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FAQ Residential

Residential Tax Bills and Related Issues

Frequently Asked Questions (FAQ)


Assessment

Tax Rates

Tax Bill

Tax Assistance Programs


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 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. Decreases in assessments are adjusted in the current year. An increase is any positive change in value from the “starting assessment” (January 1, 2012) and the “destination assessment” (January 1, 2016).  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 $200,000 and the January 1, 2016 value is $240,000, 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 $240,000 is not attained until year four.

Q3 I appealed my assessed value to the Assessment Review Board (ARB) prior to the deadline and am hoping that 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 value may be changed by the ARB?

A3 To avoid penalty and interest charges you should pay the installment amounts as billed. It may be several months before the City receives the Minutes of Settlement from the ARB. The ARB is a separate Provincial organization. The City has no authority to change assessed values until a signed copy of the Minutes of Settlement is received from the ARB.  The City will calculate revised installments owing, and penalty and interest will be calculated from the original due date on the revised amount. If your appeal is unsuccessful, penalties will have been accruing on the original balance and the full amount will be payable.

Q4 Why aren't Property Assessment Notices and tax bills sent at the same time?

A4 Municipalities cannot calculate property taxes without having the assessed values. 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 uses 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

Q5 Whom should I call if I have a question about the assessed value of my property?

A5 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 of the necessary information.  More information on assessment issues is available on MPAC’s homepage at www.mpac.ca


Tax Rates

Q6 What are tax rates?

A6 Tax rates have been established for each class of property and are expressed as a percentage that will be multiplied by the assessed value (CVA) of a property to calculate property taxes. There is a municipal and education rate for each class.

Q7 What are the final 2018 municipal and education rates?

A7 Please review our Tax Rates page to find the 2018 tax rates for all assessment classes.

Q8 How are my property taxes calculated?

A8 Please review the How Taxes Are Calculated page for helpful information.

Q9 How are the municipal tax rates established?

A9 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.

Q10 How are the education tax rates established?

A10 The education tax rates for all property classes are legislated by the Province.  These rates are the same for all municipalities across Ontario.


Tax Bill

Q11 What is the purpose of Schedule 2 that appears on page 2 of my tax bill?

A11 Schedule 2 is provided for illustrative purposes only to help you track changes to your taxes from the previous year.  It is not used to calculate your current taxes but is intended to help you understand why your taxes have changed.

Q12 What are the “Final Levies” shown on Schedule 2?

A12 This number is the amount of municipal and education tax on assessment levied against your property. The number may differ from the amount you actually paid because it does not include any local improvement charges or special credits. It does include any supplementary billing that may have occurred.

Q13 What are the “Annualized Taxes” shown on Schedule 2?

A13 Annualized Taxes are determined by multiplying the previous year-end assessment by the previous year’s final tax rate. The  year-end assessment is determined by MPAC and reflects 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 year end assessment had been in effect over the full year.

Q14 What is a Notional tax rate?

A14 As part of the budget process the municipality is required to calculate Notional tax rates. Notional tax rates are the rates which would raise the same amount of taxes as the previous year while using the updated assessment roll information.

Q15 What does the “Local Municipal Levy Change” shown on Schedule 2 mean?


A15 The  Local Municipal Levy Change shows the amount by which your  taxes have changed over the previous year’s annualized amount because of a municipal budgetary increase for your class of property.

Q16 What does the “Tax Change Due to Reassessment” shown on Schedule 2 mean?


A16 The  Tax Change Due to Reassessment shows the amount by which your taxes have changed from the previous year’s annualized amount because of reassessment impacts. This number is impacted by many factors including how much your assessed value has changed in relation to other properties in the same tax class.

Q17 Some of the boxes on Schedule 2 on my tax bill are blank. How can that be?

A17 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 there was no final levy and/or annualized taxes to insert in Schedule 2.


Tax Assistance Programs

Q18 What Municipal tax relief programs are available?

A18 Please review the Realty Tax Assistance/Rebate Programs page for helpful information about the tax relief programs offered by the City of Peterborough.

Q19 Can I qualify for more than one tax relief program?

A19 Only one of the credit programs is allowed per property. Low income assistance programs cannot be combined with the City’s Heritage Designation Tax Credit  or Community Improvement Programs.

Q20 What Provincial tax relief programs are available? 

A20 The Ontario Energy and Property Tax Credit is available to Ontario residents aged 16 years and older and is claimed annually when filing your Income Tax Return.  To receive this credit, you must be paying rent or property tax on a principle residence in Ontario. 

The ONTARIO Senior Homeowners' PROPERTY Tax Grant is also available to those persons who are 65 years of age or older.
Both of these programs are accessed through your Annual Income Tax Return.