The Editor,
Re: “Why your road may not get paved” (Jan 22): This column captured the common misconception that a significant increase in a property’s assessed value will result in a proportionately significant increase in the owner’s property taxes following a province-wide Assessment Update.
I want to help clear up this misunderstanding.
The most important factor is how much the assessed value changes relative to the average change for the same property type in the municipality.
If all assessments go up equally, everyone pays the same. If all assessments do not go up equally, there’s a redistribution of the tax.
Property assessments are used to distribute property taxes, not determine them. Municipalities decide their tax rates based on revenue requirements. When a municipality’s costs grow to cover the services to build and run a community, it may choose to increase the tax rate. When this happens, all property owners pay a share of the increase.
While property assessments continue to be based on a 2016 valuation date, this does not change the work MPAC does to keep Ontario’s property database up-to-date and capture changes such as new construction, renovations, and additions. In 2024, this meant that $42.7 billion in new assessment was added to municipal rolls.
Understanding these nuances can help owners make more informed decisions and plans related to their property.
Daniel DeVellis, Vice President,
Valuation and Assessment Operations,
Municipal Property
Assessment Corporation
