Sections: Index | 1 | 2 | 3 | 4 | 5 | App

Section 1 - Property Taxation and Assessment Basics

The property tax remains as the most important revenue source for municipalities. It is the only tax that municipalities have the authority to collect. Other municipal revenue sources include user fees such as, water and wastewater fees, child care and homes for the aged fees. The property tax also constitutes the largest municipal revenue source (see pie chart below). Accordingly, the basis upon which the property tax is administered must be fair. Several property assessment and taxation reforms have been implemented to enhance fairness for taxpayers over the past few years.

Region of Peel
2011 Budgeted Revenue by Source

The two components of the property assessment and taxation system consist of the assessed value of a property and the tax rate applied to the property.

1.1 Property Assessment

Property assessment is the value assigned to a property for taxation purposes. Every property in the province of Ontario is assigned a value using a common valuation date. The Municipal Property Assessment Corporation (MPAC) which derives its authority from provincial legislation is responsible for determining property valuation. The valuation date for assessment used for the 2011 taxation year is January 1, 2008. When a change in assessment occurs, the Assessment Act requires MPAC to mail Property Assessment Notices to property owners at least fourteen days prior to supplying the Assessment Roll to a municipality in December.

Property owners can appeal the assessed value of their property by requesting MPAC to review the assessed value through a process called Request for Reconsideration. If the reconsideration process results in a change to the assessment, it will be made by MPAC and communicated to both the property owner and the municipality. Should the reconsideration not result in a change in assessed value, a property owner may file a complaint to an independent tribunal called the Assessment Review Board (ARB). Both the property owner and MPAC will be asked to appear before the ARB at a hearing to present evidence. The ARB's decision would be binding on both the property owner and MPAC and, if it reduces the assessed value, the municipality would adjust the taxes for the subject property. The municipality also has the right to appear at the hearing before the Board. The deadline for filing a complaint to the ARB is March 31^st of each year.

1.2 Tax Rate

The tax rate in the Region of Peel consists of three components. There is a lower-tier municipality portion (City of Mississauga or City of Brampton or Town of Caledon), a Region of Peel portion, and an education portion. Each of these portions is related to the budgetary needs of the lower-tier municipality, the Region of Peel and the provincial decision on education funding requirements. The tax rate is expressed as a percentage of a property's assessed value. A tax rate is set for each class of property. The tax rate multiplied by the assessed value, results in the amount of property taxes payable for the year. For example, if the residential tax rate is 0.962611% and the assessed value is $373,000, the property taxes would be $3,590.54 (see table below). A summary of the 2011 property tax rates by property class and lower-tier municipality in the Region of Peel is included inAppendix 1 (PDF 23KB, 1 page).

Sections: Index | 1 | 2 | 3 | 4 | 5 | App

Revised: Friday July 29 2011

www.peelregion.ca