Ontario residential property taxpayers will see an average assessment increase of five per cent in 2009, the first year of a four-year phase-in introduced by the Provincial Government.
"Residential property values have increased by an average of approximately 20 per cent across Ontario since 2005, when the last assessment update was done," Carl Isenburg, President and Chief Administrative Officer of the Municipal Property Assessment Corporation (MPAC), said.
With a four-year phase-in, property taxpayers will see an average assessment increase of five per cent next year. The Assessment value that home owners will be receiving reflect their properties value on Jan 1, 2008. This value will be used with the tax rate to calculate the 2009 property taxes.
An increase in assessment does not necessarily mean an increase in property taxes. If the assessed value of a home has increased by the same percentage as the average in the municipality, there might be no increase in the property taxes paid by a property taxpayer.
The phase-in program does not apply to decreases in assessed value. The full amount of a decrease will be applied during the 2009 tax year.
"Our values are based on actual sales and trends in real estate markets across the province," Isenburg said. Municipalities establish tax rates that are applied to assessed values to pay for local services and the Provincial Government sets rates for the education portion of the tax.
Property Assessment Notices began arriving in the homes of property taxpayers in mid-September, and the mailings will take place over a 10-week period. Notices for Niagara should be received the week of Nov 3.
For more information, property taxpayers can also call MPAC's Customer Contact Centre, which can be reached toll-free at 1 866 296-MPAC (6722).
Rules and timeing deadlines regarding appeals have changed. Please ensure you review your material and take notice of the deadlines for appeals.