The property assessments are reviewed annually to ensure compliance with the Real Property Assessment Act which requires properties to be assessed at their indicated market value.

Minister Mella said, "1998 was a very good year for all municipal taxing authorities. An average increase in their assessment base ranged from one percent to three percent. This increase resulted from new construction, renovations and general adjustments in property assessments." The minister added, "This positive increase is a strong indication of the public confidence in real estate in PEI."

For 1999, a general adjustment has been made to residential assessments which will, with current tax rates maintained, result in a property tax increase in the range of two to four percent.

Recreational land, cottage lots and shore frontage have been increased by 10 percent, similar to the increase applied in 1998. Farmland in some areas of the province has been increased to better indicate the current market value. It should be noted that this increase has no tax impact on bonafide farmers receiving farm assessments. There are no general adjustments for farm buildings or commercial/industrial properties. Similar to past years, adjustments have been made to particular types and classes of properties in specific areas in order to maintain market value assessments.

The 1999 Assessment Notices and Tax Bills will be mailed on or about April 29, 1999. Property owners have 45 days from the date of mailing of the annual assessment and tax notices to refer their assessments to the minister for review.