2016 Property Value Reassessment
Every four years the Municipal Property Assessment Corporation (MPAC), a not-for-profit corporation created by the Province of Ontario, is legislated to conduct a province-wide assessment update and provide updated values to each property owner in Ontario through the Property Assessment Notice. By the end of 2016, MPAC issued assessment notices representing property values as of January 1, 2016.
The Property Assessment Notice provided each property owner with their updated assessment value as of January 1, 2016. Increases in assessment between the previous valuation period of January 1, 2012 and the new January 1, 2016 valuation were phased-in over the four years commencing with the 2017 tax year through to the 2020 tax year. Decreases in assessment value between the valuation periods were realized immediately for the 2017 year.
For this reassessment MPAC provided information about market trends and percent change in each municipality which can be found on aboutmyproperty.ca. AboutMyPropertyTM is a secure, online, easy-to-use, self-serve website that allows property owners to learn more about how their property was assessed.
Also delivery of residential notices began earlier than ever before, starting in April. The intention of the early mailings was to give property owners and municipalities the opportunity to resolve concerns before the final Assessment Rolls were returned for the 2017 taxation.
How were the 2016 values being determined?
Values were derived from market analysis, data collection and preparation and property level reviews. MPAC analyzed sales data of comparable properties in the property owner's area and all the key features that affected market value. For residential properties there are five major factors: location, lot dimension, living area, age of the property and quality of construction. MPAC is providing methodology guidelines for this reassessment.
How does this reassessment affect my property taxes?
Property owners should expect that the value of their property will increase over time. It is important to remember that an increase in a property's assessed value does not necessarily mean that property taxes will increase in the same proportion. Each year, when property values increase, municipalities are required by law to adjust their tax rates so that the amount of property taxes collected remains the same – the reassessment does not generate any additional revenue for municipalities.
This means that if a residential property has increased in value at the same rate as the average increase for all other residential properties within the municipality, there may be no increase in property taxes arising from the reassessment. Properties that have appreciated at a rate that is higher than the average for the municipality will experience an increase in taxes whereas a property which appreciates at a rate less than the average may experience a decrease in taxes.
Here are some examples of what could happen with your taxes (no budget increase or change in tax policy) using an assessed value of $100,000 and property taxes of $1,000 in 2016 and an average reassessment increase of 7% for the 2017 taxation year.
| Sample Property | 2017 Phase-In Assessment |
2017 Tax Rate |
2017 Property Taxes |
|---|---|---|---|
| Property A (increase at municipal average, no change in tax) | $107,000 | 0.93% | $1,000 |
| Property B (increase below municipal average, decrease in tax) | $103,000 | 0.93% | $963 |
| Property C (increase above municipal average, increase in tax) | $120,000 | 0.93% | $1,121 |
| Property D (decrease, decrease in tax) | $98,000 | 0.93% | $916 |
What is the relationship between assessment and taxation?
Municipalities determine how much it costs to provide all their services through the annual budget process.
MPAC provides the annual assessment roll for taxation purposes.
Municipalities determine the residential tax rate by dividing their costs by the assessment and then use the residential rate to calculate the different tax rates for each property class.
The assessment value for each property is multiplied by the applicable tax rate to determine the property taxes for each property.
2020 Reassessment Update: The Ontario government has announced once again that the 2020 Assessment Update has been postponed. They have indicated that property assessments for the 2022 and 2023 property tax years will continue to be based on the fully phased-in January 1, 2016 current values. This means your property assessment for the 2022 and 2023 property tax years will be the same as the 2021 tax year, unless there have been changes to your property. Further details can be found on MPAC’s website.
