Property assessment and appeals in Prince Edward Island

Who assesses. "All real property is assigned a market value assessment by professional property assessors employed by the Province." The Province says the assessment "forms the basis for the collection of provincial and municipal property taxes."

Market value. The Province says the value "is initially set based on such factors as cost of construction and uniformity of property types and locations" and may be adjusted each year. The main factors it lists are: - location of the property; - quality of the site; - nature of any improvements; - size, quality and condition of any structures; - demand and market activity in the area.

Owners of income-producing properties may be asked to complete a questionnaire with income information.

Market value and taxable value. The notice shows two figures. The market value assessment is the Province's estimate of value. The taxable value assessment is the figure used to calculate tax. For most property the two are the same. Owner-occupied residential property uses a capped owner-occupied assessment, and farm property is taxed on its farm assessment value (Real Property Tax Act s. 4(2)).

Mobile and mini homes. A mobile home not affixed by foundation to its land is valued separately from the land, and two tax bills are created.

The Notice of Property Assessment is part of the annual property tax bill, the Statement of Account - Property Charges, which Taxation and Property Records sends in early May. The notice is on page 3. Page 4 holds the referral form and, just below the mailing address, the Referral Closing Date.

The bill also shows current-year taxes and fees, any arrears balance, and instalment amounts and dates (May 31, August 31 and November 30). The Real Property Assessment Act (s. 18(1)) requires the date of mailing to be entered on the notice. If an assessment is corrected during the year, the owner receives an Amended Statement of Account - Property Charges, which starts a new referral period.

Owners who do not receive a bill in May can contact Taxation and Property Records at (902) 368-4070.

The assessment for a property appears on page 3 of the Statement of Account - Property Charges mailed in May. The Province's Property Tax Balance Inquiry page gives current details of a property tax account, including yearly instalment amounts and amounts past due. Questions about an assessment value can be discussed with a property assessor by calling Taxation and Property Records at (902) 368-4070.

Owner-occupied residential assessment program. The Province caps the taxable value assessment of owner-occupied homes "to increase in the Consumer Price Index (CPI), or 5%, whichever is lower." Section 9.2 of the Real Property Assessment Act sets the rule: last year's owner-occupied assessment is adjusted by the All-Items Consumer Price Index for Prince Edward Island for the prior calendar year, plus the value of any improvements. A CPI below zero is deemed to be zero, a CPI above five percent is deemed to be five percent, and the result cannot exceed the residential (market) assessment.

When the cap resets. When a home is first added to the roll as owner-occupied, or is conveyed to a new owner, the taxable value assessment can be set equal to the market value assessment.

What counts as owner-occupied. The definition changed on January 1, 2025. For 2025 and later, the property must be owned and occupied by the person and "not leased or rented, in whole or in part, for periods of less than 30 days at any time during the calendar year." Long-term rentals of 30 days or more of part of the home no longer disqualify it. Renting any part for less than 30 days removes the property from the program, resets its taxable value to market value, and ends eligibility for the 2007 and 2024 owner-occupied residential property credits. Self-contained in-law suites and basement apartments are treated as separate properties at market value.