PropertyTaxOntario.com
Property Tax FAQ

Frequently Asked Questions

 


How are my taxes calculated?

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The municipality uses the assessed value of your property and multiplies that value by the municipal tax rate for your property class to get the calculated taxes.

There are five basic tax rates:

 

Many Municipalities have separate rates for vacant commercial and excess land and others have tax rates for large commercial properties such as shopping centers and large industrial complexes. Many times your assessed value is correct but the code applied to your property is incorrect and thus you have the wrong tax rate applied to the assessment. There are a number of new subclasses that have been added to the list of tax classes over the years, name new commercial construction as an example.  When talking to the assessor you should ask if your new building qualifies for these new tax classes.

 


When I multiply my assessment by the tax rate it does not come up with the taxes charged by the Municipality?

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In 1998, the Ontario government passed Bill 79 that introduced tax capping for commercial, industrial and multi-residential properties. This capping process would only allow these property types to increase in taxes by 10-5-5 percentages over the three-year period from the 1997 taxes. This change has complicated the tax calculation and many Municipalities have hired consulting firms to assist in the calculation of your tax bill. Although this legislation was beneficial for those who saw large increases in taxes due to the reassessment, it was not that beneficial for those property owners who had been over-paying for many years. Those who were over paying for years were asked to still help those who were under paying by phasing in their tax decreases over the same time period. The Ontario Government has a new bill 140 to extend this tax-capping program for additional years at 5% - 10% per year. Therefore, depending on the local municipal decision this may still force those currently paying too high a tax bill to continue to support those who should be at the higher tax. This provision was changed in bill 140 and left to the local council as to how they would fund the tax decreases due to the capping program.


Why is my assessed value always changing?

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What causes my property value to increase my taxes?

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Your taxes can go up for many different reasons. Some of these reasons are:

 

 


What are some of the things that can cause my assessment to be too high?

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Why do they use market value as the basis for my property taxes?

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There have been many studies completed by various different provinces and states across Canada and the United States. In almost all instances, the commissions that were asked to review the property assessment procedure made recommendations back to the various governments of the day that market or current value was the most appropriate method to determine property taxation.

There have been studies dealing with:

 

The major problem with all of these different approaches was that they did not address the two fundamental principles upon which the rationale for taxation of real property rests: The principal of benefits received and the principle of ability to pay.

 


Why do I need a consultant?

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A property tax consultant can be of many uses to the average property owner who runs a business or has a large residential estate. Some of the services a property tax consultant can provide are as follows:

 

 


How much does it cost to hire a property tax consultant?

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Can I be guaranteed a property tax reduction if I hire a consultant?

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The short answer is no one can guarantee that you will get your taxes reduced. However, when you consider hiring a consultant, there are a few questions you should ask yourself:

 

If you answer YES any of these questions then you should consider talking to a consultant. PHONE 1-519-351-5405 - Property Tax Ontario Inc.

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