The recent arrival of the interim tax bill may just be the reminder that you need to file an appeal on your property assessment.
While we can't do a lot about taxes as individuals we can ensure that we are not paying more than our fair share. Understanding the assessment process is the first step in doing so. Here is a link to some interesting posts on that process.
Remember ....... your assessment X the mill rate = your taxes
In his post How Property Assessment in Ontario is Calculated Ty Lacroix from London Ontario provided a pretty good window into assessment here in Ontario from the Municipal Property Assessment Corporation's (MPAC) point of view.
One needs to look beyond what they provide for a true understanding of the flawes in our assessment process.
Understanding Mass Market Analysis as practiced by MPAC for Assessment Purposes
After the initial inspection by MPAC (during which some subjective opinion is applied) all you need is a course in mathematics. Assessments in Ontario are calculated using regressional analysis to determine values for various factors to be used in calculating the actual assessment of any given property. Other than random property inspections, usually generated as the result of a sale or a building permit being issued, the properties are never revisited. Updated assessments are created by statistical analysis
Accuracy depends on a lot of things.
As we all know a computer can only work with the data that is fed into it (Garbage in Garbage Out). If there are insufficient sales to analyze or MPAC's property description is inaccurate for the sales used the resulting assessments are flawed. If the assessor (or in some instances the students) who do the original inspections make an error in measuring or as I have seen "assume" that all homes of a particular model have a finished room over the garage the assessments are flawed.
It works for some areas
Provided the information on the properties is accurate and there are sufficient sales to analyze, the assessments should come close to what you and I recognize as market value. The process produces relatively reasonable results in large areas of newer or subdivision homes.
But Not In Others
The older the area or the more remote the area the less reliable this process becomes. Factors such as age, differences in construction, renovations and upgrades, fewer sales, easments, environmenttal issues, and the list goes on, all impact the accuracy of the results
Stay Tuned --- .
Earlier posts in the series
You and "YOUR" Property Tax Bill - Environmental Impacts On Property Assessments #2
You and "YOUR" Property Tax Bill - Environmental Impacts On Property Assessments
You and "YOUR" Property Tax Bill - The 2010 draft budget goes before council today
You and "YOUR" Property Tax Bill - Your Assessment Notice May Have been In The Mail
You and "YOUR" Property Tax Bill -- Should Municipal Government Be Scrapped
You and "YOUR" Property Tax Bill -- One Alternative
You and "YOUR" Property Tax Bill -- My Prescription Provided Pain Relief
You and "YOUR" Propertry Tax Bill -- Assessment Errors Can Be Costly
Understanding Residential Property Assessment in Ontario - #7 in a series on property taxes
You and "YOUR" Property Tax Bill -- Is Your Assessment Fair and Equitable
You and "YOUR" Property Tax Bill -- OUCH!!!!!
You and "YOUR" Property Tax Bill -- Your Assessment Notice Is In The Mail
You and "YOUR" Property Tax Bill -- Mill Rate Idiosyncrasy's
You and "YOUR" Property Tax Bill -- Is Current Value Assessment (CVA) A Better Way?
You and "YOUR" Property Tax Bill -- Who Takes The Biggest Bite?
It will be interesting to watch what happens to
"Your" Property Tax Bill
With province wide re-assessment affecting
your 2010 property tax bill.
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Kathy, I don't know how they work in other areas, just that we are taxed to death here. We can grieve them all we want and they just keep going up. One of the saddest things about Long Island is that our children grow up and can't afford to stay here.
Carole - Barrie uesed to have a liscence plate holder/frame for his car that said Canadians are Being Taxed to Death