Presented below are answers to a number of frequently asked questions (FAQs) about property reassessments.
How often do reassessments occur?
The last reassessment for properties in Ontario occurred in 2012, with a valuation date of January 1, 2012, and these values were used for the taxation years 2013, 2014, 2015, and 2016.
These new assessment values are as at the valuation date of January 1, 2016. The full change in reassessment value is being phased in over a 4-year period beginning in 2017 instead of being fully implemented in 2020.
How will this reassessment phase-in work?
If the new Current Value Assessment of your property has increased since the January 1, 2012 value, then the increase will be phased in at a rate of 25% of the assessment increase per year for each of the four years. For example, if your assessment value increased $ 40,000 from January 1, 2012 to January 1, 2016 then your new assessment value for taxation purposes will increase $10,000 per year for each of the taxation years 2017, 2018, 2019, and 2020.
However, if your new assessment value with the effective date January 1, 2016 is lower than your current assessment value, then the decrease will not be phased in and the new lower value will be fully effective in 2017 and will continue for all 4 years.
Why did my assessment value go up again?
As housing values increase so do assessed values. The assessed value on each property should reflect the value of the property if it were sold on January 1, 2016 to a willing buyer from a willing seller. Please keep in mind that the new assessed value reflects the property value as at January 1, 2016 and does not necessarily reflect the current market conditions. In general, the real estate market in Whitby experienced an increase in housing prices over the four-year period from January 1, 2012 to January 1, 2016.
Did the assessment values of all properties go up?
Most property assessment values did increase. The preliminary information data that we have for residential properties in Whitby is that the average increase was approximately 9% per year for each of the last four years.
What will happen if the assessed value of my property went up close to the average percentage change?
An increase in your own property assessment value does not automatically mean that you will be paying more for your property tax. Each property will be affected differently by the reassessment, but in general, if your increase is close to the average for the Town of Whitby, then your taxes should not be affected significantly by reassessment. However, the annual property taxes for the property will still be affected by the annual budget processes of the Town of Whitby and Region of Durham and the tax rate decisions that are determined by the Province for school board purposes.
How much more money will the Town of Whitby
be getting as a result of this reassessment?
None. Reassessment is revenue neutral for the Town of Whitby. The total taxes collected by the Town of Whitby do not increase as a result of reassessment. The resulting changes in the annual property tax burden will only change between properties. The tax burden will shift between those properties where values have increased at a quicker rate and away from those properties that did not increase as much as the average property values changed.
Why are MPAC and the Province doing this?
For many years, reassessments were not done on a regular basis and it resulted in some property owners paying more than their "fair share" of total property taxes (an inappropriate tax burden on some properties ) while others were not paying their "fair share". By having regular reassessments province-wide, property values will be current and there should be smaller changes in assessment values each reassessment. This will help ensure everyone's share of the total property tax is fair.
What can I do if I don't agree with my assessment value?
If you do not think that the new assessment value is reflective of what your property could have sold for on January 1, 2016, then you should contact MPAC. The toll-free number for MPAC is 1.866.296.6722.
Property owners are also encouraged to visit www.aboutmyproperty.ca to learn more about how their property was assessed, see information MPAC has on file, as well as compare it to others in their neighbourhood.
What else can MPAC do for me?
If you believe that the assessed value of your property is inaccurate, ask MPAC to review it. There is no fee for this review. The last day to submit a Request for Reconsideration with MPAC is March 31st for each of the taxation years 2018 to 2020 inclusive, in respect of which the request is made.
Please note that for the 2017 taxation year, the deadline to ask for a Request for Reconsideration is October 18, 2016 for residential property owners.
There are three ways to request a review:
- Complete a Request For Reconsideration Form
- Call MPAC toll free at 1.866.296.MPAC (6722) to request a form by mail
- Write a letter requesting a review of your assessed value to: The Municipal Property Assessment Corporation, P.O. Box 9808, Toronto, ON M1S 5T9
In your letter, please include the following information:
- your 19-digit roll number on your assessment notice
- your full name, address , and phone number
- the reasons why you believe your assessed value is incorrect
If you have information such as sales of similar properties in your area, rental information, farm leases , or any other material that can help , please include it with your request.
What are the main features of a property
that MPAC looks at to determine the assessment value?
In addition to sales analysis, the 5 main features of a property that MPAC uses to determine the current value assessment for a property are:
- Age of the House
- Building Area
- Lot Dimensions
- Quality of Construction