If your property is split in two parts or more (referred to as severance) or if two or more properties are combined under a single ownership (referred to as consolidation) the value of your property and taxes payable will change. This is called an apportionment.
Role of the City in the apportionment process
The Municipal Property Assessment Corporation (MPAC) is responsible for assessing the value of the newly created property. The City is responsible for determining the taxes of the apportioned property assessed by MPAC.
The City only apportions unpaid taxes. If all taxes have been paid an apportionment won’t be completed.
1. As the property owner, you should let MPAC know that your property has been apportioned once the legal transfer or conveyance of the land is complete.
For severances, MPAC determines how the value of the original property will be split among the newly created parts. For consolidations, MPAC will combine the values of the properties being consolidated.
In either case, the total combined values of the properties involved, before and after the apportionment will be the same. MPAC will send these values to the City.
2. The City calculates the taxes for the newly created property in proportion to the value assessed by MPAC.
3. Any payments received on the original property, for the year of the severance or consolidation, will be allocated to the new properties either proportionately based on the taxes or to where the payment was intended.
4. Council approves the apportionment, and then tax apportionment bills (containing future bill payment dates) are sent to property owners. Thereafter, the apportioned properties are assessed and taxed as individual properties.