Who is Responsible?

Three governments and one corporation play a role in property assessment and taxation.

Assessment and Tax Legislation - Province of Ontario

The Provincial Government sets the legislative framework for assessment and taxation in Ontario. It does this by creating legislation, called Provincial Statutes. The Government also creates regulations, which are authorized under the Statutes. The principal ministry involved in setting assessment and taxation policies is the Ministry of Finance, through the Assessment and Municipal Acts.

Assessed Value - Municipal Property Assessment Corporation

The Municipal Property Assessment Corporation (MPAC) is responsible for calculating assessment values and classifying properties according to use, for each of the four million properties in Ontario. These values are used to calculate property and education tax rates and to determine the amount each property is taxed. Assessment information is provided to taxpayers in November of each year through a Notice of Assessment and to municipalities in December through the Assessment Roll.

The City of Mississauga uses information supplied by MPAC to set tax rates and to calculate your tax bill. MPAC is separate and independent from the City and is governed by its own Board appointed by the Minister of Finance.

Taxes - City, Region and Province

The City collects property taxes on behalf of the City of Mississauga, Region of Peel, and the Province of Ontario (Education). Each level of Government is responsible for its own tax rates.

The formulae for calculating residential property taxes are:

How is my assessment determined?

The City of Mississauga does not determine the value of your property. This is done by the Municipal Property Assessment Corporation (MPAC) which is completely separate and independent of the City of Mississauga. The Assessment Act requires that the assessed value of your property be based on what the property would likely sell for on a specific date.  For the 2009 taxation year, the valuation date is January 1, 2008. Local property sales occurring around the valuation date provide a basis as to the assessed value of similar, unsold properties. MPAC continually collects information about properties to ensure that those with similar features (age, size, location, construction, etc.) have similar but not necessarily identical assessed values.

How is my phased-in assessment determined?

Assessment increases from the previous assessment are phased in at a rate of 1/4 of the increase per year.  Assessment decreases from the previous reassessment are fully granted with no phase in.

I disagree with my assessment.

If you believe that your assessment is incorrect, you should first contact the Municipal Property Assessment Corporation (MPAC) to discuss your assessment or verify details about your property. If you still have concerns, you may ask MPAC for a formal reconsideration of your assessment. There is no fee for a Request for Reconsideration (RFR). The request may be made prior to March 31st for that year. You can obtain an RFR application on the MPAC web site www.mpac.ca or by calling 1-866-296-MPAC (6722).

Appeals to the Assessment Review Board (ARB) can only be made within 90 days from the date MPAC mails the results of the Request for Reconsideration (RFR) review to the property owner.  MPAC must make determination on a Request for Reconsideration (RFR) by September 30^th of the taxation year. Other appeals (for example, supplementary assessment) may be made within 90 days from the notice date of the assessment.  The ARB is an independent tribunal of the Province of Ontario. Full details on how to appeal your assessment to the ARB may be obtained through their web site www.arb.gov.on.ca.

A tax account is only adjusted when the City is notified of the change in assessment by MPAC or the ARB. It is recommended that taxes continue to be paid while an appeal or reconsideration is underway to avoid penalty and interest charges in the event that the appeal or reconsideration is not successful. There may be a significant delay between the time an assessment is appealed and a decision is rendered.

Is my assessment right?

Ask yourself if your assessed value is close to what you would have expected to sell your property for in January of 2008. What were similar properties selling for at that time? MPAC is now providing an on-line service called About My Property. Using this service, property owners can review basic assessment information for their own property and comparable (similar) properties. Further information can be obtained from MPAC at www.mpac.ca or by calling 1-866-296-MPAC (6722).

My house has dropped in value since January 1, 2008.  My assessment should be reduced.

Legislation specifies that property values must be based upon property values on January 1, 2008. The Legislation does not allow adjustments to be made for changed market conditions that occur after this date.

What is a Supplementary Tax Bill?

A supplementary tax bill is a bill issued by the City for any additions or improvements made to a property. Owners of newly constructed homes will receive a Supplementary Assessment Notice from MPAC pertaining to the assessed value of their house effective as of their occupancy date.

MPAC issues supplementary assessments for the following reasons:

(a) House/building assessment

• The house was recently built and when purchased it was only assessed for vacant land; or
• Some renovations/improvements were done to the property that has increased its market value

(b) Reclassification

• The tax class of the whole or portion of the property assessment has changed.

From the supplementary assessment information supplied by MPAC, the City of Mississauga calculates the tax amounts due and issues a tax bill with three instalment due dates. Until the City receives the information from MPAC, we cannot issue a tax bill. As Legislation allows MPAC to issue supplementary assessment for the current and two previous years, there may be a considerable time lapse between the effective date of the supplementary assessment and the date you receive your Supplementary Assessment Notice and tax bill.

How are tax rates calculated?

Annually, the City and Region each establish a budget to provide for municipal services and infrastructure. Taxes represent approximately 50 to 60 per cent of the City's and Region's budget needs. A tax rate is calculated in accordance with Provincial legislation which meets the funding requirements identified in the budget. The Province sets the education tax rate for all properties. The residential education tax rate is the same province-wide.

After a reassessment, tax rates are adjusted to ensure that the City, Region and Province do not receive a windfall gain or loss as a result of the increase or decrease in assessment. Legislation requires that City and Region tax rates are calculated on a city-wide basis. We are not able to have different residential rates for each ward nor for individual properties. We are also not able to adjust tax rates for municipal or education services that an individual property or taxpayer does not use.

What if I have more questions?

For assessment questions, please contact MPAC at 1-866-296-MPAC (6722).

For tax questions, please call the Customer Service Centre at 3-1-1, or if calling outside the City limits call 905-615-4311 or e-mail at tax@mississauga.ca.