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It's assessment time and, for many, it's confusing. Homeowners have
seen their property values go up and in many cases, dramatically. Here,
in Saugeen Shores, they are, in fact, the highest in Bruce County and,
perhaps, in most of the province.
Throughout Bruce County, the increase hovers around 29.5% for
residential properties while, in Saugeen Shores, it is 36.2%, even
higher for waterfront properties at 40% and farmland has seen an
increase of 17.2%.
Chuck Egener of MPAC
In attempt to clarify matters, Chuck Egener, Municipal Relations
Representative from the Municipal Property Assessment Corporation (MPAC)
presented a deputation to Saugeen Shores Town Council at Monday's
meeting.
MPAC is the administrator of the assessment process which is legislated
by the Ontario Government. "We attempt to provide accurate and timely
property assessments," explained Egener.
How are assessments determined? The current value assessment (CVA) of
real property is based on what a property would be expected to sell for
on the open market between a willing seller and a willing buyer.
MPAC determines the CVA through analyzing the actual selling prices of
properties in a given area, excluding family sales, powers of sale and
foreclosures.
On March 22, 2007, the provincial government introduced Bill 187. The
Bill changed the assessment from an annual update to a four-year cycle.
The first four-year cycle will begin for the 2009 tax year based on
January 1, 2008 valuation date. Any assessment increases are then
phased in over the four years while any decreases go into effect
immediately.
Then, on May 14, 2008, the provincial government introduced Bill 44.
This Bill states that the phase-in of assessments will apply to all
property classes. Beginning in 2009 (the first four-year cycle), if a
homeowner disagrees with his/her/their assessment, they have until March
31st of that taxation year to submit a Request for Reduction (RfR). This
is a significant change from the former, year-end date of December 31st
of the taxation year.
This RfR is a "mandatory" first stage for residential, farm and managed
forest property classes.
All property taxpayers (approximately 4.7 million) in Ontario will
receive a Property Assessment Notice but at different times. One of the
first areas to receive them (approximately 104,000) is Bruce County when
delivery began September 22nd.
New, on the notice, is a building's square footage and the year it was
constructed. It also shows the percentage change in the property and the
percentage change on properties within that municipality. There is also
a user ID and 'password' that people can use to log in on-line to look
at, not only their own property but 24 others, to see if their own
assessment is fair in comparison. The key is to look at similar
properties and comparable assessments.
When an RfR is filed, it then goes to the Assessment Review Board (ARB)
but it is a pre-requisite for appeal. Only in extenuating circumstances,
if an RfR is not filed by the March 31st deadline, the ARB can extend
the deadline to November 30th. Another change is that the onus to prove
an assessment value is correct now lies with MPAC where it used to lie
with the property owners.
Most Councillors had several comments after the presentation (replies
were made by Chuck Egener)
Councillor, Diane Huber, whose own
property has seen a 64% increase:
"Why is a self-disclosure survey included?"
Reply: "It is sent to property owners who have recently purchased
a property. Although most people fill it in honestly, we may come out
and have a physical look at the property."
"Are properties in the middle of a wind farm, or adjacent to one,
assessed differently?"
Reply: "Wind turbines are still new and we don't know yet if they
are going to have a negative impact on a property's value."
(next column)
13/01/2009 04:24 PM |
(continued)
Vice-deputy Mayor, Doug Gowanlock:
"Are assessments physically reviewed by someone or are they just a
're-hash' of what they were in the past?"
Reply: "We are embarking on a re-inspection program and are
making strides but not on every property in every area and in every
year. There are triggers to get us to look at properties."
Councillor Victoria Serda:
"If a property owners feels the reassessment is much too high, will
someone come out and physically look at the building?"
Reply: "Chances are good that someone will look at the property
but an RfR must be filed. We will try to find properties that are
comparable and look at the purchase price versus the assessment."
"The housing market is somewhat flat so what does that do for MPAC's
assessments now and over the next four years?
Reply: "In terms of 2008, it stays in affect for the four years
but we will be called upon to do a further reassessment in 2012."
Deputy Mayor, Doug Freiburger:
"How much does a municipality pay MPAC for this service or, if a request
is made to MPAC to do an assessment, do we pay?"
Reply: "In most cases, no."
At which point, Freiburger went on to point out:
"If the municipality doesn't pay, why does MPAC then charge the
Conservation Authorities a fee which impacts our levee and, therefore,
our municipality. It is very unfair to charge the Conservation
Authorities."
Councillor Fred Shildroth:
"What is a reasonable amount of time for someone building a new house to
expect an assessment notice? Some are getting a large tax bill because
they didn't receive an assessment for two years."
Reply: "We would like to have properties assessed within six
months of occupancy. Assessment or taxation begins as of the occupancy
date so, in cases like the one you describe, it's unfortunate."
Councillor Luke Charbonneau:
"How are the RfR's going?"
Reply: "As a rule of thumb, historically there are fewer than
five per cent (5%) of property owners who appeal their assessments and
that number dwindles over time."
Councillor Thead Seaman:
"I am not sold on MPAC and an owner having to prove himself. If an
assessment is $220,000 and a person thinks it's $210,000, what would you
do for that person?"
Reply: "If the person feels it's too high, the first step is the
RfR. We try to work with owners to make sure an assessment is as correct
as possible. They could then appeal to the ARB and the onus would be on
MPAC."
When asked if a property owner would have to fill out and file a Request
for Reduction (RfR) each year of the four-year period, Egener replied,
"Not necessarily.
"The RfR deadline is March 31st and MPAC has to repond by September 30th
as to what, if anything, can be done with the assessment. If it's a
complex situation and there's a delay and both parties agree to the
delays as necessary, then the deadline could be extended to November
30th but, that puts us very close to the end of the year.
If we can make a settlement to the owner(s)' satisfaction, they may not
have to file in 2010. Now, if done in a timely manner and a reduction is
agreed on, it carries through the four years and, assumed there is a
reducation agreement, then a re-calculation is done and the phase-in
would also be re-calculated."
The phased-in dollar amount is spread evenly over each of the four
taxation years. If the market falls, the phased-in provisions are still
there. The phased-in legislation changes were brought in after the 2007
and 2008 provincial budgets. The 2008 assessment will be in affect from
2009 through 2012 and the 2013 assessments will be based on the market
value of January 1st, 2012.
What is comes right down to is:
The demand for property has been high in the Saugeen Shores area and,
therefore, prices have been driven up dramatically resulting in higher
assessments.
A property owner who feels a reassessment is warranted should look at
similar and comparable properties in his/her/their area (do not forget
square footage and year of construction).
A Request for Reduction MUST be filed by March 31st, 2009.
 
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