The Current Value Property Assessment and tax system is here

By David Blair

The Government of Ontario has implemented what if refers to as "the new Ontario Fair Assessment System". All properties in Ontario have been reassessed for 1998, 1999 and 2000 based on the "Current Value" at June 30, 1996. "Current Value" is defined as the amount of money a property would realize if sold.

This is a value based property tax assessment system that is profoundly flawed. A few of the flaws are:

• It is volatile and unstable. Assessments are based on the the real estate market which fluctuates. • There may be inconsistent assessments. • This is a location tax primarily influenced by the price of land. • This system ensures an everincreasing bureaucracy in size and cost. The cost of maintaining this system is already being downloaded onto you. • It is an annual tax levy on potential, but unrealized capital gains. • It penalizes renovations and upgrades

The property tax system was originally established to pay the costs of supplying municipal services. This "new system" moves us even further away from that original concept.

The Province is downloading services and their costs to municipalities. The Province is also ceasing financial support of municipalities by eliminating its transfer payments. These transfer payments previously included conditional grants, unconditional grants and road grants. In 1995 the current Provincial Government converted these grants into the Municipal Support Grant which is being phased out over 1998 and 1999.

The following is a Media Release from the office of the Warden, The Corporation of the County of Simcoe.

“On April 27, 1998, the Council of the County of Simcoe approved its 1998 budget. Gross expenditures of $214 million were approved, resulting in a net County levy of $67.8 million. This compares to the 1997 levy of $21.1-million.

The 1998 budget for the first time reflects the impact of the transfer of costs of Provincial services to the County under the Local Services Realignment. The major new items and their net costs are:

Ambulance 6.2 million Social Housing 13.1 million Social & Childrens Services 13.3 million (including Family Benefits) Property Assessment 3.2 million Health Unit 4.4 million

These services are over and above the existing County services of roads (including recent highway transfers), Ontario Works and Child Care, Homes for the Aged, Environmental Services, Planning and Forestry, Library, Museum and Archives.

The impact of this increased levy will be substantially offset by the removal of approximately half of the residential education levy from the local property tax bill. The exact impact on each property taxpayer in Simcoe County cannot be determined until after the Provincial Government finalizes the new assessment rolls, expected by the end of May 1998.

Following approval of the County budget, Warden Garfield Dunlop stated: "As it appears in our 1998 County levy, the realignment of Provincial services will obviously have a major impact on the operation of municipal government. However, it also indicates that the Province is confident that this tier of government will best administer these services."

For more information contact: Henry Sander, Treasurer (726-9300 extension 240)

These transfer costs will be passed onto the municipalities in Simcoe County and Tiny Township will receive its share. Brace yourself.

In 1998 we will also be paying approximately 50% of what we paid last year for Education Funding through our property taxes.

We understand that the Township of Tiny Council is working to control its municipal expenditures so that revenue, to be collected from property taxes, will not be greater than last year. This is a difficult task and we commend our Council for its diligence.

Taxing Uncertainty

We are told that some people have put on hold cottage upgrading and improvement projects. They are waiting to find out by how much their property taxes will increase before investing any more money into their cottages. We hope that local economy and local trades people are not detrimentally impacted while we wait for the impact of this "new Ontario Fair Assessment System."

Is Your Property Assessment Too High?

In order to determine if your property assessment is too high you must be able to find comparable or similar property in Tiny Township, which you believe, is of comparable value.

The Ontario Fair Assessment System (OFAS) Pamphlet, the blue sheet you received with your Notice of Property Assessment, states:

"Under OFAS, all properties have been assessed on the same date using the same system. This means that we now have assessment consistency across Ontario in which similar properties, with a similar value in a municipality, will pay similar taxes."

A skeptic would say that if the same assessor assessed every property in a municipality there might be some consistency. Comparable value would be based on similar lot size and shape, similar or comparable building size and quality and similar proximity to Georgian Bay or Farlain Lake.

The following are tips from those who have in the past successfully appealed assessments:

a) Ask the owner(s) of comparable/similar property if you could compare assessments; or

b) Call the Regional Assessment Office, 109 Ferris Lane, Barrie, Ontario L4M 2Y1 to discuss your assessment with an assessment officer (Tel: 18004614230 or 7282270) The officer will suggest you write a letter requesting reconsideration of your property assessment, giving reasons why your assessment is too high; and

c) Go to the Tiny Township Municipal office, 130 Balm Beach(#(#K Road West (County Road 25 West, Perkinsfield) and ask to see the assessment roll book. Check your own property information first for accuracy. Look up those properties you deem are comparable to yours. Check lot size and building details to ensure comparability. Compare assessed values.

If your assessment is higher than the comparable property and/or you are not satisfied with the explanation provided by the assessment office, appeal you assessment. Send your appeal to the Assessment Review Board (at the address shown on your Notice of Property Assessment) along with the $20.00 (residential) fee by July 31, 1998 (extension granted from June 29, 1998).

If a comparable property to yours sold from 1995 to 1997 call your local realty agent to determine the selling price of that property relative to its assessed value and the assessed value of your property. If the selling price and assessed value are less than the assessed value of your property, use this as an argument as to why your assessment is too high.

Please note that no one at our Tiny Township Office had anything to do with establishing the assessed value of your property. The Ontario Ministry of Finance Department is responsible for all property assessment in Ontario.