Ontario’s Municipal Property Assessment Corporation (MPAC) is reminding ratepayers that when a province-wide reassessment occurs, if a property’s assessment increases as a result, this does not necessarily mean that its taxes will increase.
Municipalities are required to reset their tax rates to offset changes in property values.
That’s the gist of what- at least at first blush, appears to be a complex calculation- according to its Vice-President and Chief Operating Officer, Carmelo Lipsi.
Residential valuations have not been revisited since 2016, in part because the planned review was interrupted by the COVID crisis.
The legislation governing re-assessment spreads any increase over a four-year interval at 25 percent per year.
Any change in the current four-year catch-up formula would have to be initiated by the Provincial Government, in conformity with revenue neutrality provisions.
