An apportionment is a process of redistributing assessment values and taxes when land is severed or consolidated. A severance is the splitting of a parcel of land into two or more parcels of land. A consolidation is the combining of two or more parcels with the same ownership and adjoining boundaries into one parcel.
When the Municipal Property Assessment Corporation (MPAC) is advised of a severance through a legal conveyance of the land, an apportionment is initiated. In addition, the owner of land that has been severed or consolidated may also apply to the City to have taxes apportioned.
MPAC is responsible for apportioning the assessed value of the original property to the newly created properties for the year in which a severance or consolidation occurs and any subsequent year in which the assessment roll did not reflect the newly created properties. The assessed values on the newly created properties represent their portion of the assessed value of the original property. The apportioned assessed values may not reflect the current value assessment of the new properties had they been assessed individually.
Based on the assessment apportionment information supplied by MPAC, the City of Mississauga distributes the taxes from the original property to the newly created properties in proportion to their relative value. Once Council approves the tax apportionment, tax bills with future due dates are issued to the property owners.
For years subsequent to the apportionment, the new properties are assessed individually and taxed based on their current value assessment.