Volume 12 Week 5

Thursday, Nov. 23


 

Posted Oct. 25

Posted Sept. 21

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Orléans Ward
Bob Monette

Beacon Hill,
Cyrville Ward
Tim Tierney



 

 

 



(Updated 1:30 p.m., April 9)
Property value reassessments in the works

By Fred Sherwin
Orléans Online

As the Municipal Property Assessment Corporation, better known as MPAC, starts sending out reassessment notices to Ontario homeowners, it’s important to understand how they will impact your property taxes.

First of all, the reassessmentnotices for homeowners in Ottawa won’t be mailed out until sometime in July, which means the impact won’t be felt until 2017.

MPAC is a provincial body which reassesses property values in Ontario every four years. The last reassessment was done in 2012.

The reassessment process is used to provide municipalities with an up-to-date valuation of properties against which the appropriate tax rate is applied.

The important thing to keep in mind is that the process is revenue neutral, which means that there is no financial gain for municipalities.

Here’s how it works. According to MPAC, propert values in Ontario have increased by an average of 18 per cent over the past four years.

Assuming for the sake of this example, that property values in Ottawa have increased by the same amount, the city is required to adjust it’s tax rate to ensure that that the reassessments are revenue neutral in terms of their global impact.

In practical terms it means that if the reassessed value of a given property went by more than 18 per cent over the past four years the homeowner must pay difference.

For instance, if the MPAC notice is showing a property’s value went up by 20 per cent, the homeowner would see a two per increase in their taxes, or the difference between the increase in the assessed value of their home and the city average.

Conversely, if the reassessed value of a property is less than the municipal average than the taxes will be reduced by the difference.

For instance, if the MPAC notice is showing a property’s value only went up by 16 per cent, then the homeowner would see a two per cent decrease in their property taxes.

A city can also exercise it’s descretion to phase-in any increases that are a result of the reassessment process, which Ottawa did in 2012, so that a two per cent increase would be phased-in in increments of 0.5 per cent per year.

So when you see media reports that property values have gone up by 15 or 18 per cent, don’t panic. Just wait for your MPAC notice and do your own calculation. Simply divide your 2016 assessment by your 2012 assessment and you’ll arrive at your percentage increase. Subtract the average increase for Ottawa and you will arrive at the amount your taxes will either increase or decrease.

The other thing to keep in mind is that any increase in the assesed value of your home is a good thing. MPAC assessments are based on the average sale price of similar homes in your area over the past four years.

An up-to-date reassessment is a reflection of what your home maybe worth when you decide to sell it. When property values go up so does the potential equity in your home.

And while an assessed property value is not a professional appraisal, they are usually fairly close.

(This story was made possible thanks to their generous support of our local business partners.)

 

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