Kelvin MacInnis

Owning  Property on PEI

      Property owners who are non-residents of Prince Edward Island can save some money on their tax bill if they take some time to review how the taxes are billed.  Non-resident taxes are often referred to as “double taxes”.  This was true in the beginning, but no longer holds true.  The actual fact is, non-residents pay an additional 50% more, on only, the provincial portion of the tax bill.  Non-residents are charged at the rate of $1.50, per hundred dollars of assessed value, for the provincial portion of their tax bill.  Additionally, there may be a municipal portion, depending on where the property is located.    Properties located in a city, town or incorporated area will incur this charge. The amount of the municipal tax can vary from about 5 cents to almost $1.00 per hundred dollars of valuation. 

Fire dues is another charge on your tax bill.  Fire dues are determined by the fire district and this fee can vary from approximately $30.00 to $100.00, per year, or possibly more.  The final item in your tax bill is a fee for waste watch, which is for trash pickup.  This fee is $195 for year round service, the fee for cottages it is $85 for June 1 to October 2 and extended service is available from May 11 to October 30 for an additional fee of $25. 

A savings can be realized by changing your service, to reflect the actual time, the service is required.  Additionally, if the property is not being used, for a substantial period of time, it is possible to have the service suspended and no fee will be charged.

Another consideration in a PEI property purchase is the Real Property Transfer Tax.  This tax will come into play at the time of purchase, and is based on the purchase price or the assessed value, (whichever is greater).  The Act, states that anyone who registers a deed in Prince Edward Island must pay, before the deed is registered, a tax computed at the rate of 1%.

If you feel your assessment is too high, there is an appeal process.  There is a time limit, after the assessment notice goes out for an appeal to be made.

This is a concise version of property taxes on PEI.  For detailed information go to www.gov.pe.ca/pt/taxandland/index.php3?number=52839&lang=E

Please contact me if you have any questions and I will do my best to answer them, or direct you where you will get them answered.