Calgary property values pounded by pandemic as city sends out 2021 assessments – Calgary Herald

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But Lee cautioned those numbers could change depending on the provincial government’s requisition, which comprises 37 per cent of the property tax collected by the city.

One dramatic blow to residential values was the savage June 13 hail and rain storm that mainly clobbered northeast neighbourhoods and caused $1.4 billion in insurable damage, with a $100 impact on the city’s assessment value.

As of Dec. 31, a total of 7,500 hail-damaged homes had yet to be repaired, said Lee.

“That $100 million isn’t too significant considering the total residential assessment value is $211 billion,” he said.

A silver lining in that destruction is that those homeowners should see a corresponding decrease in their property tax, said Mayor Naheed Nenshi.

“This is actually the system looking after people the right way,” he said.

Taking the biggest hit to their property values were many types of businesses, with an average six per cent drop in assessed value.

Calgary’s office sector continued its long struggle by falling by 13 per cent in value; those in the downtown fell by 15 per cent with a vacancy rate of 27 per cent when subleases are included, says the city.

Those numbers, said Nenshi, convey a setback added to long-running pain.

“We are still in a real economic dip and our very fragile economic recovery has stalled,” said the mayor.

Most severely affected were pandemic-ravaged hotels, whose values fell by a whopping 21 per cent “due to restrictions and cancellations of major events,” said Lee.