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Appealing Your Property Assessment
S&W Report Fall / Winter 2001 (Volume 24) - Revised March 2003
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Did you scrutinize your Property Assessment Notice you received last fall? Or did you file your notice away in the top drawer of your desk, planning to take a closer look at it - when you find some spare time?
Your property assessment notice from the Municipal Property Assessment Corporation (formerly the Ontario Property Assessment Corporation) should be reviewed closely to see if the information in the notice is factual. Check the property description, property classification1 and the assessed value. If you have questions or concerns about your assessment, you need to contact your local assessment office and ask for clarification. Remember - your property assessment is an important element in determining the amount of property taxes you pay each year.
The following information will provide you with some background information that will assist you in determining what questions to ask, provide you with some tips in appealing your assessment, and direct you where to go to seek information and assistance.
Background Information
Assessment notices are sent out each time your property is reassessed, or if there is a change in information (such as change of property classification, a subdivision of property, a change of address or a change of school support designation, etc). All property owners in Ontario were sent a new assessment in the fall of 2002, with updated assessment information to reflect the assessed value of their property as of June 30, 2001.
Who does the assessment? In Ontario, the Municipal Property Assessment Corporation or MPAC (formerly the Ontario Property Assessment Office) is a municipally controlled and funded corporation whose main responsibility is to establish up-to-date property assessments.
What is current value assessment? This is the value generally considered to be the amount of money a willing seller can expect to receive from a willing buyer for a particular property on a specific date. To produce the assessment of your property, MPAC will review recent sales data and other information for similar properties in the surrounding area.
Who is the connection between my property assessment and my municipal property taxes? Property taxes are levied on the assessed value of the property. The taxes are calculated using three difference elements. They include the assessed value of your property, a municipal tax rate (set by the local municipality), and an education tax rate (established by the province). For example, the assessed value multiplied by the municipal tax rate equals the amount of municipal property taxes. The assessed value multiplied by the education tax rate equals the amount of education property tax. Both of these added together is the amount of property taxes you will pay.
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Challenging Your Assessment
Any landowner that believes the assessed value assigned to their property is incorrect can request MPAC to have another look at the value. Many people first talk to the assessor before filing a formal complaint. The assessor may correct a mistake or an over-assessment after the mailing of the Notice of Property Assessment and before the date for finalizing the roll. At the very least, this discussion will help you better understand how your property was assessed.
If you are still dissatisfied after your initial discussion with the assessor, you can file a formal complaint through a process called Request for Reconsideration. This process allows the property owner to have their property assessment reviewed anytime during the taxation year without filing a complaint with the Assessment Review Board (ARB). The deadline for requests is December 31.
The request must set out the basis of your complaint and the relevant facts that would assist the assessor in their reconsideration. Forms for Request for Reconsideration are available from your local MPAC office. If the reconsideration results in a change in the assessed value, MPAC will revise the property assessment. If not, the property owner has the option of filing an appeal with the Assessment Review Board.
It should be noted that if you do not file a complaint before the ARB deadline of March 31 of the tax year, and your Request for Reconsideration is not successful, the assessment will be fixed at the amount shown on your assessment notice for that taxation year.
The Assessment Review Board
Every property owner who remains unsatisfied with the assessed value of their property after going through the reconsideration process has the right to file a complaint with the Assessment Review Board. The ARB is an independent and impartial tribunal operated by the province of Ontario. Its main function is to provide taxpayers with an opportunity to be heard if they believe there is an error or inequity in their assessed value or school support designation. The Board's role is to ensure that properties are equitably assessed in relation to each other. The Board has the authority to change an assessed value or change other property-related information. Its decisions are binding on both the property owner and MPAC.
Making an Appeal to the Assessment Review Board
Complaints to the ARB must be made using the Notice of Complaint form. In order for a complaint to be heard, it must be received by the ARB prior to the deadline date of March 31, and include the required fees. The current fees for 'Residential/Farm' and 'Managed Forest/Conservation Land' property classes are $50.00 per individual roll number. The fees are non-refundable.
After the Board has received and acknowledged a complaint, the property owner will be scheduled for a hearing. A Notice of Hearing from the Board will be sent to the property owner and all other parties involved in the complaint, advising of the date, time and location of the hearing. Most hearings are held in locations as close as possible to the municipality where the property is located.
Once a notice has been issued, an adjournment may be requested if one of the parties is unable to attend the hearing. The request must be made in writing, and you must provide the Board with an explanation about why you are seeking an adjournment. The request must be made at least 25 days prior to the scheduled hearing.
Sometimes MPAC and the property owner will come to an agreement outside of the reconsideration process and prior to the hearing. If this occurs, MPAC will provide the Board with a copy of the Minutes of Settlement, signed by all parties. The Board will then issue a decision in accordance with the agreed-upon settlement, and the complaint will be automatically withdrawn. Your assessment will be revised in accordance with the agreement.
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Preparing for a Hearing
The Board's hearings are intended to be informal and are not burdened with complicated procedures. A landowner is able to appear before the Board and state their case in a simple and straightforward way. You may, of course, seek legal assistance if you wish, or you may have a friend or acquaintance speak on your behalf. However, it is important to remember that the onus is on you to prove that your assessment is inequitable with respect to the assessment of similar properties in the vicinity.
