TAX BILL FACTS
Q. Why does the City Issue Interim Tax Bills?
A. The municipality needs to issue an interim tax bill in February because of financial obligations that must be met prior to the approval of the yearly budget. To meet these obligations, interim tax bills are issued that is approximately 50% of the previous year's final tax bill.
Q. How to Calculate Your Interim Tax Bill.
A. Your interim residential tax bill is based on 50% of the previous year's final tax bill. To calculate your 2009 interim tax bill, we have to do 2 things.
- Multiply the assessed value of your property as provided by MPAC for 2008 taxation year by the 2009 interim tax rates,and then compare that amount to your 2008 final tax bill.
- If the amount calculated is more than 50% of your 2008 bill, an adjustment will be applied to reduce the amount to ensure your bill is not more than 50% of your 2008 final bill.
Q. When is the Interim Bill Due?
A. The interim tax bill is issued in February with two instalments due the last business day in March and April. If payment is not received by the respective due date, a penalty of 1.25% (15% per annum) is calculated on the outstanding taxes and added to those taxes on the 1st day of each month.
Q. Final Tax Bills.
A. The amount of property tax owing on your land and/or building is the result of a calculation based on the following four factors:
- the current value assessment of your property as determined by MPAC
- the tax class into which your property falls into
- the tax rate for that class (set annually by City Council)
- the tax rate for education (school support) portion for that class (set annually by the Province of Ontario)
The municipality will issue final tax bills for the current year in late June once all the applicable tax rates are known. The final tax levy is billed in two instalments normally, being the last business day in July and August.
Q. How to Calculate Your Final Tax Bill.
A. The final tax billing reflects the new tax rates determined by Council in support of its annual budget along with the education rate set by the Province, less the amount billed on the interim tax bill.
C.V.A. * x 2009 Applicable Tax Rate - 2009 Interim Taxes = Tax Amount
* = Current Value Assessment
Municipal property tax + education property tax = your property taxes*
* Please note that, if applicable, other charges such as local improvements, sewer lateral loans or business area improvement charges might be added to the tax bill.
Q. How You're Assessed?
A. Property tax is based on the current market value of properties using a common fixed valuation date. When fairly assessed, similar properties located in a similar area will be assessed at a similar rate resulting in the payment of similar taxes.
Q. How Assessments are Done?
A. To establish your property's assessed value, Municipal Property Assessment Corporation (MPAC) analyzes property sales in your area. These sales provide a basis for the assessed values of similar properties. MPAC continually collects information about properties to ensure that those with similar features (age, size, location, construction, etc.) have similar assessed values. This method is known as Current Value Assessment.
Q. When Will I be Re-Assessed?
A. You will now be reassessed every four years. The next reassessment is currently underway for the 2009 taxation year, based on property values as of January 1, 2008. This valuation date will apply for taxation years 2009, 2010, 2011 and 2012 with any increases being phased in over 4 years. In the Fall of 2008, MPAC will be mailing out updated Assessment Notices which will indicate to all taxpayers what their 2005 value was and the updated 2008 value. The notice will also reflect the value in each of the 4 phased-in years. Assessment decreases will apply immediately on any property seeing a reduction in value.
(Page last modified 2009-01-09 10:45:17.0)