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FAQ Commercial, Industrial, and Multi-Residential

Commercial, Industrial and Multi-Residential Tax Bills

Frequently Asked Questions (FAQ)

Assessment
Tax Rates
Tax Bill

Assessment

Q1 What does Current Value Assessment mean?

A1 Current Value Assessment (CVA) is based on the fair market value of your property as of January 1, 2016 and is defined as what a willing buyer would have paid for your property as of January 1, 2016.

Q2 My assessment has changed from what it was last year even though there were no physical changes to the property. How can that be?

A2 A general reassessment took place for the 2016 taxation year.  All properties were previously valued based on a January 1, 2012 valuation date.  This reassessment has brought these values to a January 1, 2016 valuation date.

In order to cushion the impact of the reassessment and allow taxpayers to budget, these new values are being phased-in equally over a four-year period at a rate of 25% per year.

The phased-in assessment program applies to all property types and only to properties that experienced an increase in assessment. All increases are subject to the phase-in regardless of the amount.  By the 2020 taxation year all properties will be paying taxes on their full “destination assessment” being the January 1, 2016 value.

For example, on a residential property where the January 1, 2012 value was $300,000 and the January 1, 2016 value is $340,000, the overall value increase is $40,000 or 20%.  In past reassessments the $40,000 CVA increase would have been realized in one year.  With the phase-in program, the final “destination” value of $340,000 is not attained until year four.

Q3 Who carries out a reassessment?

A3 Property assessments are carried out by the Municipal Property Assessment Corporation (MPAC). MPAC has field offices across Ontario. The Peterborough field office is located at 1477 Lansdowne Street West, K9J 7M3. Each office is responsible for a specific area of the province, generally defined by county, region or district boundaries. More information about MPAC can be found on MPAC’s homepage at www.mpac.ca.

Q4 I asked for a Request for Reconsideration (RFR), was successful, and have received Minutes of Settlement, yet the assessed value on the Final Tax Notice is showing the original amount. Why wasn't the value changed on my tax bill?

A4 All Minutes of Settlement and Requests for Reconsideration changes will be processed after the final tax bills have been issued.

Q5 Should I pay the installment amounts even though the assessed value on the tax bill has not been adjusted to reflect the Minutes of Settlement for the RFR?

A5 To avoid penalty and interest charges you should pay the installment amounts as billed.

Q6 I appealed my assessed value to the Assessment Review Board (ARB) prior to the deadline and am hoping that eventually my assessed value will be reduced when the ARB deals with my appeal. Should I pay the installment amounts as indicated on the tax bills even though my assessed values may be changed by the ARB?

A6 To avoid penalty and interest charges you should pay the installment amounts as billed. It may be several months before we get the Minutes of Settlement from the ARB. Keep in mind the ARB is a separate Provincial organization. We have no authority to change assessed values until we get a signed copy of the Minutes of Settlement from the ARB.  If your appeal is unsuccessful, penalties will have been accruing on the original balance and the full amount will be payable.

Q7 Why aren't Property Assessment Notices and tax bills sent at the same time?

A7 The Assessment Act requires MPAC to mail Property Assessment Notices to property owners at least 14 days prior to the delivery of the Assessment Roll to the municipality, which is typically in early December of the year preceding the current taxation year. The municipality then uses the total values from the Assessment Roll in their budgeting process to determine overall net levy requirements for the City which in turn is used to calculate the municipal tax rates.

Q8 Whom should I call if I have a question about the assessed value of my property?

A8 You should call MPAC at 1-866-296-6722. The tax office cannot answer specific questions regarding your assessment. Have your tax bill or assessment notice handy when you call so you can relay all the necessary information.  More information on assessment issues is available on MPAC’s homepage at www.mpac.ca.


Tax Rates

Q9 What are tax rates?

A9 Tax rates have been established for each class of property and are expressed as a percentage that will be multiplied by the current assessed value (CVA) of a property to calculate property taxes. There is a municipal and education rate for each class.

Q10 What are the final 2018 municipal and education rates?

A10 Please review our Tax Rates page to find the 2018 tax rates for all assessment classes.

Q11 How are the municipal tax rates established?

A11 The Municipal tax rates are established by City Council through the annual budget process and are a function of the City’s net municipal tax levy requirements and total available current value assessment weighted by class.

Q12 How are the education tax rates established?

A12 The education tax rates for all property classes are legislated by the Province.  . The residential and multi-residential rates are the same for all municipalities across Ontario. The education rates for the Commercial and Industrial classes are also regulated by the Province, but are specific to the City of Peterborough.


Tax Bill

Q13 What is the “Tax Cap Adjustment” on page 1 of my tax notice and how is it calculated?

A13 The Tax Cap Adjustment shows you how much your net taxes payable have been affected by the mandated capping program.

A negative Tax Cap Adjustment means that you have had a “tax increase” which has been mitigated by capping legislation. The negative Tax Cap Adjustment is required to limit the relevant tax increase to the greater of either 10% of the previous year’s annualized taxes or 10% of the previous year’s CVA taxes.

A positive Tax Cap Adjustment means that you have experienced a tax decrease but are required to forego this portion of the decrease to help offset the cost of limiting increases that other properties in your class have experienced.

Q14 What is the purpose of Schedule 3 that appears on page 2 of my tax bill?

A14 Schedule 3 on page 2 of your tax bill is provided for illustrative purposes only to help you track changes to your taxes from the previous year.

Q15 What are the “Annualized Taxes” shown on Schedule 3?

A15 Annualized Taxes are determined by multiplying the previous year-end assessment by the previous year’s final  tax rate, plus or minus any tax capping adjustment that may have applied. The  year-end assessments are determined by MPAC and reflect what your assessment would have been at the end of the year  before considering any reassessment impacts. It also reflects what your  taxes would have been over the previous year assuming that the assessment had been in effect over the full year.

Q16 What does the “Tax Cap Amount” shown on Schedule 3 mean?

A16 The  Tax Cap Amount is the portion of the increase of the current year CVA Taxes (before any City levy increase), over the previous year’s Annualized Taxes, that is allowed to be billed to property owners.  Assessment related increases to Commercial and Multi-residential taxes have been capped at the greater of either 10% of the previous year’s annualized tax or 10% of the previous year’s CVA tax (what taxes would have been without capping).

Q17 What does the “Local Municipal Levy Change” shown on Schedule 3 mean?

A17 The  Local Municipal Levy Change shows the amount by which your current tax assessment has changed from the previous year’s annualized amount because of a municipal budgetary increase for your class of property. 

Q18 There is a blank box on Schedule 3 of my tax bill; how can that be?

A18 There are a few instances where a property did not exist as a separately assessed unit at the end of the previous year and, therefore, does not have an Annualized Tax figure.