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properties is usually higher than forresidential properties. These municipaltaxes help pay for services offered bymunicipalities to their citizens, includingpolicing and fire services, sidewalks,recycling and garbage collection.Municipalities in the province ofNewfoundland and Labrador are alsorequired to impose an annual business taxon businesses operating in the municipality.In Nova Scotia, there are separate chargesfor residential and commercial properties(further classified as urban, suburban orrural in HRM) plus additional area rateswithin a district. There is also a specialmunicipal taxation regime for wind energy.from abrupt increases in rates. Taxagreements are certainly worth considering,especially if a business becomes thesignificant industry in a town, thus makingthe business the largest target for taxrevenue. In Nova Scotia, municipalities aregenerally prohibited from entering such taxagreements but the provincial governmenthas entered such arrangements wherebygrants in lieu of municipal taxes are set forlarge enterprises.Individual municipalities set their ownmunicipal tax rate, arising out of their annualbudgeting procedures. Property andbusiness taxes are normally based on a setrate multiplied by the assessed value of aproperty. Rates and taxation practices varyfrom municipality to municipality, soinquiries should be made of the specificmunicipality to ascertain precise tax levelsand obligations.Property assessments for mostmunicipalities are carried out by provincialbodies under provincial assessmentlegislation. Appeal mechanisms existwhereby property owners can challengeassessments, although appeal periods areexceedingly tight and stringently enforced.Legislation often allows for businesses toenter into tax agreements withmunicipalities, specifying certain rates oftaxation for certain years. Many largercompanies will negotiate these agreementswith municipalities, as it provides certaintyMunicipal Law 143