After You Appeal: the Decision, IRAC and the Supreme Court

The decision from Taxation and Property Records

After the acknowledgement letter, a representative contacts you to review your concerns and, if necessary, inspect the property. The Minister must then “vacate, confirm or vary” the assessment and send you a decision with reasons within 180 days of receiving the referral (s. 20(3)).

The letter, called the Referral Disposition of Assessment, says CONFIRMED (the value is found fair and uniform) or VARIED (a new value is set, with reasons). The decision takes effect on January 1 of the year concerned, and the roll is corrected within 30 days. If you are satisfied, there is nothing else to do: IRAC says so itself.

The appeal to IRAC

If the decision does not satisfy you, you can appeal to the Island Regulatory and Appeals Commission. The Notice of Appeal form and instructions come with the decision letter. The notice must be sent by registered mail to the Commission and the Department, and received no later than 21 days after the date of the letter.

The Notice of Appeal sets out the facts alleged, the provisions of the Act relied on and the reasons (s. 24). Filing is free and a lawyer is optional. If the Minister has not issued a decision within 180 days, the Act allows an appeal within 21 days after that period expires.

How an IRAC file unfolds

The Act requires the Minister to demonstrate the uniformity of the assessment with others (s. 28(1)). Nothing can be added after the hearing unless the Commission asks: have everything ready beforehand.

• Exchange of documents. IRAC gives you a copy of the Department’s documents, and the Department receives yours.
• Abeyance to negotiate. According to IRAC, most assessment appeals are resolved without a hearing: the appeal can be held in abeyance while the parties try to settle. If you settle, you tell the Commission you are withdrawing.
• The hearing. You explain why you disagree; Taxation and Property Records staff explain why they consider the assessment fair. A hearing lasts from a few hours to more than a day.
• The written decision. IRAC dismisses the appeal, allows it by directing the Minister to vacate or vary the assessment, or refers it back to the Minister. Decisions are published on its website.

The PEI Supreme Court

An IRAC order can be appealed to the Supreme Court of the province, provided notice is given to the other parties within 45 days after the order (s. 33). The Court’s appeal rules apply. This is a court proceeding: costs and preparation are on a different scale.

When a professional appraiser really helps

For a simple referral, with a size error or two good comparable sales, owners manage on their own. A report from an appraiser with the AACI or CRA designation (Appraisal Institute of Canada) becomes useful when:

• the file goes to an IRAC hearing, where everything turns on the evidence presented;
• the value is high enough to justify the cost of a report;
• the property is unusual, waterfront or rural, with few comparable sales;
• it is an income property, where rents and net income come into play.

Finding a verified appraiser

Payotte names one professional per area, selected on public data: designation, experience, reviews, local presence. The ranking cannot be bought. See verified appraisers, home appraisal cost and property assessment in Prince Edward Island.

Frequently asked questions