Ontario budget 2023 - No news on property tax relief or assessment reform

Ontario’s 2023 budget introduced Thursday provided no update for taxpayers or municipalities waiting for decisions on property tax relief or reassessment.  Since the province suspended reassessments, property taxpayers whose values have plummeted since the pandemic continue to pay taxes based on 2016 valuations. The last day to appeal property assessments in Ontario is March 31, 2023.

We continue to fight appeals on behalf of taxpayers experiencing losses in value, and we recommend that any affected property owner without an appeal, file one this year.

Ontario property taxes are still based on 2016 values

The last reassessment completed by the province was for the 2017-2020 assessment cycle, which was based on “current value” as of January 1, 2016.  The next assessment was due to take place for the 2021-2024 taxation years and was to have been based on values as of January 1, 2019.  While the Municipal Property Assessment Corporation (MPAC) had already prepared 2019 values for most properties, the province elected not to move forward with the reassessment in the midst of the pandemic. 

While the pandemic’s impact on business operations has largely subsided, many sectors of the real estate market continue to suffer from losses in value as a result of the disruption.  If Ontario decides to bypass assessment reform and skip the 2021-2024 assessment cycle altogether, those sectors which are only now beginning to recover from pandemic, will never see any relief in their assessed values or property taxes. When a reassessment does take place, taxpayers whose market values have skyrocketed will be protected by the phase-ins of assessment increases. 

We continue to advocate for reassessment and a shorter assessment cycle to reduce the dramatic assessment shifts and need for mitigation measures, as outlined in the spotlight section of our 2022 Property Tax Rate Benchmark Report.

Assessment appeals face ongoing delays

Taxpayers who filed 2021 and 2022 appeals to address losses in value, continue to face obstacles and delays. We continue to argue that the pandemic is a detrimental condition that has resulted in economic obsolescence for a number of properties, and in a loss in value and inequity with similar properties.  The assessment authority maintains that the January 1, 2016 reference date means any data relating to 2018 or later is irrelevant. 

Recent decisions by the Assessment Review Board (ARB) went even further.  A decision of the tribunal which is currently under review, indicated that despite the annual roll and right of appeal, assessed values cannot change during the four-year assessment cycle (or years of suspension) except in circumstances where value can be added by supplementary or omitted assessment.  

In partnership with the Canadian Property Tax Association (CPTA), we are closely following that review, which is pending a decision.  If the review does not result in change, we anticipate the issue will proceed to Divisional Court.  Hundreds of assessment appeals will be delayed until there is a final decision on the ability to amend values during an assessment cycle. 

Last day to file a 2023 appeal or reconsideration request is March 31

While assessed values may not have changed, market conditions have, and your assessment may no longer be reasonable or equitable. Only a few days remain to file an appeal for the 2023 taxation year.   If the challenges to the ARB’s ruling are successful, an appeal will be the only way to find some property tax relief.