MPAC Notices are in the Mail

The Municipal Property Assessment Corporation (MPAC) began mailing Property Assessment Notices last week across the township, reflecting an average increase in local property values of 3.9 per cent per year since the last assessment conducted in 2012. The Municipal Property Assessment Corporation (MPAC) is an independent, not-for-profit corporation, responsible for assessing and classifying more than five million properties in Ontario in compliance with the Assessment Act established by the Government of Ontario.

Properties are assessed every four years across the province, resulting in a new assessment values for each property which will establish the market value on which the municipal portion of each property tax bill is based. As a result of this review, all provincial properties will have a legislated valuation date of January 1, 2016.

In this evaluation, MPAC looks at sales and compares each property to similar properties that have sold in a particular area. “Our assessments reflect the local real estate market and property owners in Millbrook area may be interested to know the value of their home has increased over the last four years,” said Robert Buller, Director of Valuation and Customer Relations in MPAC’s Barrie office. In Cavan Monaghan Township, the typical residential property is assessed at approximately $311,000.

“Property owners should ask themselves if they could have sold their property for its assessed value on January 1, 2016. If the answer is yes, then their assessment is accurate and no further action is required. If not, we are committed to working with them to get it right,” said Buller.

Property owners can visit MPAC’s website at www.aboutmyproperty.ca. to learn more about residential market trends in their area and how their property was assessed. By using the Roll Number and unique Access Key on their Property Assessment Notice, they can also see the information MPAC has on file for their property and compare it to others in their area.

To be clear, MPAC doesn’t set tax rates. Based on their determination of value of each property, they sum these values for each municipality, which sets the property tax base used by each municipality and that calculates the value of the property tax base for each municipality. The tax rate is set by various levels of government at an amount that covers the costs of providing municipal services and other expenses. Simplifying the matter a great deal, if the costs of providing government services each year are $10 and the value of the total property tax base was $100, the tax rate would be 10 per cent or 10/100 for the municipal portion of your tax bill.   The assessment process is revenue neutral, meaning an increase in property values does not automatically generate an increase in taxes. The process is designed to create a tax system that redistributes wealth in a progressive manner. The amount you pay in property taxes will depend on how your property appreciates relative to the value of the average property in the area. Those whose property values increase relative to others will pay relatively more in property taxes, everything else remaining equal. The assessment process determines these relative changes.

MPAC’s province-wide Assessment Updates of property values have exceeded international standards of accuracy. Financial institutions including banks and insurance companies as well as the real estate industry rely on MPAC’s property values and data.

“We are committed to working with property owners if they have questions about their assessment,” Buller said. For more information contact MPAC at 1 866-296-MPAC (6722). KG

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