Navigating Quebec Property Assessments

MNP’s Property Tax Services (PTS) integrates industry-leading property tax expertise with the thorough management of assessment appeal and processes across major Canadian municipalities. The PTS team’s in-depth knowledge coupled with leading edge resources and well-established relationships with municipal decision makers distinguishes MNP as a leader in the property tax service industry.

Triennial property assessment details

There are no province-wide reassessments in Quebec. Instead, there are three assessment cycles covering three geographic regions for three-year assessment cycles.

PRE‐ROLL

Pre-roll discussions with the assessors often take place for large properties. For portfolio owners, these are usually several months before the deposit of each new roll. For Montreal’s 2020 triennial roll, these discussions may start as early as the spring / summer of 2019 and last into the fall.

CHANGES ON THE HORIZON

A provincial regulation will amend and supplement many of the current assessment processes. Currently, the regulation and its content has not been shared with the industry, but it is expected to impact the following procedures:

• How appeals are filed – electronic versus the traditional paper-based application;
• The level of disclosure by the appellant required at the time of filing;

This regulation has passed its first reading and set for the second reading in either October or November. The intent is for this to pass so it can be implemented in time for the 2020 roll (Montreal’s re-assessment).

CERTIFICATE OF MODIFICATION

Like other jurisdictions, the Quebec assessor has the right to amend and update an assessment to reflect any physical change to a property. This is done through a Certificate of Modification. Certificates of Modification are effective as of the date of completion of the work or change and rely on city-issued permits. Certificates can be contested by filing an Application for Review within 60 days of the sending of the certificate. However, if the original assessment was not challenged, only the value of the certificate is open to the review.

TRANSPARENCY

Unlike most jurisdictions, there is a lack of clarity to assessment dealing in Quebec. There is no online service to file a request for review or an appeal; or to see an appeal’s status. There is no subscription-based portal to obtain copies of the assessor’s working papers. Everything is still based on paper filings and in-person meetings when documentation is needed.

ADVOCATE AND EXPERT

As the legal world tightens the rules on the separation of the advocate and the expert, Quebec has been functioning in that context since the late 1980s. With less informal dealings after a review has been requested or an appeal has been filed, the use of a lawyer protects the expert by keeping them at arm’s-length in the process. The use of a lawyer serves to file any review or motion documents, formalize any request for information, meetings or any other procedures required during the review period.

Also, a title search to match owners names against what is indicated on the notice of assessment is crucial to ensuring any request for review or motion to the TAQ are not disqualified. Further, the unauthorized practice of law (UPL) is more prevalent in Quebec than any other province. The reason being is Quebec is subject to civil law while the remaining provinces follow common law rules and practices.

Since 2014, we have seen an increase number of reviews / motions being disqualified because it was filed by a consultant. Also, we have seen a similar trend with settlement offers that are being executed by the consultant instead of a lawyer or the owner and the municipality does not honour the settlement. Since there is no paralegal status in Quebec, the recommended approach is to have a lawyer act in an administrative capacity by filing the proper documentation and managing the necessary correspondence.

PRE‐ROLL

Pre-roll discussions with the assessors often take place for large properties. For portfolio owners, these are usually several months before the deposit of each new roll. For Montreal’s 2020 triennial roll, these discussions may start as early as the spring / summer of 2019 and last into the fall.

CHANGES ON THE HORIZON

A provincial regulation will amend and supplement many of the current assessment processes. Currently, the regulation and its content has not been shared with the industry, but it is expected to impact the following procedures:

• How appeals are filed – electronic versus the traditional paper-based application;
• The level of disclosure by the appellant required at the time of filing;

This regulation has passed its first reading and set for the second reading in either October or November. The intent is for this to pass so it can be implemented in time for the 2020 roll (Montreal’s re-assessment).

CERTIFICATE OF MODIFICATION

Like other jurisdictions, the Quebec assessor has the right to amend and update an assessment to reflect any physical change to a property. This is done through a Certificate of Modification.

Certificates of Modification are effective as of the date of completion of the work or change and rely on city-issued permits. Certificates can be contested by filing an Application for Review within 60 days of the sending of the certificate. However, if the original assessment was not challenged, only the value of the certificate is open to the review.

TRANSPARENCY

Unlike most jurisdictions, there is a lack of clarity to assessment dealing in Quebec. There is no online service to file a request for review or an appeal; or to see an appeal’s status. There is no subscription-based portal to obtain copies of the assessor’s working papers.

Everything is still based on paper filings and in-person meetings when documentation is needed.

ADVOCATE AND EXPERT

As the legal world tightens the rules on the separation of the advocate and the expert, Quebec has been functioning in that context since the late 1980s.

With less informal dealings after a review has been requested or an appeal has been filed, the use of a lawyer protects the expert by keeping them at arm’s-length in the process. The use of a lawyer serves to file any review or motion documents, formalize any request for information, meetings or any other procedures required during the review period.

Also, a title search to match owners names against what is indicated on the notice of assessment is crucial to ensuring any request for review or motion to the TAQ are not disqualified.

Further, the unauthorized practice of law (UPL) is more prevalent in Quebec than any other province. The reason being is Quebec is subject to civil law while the remaining provinces follow common law rules and practices.

Since 2014, we have seen an increase number of reviews / motions being disqualified because it was filed by a consultant. Also, we have seen a similar trend with settlement offers that are being executed by the consultant instead of a lawyer or the owner and the municipality does not honour the settlement.

Since there is no paralegal status in Quebec, the recommended approach is to have a lawyer act in an administrative capacity by filing the proper documentation and managing the necessary correspondence.

ABOUT MNP

MNP is a leading national accounting, tax and business consulting firm in Canada. We proudly serve and respond to the needs of our clients in the public, private and not-for-profit sectors. Through partner-led engagements, we provide a collaborative, cost-effective approach to doing business and personalized strategies to help organizations succeed across the country and around the world.

To find out what MNP can do for you, contact Jo-Ann Lempert, FCPA, FCA, Québec Leader, Real Estate and Construction, at 514.228.7918 or [email protected]

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