News and Insights

Upcoming Property Tax Assessments for Single-Use Industrial Properties in Québec

Tax Development Dec 06, 2024

The year 2026 will mark the beginning of a new three-year property tax assessment cycle for single-use industrial assets across Québec.

A “single-use industrial property” is defined as a property that meets the following criteria:

  • The assessment value of the buildings listed in the current roll is $5 million or more;
  • It is not considered abandoned;
  • It is unlikely to be subject to a private sale;
  • The buildings are specially designed or used for predominantly industrial or institutional activity; and
  • The buildings cannot be economically converted for another purpose or use.

It should be noted that land value is not covered in the initial valuation—the assessor will add the land value established at the time of the official filing in September 2025.

Timeline

When establishing values for the 2026–2028 triennial cycle, the municipal assessor may designate a property as single-use industrial if it meets the relevant criteria. Taxpayers of properties designated as a single-purpose building should be notified by means of a mailed designation notice. Initial notices were issued prior to September 1, 2024, indicating that the building in question will now be valued using the cost method.  

Second notices will be sent to taxpayers by February 15, 2025. These notices will provide valuation guidelines for single-use property of an industrial nature, as well as the assessment value for the affected building.

Reviewing Your Assessment or Designation

In the event of disagreement with any of the information provided by the assessor, the taxpayer or an authorized representative must inform the municipal assessor before June 1, 2025.

If the taxpayer or representative does not respond by the June 1 deadline, the right to challenge the assessment value and request a revision will be forfeited for the duration of the triennial cycle, and the taxpayer will be liable for the corresponding property taxes.  

We highly recommend all taxpayers with industrial assets closely monitor this valuation cycle and take a proactive approach to resolving any disputes prior to the deadline. Ryan’s industrial team is well-equipped to support any requests for reconsideration or appeals.

How Ryan Can Help

Recent municipal assessment cycles have been marked by an upward trend in property values. In particular, property values have soared in the industrial and land sectors, in some cases by as much as 60%.

Given the impact of property taxes on operating costs, we’ve seen an increasing number of appeals in recent years as taxpayers work to mitigate their liabilities. Ryan’s advisors review each assessment individually to ensure you pay only your fair share. Join the growing number of businesses and financial managers taking a proactive approach to their property tax burden—contact your Ryan representative today.