Prince Edward Island experienced a strong real estate market in 2004. The market value of all real estate on Prince Edward Island increased from $7.72 billion in 2004 to $8.17 billion in January 2005. This represents an increase of approximately 5.8%, year over year.

Property assessment values for 2005 have increased up to 10%, depending upon the type of property and where it is located in the province. Increases greater than 10% may occur where improvements or renovations have been made to the property.

Owner-occupied residential properties continue to be eligible for the provincial Owner-occupied Residential Tax Credit. The purpose of this credit is to provide property owners with predictable property tax increases by limiting such increases to no more than the increase in the previous year’s consumer price index (CPI).

For 2005, provincial non-commercial taxes on owner-occupied residential properties will be limited to a 2.13% increase; exceptions to this increase will occur on properties that have had improvements or renovations.

The City of Charlottetown has adopted the same policy for limiting tax increases on owner-occupied residential properties. The resulting reduction in municipal taxes for Charlottetown properties is not yet reflected in the property tax bills. Credits will be processed over the next few weeks

A brochure outlining the various provincial tax credit programs has been included in the property tax package mailed to property owners. This information is also available on the Taxation and Property Records division web site: www.TaxandLand.pe.ca.