Property Assessment

In 1997, the statutory duties previously performed by the Ministry of Finance - Assessment Branch were transferred to the Ontario Property Assessment Corporation (OPAC).  The Corporation has since become the Municipal Property Assessment Corporation (MPAC) and delivers a broad range of assessment services to municipalities.  The transfer of the financial responsibility for assessment services took place on January 1, 1998.  MPAC recovers its costs from municipalities using a formula which recognizes both municipal demands for services and a municipality's ability to pay.  MPAC invoices upper and single tier municipalities.

With the changes in the delivery of property assessment services came property tax reform which was intended to introduce a fair and accountable system of property assessment and taxation.  The former system brought about significant inequities in the taxation of properties across Ontario, with sizable variations in the tax burdens of ratepayers owning similar properties.  The province enacted several pieces of legislation to lessen the impacts of such a large change in assessment methodology. The new Ontario Fair Assessment System brings consistency to assessment across the Province, leading to a simpler, more up-to-date property tax system that is less costly to administer.  The assessment of land is based on current value, as measured by the price that would be paid between a willing buyer and a willing seller at arm's length. 

Under the system, properties are divided into seven standard property classes established by the province.  These include residential/farm, multi-residential, commercial, industrial, pipeline, farmlands, and managed forests.  Additional property classes may be created by the province.  Each tax class may have sub-classes and all may be taxed at a different rate.

Upper and single tier municipalities are responsible for making tax policy decisions that are sensitive to local needs and priorities on an annual basis.  Tax ratios express the relationship that the tax rate for each property class in the municipality bears to the tax rate for the residential/farm property class.  The apportionment of the tax burden both within and between tax classes is revisited each year through the examination of:

• updated assessment related impacts
• tax ratio relationships
• tax tools
• other tax policies (discounts for vacant units, farmlands awaiting development, charitable rebates, etc.)

Within Leeds and Grenville this responsibility has been done in a cooperative approach with local treasurers and county staff meeting to review these responsibilities and making recommendations to the Governance and Finance Committee of Counties Council.  Counties Council, in turn, has been responsive to the recommendations made and has been proactive in the vision of creating a competitive economic environment in Leeds and Grenville for all property classes.

The tax ratios established for 2009 are as follows:

• Residential/Farm Property Tax Class - 1.0000
• Residential/Farmlands 1 Property Tax Class - 0.4000
• Full Shared PIL Residential Property Tax Class - 1.0000
• Multi-Residential Property Tax Class - 1.0000
• New Multi-Residential Property Tax Class - 1.0000
• Farmlands 1 - Commercial Property Tax Class - 0.4000
• Full Shared PIL Commercial Property Tax Class - 1.3464
• PIL Taxable Tenant Commercial Property Tax Class - 1.3464
• Commercial Property Tax Class* - 1.3464
• Commercial Vacant Land Property Tax Class - 0.9425
• Commercial Excess Land Property Tax Class - 0.9425
• Shopping Centre Property Tax Class - 1.3464
• Industrial Property Tax Class* - 1.8114
• Industrial-Full Share PIL Property Tax Class - 1.8114
• Industrial Excess Land Shared PIL Property Tax Class - 1.1774
• Industrial Vacant Land Property Tax Class - 1.1774
• Industrial Excess Land Property Tax Class - 1.1774
• Large Industrial Property Tax Class* - 2.8035
• Large Industrial Excess Land Property Tax Class - 1.8222
• Large Industrial Vacant Land Property Tax Class - 1.8222
• Pipelines Property Tax Class - 1.6551
• Farmlands Property Tax Class - 0.2500
• Managed Forest Property Tax Class - 0.2500

(* Vacant commercial land and excess commercial land tax ratios are reduced by 30%. All excess industrial land and vacant industrial land ratios are reduced by 35%.)

For a copy of the 2009 Counties´ Tax Ratio By-Law click here (Adobe Document).

Once the Counties levy requirements have been determined for the current year, tax rates are calculated for each of the property tax classes.

In addition to the Counties establishing tax rates for county purposes, the Province establishes school board tax rates and each of the local municipalities in the United Counties of Leeds and Grenville establish tax rates for their own purpose.

Click here to view a document that shows tax rates for 2008 for the following areas:

• The United Counties of Leeds and Grenville
• The Township of Athens
• The Township of Augusta
• The Township of Edwardsburgh/Cardinal
• The Township of Elizabethtown-Kitley
• The Township of Front of Yonge
• The Township of Leeds and the Thousand Islands
• The Municipality of North Grenville
• The Township of Rideau Lakes
• The Village of Merrickville-Wolford
• The Village of Westport

Municipalities are required by the Provincial Government to limit the tax increases due to reassessment for commercial, industrial and multi-residential properties to 5 per cent of the previous year's taxes plus any budgetary increases.  This program is called "Capping".  In order to fund the capped tax increases, the legislation allows Council to phase-in tax decreases to businesses and apartments that realized a tax decrease reassessment by clawing back.

For 2009 taxation, the clawback percentages are:

• Multi-residential 0%
• Commercial 37.6414%
• Industrial 4.8089%

In addition, municipalities were provided with optional tools to help mitigate tax increases among businesses.  Municipalities are also required to provide measures of tax relief to eligible seniors and the disabled, and qualifying charities.

As part of the Counties continued cooperation with its member municipalities, Dave Publow in his role as Assessment & Taxation Coordinator provides a variety of responsibilities to assist municipalities.  These include:

• working on behalf of the Counties and all local municipalities on assessment and taxation matters.
• working with Chief Building Officials of the local municipalities, analyse supplemental and omit assessment rolls to ensure building permits are processed in a timely fashion by MPAC.
• liaising with Government Ministries and Agencies such as Ministry of Municipal Affairs and Housing, Ministry of Finance and MPAC concerning various assessment and taxation matters.
• working with County Staff and local municipalities' Clerks and Treasurers to formulate tax policy for discussion and approval by Counties Council and ensuring that all by-laws affected by new assessment and taxation legislation are brought to the attention of the Manager of Accounting Services/Deputy Treasurer to be updated.
• ensuring that assessment adjustments and appeals on all major commercial, and industrial properties are reviewed with local municipalities before being implemented by MPAC.
• liaising and following up with the local MPAC office to ensure that apportionment requests and Section 442 and 443 applications are completed promptly.
• working with municipalities to develop policies and procedures for the Vacancy Rebate Program.
• making alterations to the 1997 frozen assessment roll as necessary to reflect changes in use or physical character of property.
• reviewing the assessment on property owned or in which the Counties has an interest, as requested.
• other matters relating to assessment and taxation, or other matters within the Assessment & Taxation Coordinator's expertise that may arise as mutually agreed upon.

This department also provides other corporate departments with analysis of current value assessments of county owned property as well as financial and economic analysis.

Municipal Property Assessment Corporation (MPAC)
For more information on the Municipal Property Assessment Corporation or for enquiries concerning individual property assessment matters please contact the MPAC Customer Contact Centre at 1-866-296-MPAC (6722), by e-mail at enquiry@mpac.ca or visit their web-site at www.mpac.ca.