Who is O’Connor?

O’Connor & Associates is a full-service real estate company based in Houston, Texas. Celebrating 50 years of service, O’Connor has grown to over 1,000 professionals worldwide, representing over 350,000 properties in the U.S. and expanding into Canada (Alberta, British Columbia, and Ontario). Known for its creative, aggressive approach and data-driven expertise, O’Connor is a leader in property tax appeals, saving property owners over $325 million annually in the U.S. with its proprietary O’Connor Approach®. Our success is built on a simple guarantee: If we don’t save you property taxes, you pay nothing!

Why Are Hotels Facing Increased Property Taxes and What Can They Do?

In Canada, hotels are taxed higher than other commercial properties due to how they are assessed. In provinces like British Columbia and Ontario, hotels are considered “income-generating” properties, with assessments based on revenue, operating costs, and performance metrics, leading to higher property values. Some municipalities also apply higher tax rates for hotels and may impose additional tourism or accommodation taxes, increasing the overall tax burden.

These factors contribute to why hotel owners often face higher property tax bills, leading to frustrations, particularly when their assessed property values don’t align with actual revenues.

Understand the law: Canada property tax laws and regulations

Hotel property tax laws in Canada vary by province and municipality but share common elements:

1. Income-Based Assessment: Hotels are often assessed based on revenue, occupancy, and operating costs, leading to higher property values if they perform well.
2. Higher Tax Rates: Hotels typically face higher tax rates and may be subject to additional taxes, like accommodation or tourism levies.
3. Provincial Differences: Rates and assessments differ by region, with Ontario, British Columbia, and Quebec applying higher taxes and considering income potential.
4. Tax Incentives: Some provinces offer tax exemptions or incentives for historic preservation or sustainability.
5. Appeal Process: Hotel owners can appeal assessments they find unfair, though the process and fees vary.
6. Additional Taxes: Hotels must comply with tourism or accommodation taxes, typically passed on to guests.

Property tax laws differ across regions, so hotel owners should consult local experts for specific guidance.

Should I file an appeal? How does it work?

Absolutely! Property owners, including hotel owners, have the right to challenge their property’s assessed value. The cost of the appeal process varies across Canada, with general guidelines as follows:

• British Columbia: The first appeal is free; if it proceeds to the Property Assessment Appeal Board (PAAB), there is a $300 filing fee for commercial properties.

• Ontario: A filing fee of approximately $125 applies for commercial properties. Additional fees may arise for legal representation or expert appraisals.

• Other Provinces: Costs vary, often involving filing fees and possible extra costs for legal advice or appraisals.

How can O’Connor help?

Contingent based service

O’Connor and Associates has been helping hotel owners across the U.S. successfully challenge property assessments, leading to substantial savings. We’re confident in our process, which is why we don’t charge unless we save you on property taxes. We handle all upfront costs, including filing fees, appraisals, and attorney fees if necessary. You have nothing to lose by filing an appeal.

In addition to our success in the U.S., we’ve expanded our services into Canada, operating in Alberta, British Columbia, and Ontario, bringing our proven approach to help hotel owners across these provinces achieve significant property tax savings.

The O’Connor Approach®

After years of research, a proprietary breakthrough methodology was developed by O’Connor. It was tested in 40+ states in the U.S. with great success, resulting in far greater tax reductions than ever before.

Tangible & Intangible properties

Personal properties, both tangible and intangible, are non-taxable in Canada. While assessors deduct tangible items (FF&E), they often overlook intangible values, such as:

• Franchise License
• Permit
• Goodwill
• Quality Control

Property tax is a major operating expense. Reducing it can significantly improve your bottom line.

Reach out to us today for a free expert consultation to see how much you have been overpaying in taxes!

Randie York
Property Tax Analyst
832-662-5820
ryork@poconnor.com