2016 REASSESSMENT OTTAWA TAXATION

Revenue BranchFinance Department

July 18, 2016

PROVINCIAL ASSESSMENT 2016

• Required by Provincial legislation• All properties reassessed • Residential only Notices mailed July 18• Farm Notices will be mailed October 11• All other Notices will be mailed October 18• MPAC updated assessed values from a valuation

date of January 1, 2012 to January 1, 2016• Values phased-in for taxation years 2017-2020

PROVINCIAL ASSESSMENT 2016 (contd.)

• To establish a property’s assessed value, MPAC analyzes sales of comparable properties in the property owner’s area and all the key features that affect market value.

• This method, called Current Value Assessment, is used by most assessment jurisdictions in North America.

PROVINCIAL ASSESSMENT 2016 (contd.)

PROVINCIAL ASSESSMENT 2016 (contd.)

• A reassessment does not change the total taxes collected by the City – No additional revenue

• Reassessment Impact = Tax Shift within Class• Properties within the City average increase should

not see a tax impact due to reassessment• Properties below average should see a decrease• Properties above average should see an increase

BUDGET & POLICY TAX IMPACTS

• All properties will continue to see an annual budget increase as approved by Council

• Properties may see Tax Policy impacts (Tax shifts between classes) if neutral ratios not adopted (Council decision)

• Tax Policy for 2017 will be placed in front of Council April/May 2017; 2017 budgetary direction to be incorporated

IMPACTS SUMMARIZED ON TAX BILLS

Tax changes due to municipal budget

Tax changes due to reassessment above City or Provincial average

PROVINCIAL REASSESSMENT CHANGES

• Province wide Residential Assessments have increased by an average of 18% from January 1, 2012 to January 1, 2016

• Ontario East values (Kingston, Brockville, Cornwall, Ottawa and Pembroke) have increased by an average of 5%

• Ottawa values have increased by an average of 3.45%– Different property types are seeing different trends within Ottawa

• Condos have had an overall decrease - 5%• Single Family, Semi-detached and Town homes have an overall

increase - 4.6%

• Other Residential properties (residential vacant land, dwelling with multiple units) have an overall increase - 8%

PROVINCIAL REASSESSMENT CHANGES (contd.)

• Waiting for Farm and other notices to be issued to understand the full impact the City. (Fall 2016)

• City to send tax impact letter to residents with 13.45% increase or higher in the mail August 2, 2016

• Approximately 15K notices will be mailed• Residential properties with additional classes

being held until all notices issued in the fall

PROVINCIAL REASSESSMENT CHANGES (contd.)WARD % CHANGE

BELOW CITY AVERAGE (3.45%)RESIDENTIAL PROPERTIES

TOTAL DIFFERENCE WARD CHANGE FROM AVERAGE

1 ORLÉANS 2.57% -0.88%2 INNES 2.86% -0.59%3 BARRHAVEN 2.92% -0.53%5 WEST CARLETON-MARCH 3.28% -0.17%7 BAY 3.16% -0.29%9 KNOXDALE-MERIVALE 2.72% -0.73%

10 GLOUCESTER-SOUTHGATE 0.65% -2.80%11 BEACON HILL-CYRVILLE 2.08% -1.37%12 RIDEAU-VANIER 1.65% -1.80%14 SOMERSET -0.21% -3.66%18 ALTA VISTA 2.96% -0.49%19 CUMBERLAND 3.13% -0.32%20 OSGOODE 3.17% -0.29%22 GLOUCESTER-SOUTH NEPEAN 2.93% -0.52%

PROVINCIAL REASSESSMENT 2016 (contd.)

WARD % CHANGEABOVE CITY AVERAGE (3.45%)

RESIDENTIAL PROPERTIES

TOTAL DIFFERENCE WARD CHANGE FROM AVERAGE

4 KANATA NORTH 4.16% 0.71%6 STITTSVILLE 5.03% 1.58%8 COLLEGE 3.49% 0.04%13 RIDEAU-ROCKCLIFFE 3.90% 0.45%15 KITCHISSIPPI 7.35% 3.90%16 RIVER 4.11% 0.66%17 CAPITAL 4.68% 1.23%21 RIDEAU-GOULBOURN 5.34% 1.89%23 KANATA SOUTH 5.02% 1.57%

2016 MPAC CHANGES

• Residential property owners have 120 days from the Issue Date of their Property Assessment Notice to file a Request for Reconsideration (RfR)

• The RfR deadline for those notices mailed to Ottawa residential property owners on July 18th, 2016 is Tuesday, November 15th, 2016

• The Issue Date and RfR deadline are included on the Notice

• The previous deadline was March 31 of the taxation year.

ASSESSMENT PHASE-IN

• Assessment increases are phased in over the next four years (residential approx. 0.86% per year)

• No phase-in for assessment reductions, reductions seen immediately.

• Each yearly phase-in value to be used for corresponding taxation year

Property Classification ResidentialYour Property Value as of January 1, 2016 $393,000Your Property Value as of January 1, 2012 $380,000 Property Value Change $13,000

Tax Year Assessment

2017 $383,250

2018 $386,500

2019 $389,750

2020 $393,000

2016 PROPERTY ASSESSMENT NOTICE (contd.)

Ottawa Issue Date July 18, 2016

2016 PROPERTY ASSESSMENT NOTICE (contd.)

2016 Current Value Assessment (2020 tax year assessment)

• Assessed Value as of Jan 1, 2016

• Assessed Value as of Jan 1, 2012

• Change from 2012 to 2016

2016 PROPERTY ASSESSMENT NOTICE (contd.)

• Property Class Information

• Yearly deadline to appeal assessment through MPAC• Ottawa’s deadline for the 2017 taxation year is November 15, 2016

• Phase-in value to be used for taxation purposes.• 2017 assessed value to be used for 2017 tax year

WHAT SHOULD A PROPERTY OWNER DO?

• Verify that MPAC’s Property Assessment Notice is accurate

• Login to view how property was assessed and compare it to other properties at www.aboutmyproperty.ca– Access Key provided on Property Assessment

Notice• Dissatisfied with Assessment Value -Contact

MPAC and file a Request for Reconsideration

Thank you!

Questions?