Lands & Infrastructure Administration
Property Assessment in the NWT
The Government of the Northwest Territories (GNWT) is responsible for assessing the value of all property in the General Taxation Area (GTA). The GTA includes all land in the Northwest Territories except cities, towns and villages. This brochure will help you understand the property assessment process in the NWT.
What is property assessment?
Property assessment is the process used to assign a value to all property in the Northwest Territories. Consistent guidelines and techniques allow property assessors to ensure that similar kinds of property are assessed the same way and that assessed values for each property are fair and equitable.
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.
How is property assessed?
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.
What is my assessment based on?
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 or providing services like water, sewer and electricity to a lot. GNWT regulations provide guidelines for determining land development costs in each region of the NWT.
Improvements are assessed a value that is equal to two-thirds of the depreciated replacement cost new. Property assessors consider a number of factors when assessing the value of improvements, including age, size, type of structure, quality of materials, design, general condition and others.
What is an annual assessment?
The value of a property may increase or decrease when changes are made to the improvements or the land. For instance, adding a new improvement or removing or modifying an old improvement can change the value of a property. Each year an annual assessment is done to reflect any changes in the assessed value of individual properties.
What is a general assessment?
Inflation, deflation or other factors can cause the value of property to change over time, even if there have been no changes made to the land or improvements. A general assessment is done to reflect these changes by establishing new assessed values for all property using a common base year. The Property Assessment and Taxation Act requires the GNWT to conduct a general assessment of property in the GTA within ten years of the previous general assessment.
What is an assessment roll?
An assessment roll is a complete list of all assessable property in a community. The roll for each community lists the ratepayer’s name and address, the legal description of the property, assessed value of land and improvements, account number, property classification, land tenure, taxable and exempt status and owner code.
What is a notice of assessment?
The notice of assessment provides the assessed property owner with a summary of the information contained in the assessment roll for their property. Each year the assessed owner receives a new notice of assessment to advise them of the assessed value of their property for that taxation year.
When and where can I review the assessment?
The assessment roll for each community is available in the community government’s office. All assessed property owners may review the assessment roll to ensure that the information about their property is accurate. If you have questions about your assessment, you may contact the Department of Municipal and Community Affairs at the phone number listed below.
What if I don’t agree with my assessment?
If there is a mistake on your notice of assessment or you do not agree with the assessed value of your property, you may appeal to the Board of Revision. All appeals must be made within 45 days from the mailing date of the notice of assessment. More information on how to appeal your assessment may be found on the back of your notice of assessment.
What about property taxes?
The amount of property tax you will have to pay is based on the assessed value of your property. Property taxes are calculated by dividing the assessed value of your property by 1000 and multiplying by the mill rate, as follows:
Property Taxes = (Assessment Value ÷ 1000) × Mill Rate
The GTA mill rate is set each year by the GNWT Minister of Finance and represents one dollar of tax for every $1000 of assessed value. Once the mill rate has been set, the Department of Finance sends out tax notices telling each assessed property owner how much tax they will have to pay that year.
A new assessment does not necessarily mean that you will have to pay more property tax. A lower mill rate might mean that you pay the same or less tax, even though the assessed value of your property has risen.
Where can I get more information?
For questions about property assessment, please contact Municipal and Community Affairs at (867) 873-7569.
For questions about property taxes, please contact the Department of Finance at (867) 873-7939.
March 2000