How di I prepare my case? Most complaints are related to the assessed value of the property. You need to gather sales information on the subject property and similar information for comparable properties in the vicinity. Information should be gathered on properties relating to the 'base year' established for the assessment. For the 2003 tax year, assessed values were based on June 30, 2001 sales information. If sales information for comparable properties is not available, the Board may consider information on sales of comparable properties in the year immediately prior to and following the base year.
Remember that when comparing properties, the following information should be obtained relating to the properties under consideration - size of property, building size (square feet), building details (age, condition, etc.). Photographs of your property and any comparable properties may be useful.
Where can you obtain assessment information and property values? Try these locations:
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You can request MPAC to provide you with information on up to six comparable properties. You should be aware that MPAC might not necessarily rely on the same comparable properties to defend its valuation. |
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To access assessment roll numbers and assessment information for a specific property, visit your local municipal office. |
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Property sales information can be obtained from your local Land Registry office, real estate companies, or ask a neighbor who has recently purchased property in your locale. |
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The MPAC Web site <www.mpac.on.ca/> provides the assessed value, tax class, legal description, and assessment details (based on June 30, 2001 property values) for 12 properties in Ontario.
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Any information you plan to present at the hearing must be provided to all the parties involved in the complaint - i.e. the Board and MPAC representative. The Board will retain all exhibits from the hearing unless a written request for their return is made following the hearing.
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At the Hearing
Here are the steps involved in a hearing:
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At the beginning of the hearing the presiding member will explain the hearing process. |
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The MPAC assessor will provide a brief description of the property and an explanation of how the assessment was made |
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The property owner is then provided an opportunity to present information that supports the argument that the assessment is incorrect. This may include calling witnesses. The assessor then has an opportunity to question the property owner and any witnesses.
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The assessor will then present the information to support MPAC's valuation assessment. Following that, the other parties are provided an opportunity to question the assessor on this information. |
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If the municipality has chosen to participate in the hearing, they are provided an opportunity to present information to the Board. |
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All parties then summarize their arguments in a closing statement. |
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The presiding member may give an oral decision at the time of the hearing and a written confirmation of the decision will be mailed to you. However, in some cases the member may require additional time to consider the evidence and will provide a written decision at a later date.
It is important to note that unless you make a specific request for an explanation for the member's decision, all you will be provided with is the final decision. For example, an OWA member recently received his decision from a July hearing. The only information provided was the decision - 'Denied.'
To receive an explanation that will outline the grounds for the member's decision, you must make a request for Written Reasons. The request can be made at the time of the hearing, or by writing to the Board within 14 days of the date of the hearing.
Tips
Here are some suggestions that you may find useful at your hearing: |
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Hearings are open to the public. It is a good idea to sit in on a few sessions ahead of time so that you will know what to expect.
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Remember to arrive on time because if no one is present at the hearing, the Board may decide to dismiss the complaint. |
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Present yourself to the hearing clerk upon arrival at the hearing. Complaints are generally handled on a 'first come, first served basis.' |
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As a matter of courtesy, you should always address the presiding member as 'sir' or 'madam.'
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Always address your remarks through the presiding member.
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If you do not understand a question from either the presiding member or the assessor, ask for clarification. You can hurt your case by giving replies to questions you haven't grasped.
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Explain your case carefully and thoroughly; present the facts - not opinions; take as much time as you need, within reason, to present relevant evidence.
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Stick to the point. Property owners understandably regard assessment appeal tribunals as forums where they can vent their feelings about taxes; neither the assessor nor the Assessment Review Board set your tax rate or determine the services you receive for those taxes. |
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In your final statement clearly summarize your information as presented to the presiding member. Ensure you note the differences between your evidence and that of the assessor and reiterate the evidence that best supports your arguments. |
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Seeking Information or Assistance?
Both the Municipal Property Assessment Corporation and the Assessment Review Board have Web sites that have extensive question-and-answer sections and brochures that will provide you with information on how to complete the application, important deadlines, and the appeal process.
Here is where you can contact them:
Assessment Review Board is located at 250 Yonge Street, 29th Floor, Toronto, ON M5B 2L7. Contact information - telephone 1-800-263-3237 or visit their Web site . Information brochure - Preparing for your Assessment Review Board Hearing (Revised February 2001)
Municipal Property Assessment Corporation has regional offices located across the province. These locations are listed in the Blue Pages of your local telephone book. Contact information - 1-866-296-6722 or visit their Web site.
Seeking professional assistance? There are a number of companies (that deal specifically with property assessment issues) that you may wish to hire. Listed below are two such companies, or you may want to check the Yellow Pages under 'Tax Consultants' for a listing in your area.
Ontario Property Tax Consultants, P O Box 6413 Station A, Toronto, ON M5W 1X3 Phone: (416) 463-0965. Contact person - Keith Noble.
Ontario Property Tax Consultants Inc., 330 Bay Street, Toronto, ON M5H 2S8
Phone: (416) 762-2326. Contact person Daniel Attard.
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1Property Classification - there are seven property classes established under the Ontario Fair Tax Assessment System (1998). The municipalities are responsible to set the tax rate for each class. Woodlots under the Managed Forest Tax Incentive Program (MFTIP) are classed as 'Managed Forest.' Forested lands not in the MFTIP program are either classified as 'Residential/Farm' or 'Farmlands' if the woodlot forms a part of a farm.
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