MPAC assessments sent to Ottawa area: what do you do?
October 4, 2005 - Check below for updates which appear as highlighted text.
All Ontario property owners have received or are about to receive their property re-assessments from the
Municipal Property Assessment Corporation (MPAC) . This assessment astablishes a value as of January 2005. Here are some of the top questions we have received from clients so far:
If my assessment goes up 20% does that mean my taxes will go up that much too? No. Your assessment and your taxes are, theoretically, separate. The city strikes a budget and divides it by the total value of all property to establish a "mil rate" then applies that rate to each property.
In theory, if you paid $3,500 in 2005 and your assessment goes up 20%, and the average assessment increase for all homes was 20%, and the city's budget had no increase, then your taxes for 2006 would be $3,500.
What if my assessment goes up 20% but the city average increase is only 15% ? In this case your taxes would increase even if the city budget remained unchanged.
What if my assessment goes up 20% but the city average increase is 25% ? In this case your taxes would decrease even if the city budget remained unchanged.
I think my assessment is wrong, can you help me? Yes. We can certainly do some preliminary work to see if your assessment seems to be in the right range. Additionally, we can prepare a package of information for you to use in a potential assessment appeal.
Is there a cost for this service? For our past clients and current clients we will not charge for any of this information. For non-clients there is a small fee.
Can you help me fight MPAC? No. We are not lawyers and we are not MPAC specialists. Our expertise is in the residential real estate market and determining market value. We are not equipped to advocate on your behalf but we would be happy to refer you to one of our preferred lawyers.
If you have any questions, concerns or simply would like to seek additonal advice we would be very pleased to speak with you. Chris will be handling all MPAC issues personally and he can be reached at 744-2000 or toll free at 1-877-744-8757 or by email.
Please check back for updates as we will be posting new information here as it becomes available.
October 5, 2005: The average property value increase in Ottawa was 11.84%. If your assessment has increased more than this amount it will result in a tax increase for you in 2006 even if the City's budget remains unchanged.
October 5, 2005: In order to calculate the impact of your new assessment on your tax bill, use the following formula:
ADDITIONALLY, ANY INCREASE APPLIED BY CITY COUNCIL TO THE 2006 TAX YEAR WILL BE IN ADDITION TO THE ESTIMATED 2006 TAXES BELOW.
ASSESSMENT FACTOR x 2005 TAXES = ESTIMATED 2006 TAXES
1.31 x $3,000 = $3,930
0.72 x $3,000 = $2,160
If property owners feel that the assessed value or tax classification for their property is not accurate, they may wish to file a Request for Reconsideration with MPAC. By filing a Request for Reconsideration, they are asking MPAC to review their property assessment and/or classification. There is no fee for this service. For the 2006 taxation year, these Requests may be filed any time after owners receive their assessment notice in the fall of 2005 up until December 31, 2006. More information on this service is available by visiting MPAC's web site at www.mpac.ca >Property Owners>Resolving Assessment Concerns tab.
Property owners may also file a Notice of Complaint with the Assessment Review Board (ARB), an independent tribunal of the Ministry of the Attorney General of the Province of Ontario. The deadline for filing an appeal for the 2006 taxation year is March 31, 2006. For more information, visit the ARB’s web site at www.arb.gov.on.ca
© Copyright Chris Hoare 2005