The City of St. John's announced its three-year 2016 budget on Monday night, resulting in an increase in property taxes for many homeowners, despite a drop in the mil rate. Not all homeowners, however, are accepting the tax hike without a fight.

The city's budget included a decline in the mil rate from 8.1 to 7.8, but taxes will still rise for many homeowners as a result of increasing property values.

Andreas Georghiou was upset and shocked by the increased value of his home and the resulting hike in his taxes. The assessed value of his home on Atlantic Avenue jumped by $100,000 after the most recent assessment. He has done the math, and with this property assessment and the city's new mil rate, Georghiou is facing a nearly 30 percent increase on his annual tax bill.

He is now appealing his property assessment, for a $60 fee, because he feels it's unfair to see such significant tax increases on some properties and not on others, despite receiving equal services from the city.

"I don't think it's fair that someone on the same street that's getting the same services is going to pay [less tax]," he said.

"Actually, there is one house on the street that is going down by $65 [annually] and mine is going up by $685."

Georghiou has gathered data from other homeowners on his street and is going to include the information with his appeal. He said that some homes on the street saw a one percent tax increase, while two others increased by 40 percent.

"I don't see that just being market adjustments," said Georghiou.

May not be grounds for appeal

Jerry Kirkland is an residential appraiser who has heard from a number of people like Georghiou. He said that many homeowners in the city have seen increases in their property values and their tax bills, but that does not necessarily mean they have grounds for an appeal.

Kirkland said it's important to consider what the property would be worth on the market.

"The number one issue is, as of Jan. 1, 2014, which is known as the base date, would the market have paid for that property at what it's assessed for."

Jerry Kirkland says that many of the increases in property values in St. John's are justified. (Mark Quinn/CBC)

Homeowners can also compare their property values to similar properties in the neighbourhood to determine fair value.

"We are seeing cases where there appears to be, and we haven't been to court on these yet, that it appears to be assessed at a higher rate than it should be," Kirkland said.

Kirkland added that the city's assessors are good at their jobs and that many of the increases home owners are seeing are justified, even if their neighbours dodged a tax hike.

In the 2016 assessment, average property values increased from 11 to 27 per cent. Despite the drop in the mil rate for residential properties, this results in a 12.7 per cent increase in property taxes on average for private homes.

Seventy-six per cent of the city's revenue comes from property taxes.