When a property is split or two or more properties are combined, the value of your property and property taxes payable will change. This is called an apportionment.
If your property has been split or combined, let MPAC know after the land transfer is complete.
MPAC is responsible for assessing the values of newly created properties and will send these values to the City.
For severances, MPAC will divide the original property value among the new parts. For consolidations, MPAC will add up the values of the combined properties.
The total combined values of the properties involved, before and after the severance or consolidation will be the same.
The City will calculate the property taxes payable based on MPAC’s assessment.
The City only recalculates taxes payable if there are unpaid taxes on the original property. If all taxes have been paid, the City will not recalculate taxes payable for the split or combined properties.
If there are unpaid taxes, the City will take the new assessment values provided by Municipal Property Assessment Corporation (MPAC) and calculate the taxes due for the owner(s).
For the year of the severance or consolidation, payments received on the original property will be split proportionally between the new properties or applied to where the payment was intended.
Once calculated, the new tax amount will be taken to Council for approval. After approval, the City will send out a tax bill to each property owner under their tax roll number.
If a new tax roll number was created, all future tax bills will be issued on that tax roll number.