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Dear
Nitesh,
As a home owner, every year you receive a Property
Assessment form from the City or Municipality you live in, which
indicates the current value of your home. This helps the city in
calculating the property taxes and is usually less than the market
value of your home. In this month's newsletter, you will find some
insider's information on how your property is assessed by the city, what
factors are taken into consideration and what kind of information you
are entitled to as a property owner.
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How are property taxes determined?
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In Ontario, all property assessments are prepared by
MPAC, a non-profit organization, whose goal is to accurately assess and
classify all properties in Ontario according to the Legislation and
regulations set by the Provincial Government. This information is then
provided to municipalities who then determine property taxes.
MPAC looks at property sales in your community to come up with an
assessed value. This is called the 'Current Value Assessment'
method. Used around the world, this method considers over 200 factors
while coming up with a value for a residential property. However, 85%
of the value is solely based on these 5 factors:
- Location
- Lot dimensions
- Living area
- Age of property; adjusted for
major renovations/additions
- Quality of construction
Numbers of bathrooms, fireplaces, garages, pools, water frontage etc
are some other factors that may affect the value of your house. These
features are than compared to sales of comparable properties within the
community to come up with an assessed value.
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Why are property taxes needed?
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Property taxes are the primary source of revenue for municipalities and
used to finance programs and services. Here is a list of some of these
services:
- Waste & water management
- Parks & leisure facilities
- Police & fire protection
- Social services
- Libraries
- Roads & sidewalks
- Public transport
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What are your rights as a property owner to assessment
information?
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Every property owner
is entitled the following, free of charge:
- View the assessment roll at
municipal offices.
- View details of their own
property & basic assessment roll information for up to 12
properties using MPAC's AboutMyProperty service.
- A property profile report from
MPAC that shows assessment details for their property.
- A comparable property report
from MPAC, listing 6 comparable properties selected by the
owner and 6 comparables selected by MPAC.
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For more information regarding property taxes and how they are
calculated, call or email me. To access AboutMyProperty online service,
click here. If you need more
clarification on property taxes, pls feel free to contact me via phone
or email with your questions or concerns.
Nitesh Kumar, AMP
Mortgage Consultant
T 416.419.2566
F 905.671.9753
E info@niteshkumar.com
W www.NiteshKumar.com
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