The Ontario Government implemented Current Value Assessment (CVA) in 1998 with the intent of bringing consistency in property assessments across the province. Previously the assessment base for many municipalities was seriously outdated and confusing and as such, resulted in unfair treatment for some taxpayers. All properties across Ontario are assessed at their market value on a common base year. In the current reassessment cycle, the property values are based on the January 1, 2012 valuation with the assessment increases from the prior reassessment values being phased-in over the 2013-2016 period. Subsequent reassessments will be conducted every four years using a valuation date of January 1st of the preceding year with assessment increases to be phased-in over the four year period. Assessed values are provided to property owners by the Municipal Property Assessment Corporation (MPAC).
The many assessment system changes were accompanied by several changes in municipalities' ability to manage new tax policy responsibilities. Municipalities have the ability to set a different tax rate for each class of property. Municipalities are required by the provincial government to limit the tax increases due to reassessment for commercial, industrial and multi-residential properties. The limit is calculated based on the previous year’s annual taxes. In order to fund the capped tax increases, the legislation allows Council to withhold or “clawback” a portion of the tax decreases to businesses and apartments due to reassessment.
| Tax Decrease Clawback Amount
In addition, municipalities were provided with optional tools to help mitigate tax increases among businesses. Municipalities are also required to provide measures of tax relief to seniors and the disabled as well as charities.
Peel Finance staff, in conjunction with Finance staff from the three local municipalities - City of Mississauga, City of Brampton and Town of Caledon -- and the Golden Horseshoe (Zone 2) Office of MPAC, have reviewed all aspects of the CVA legislation and applicable operating impacts as part of developing tax policy recommendations to Regional Council.
More details and information pertaining to the property assessment and taxation systems and the role of the Region in taxation matters can be found in the adjoining document
Tax Policy Handbook."
Property tax rates and other property taxation information can be attained from the local municipalities using the following website links:
Wednesday July 13 2016