CAPTR

Understanding your 2008 Assessment

There are a number of changes in the current assessment cycle, in the information provided with the notice or available through the MPAC website, and in the means by which you can challenge your assessment.

Four Year Assessment Cycle

Your assessment notice shows the valuation at January 1, 2005, January 1, 2008, and the change in value over that three year period. It does not calculate the percentage increase but you can do so by dividing the increase by the January 1, 2005 value. Under the new rules, assuming your property has risen in value, that increase will be phased in over the next four years.

The notice shows the amount of each year's increase. It then tells you for 2009 what that percentage increase is and what the average increase is for your municipality. If, for example, your 2009 percentage increase is 10% and the municipal increase is 5%, you can calculate that your share of 2009 municipal tax will increase due to assessment by 110/105 or 4.8%. You can also make roughly the same calculation for each of the following three years.

By the end of 2012 you will have been hit by the full tax impact of the 2008 assessment. Alternately if your percentage assessment increase is lower than the average for the municipality, you will receive an assessment related decrease in each of the four years.

In simple terms what this all means is that for the next four years you are stuck with your 2008 assessment, regardless of what happens to real estate markets over that period.

What you can learn about your assessment

As indicated on the assessment notice, you can now go to www.mpac.ca in order to compare your assessment with those of your neighbours. You can also obtain a profile of your property. Go to 'About My Property', click on the picture, then insert your User ID and Password from the bottom right corner of your assessment notice. ( Be prepared for a degree of frustration. You often have to reinsert your password and keep trying.) You will first get a full description of your property and structures. These include frontage and area of property, outsize dimension of building(s) and age of building(s). You will then see valuations placed on the land and each structure on the property all adding up to your total assessment. Any errors in the description can be reported to MPAC by calling 1 866 296 6722 or if necessary filing a 'Request for Reconsideration'. Details are on the website. (There is a caution on the About My Property page that the system works best on a PC with Windows XP or Vista).

Next you can click on 'View Other Properties around My Neighbourhood'. By clicking the lower right corner of this initial screen, you will get a map of the area that includes your property. Using this map you will be able to get the assessments for up to 100 other properties. You can also get details similar to that for your own property for up to 24 of those properties. You must decide which properties to compare. MPAC provide no assistance on that. Once you have decided which properties you want for comparison and check the 'ADD' box for each, you can have a report sent to you immediately by email, by clicking the 'View Full Report' box.

When attempting to select properties, there are two key actions. Before clicking on the property you wish to select, you must first click the 'Select' icon on the upper right of your map screen. The second key is the third icon from the left (called 'Pan' and shown by a hand). If you click this and drag it across the map you can visit and select properties beyond your immediate area.

Challenging your Assessment

You can first contact MPAC, as outlined above, to discuss your property description. You can then file a 'Request for Reconsideration' (RFR) by March 31, 2009. Finally, if you are not satisfied with the results you can file an appeal with the Assessment Review Board within 90 days after receiving a decision on your RFR. Details of this process are on the website under 'Resolving Assessment Concerns'.

It is important to remember when deciding whether to appeal that if you don't you will be stuck with the current assessment for the next four years. If you believe there are negative aspects about your property which have not been taken into account in arriving at your valuation, even if the value is below what you think your property is worth, we recommend you file an RFR and if necessary file an appeal. It is important to remember that the value at the end of 2007 is based on sales that took place in the past three years, and does not reflect the market decline in many areas since the end of 2007 nor the huge overhang of unsold properties that has built up in many parts of the province, particularly on waterfront.

Finally while there are glitches in the system, and the extent to which it works depends to a degree on your computer savvy, MPAC has come a long way from the process in effect at the time of the 2005 assessment, in making the system more user friendly and informative.

CAPTR
November 2008