For nearly a decade, Ontario homeowners have been in the dark when it comes to property assessments, with the last official assessment dating back to 2016. In 2020, the Ontario government decided to pause property reassessments due to the COVID-19 pandemic, leaving many residents worried about the potential for skyrocketing property taxes once the reassessments resume.
The Municipal Property Assessment Corporation (MPAC) is responsible for determining property values, which, in turn, are used to calculate property taxes for homeowners. Greg Martino, the vice-president and chief valuation and standards officer at MPAC, noted that any increase in property taxes would be a reflection of the increase or decrease in the overall property values within a given area.
Martino explained, “If the value of an area has increased by 25%, and your property value remains consistent, you shouldn’t see a tax increase as a result of the reassessment.” However, if the value of your property has increased more than the average for the area, you may face an upward shift in your taxes. Conversely, if your property value has increased at a slower pace than the surrounding properties, a decrease in taxes could occur.
Colleen Smith, the chief financial officer for the City of Barrie, emphasized the importance of residents comparing their property’s assessed value with the average value change in the city. Doing so will help homeowners determine whether they are likely to see a change in their taxes after the reassessments. Despite the reassessments, Smith clarified that municipalities will not see any extra revenue from property tax increases. Municipalities only collect the amount required to fund their approved budgets.
“Municipalities don’t operate in a surplus,” Smith said. “If there is an improvement, like a new renovation or home construction, the city will see new tax revenue from these additions. This revenue is forecasted and included in the budget to help offset impacts on the tax rate.” Smith also mentioned that the province is currently reviewing the property tax and assessment system, with Barrie actively participating in the review process.
“Outdated assessment values create uncertainty for both residents and businesses, leading to inequity among properties,” Smith explained. “Without updated assessments, some properties may be paying a disproportionate share of the tax burden compared to their current market value.”
While the reassessments are paused, it is unclear when the government will lift the freeze. Property owners continue to wait for clarity on when their property taxes will be recalculated.
As the situation unfolds, local residents like David Jones, a member of the Tiny Township Residents Alliance, are voicing concerns over rising property taxes. Jones, also a member of the Ontario Property Tax Alliance (OPTA), advocates for more effective use of property tax dollars. “Property taxes are rising at unsustainable levels, often outpacing inflation,” Jones said. “This burden is becoming unaffordable for many residents and is negatively impacting their financial well-being.”
Jones believes the way property taxes are assessed and municipal budgets are created needs revision. “The Ministry of Finance and the Ministry of Municipal Affairs must intervene to address this massive issue,” he said. “There needs to be a balance that respects taxpayers’ ability to pay these rising property taxes.”
Collingwood councillor Christopher Baines also shared his concerns. On January 27, Baines had planned to introduce a motion urging the Ontario government to end the pause on reassessments. However, he withdrew the motion before it could be discussed by the council. “The longer the government delays reassessments, the more taxpayers will feel the impact,” Baines explained. “It’s like having a cavity in a tooth—you can’t just ignore it. Regular checkups are essential, and this needs to be addressed sooner rather than later.”
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In the meantime, Ontario homeowners continue to face uncertainty, waiting for their property values to be reassessed and hoping that any future adjustments will reflect the reality of their local housing market.
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