MANITOULIN—Island politicians are concerned that there has been another delay in property assessments being conducted by the Municipal Property Assessment Corporation (MPAC) due to actions taken by the provincial government.
“This is not realistic for timely assessments. I can see local taxpayers freaking out with this news and having to wait so long to have updated property assessments,” stated Billings township councillor Dave Hillyard at a council meeting last week.
“If there has been increased development due to assessment municipalities want to capture that so there is balance in who is paying what,” stated Al MacNevin, mayor of the Town of Northeastern Manitoulin and the Islands (NEMI). “This way the costs of increased development are spread across the municipality. It is unfair to the rest of a community if new development and assessment is not being captured.”
“And as municipalities, we are potentially losing revenues as well with new construction not being captured in updated assessments,” said Mayor MacNevin. “Everyone has been anxious to see this happen and MPAC was ready to go, then the province decided the assessments would not take place.”
A letter to Billings township from Carmelo Lipsi, vice-president, valuation and customer relations chief operating officer with MPAC stated, “on August 16 the Ontario government filed regulation 261/23 under the Assessment Act to extend the current assessment cycle, and the valuation date of January 1, 2016, through to the end of the 2024 taxation year.”
“This means that property taxes for the 2024 taxation year will continue to be based on the January 1, 2016, valuation date,” wrote Mr. Lipsi. “Property assessments will remain the same as they were for the 2023 tax year, unless there have been changes to the property.”
“In addition to the recent regulation, the government will conduct a review of Ontario’s property assessment and taxation system,” wrote Mr. Lipsi. “MPAC shares the government’s interest in ensuring the accuracy, transparency and fairness of property assessments and we are committed to the continuous improvement of the property assessment and taxation system for the benefit of all Ontarians. While MPAC is not responsible for setting tax rates or collecting property taxes, we welcome the opportunity to work with the province to ensure the property assessment process is optimal for both property owners and municipalities.”
A statement by the Association of Municipalities of Ontario (AMO) August 18 reads, “over the past year, AMO has publicly expressed very strong support for a timely return to the assessment cycle.”
“Yesterday, the government announced that it will delay an assessment update again in 2024. As a result, Ontario’s municipalities will continue to calculate property taxes using 2016 property values,” the AMO wrote.
“AMO is concerned that further delays will compound uncertainty for residents and businesses. Outdated assessments are inaccurate, increase volatility, and are not transparent,” said AMO. “The government also announced its intention to conduct a review of the property taxation and assessment system focusing on fairness, equity and economic competitiveness. Further deferring property reassessment during the review means municipalities could be waiting awhile before a reassessment is conducted.”
“AMO will continue its call for a return to the regular assessment cycle and expect to be an engaged partner as details regarding the review continue to unfold.”
“It is disappointing that again there has been a delay,” said Mayor MacNevin.
A reassessment could significantly adjust the ratio between industrial and residential properties.
The last scheduled assessment for 2020 was deferred by the provincial government as a result of the COVID-19 pandemic. Some municipal governments had anticipated the return of the process in time for 2024 budgets. As property values increase, the assessment is a key component in determining municipal taxes, which are one of the largest sources of revenues to operate municipalities.
