Sydney non-profit loses bid to slash assessed value of downtown building
A social enterprise agency is going to have to pay its full property taxes after losing an appeal of the assessed value of its main building in downtown Sydney, N.S.
New Dawn Enterprises had asked the Nova Scotia Utility and Review Board to base its assessment on its ability to pay, which would have cut its property tax bill by more than half.
The agency bought a former high school and an old convent in downtown Sydney for $250,000, invested about $17 million in the property, with about $10 million of that coming from the provincial and federal governments. It then rented out space to artists and other non-profit agencies.
At first, its assessed value was about $500,000 and the annual tax bill was about $25,000.
But after renovations were completed, the assessment shot up in 2020 to $3.8 million. In 2022, the year under appeal, the assessed value was set at $4.85 million, generating a tax bill from Cape Breton Regional Municipality of around $250,000.
The utility and review board heard the appeal in July, but ruled this week that New Dawn’s assessment will not change.
No evidence or expert witness
The board said New Dawn presented no evidence or expert witness on why its assessment should be lowered.
“It was not clear that New Dawn fully understood the type of hearing that was being conducted,” the ruling said.
“The evidence and submissions in the pre-filed exhibits consisted, in large part, of challenging the rationale of the [Nova Scotia Assessment Appeal Tribunal] decision, the evidence placed before that tribunal, and its process.”
The board said assessments are based on what a willing buyer would pay a willing seller, and the income for a commercial property has to be based on going market rates.
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