How MPAC assesses properties
Property Information
Assessing Small Commercial and Industrial Properties
Property Features
Where sales are few and far between
Property Classification
A simple test
To find out more
Property taxes
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 assessmentprofessionals 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;
- income and expense information (for apartment buildings or hotels); 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.
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;
- income and expense information (for apartment buildings or hotels); 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 Small Commercial and Industrial Properties
In addition to recent sales, MPAC looks at the key features of every property. All structure and site characteristics are considered when assessing the value of a small commercial or industrial property.
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Property Features
The major factors that affect the value of a property include:
- location;
- lot dimensions;
- building area
- age of the property, adjusted for any major renovations or additions; and
- quality of construction.
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Where sales are few and far between
When assessing small commercial and industrial properties that do not sell often on the open market, or in areas of the province (i.e., rural areas) where there is low sales activity, MPAC uses the cost approach.
This is often referred to as the "bricks and mortar" approach. It is based on the cost of the land and the value of existing buildings or improvements. This approach also takes into account the economic conditions that affect the property as well as depreciation.
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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.
Some properties may belong to more than one class. For example, if building has an apartment on the top floor and a retail store on the main floor it would then fall into two classes - residential for the upper apartment and commercial for the store below.
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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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To find out more
MPAC will provide you with information, free of charge, to help you understand
your property’s assessed value.
You may request information about your property and comparable properties
through AboutMyProperty™ at www.mpac.ca. You can also call us at 1 866 296-MPAC (6722) to learn more.
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Property taxes
When your municipality sets property tax rates, they will be applied to the assessed value of your property to determine your property taxes.
Education tax rates, which are set by the Ontario Government, will also be applied to the assessed value. Questions about your local tax rate should be directed to your municipality.
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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 Small Commercial and Industrial Property Assessment Brochure.
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