Tory Bill Calls For Cap on Property Assessments

Tim Hudak MPP Erie Lincolon Finance Critic

March 1, 2006
Canadian Press - Toronto Star

Frustrated rural homeowners were at the Ontario legislature today to support an opposition bill aimed at curbing rising property taxes. Assessments that arrived in mailboxes across Ontario last fall showed an average spike of 14.35 per cent, angering homeowners over assessments that often lead to much higher property tax bills in their municipalities.

Some residents of rural communities have seen triple-digit percentage increases in their assessments, said Conservative member Tim Hudak, who has introduced a private member’s bill that would limit residential property assessment hikes to five per cent.

“Rapidly increasing residential property assessments generally lead to higher property tax bills that simply are no longer affordable,” Hudak said.

“This is a particular challenge for seniors and people on fixed incomes who have built their home, have lived in it for a long time, but can no longer afford to live there.”

Private member’s bills rarely become law.

Finance Minister Dwight Duncan said he welcomed Hudak’s input, but blamed the problem on the assessment process introduced by the previous Conservative government — often dubbed “drive-by assessments” by critics.

Prior to 1998, assessments were based on market value, but those market values were often not properly updated. For example, assessments were more than 25 years out of date in Oshawa, Whitby, Markham, Vaughan and Elliot Lake, and 50 years behind in Toronto.

Hudak said the Conservatives were seeking “better fairness” in the assessment system when they introduced changes by 1998. But a hot housing market in recent years has led to “skyrocketing assessments” that taxpayers need help to defend against, he said.

David Diplock, 75, from the town of Sherkston, near Port Colborne, said his property value was assessed at $187,000 in 2003.

Last fall, it was reassessed at $337,000 — an 86 per cent increase — even though Diplock’s year-round home is in an area with ``no sidewalks, no running water, no streetlights, no sewage treatment.”

“This is very worrying for me,” said Gwynneth Heaton, a retired Toronto senior who says her cottage near Haliburton went up 55 per cent over the past year.

Duncan said he’s waiting for a report by Ontario’s ombudsman, Andre Marin, on the assessment system. Marin launched his investigation in October and his report is expected this spring.

The government came under attack from opposition critics in October when taxpayers began learning of massive, and in many cases irrational, increases in their property assessments.

Much of the focus at that time was on larger urban centres. Hudak said residents of small Ontario communities have seen their property values jump despite a lack of noticeable improvement in local services.

If passed, Hudak’s bill would also allow Ontario homeowners to make up to $25,000 in home repairs, alterations or additions without facing increases in their property assessments.

Seniors and the disabled would also be exempted from paying taxes on the first $10,000 of assessed value on their principal residence.