Ontario property assessments & tax appeals
Important dates
Assessment appeal deadline: March 31, 2022
Property tax notices released: May 2022
The Government of Ontario has frozen property assessments until further notice, which means that your 2022 property taxes are still based on the Current Value of your property on January 1, 2016. Despite this, there are still opportunities to lower your assessed property value and reduce your property tax bill.
Reminder: You can file a formal complaint against your property’s assessed market value, but not against your property tax bill.
Frequently asked questions
Should I appeal my property assessment?
In Ontario, most commercial property values are calculated based on market value. Although values are currently based on the market in 2016, it is important to make sure your assessment is fair and equitable since that will serve as a base for future assessments.
If you answer yes to any of the questions below, you should consider filing an appeal:
Has your assessment been reviewed/appealed recently?
Is your assessment in line with similar properties?
Has there been a change in use?
Has there been a physical change to the property?
For owner-occupied properties, have non-assessable items, such as machinery, equipment, business value and other intangible items been incorrectly included in your assessment?
How do I know if my property assessment is fair?
A fair and accurate property assessment must, at a minimum, meet two important conditions:
The assessment must be equitable to the assessment of similar properties.
The property must be assessed at its market value as of January 1, 2016. If there is a conflict between the equitable and the market value of a property, the assessment should be reduced to its equitable value.
How do I know if my property value is equitable?
The equity provisions of the Assessment Act afford the taxpayer the right to be assessed equitably to other similar real property in the vicinity of their property. There is no formula for calculating this. The onus is on the taxpayer or their representative to show that their property is inequitably assessed when compared to the assessment of similar properties.
This is usually done by bringing forward evidence comparing your assessment to competing properties using measures of comparison such as assessment per square foot, assessment per suite etc. This is done through an appeal to the Assessment Review Board, which for the 2022 tax year must be filed on or before March 31, 2022.
Will COVID-19 impacts be included?
Any influence the COVID-19 pandemic may have on property values was not in effect on January 1, 2016. For that reason, appeals that exclusively cite COVID-19 will not result in a value change for the 2022 property tax year.
How is property tax calculated in Ontario?
Property tax is based on the current market value, determined by MPAC, multiplied by the municipal and education (provincial) tax rates for the class of property.
How can I reduce my property tax notice?
Property assessment appeals are important in ensuring that a property’s tax burden is as low as possible. Among the things we look at to determine opportunities for assessment reductions and property tax savings:
A full and thorough review of the assessor’s records and working papers
Review and analysis of financial statements for the property, both current and historic (trending)
Focus on both the income and expense sides
Research and review of properties within the competitive set to ensure equity of the assessment and taxation burden
Change in use of the property, in whole or in part
How can Altus Group help with my commercial property tax appeal?
Our property tax teams in Ontario will review your property assessment thoroughly and assess the following:
Was the correct assessment methodology applied? Note: there are different ways to evaluate the value of a property, such as income approach (office buildings, retail and industrial properties), direct comparison approach (residential), and cost approach (special purpose)
Is the assessment correct and equitable?
Was the appropriate interest valued?
Does the value include business enterprise or intangible value?
Are non-assessable assets included in the value?
We will work with you to gather all your supporting evidence and prepare the required documentation to present at your Assessment Review Board hearing.
Author

Altus Group
Author

Altus Group
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