New property assessment notices arrive

MPAC News Release

During November, all property owners in Ontario will receive their Property Assessment Notice which will specify the assessed value of their property for taxations purposes.
These property assessments are based on the estimated selling price of the property - the amount of money a willing buyer would give to a willing seller for their property. These assessments, referred to as current value assessments, are used by local municipalities to calculate the municipal portion of property taxes and by the Province to calculate the education portion for the 2003 taxation year.
Beginning in 1998, municipal taxes were calculated on the current value of each property, and a property’s current value was based on an estimate of its worth on a specific day. For taxation in 2001 and 2002, the valuation date was June 30, 1999. For 2003 taxation, that valuation date has been updated to June 30, 2001.
Some property owners may see a change in their assessment since their last notice. A homeowner who receives an assessment that appears higher or lower than their previous one will not necessarily see a corresponding increase or decrease in their taxes. Whether a property owner will see a change in next year municipal tax bill depends to a large extent on what happens to the assessment of everyone else’s property in their area.
“If the changes in value affect all properties to the same extent and the municipality’s tax requirements remain unchanged, then the taxes on each property will remain relatively the same,” said Larry Hummel, Vice-President, Property Values for the Municipal Property Assessment Corporation (MPAC). “What owners have to do is ask themselves if the assessed value on their notice is a reasonable estimate of what their property could have sold for on June 30, 2001.”
Mr. Hummel went on to explain that anyone who thinks their property has been valued incorrectly can contact MPAC, toll free, at 1-866-296-MPAC (6722) to discuss their assessment or verify details about their property. If a property owner still has concern, they may ask MPAC for a reconsideration of their assessment. There is no fee for a Request for Reconsideration (RFR) and the request may be made at any time during the year. During the Request for Reconsideration process, MPAC officials will expect to receive from the owner, new or additional property information that might affect their valuation.
Mr. Hummel further explained that, “If the reconsideration does not result in a change, property owners also have the option of filing a formal appeal with the Assessment Review Board (ARB).” the ARB appeal deadline is March 31, 2003.