Property Value and Tax Assessment Update

Many of you have recently received your Property Assessment Notices from the Municipal Property Assessment Corporation (MPAC) which describe the changes in the value of your residential property. MPAC is a not-for-profit agency, which is provincially legislated and mandated to conduct property assessments across Ontario and is accountable to taxpayers, municipalities and the province through its 15-member Board of Directors. These notices reflect the assessed value of your property as of January 1, 2016 and will cover the taxation years 2017 through 2020. Assessments are conducted every four years on properties across Ontario and the previous assessment was conducted on January 1, 2012.   

The average annual increase in property values across the city of Toronto was 7.5% and the average value of a residential home is now $770,000. Property value increases in Ward 18 were among the highest across the city at 12% annually. If your home was assessed at a rate higher than 7.5%, you may face a higher property tax bill, with an increases being phased in over the four year term. If your property was assessed at a rate lower than 7.5%, you may face a lower property tax bill and any decreases will take effect immediately.  

While the city uses these assessments to determine the annual property tax paid by owners, it is important to note that changes in assessments are revenue neutral for the city and cannot be used to generate additional taxes. For seniors and low income persons with a disability, the City offers a property tax relief program that you can learn more about here.

The upside to our current situation is that those who own properties benefit by being able to sell them for more money or to utilize more equity in their homes, but the downside means that we face a higher than average property tax increase right now. 

If you have concerns about your current assessment you may submit a Request for Reconsideration, free of charge, within 120 days of your notice issue date. If you have further questions or want to know more about how you assessment was conducted, you can visit aboutmyproperty.ca

I will also be hosting a public information session with MPAC on July 6, 2016 at 7pm at New Horizons Tower (1140 Bloor St W) for residents who have further questions and I encourage you to attend if you would like more information.

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