September 17, 2008

Ontario residential property taxpayers will see average assessment increase of approximately five per cent in 2009

Market increases in values since 2005 will be phased in over the next four years with new provincial policy as mailing of Property Assessment Notices for Ontario’s nearly 4.7 million properties begins

Pickering, Ontario, September 17, 2008 – Ontario property taxpayers will see an average assessment increase of five per cent in 2009 with a four-year phase-in introduced by the Provincial Government to add stability and predictability to the assessment process.

“Residential property values have increased by an average of approximately 20 per cent across Ontario since 2005, when the last assessment update was done. Because of the four-year phase-in, property taxpayers will see an average assessment increase of five per cent next year,” Carl Isenburg, President and Chief Administrative Officer of the Municipal Property Assessment Corporation (MPAC), said.

An increase in assessment does not necessarily mean an increase in property taxes. If the assessed value of a home has increased by the same percentage as the average in the municipality, there might be no increase in the property taxes paid by a property taxpayer.

The phase-in program does not apply to decreases in assessed value.  The full amount of a decrease will be applied during the 2009 tax year.

“Our values are based on actual sales and trends in real estate markets across the province,” Isenburg said. Municipalities establish tax rates that are applied to assessed values to pay for local services and the Provincial Government sets rates for the education portion of the tax.

Property Assessment Notices will begin arriving in the homes of property taxpayers this week.

“We have made a number of changes to improve customer service and to provide property taxpayers with more information so they can decide if their assessment is accurate,” Isenburg said. The changes include:

• Redesigning the Property Assessment Notice to make it easier to understand and provide more information, including the assessed value of a property for each of the next four tax years; and
• Online videos explaining how MPAC assesses property and how to resolve assessment concerns on the MPAC website at www.mpac.ca.

“MPAC’s role is to assess property accurately. If we don’t have the right information about a property or if a property taxpayer feels that his or her property would not have sold for its assessed value as of January 1, 2008, we want them to call us. If a mistake has been made, we’ll fix it,” Isenburg said.

Hours will be extended at each of MPAC’s 33 local offices across the province during the Notice mailing period this fall, as was done in 2005. Property taxpayers can also call MPAC’s Customer Contact Centre, which can be reached toll-free at 1 866 296-MPAC (6722). 

“We have almost 500 customer service representatives across the province who will be available to answer questions or deal with concerns,” Isenburg said, adding:

“We strive for accuracy, but when you assess nearly 4.7 million properties, errors can be made.  If any property taxpayer has a question or concern, we want them to call us or visit one of our local offices.  We are committed to working with property taxpayers to make sure that their assessment is correct.”

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For more information, please call:
Michael Jacoby, Director, Communications, Municipal Property Assessment Corporation, (905) 837-4209

The New Property Assessment Notice
Background Information

• The Municipal Property Assessment Corporation (MPAC) has improved the 2008 Property Assessment Notice to make it easier to read and understand. This year’s Property Assessment Notice will include:

• The assessed value of the property for each of the next four tax years;

• The percentage by which the property has increased or decreased in value since the last assessment update in 2005 and the average percentage by which properties across the municipality have changed in value. If the assessed value of the property has changed by the same or a lower percentage than values in the municipality as a whole, property taxes may not increase;

• A history of past adjustments, if any, made by MPAC through the Request for Reconsideration process or the Assessment Review Board to the assessed value of the property and whether these are reflected in the current assessment;

• Details about the property including lot size, square footage, and year of construction used by MPAC to help determine the assessed value of a property;

• A User ID and Password that can be used to access AboutMyProperty™;

• The address of the nearest MPAC local office where questions can be answered and concerns addressed in person; and

• The toll-free phone number for MPAC’s Customer Contact Centre.

• Property Assessment Notices will be mailed for Ontario’s nearly 4.7 million properties in 2008.

• Mailed with the Property Assessment Notice will be:

• A brochure explaining how property owners can determine if their assessment is accurate and, if they feel it is not, what options are available to have it corrected; and

• A brochure describing the new Ontario Senior Homeowners’ Property Tax Grant to help eligible senior homeowners with low and moderate incomes pay their property taxes.

• An interactive Property Assessment Notice with details on each section has been posted on the MPAC website at www.mpac.ca

For more information, please call:
Michael Jacoby, Director, Communications, Municipal Property Assessment Corporation, (905) 837-4209

Note to Editors:  MPAC (www.mpac.ca) is a not-for-profit corporation funded by all Ontario municipalities.  MPAC is responsible for administering a uniform, province-wide property assessment system based on current values.  It provides a range of services, including the preparation of annual assessment rolls for use by municipalities and the Province of Ontario to calculate property taxes and education taxes.  Municipal enumerations are also conducted by MPAC in order to prepare a Preliminary List of Electors for each municipality and school board during an election year.

MPAC has 33 local offices located across Ontario.  Its head office is located in Pickering.

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