessment is complete, new assessed values for all property using that common base year is created, and is the basis on which annual assessments are done.

It consists of the entire Northwest Territories except communities designated as cities, towns or villages, which are municipal taxation areas. For more information, see:

• General Taxation Area Interest Regulations
• Municipal Taxing Authority Payment Regulations

If you do not belong to one of the Municipal Taxation Communities, then your community is part of the General Taxation Area.  The Assessment Services Unit conducts property assessments for assessable land, improvements, and Hinterland areas in and around your community. Once a value for a property is determined, the Department of Finance assigns a mill rate for your community.  From the mill rate and assessed value of the property, a property tax is determined and must be paid to the Government of the Northwest Territories. Once tax revenues are gathered and processed, funding is returned to communities in the GTA.

General Property Assessments must be carried out at least every nine years.

Annual Property Assessments are carried out every year to assess:

• buildings which have been constructed;
• mobile units which have been installed on a parcel of land, removed or destroyed; or
• any other improvements or alterations, which would affect the assessed value.

Annual property assessments are carried out every year to assess any changes to the land, which affect its value. Between General Assessments, the value of the land and improvements for taxation purposes remains at the last assessed value.

Municipal Taxation Communities are communities that collect their own municipal taxes. They are the Municipal Taxation Authority for their given town or city. Municipal Taxation Communities in the NWT are:

• Yellowknife
• Inuvik
• Norman Wells
• Fort Simpson
• Hay River
• Fort Smith

Like most other taxes, property tax is imposed by government to generate money for a public purpose. It is compulsory and enforceable by law.

Paying property tax means helping to pay for services, the funding for which is provided by the GNWT or municipality such as:

• fire protection;
• garbage pick-up;
• law enforcement;
• roads;
• protective services;
• recreation; and
• general government services.

Property tax is calculated by multiplying the assessed value by the mill rate.

The mill rate is the rate at which annual tax is payable for each $1,000 of assessed value. The Minister of Finance sets the mill rate each year for each class of property in the General Taxation Area. For more information, see:

• Property Mill Rates
• Property Classes Regulations

Not necessarily. In years when there is a general property assessment, the mill rate often goes down.

Every year the government mails a tax notice to each assessed owner listed on the assessment roll.

Yes. Your notice of assessment will explain how to do this.

They can change each year when the mill rate is set, or whenever there is a new assessment.

Renters pay their share of property taxes through the rent paid to their landlords. It is the landlord's responsibility to pay the tax.

Certain land, improvements and mobile units in the general taxation area are exempt from property taxes. For more information, refer to the Tax Exemption Order.

The Senior Citizens and Disabled Persons Property Tax Relief Act offers tax relief to property owners who are 65 or older.

Each year, property owners receive a notice of assessment that summarizes the information about their property that will be included in the annual assessment roll for that taxation year.

All assessed property owners can review their community’s assessment roll to make sure that the information about their property is accurate.  The assessment roll for each community is located at the community government’s office.