Chris Savard
Seaway News

July 14, 2006:

In late June of this year, Ontario Minister of Finance Greg Sorbora announced that property tax reassessments by the Municipal Property Assessment Corporation (MPAC) would be cancelled for the next two years to allow for the implementation of the Ombudsman’s recommendations to Ontario’s property assessment system.

The March 2006 report of the Ombudsman of Ontario, entitled “Getting It Right”, examined the integrity and efficiency of decision-making at MPAC, and provided a detailed list of 20 recommendations for MPAC and the Provincial Government to address.

The Association of Municipalities of Ontario in a recent alert, has stated that it supports the notion that we all share a common goal of maintaining a property tax system that is transparent and accountable to taxpayers and municipalities. However, AMO has had a long-standing position that the key problem with Ontario’s property assessment and property tax system is that it is required to subsidize provincial income redistribution programs likes social assistance, disability benefits and drug benefits. AMO has stated that over $3 billion in municipal property taxes are used towards this fundamental problem - that is unique to Ontario.

In my opinion, the disappointing part of this whole situation is that the Provincial Government has delayed on finding a solution while property assessments have skyrocketed by thirty per cent or more. Now, Premier Dalton McGuinty is deferring any decision to change the system until conveniently after the next the provincial election.

Under the McGuinty Government, residential assessments have increased by an average of 30 per cent since 2003. Many homeowners have experienced assessment increases of 100 per cent or more.

Ironically at the same time, MPAC is requesting a minimum 11 per cent or $16 million increase in their budget despite the cancellation of the next two province-wide assessments. In reaction to this development, PC Finance Critic Tim Hudak was quoted as saying, “This is outrageous. This is another clear sign that taxpayers are paying more and getting less in Dalton McGuinty’s Ontario.”

With a hot provincial housing market, taxpayers can expect an average 40-60 percent increase in their assessment after the next election. Without a major change in the assessment system, 2008 property taxes will be based on three years of assessment increases (the most recent assessment was based on Jan 1, 2005 property values).

All a freeze does is postpone a major attack on homeowner's pocketbooks until after the next provincial election.

chris@chrissavard.ca