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Business Assessment The 2007 Business Assessment roll will be issued on November 20, 2006. You can search Business Assessments for detailed information including premise area, occupancy cost breakdown, and other details that are part of the calculation of Annual Rental Value. . Click here to use the Business Assessment search function. Questions & Answers About Business Assessment
This section of our web site provides answers to the most commonly asked questions about business assessment.
01. Why are businesses assessed?
The City Assessor is required by law to produce a general assessment (or reassessment) of the Business Assessment Roll every four years in accordance with Section 9(2) of the Manitoba Assessment Act. The next Business Reassessment is for the taxation year 2006. Business Assessment notices will be mailed to all taxable premises on November 28, 2005.
02. What is Business Assessment?
Business Assessment is the process of determining the Annual Rental Value of any space occupied by or used for conducting a business. In determining the Annual Rental Value of premises, the City Assessor must take all factors into consideration so that, as far as possible, premises similar in size, suitability, advantage of location, and the like, are equally assessed at fair annual rental value, based in general on the rents being paid for similar premises.
03. How is Annual Rental Value Determined?
The equation used by the assessor in determining your Annual Rental Value is as follows: Estimated Base Rent + Costs to Occupy the Premises = Annual Rental Value 04. What is "Estimated Base Rent"?
The estimated base rent is based on a review of net market rents for premises similar to yours. The rent information is based on the reference year, 2003. In other words, it reflects what rents were generally being paid in 2003 for premises that are similar to yours. Keep in mind it is not necessarily the rent you paid in 2003, but is representative of the market rents. The Estimated Base Rent is equal to the rent per square foot as determined by the market multiplied by the area or square footage of the premises leased or occupied. The primary source of rents for 2003 came from questionnaires mailed to property owners. In addition, rent information published in various reports was considered.
05. What are "Costs to Occupy the Premises"?
The Costs to Occupy were determined through a review of actual expenses reported by property owners as well as a review of the Public Utilities reports. The Costs to Occupy used are as follows: Heat: $.67 per square foot of premises leased or occupied Hydro: $.32 per square foot of premises leased or occupied Water: $.11 per square foot of premises leased or occupied Air Conditioning: $.30 per square foot of premises leased or occupied If your premises are only partially air conditioned, then you will be assessed for only that portion that is air conditioned. Here is an example of a typical Annual Rental Value calculation: Premises Leased: 1000 square feet, fully air conditioned Typical Base Rent: $10.00 per square foot Estimated Base Rent: $10.00 x 1000 square feet = $10,000 Heat: $.67 x 1000 square feet= $670 Hydro: $.32 x 1000 square feet= $320 Water: $.11 x 1000 square feet= $110 Air Conditioning: $.30 x 1000 square feet= $300 TOTAL ANNUAL RENTAL VALUE $11,400 06. What if I own my own premises?
If you own your own premises, you will still be assessed for Business Assessment. The Estimated Base Rent would be based on the market. In other words, what would the market command for rent if your building was available for lease in the reference year, 2003?
07. What if I am a subtenant?
Under Section 319(1) of the City of Winnipeg Charter “Where the occupier of premises sublets all or part of it, an assessor may issue the assessment for the premises, or the part, to the occupier and the subtenant, or either of them.” Therefore, if you are a subtenant, it’s possible that you may receive a Business Assessment Notice on or after November 28, 2005.
08. How do I know if my Annual Rental Value is fair?
The Assessment and Taxation Department web site allows you to search for other premises using the civic address. For example, if you are a tenant in a shopping centre and you occupy 2000 square feet in the mall, you would look at other similar retail outlets in the same mall as a comparison to see if your annual rental value is similar to what other tenants are assessed at. Remember, in accordance with the City of Winnipeg Charter, the true test is whether or not your total Annual Rental Value is in general at market and is similar in so far as possible to what other premises have been assessed taking into account size, suitability and advantage of location. Click here to search Business Assessments.
09. What is Business Assessment used for?
Business Assessments are used to calculate your annual business tax. The 2006 Business Assessment will be used to calculate your business taxes for the calendar year – January 1, 2006 to December 31, 2006.
10. How much will my Business Tax be, and will it go up because this is a reassessment year?
An increase in your Annual Rental Value does not mean your Business Tax will increase; it depends on the tax rate set by City Council. To calculate your annual business tax, the City uses the following method:Annual Rental Value X The tax rate set by City Council = Your Business Tax There is no way to know how much your Business Tax will be until City Council establishes the tax rate. Historically, City Council has set the Business Tax rate by the end of March. 11.What do I do if there's a problem?
If you are concerned about your Business Assessment, first contact us -- the Assessment and Taxation Department – either through this web site, or by calling 986-2353 to speak to a representative. If a solution cannot be reached, you have the right to appeal the Annual Rental Value of your property. Appeals must be directed to: Board of Revision 300 Assiniboine Avenue Winnipeg, Manitoba R3C 0X6 Telephone: 986-2700 The deadline to appeal your 2006 Business Assessment is December 20, 2005. If you miss the appeal deadline, you must wait until the appeal period the following year to file. A public notice appears in both daily newspapers to remind property owners of this important deadline. For an Assessment Appeal application form, or for more information on the appeals process, please contact the Board of Revision.
Last modified:
Friday November 23 2007
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