The Ontario government is cancelling the next two property tax re- assessments, to allow the province time to revamp the controversial system administered by the Municipal Property Assessment Corporation (MPAC). The move effectively freezes assessed values where they are now, but does not affect appeals. The assessment system has angered Ontario homeowners because they have had to cope with huge increases in their assessments and the subsequent impact on their municipal taxes.
Ontario Finance Minister Greg Sorbara announced the two-year freeze in response to a scathing report from Ontario Ombudsman Andre Marin, who described the Municipal Property Assessment Corp. (MPAC) as an elitist operation with practices that result in thousands of incorrect assessments every year. Marin's report was released at the end of March and Sorbara announced the cancellation to give MPAC time to implement changes and 22 recommendations in the report. "We will be able to bring about changes that will make the system more fair and accountable," the minister told reporters at the provincial legislature. "We want to ensure that the changes will result in an improved and strong, functioning system that is fair to all Ontarians." The assessed value set by MPAC, when multiplied by the tax rate set by municipalities, results in the tax bill sent to homeowners. Sorbara's announcement came the day before the deadline for Ontario homeowners to appeal their 2006 assessments to the Assessment Review Board. It was extended by the government from the end of March at the time Marin's report was unveiled. The Finance Minister acknowledged there could be "significant changes" to property values when they are reviewed again in 2008. The minister said, "Our aim is to continue to improve the property assessment system ... The system needs to serve the best interests of all ratepayers across the province."
Marin recommened Ontario look at Manitoba's system, which puts the onus of proof on those who made the assessment. He noted the Ontario system puts the onus on the taxpayer to prove an assessment is wrong and also ignores a property's actual sale price, preferring mass appraisals. (CREA 30/06/2006) |