Property Value Assessment
And What It Means To You
In the fall of 2008, you received your updated property assessment notices from the Municipal Property Assessment Corporation (MPAC) based on a January 1, 2008 valuation date. This is the first reassessment since 2005 however, in order to smooth out housing market changes, the increase in assessment values between 2005 and 2008 will be phased in over a four year period. Below is an example of how the phase in program works.
| |
2008 |
2009 |
2010 |
2011 |
2012 |
| Valuation Date |
Jan 1/05 |
Jan 1/08 |
Jan 1/08 |
Jan 1/08 |
Jan 1/08 |
| Current Value Assessment |
$218,000 |
$242,000 |
$242,000 |
$242,000 |
$242,000 |
| Amount to be Phased in |
|
$6,000 |
$6,000 |
$6,000 |
$6,000 |
| Assessed Value for Tax Purposes |
$218,000 |
$224,000 |
$230,000 |
$236,000 |
$242,000 |
| Phase in amount calculation = (242,000 – 218,000) / 4 = 6,000. |
It is important to realize that an increase in assessed value does not necessary result in an increase in property taxes. Your assessed value is used to determine your share of the total taxes so if the increase in your assessed value is the same as the average assessment increase for the City of Barrie you would not experience as assessment related increase in taxes. If, however your assessed value increase is higher than the average you may experience an assessment related increase.
Here are a few Q & A’s, prepared by MPAC to help you understand the impact of your new assessment value:
Who is MPAC?
MPAC is a non-share capital, not-for-profit corporation responsible for providing Ontario property owners, tenants, municipalities, and government and business stakeholders with consistent and accurate property assessments in accordance with the Assessment Act and related regulations.
Why does MPAC assess my property?
Each municipality across Ontario uses MPAC’s current value assessment and classification of your property to set municipal tax rates and collect property taxes.
How has MPAC assessed my property?
Based on January 1, 2008 data, MPAC analyzed property sales in your community and also considered other features impacting market value such as location, lot dimensions, living area, age of the property, renovations or additions, and quality of construction. The next province-wide assessment will take place in 2012.
How will my property assessment affect my taxes?
An increase in assessed value of your property does not necessarily mean an increase in your property taxes. Only if your property value has surpassed the average percentage change of residential properties in your municipal/local taxing authority (as indicated on your notice) will you possibly pay an increase. In addition, to ease tax-payers, property value increases from 2005 will be phased in gradually over the next four years. Conversely, any property value decrease will be applied immediately.
How can I tell if the assessment is accurate?
You can determine accuracy in three ways: First, ask yourself whether you could have sold your property on January 1, 2008 for the assessed value on your notice; Second, check your property details included on the notice and online at AboutMyProperty™ at www.mpac.ca, as well as that of up to 24 comparable properties of your choice and six selected by MPAC, free of charge; Third, check the December/January selling prices of houses in your neighborhood.
What can I do if my assessed value is incorrect?
You can request MPAC reviews your assessment anytime before March 31 of the tax year by calling, or downloading and submitting the Request for Consideration form. You can also file an appeal with the Assessment Review Board, an independent tribunal of the Ontario Ministry of the Attorney General. More information can be found under Resolving Concerns in the Property Owners’ section of www.mpac.ca, or by calling the MPAC number listed at the bottom of your notice.
Where can I get more information?
If you feel your property assessment is incorrect, refer to the information sheet sent with the assessment notice, visit the MPAC website (www.mpac.ca) or call MPAC at 1-866-296-6722. Have your have your 19-digit roll number available when you call.
