Taxes!That word makes most of us cringe. No one likes paying taxes but as a homeowner, or potential home owner, understanding how and what property taxes are is definitely important.
Tax rates are applied to the current value assessment of your property as determined by the Municipal Property Assessment Corporation (MPAC).MPAC is an independent body formed by the provincial government and funded by municipalities.MPAC's assessment of Ontario properties for 2013 taxation is based on 2012 market values.Your assessment notices are issued in November and they advise you of the reassessed market value of your property.
What are property taxes for?
These taxes cover a wide variety of services provided by the municipality, such as, Fire, Police, ambulance, transportation services, environmental services, parks and recreation, planning and development, as well as social and health services.
How are they calculated?
Your property tax is calculated as a percentage of the assessed value of your home.The assessed value is provided in your yearly MPAC Statement. The 2014 residential tax rate in London was 1.367795%.
When your home is assessed at $214,000, with a current tax rate of 1.367795% your year property tax will be $2927.08
$214,000 x 1.367795% = $2927.08 (Current Property Assessment x Residential Tax Rate = Property Tax)
Tax payments are usually due in 5 separate installments during the year; at the end of Feb, March, June, August and October. In London you can choose to pay using a pre-authorized payment plan through your bank and pay the taxes over a 10 month period with automatic withdrawal from your bank account, some mortgage lenders will build the tax payments into your regular mortgage payments.
Municipal Property tax Assessment Corporation 1-866-296-6722