Property Assessment 2012
2012 PROPERTY ASSESSMENT
Property owners have recently received a new assessment by MPAC. Property values were based on current market trends and other factors, dated for January 1, 2012. Do you know if your property was assessed correctly? Did you look at your assessment and be surprised at how much your property is worth? The purpose of the property assessment is for the government to determine your property tax rate. The last valuation date was January 1, 2008. That determined your tax rate for the last 4 years. Make sure you didn’t get over assessed! Deadline is April 1, 2013!
Property Assessment was completed by MPAC. Who is MPAC?
MPAC’s (Municipal Property Assessment Corporation) role is to accurately value and classify properties in Ontario in accordance with the Assessment Act and regulations established by the Ontario Government. When your municipality/local taxing authority sets property tax rates, your assessed value and classification are used to determine your property taxes. An assessment increase does not necessarily mean that your property taxes will increase. For questions about your property taxes, please contact your municipality/local taxing authority. Education tax rates, where applicable, are set by the Government of Ontario and will also be applied to the assessed value.
MPAC is a not-for-profit corporation funded by all Ontario municipalities. Their job is to accurately assess and classify your property in compliance with the Assessment Act and related regulations set by the Government of Ontario. When your municipality/local taxing authority sets property tax rates, your assessed value is used to determine your property taxes. To learn more about MPAC, or if you have questions about your property’s classification or assessed value, please visit their website. (www.mpac.ca or www.aboutmyproperty.ca)
2012 PROPERTY ASSESSMENT NOTICE
Your 2012 Property Assessment Notice shows the assessed value of your property based on a January 1, 2012 legislated valuation date. The last province-wide Assessment Update took place four years ago and was based on a January 1, 2008 valuation date. Your 2008 assessed value is also included on your Notice. This value may not necessarily be the same as the value that appeared on your last Notice if your property underwent a change that affected its value.
PHASE-IN OF ELIGIBLE ASSESSMENT INCREASES
To provide an additional level of property tax stability and predictability, market increases in assessed value between the January 1, 2008 and January 1, 2012 legislated valuation dates will be phased in over four years (2013-2016). The phased-in values for your property are indicated on your Property Assessment Notice. The phase-in program does not apply to decreases in assessed value, which are applied immediately.
HOW MPAC ASSESSES PROPERTIES
MPAC may use one of three different approaches when determining the current value assessment of a property.
In Ontario, most properties are valued using the direct comparison approach. This approach is used for residential properties and other property types that sell often on the open market. To establish your property’s assessed value, MPAC analyzes property sales in your area. This method is used by most assessment jurisdictions in North America. When assessing a property, they look at all of the key features that affect market value. For example, when assessing residential properties, five major factors usually account for 85% of the value: location; lot dimensions; living area; age of the structure(s), adjusted for any major renovations or additions; and quality of construction. Examples of other features that may affect a residential property’s value include fireplaces, garages, workshops, boathouses and the number of bathrooms. Site features in urban and suburban areas such as traffic patterns; being situated on a corner lot; proximity to a golf course, hydro corridor, railway or green space can also increase or decrease the assessed value of your property. In rural or semi-urban areas, site features such as type of access, topography and lot services such as hydro, water and sanitary/septic services can also increase or decrease the assessed value of your property.
IF YOU DON’T AGREE WITH YOUR ASSESSMENT
Please review your 2012 Property Assessment Notice carefully to make sure the information is correct. If a factual error has been made, they will correct it.
1. CONTACT MPAC
We want to make your experience with MPAC a positive one. Please contact us with your questions or concerns.
2. ASK MPAC TO REVIEW YOUR ASSESSMENT THROUGH A REQUEST FOR RECONSIDERATION (RfR)
If you feel your assessed value as of the legislated valuation date or property classification is not correct, we will review it free of charge. Your deadline to file an RfR with MPAC is April 1, 2013. There are two ways to file an RfR:
- The preferred method is to submit an RfR form online through www.aboutmyproperty.ca. You will be able to attach documents, pictures and reports to accompany your RfR. You may also mail or fax an RfR form to MPAC. Forms are available on MPAC’s website at www.mpac.ca or by phone at 1 866 296-MPAC (6722).
- Write a letter requesting a reconsideration. In your letter, please include the 19-digit Roll number on your Notice; your full name, address and phone number; and the reasons why you feel your assessment is not correct, including any information you have to support your claim.
(For information to support your claim, for a list of comparables)
3. FILE AN APPEAL WITH THE ASSESSMENT REVIEW BOARD (ARB)
You may also choose to file an Appeal with the ARB, an independent tribunal of the Ontario Ministry of the Attorney General.
MPAC’S ROLE AT AN ARB HEARING
At an ARB hearing, the onus is on MPAC to prove the accuracy of the assessed value of your property. MPAC will present comparable properties as evidence and will share that information with you prior to the hearing. You will also be asked to provide evidence to support your position. Ideally, you should select properties that are similar to yours (for example, area, lot dimensions, living area, age of structure and quality of construction).