The Ford government postponed MPAC’s scheduled 2020 property assessment for the 2021 tax year in its March 2020 Economic and Fiscal Update so that “municipal governments are able to focus their resources on critical public health initiatives and other efforts to manage the local response to the COVID‐19 outbreak”, meaning that assessments for the 2021 taxation year will continue to be based on January 1, 2016 values.
Postponing Planned Property Tax Reassessment
The government is postponing the planned property tax reassessment for 2021.
This will ensure that municipal governments are able to focus their resources on critical public health initiatives and other efforts to manage the local response to the COVID‐19 outbreak. Postponing the reassessment will also provide stability for Ontario’s property taxpayers and municipalities.
Property taxation is based on the assessed value of properties and in Ontario those assessments are updated every four years. The next property valuation update, known as a reassessment, had been scheduled to be completed by the Municipal Property Assessment Corporation (MPAC) in 2020 for the 2021 taxation year. As a result, MPAC would have issued new assessments for more than five million properties beginning this spring.
However, in view of the unique and unforeseen challenges that all municipalities, residents, and businesses are facing during 2020, the government is postponing the reassessment. This means that assessments for the 2021 taxation year will continue to be based on the same valuation date that was in effect for the 2020 taxation year.
This measure will not have a financial impact on municipalities, because MPAC will continue to maintain the assessment roll and ensure that it is updated to reflect changes such as new construction.
This postponement will also provide an opportunity to better reflect the advice received through the Property Assessment and Taxation Review that is currently underway. Through this review, the government is seeking stakeholder input to explore opportunities to support a competitive business environment and enhance the accuracy and stability of property assessments. The feedback received during this review will help to inform the development of policies for the next reassessment.
Providing Property Tax Stability
The government has been conducting a Property Assessment and Taxation Review to explore opportunities to:
- Enhance the accuracy and stability of property assessments;
- Support a competitive business environment; and
- Strengthen the governance and accountability of the Municipal Property Assessment Corporation (MPAC).
Input is being sought from municipalities, taxpayers, industry associations and other interested stakeholders.
As announced in the March 2020 Economic and Fiscal Update, the government postponed the property tax reassessment that was scheduled to be conducted in 2020 for the 2021 taxation year to maintain stability in the context of the emerging pandemic.
To provide continued stability, Ontario is implementing a further postponement of the property tax reassessment. This will provide certainty for businesses and residents, and it will enable municipalities to focus their attention on responding to the challenges posed by COVID‐19.
This delay will not have a financial impact on municipalities, as MPAC will continue to maintain the assessment roll and ensure that it is updated to reflect changes such as new construction.
Through the Property Assessment and Taxation Review, the government will be seeking input from municipalities, taxpayers and interested stakeholders regarding the timing and valuation date for the next reassessment. The outcomes from this consultation will be communicated in fall 2021.
Comments
We want to hear from you! Share your opinions below and remember to keep it respectful. Please read our Community Guidelines before participating.