Property value increases don't necessarily mean higher taxes: Newmarket Regional Councillor John

YorkRegion.com
June 9, 2016
Chris Simon

You’ll soon get a better handle on the value of your property.

Beginning Monday, Newmarket residents will receive their notices of assessment from the Municipal Property Assessment Corporation. The assessments help determine what residents of more than five million properties across Ontario can reasonably expect their homes to sell for, based on a valuation date of January 1, 2016.

In 2016, the notices are being sent out earlier than in previous years, to coincide with the town’s delivery of final property tax bills. However, the assessment is not a bill.

As part of the Ontario government's four-year assessment cycle, increases in assessed values will be introduced evenly over the 2017 to 2020 property tax years. Decreases in assessed values will take effect right away.

However, an increase in the value of a home does not necessarily mean there will be a hike in the owner’s property taxes, Regional Councillor John Taylor said during a council meeting Tuesday night.

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“Whenever this occurs, there’s often a significant amount of confusion over the role of MPAC and local government,” he said. “(MPAC) will tell you what your assessment is over a four year period. As people know, we’ve seen dramatic increases in property values. You’ll see some dramatic numbers there. I had some people this morning say they heard the assessment is coming and (they) know their property (value) is going up; (their) taxes are going to be going through the roof. That’s not the case.”

On average, Newmarket residential properties will increase by about 9.8-per-cent in value next year. Residents with property assessments that have increased by more than that average may see a ‘minimal’ bump on their 2017 taxes. However, those whose properties have lower than average increases may actually see a slight decrease in taxes, Taylor said.

“It’s a balancing process,” he said. “An increase in assessment does not necessarily mean an increase in taxes. That does not mean a windfall for the town. Our increased revenue only comes from the amount we, as a council, raise taxes in a given year. If (taxes rise) 2.5-per-cent, that’s the increase in revenue to the town. For many people, there will be no impact on your taxes.”

The town’s final tax bills will be mailed out in mid-June. Residential tax due dates are July 26, Aug. 25 and Sept. 27.

SIDEBAR
For more information on paying town taxes, visit newmarket.ca/propertytaxes.
MPAC also offers information about their assessment process online at aboutmyproperty.ca.