Key Assessment Approaches Used By The Property Valuation Services Corporation ( Pvsc )
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All three current assessment optional approaches remain necessary for the valuation of various types of properties in the County of Pictou because of the accuracy needed in providing all taxpayers with the correct assessment information.
In this background paper, I intend to describe and discuss the three main assessment approaches used by the Property Valuation Services Corporation (PVSC), who currently assess all properties at market value in the Municipality of the County of Pictou, using standards provided by the International Association of Assessing Officers (IAAO) and legislated by the Province of Nova Scotia. I have found that the most common approach in our municipality, the direct comparison approach, is the approach I would…show more content… The Nova Scotia Assessment Act, states that all properties are to be assessed at market value, to determine the property tax base. Market value assessment estimates the value that the market places on individual properties at the most probable price, expressed in terms of money. This approach is considered the most equitable and widely accepted system in North America and throughout the world. All provinces in Canada currently use this approach.
In Nova Scotia, there are three accepted methods used to reach the market value of property: the cost approach, the income approach and the direct comparison approach. Depending on the nature of the property being valued, one or more of the approaches may be used by the assessor.
1. The cost approach is used to determine the assessed value of commercial, industrial, institutional, agricultural and other non-residential properties. As for residential properties, a market adjusted cost approach (a combination of the cost approach and the direct comparison approach) is currently used for all. The cost approach is based on the assumption that an informed purchaser would pay no more for a property than it would cost to purchase a similar piece of land, on which a building could be constructed with similar characteristics. The land value is determined by the assessor analysing sales of vacant land in the geographic area of the subject, and then adding the cost of replacing the building(s), less depreciation and other improvements.