How MPAC assesses properties
Property Information
Assessing Residential Properties
Factors in Determining Farmland Value
Property Classification
Farm Property Tax Class
A simple test
What is MPAC?
How MPAC assesses properties
MPAC’s job is to accurately classify and value properties in Ontario in compliance with the Assessment Act and regulations established by the Ontario Government.
To establish your property’s assessed value, MPAC’s assessment professionals analyze property sales in your area. These sales provide the basis for assessed values. Our experts understand local real estate markets and work in our 33 offices located across the province.
We continually collect and update detailed information for every property in Ontario to ensure that similar property types are valued consistently within the market area.
This method is called Current Value Assessment. It is used by most assessment jurisdictions in Canada and around the world.
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Property Information
In addition to sales, our experts regularly analyze property information through a number of sources, including:
- land title documents;
- building permits;
- on-site property inspections and communication with property owners; and
- real estate boards.
MPAC’s database contains over two billion pieces of data, and is one of the most detailed in the world. Like all assessing authorities, MPAC is able to determine accurate values for large groups of properties based on common data and mass appraisal techniques.
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Assessing Farmland Properties
Accurate farmland values in Ontario are determined by extensive analysis, using only farmer-to-farmer sales as legislated by section 19(5) of the Assessment Act. Farm values are based on the land’s productive capability and other factors such as climate and location. It’s important to note that the value of a farm is not based on the land’s potential use (e.g., development).
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Factors in Determining Farmland Value
Properties that are farmed by the owner and/or tenant are valued using rates based on bona fide farmer-to-farmer sales. The primary factors used in determining a farm’s current value assessment are:
- Farmland - Farmland is assessed according to its productivity value, that is, the ability of the land to produce crops and/or maintain livestock. Productivity rates are established by considering such factors as soil texture, topography, drainage and depth to bedrock.
- Residence The value of the residential structure is determined by establishing a replacement cost of the improvement(s) less any depreciation.
- Residence Site If a farm residence is occupied by the person(s) farming the property, a one-acre parcel of land is valued at the farmland rate. If the residence is occupied by someone other than the person(s) farming the property, it is considered a non-farm residence and valued and classed at the residential rate.
- Farm Outbuildings A farm outbuilding is any improvement, other than a residence, that is used for farming operations. Outbuildings are valued based on their design and classified by their use (e.g., barn, silo, grain bin).
- Other Buildings All other buildings not used in the farm operation are valued based on their design and classified by their use (e.g., retail store).
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Property Classification
In addition to valuing your property, MPAC also classifies your property.
There are seven major property classes: Residential, Multi-Residential, Commercial, Industrial, Pipe line, Farm and Managed Forests. There are also several sub-classes for properties with specific or unique characteristics.
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Farm Property Tax Class
The farm tax class includes farmland and associated outbuildings. Although MPAC may assess a property as a farm, it is taxed at the residential rate unless placed in the Farm Property Tax Class by the Ontario Ministry of Agriculture, Food and Rural Affairs.
Additional information about the Farm Property Tax Class is available on the Internet at
www.omafra.gov.on.ca or by contacting the Ontario Ministry of Agriculture and Food at 1 800 469-2285.
When your municipality sets property tax rates, they will be applied to the assessed value to determine your property taxes. Education tax rates, which are set by the Ontario Government, will also be applied to the assessed value.
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A simple test
To find out if your assessed value is accurate, simply ask yourself if you could have sold your property for its assessed value on the applicable valuation date.
See your Property Assessment Notice for the value and valuation date. If the answer is yes, then your assessed value is accurate.
We want to make sure the classification and assessed value of your property is accurate. If you don’t think it is, call us.
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What is MPAC?
MPAC is a not-for-profit corporation funded by
all Ontario municipalities. Our job is to assess and classify
your property.
To learn more about MPAC or if you have a question about your property’s classification or assessed value, please call the number below or visit our web site at www.mpac.ca.
Customer Contact Centre
(Toll-free)
1 866 296-MPAC (6722)
www.mpac.ca
Click
here for a printable PDF version of the Farmland Property
Assessment Brochure.
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