A question many municipal councils have - and homeowners as well - is where will the assessed values of properties be at once a provincial freeze on reassessment ends.
That's the question Powassan Coun. Randy Hall had for Steve McArthur of the Municipal Property Assessment Corporation (MPAC), saying there are instances where people's property assessments have increased by 50 per cent.
Hall wanted to know how increases of that magnitude would affect reassessments.
It was a “great question,” McArthur said, but “it's the great unknown.”
McArthur is involved with MPAC's Municipal and Stakeholder Relations and is its account manager at the North Bay office.
He appeared at a regular meeting of Powassan town council to explain what MPAC has been doing during COVID-19, why Ontario properties were not reassessed for 2020, and what the future holds once reassessments resume.
Across Ontario, municipalities have been basing their annual tax rates on 2016 valuations, the last time reassessments were made.
McArthur said the regularly scheduled reassessment that was to take effect in 2020 and carry through 2023 was paused because of COVID-19.
In trying to answer Hall's question, McArthur said he “danced around” it because there is no answer at this time.
However, he was able to say that, considering what's been happening in the housing market the last couple of years, reassessments would likely rise.
“I don't think there's any doubt we'll see an increase,” McArthur said.
“We see the markets. We see what's going on.”
McArthur also said MPAC doesn't base its reassessments on trends or bubbles in the housing market but reassessments are based “over a prolonged period of time representing many properties.”
MPAC, he said, will work with municipalities to help offset increases if and when they come to make sure residents don't get hurt, but also so municipalities can generate enough in taxes to pay for services and products to local residents.
MPAC has not been idle during COVID, McArthur said. It has been able to capture property changes like additions, renovations, or even new builds, so these assessed properties are current and added to the municipal tax roll.
McArthur also said many property owners who have made changes to their homes during COVID are actually contacting MPAC themselves.
He said these owners know they want an assessment that is as up-to-date as possible because if they wait for the reassessment freeze to end and homes are reassessed at a later date, they could face a large retroactive tax bill.
In 2021 MPAC was able to add $541 million through new assessments across northern Ontario.
McArthur also told council assessments won't change for the 2022 and 2023 tax years.
Rocco Frangione is a Local Journalism Initiative reporter who works out of the North Bay Nugget. The Local Journalism Initiative is funded by the Government of Canada.
