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Updated almost 3 years ago on . Most recent reply

Account Closed
  • Los Angeles, CA
14
Votes |
70
Posts

Can the CRA (Canada) tell your city your tax revenue?

Account Closed
  • Los Angeles, CA
Posted

If your rental revenue skyrocketed upwards the tax department would obviously know.  Would they tell your city and if they did your appraisal might rise meaning your city taxes might rise.  (Not what you want!)  I was wondering if this ever happens. 

I think most cities just drive up and down the streets noting obvious external changes as they don't seem to have time to spend a minute doing a walk through and recording it and comparing i with the previous walk through the previous year.  Maybe its got something to do with privacy of the homeowner.  

Of course if permits for the renovations were required that could be used to change your appraised value so we're talking about a hypothetical situation where no permits were required.  

Most Popular Reply

User Stats

318
Posts
171
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Stevo Sun
  • Calgary, AB
171
Votes |
318
Posts
Stevo Sun
  • Calgary, AB
Replied
Quote from @Account Closed:

If your rental revenue skyrocketed upwards the tax department would obviously know.  Would they tell your city and if they did your appraisal might rise meaning your city taxes might rise.  (Not what you want!)  I was wondering if this ever happens. 

I think most cities just drive up and down the streets noting obvious external changes as they don't seem to have time to spend a minute doing a walk through and recording it and comparing i with the previous walk through the previous year.  Maybe its got something to do with privacy of the homeowner.  

Of course if permits for the renovations were required that could be used to change your appraised value so we're talking about a hypothetical situation where no permits were required.  


 Not sure where you are but where I live (Calgary, AB) the property tax is based on municipal budget requirements. The city's only revenue stream is property taxes (residential and commercial). The appraisal are estimates and are mostly tied to location and size of property. Improvements such as renovation doesn't always make it in to the valuation from a property tax standpoint.

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