Selwyn Council received an update on housing assessment’s and property tax calculations from Municipal Property Assessment Corporation (MPAC) during Tuesday afternoon’s council meeting.
During the update, Sarah Groves, account manager for MPAC told council that when assessing homes, there are four key players:
- The provincial government: responsible for setting assessment expectation legislation and policies
- MPAC: role is to determine the current value assessment and classification for all properties in Ontario.
- Municipalities: Determine revenue requirements, set and collect tax rates pay for municipal services
- Property Owners: Pay property taxes for community services and education taxes to help fund elementary and secondary schools in OntarioGroves stated that the transactions property sellers and purchasers make inform MPAC’s current value assessments.
She said, “Monitoring the market and assessing newly built and renovated properties are things we do every day in order to keep our data current. We also periodically update every single property in Ontario based on the same legislative valuation date and we call this an assessment update or a reassessment. This is when we determine what every single property in Ontario could have reasonably sold for in its current state and condition at a particular point in time.”
Groves went on to explain that Provincial legislation Determines when MPAC can conduct a province-wide assessment update and sets the valuation date for each update cycle. The sales of homes and properties in and around that date informs the assessed values. The current date MPAC is using is from 2016. This is because typically the assessment date happens every four years. However, the last update was to have happened during the global health pandemic and the province has not given the green light to reassess.
In terms of property taxes and MPAC’s role, she said that the system is based on everyone, paying their portion of what it costs to deliver community services.
“To do this, all properties are assigned a value at a common valuation date. Current value assessment is the market value as a point in time. It’s the price of property might reasonably be expected to sell for if sold by a willing seller to a willing buyer after appropriate time and exposure on an open market regular revaluation of property ensures assessments stay up to date and similar properties, of similar value, in the same municipality pay similar property taxes.”
Groves said that there are three main approaches MPAC takes when valuing properties.
- Direct Comparison Approach (residential properties, condos and vacant land): Analyze sales of comparable properties sold for similar or identical use as the property to be valued.
- Income Approach (for office buildings): Determine how much revenue the property generates and the sale price.
- Cost Approach: Properties that are unique and rarely sold on the market.
They also consider five major factors which make up 85 per cent of the property’s assessed Value: Age of Building, locations of the property, quality of construction, exterior square footage, and lot dimensions.
MPAC also has a lot of resources for home owners. One o these tools is what is AboutMyProperty.ca.
Groves said the this tool contains all of the property detailed information for the subject property. They can look at comparable properties across the municipality. They can save favorites and look at fine details of neighboring properties as well to a certain limitation.
“What we really want property owners to do is go in and confirm the information we have. Make sure the details are correct, make sure the square footage makes sense, the number of structures on your property that kind of information. We want to ensure its equitable. So we just want to make sure the information is correct.”
If for some reason the property owner sees the information is incorrect, or they disagree with the assessed value that’s been tied to their property, Groves told council the property owner can submit a request for reconsideration and they will review the property and all of the property detail free of charge.
MPAC also has a first time home buyers Hub which has been developed for first time property owners who have never had any dealings with MPAC before or may not know why they are receiving a notice from them.
MPAC also delivers door hangers from properties they intend to visit with information on how they are and why they are assessing properties.
They also have social media campaigns and education videos residents can view online.
Mayor Sherry Senis asked Groves if she knew when the next valuation date will be.
Groves said, “The last update was supposed to occur in 2020 and that was paused by the provincial government. Right now, we’re awaiting the final results and formal review of the property assessment and Taxation system review that was announced earlier. So we are awaiting that and would anticipate possibly a date after that. But at this time, we don’t have an indication of what that new valuation date or cycle will be.”
The presentation was received for information.
