The Municipal Property Assessment Corporation (MPAC) is empowered by Ontario provincial legislation to assess the value for all properties across Ontario. It uses a Current Value Assessment (CVA) tool to determine the value of a specific property. CVA is a method that compares the price of sales of comparable houses and properties in a given area. The CVA uses key components that impact the market value of houses and properties including: house location, lot dimensions, living area, age of the house or property and the quality of construction. Major renovations and additions are also considered.
The Municipal Property Assessment Corporation (MPAC) is a not-for-profit organization that compiles assessment rolls on properties which in turn is provided to municipalities. A municipality uses that information to determine its revenue requirements, set municipal tax rates and collect property taxes. The primary source of operating revenue for municipalities comes from property taxes. Municipalities also collect education taxes on behalf of the provincial government.
In short, MPAC assesses the value of a property while the municipality takes that valuation and sets the tax rate for a particular year. The tax rate will determine the amount of taxes a property owner will pay. Property owners are able to appeal the assessed value of their property to The Assessment Review Board, an independent tribunal of the provincial government.
For more detailed information on the relationship between property values and tax rates visit the MPAC website at: https://www.mpac.ca/