merrickville-wolford - introduction to mpac farm assessment · 2018. 12. 30. · village of...

Introduction to MPAC

&

Farm Assessment Delivering the 2016 Assessment Update

Randy McDonald, Manager, Valuation and Customer Relations Bev Disney, Account Manager, Municipal and Stakeholder Relations

DATE: April 5th, 2017

Village of Merrickville-Wolford

INTRODUCTION TO MPAC

PROPERTY ASSESSMENT & PROPERTY TAXES

THE MUNICIPAL PROPERTY ASSESSMENT CORPORATION (MPAC) is an independent, not-for-profit corporation funded by Ontario’s municipalities

15-MEMBER Board of Directors

Made up of municipal,

Provincial and taxpayer

representatives,

appointed by the

Ministry of Finance

OVERSIGHT provided by the

Ministry of Finance

MPAC is responsible for accurately assessing and classifying all properties in Ontario in

compliance with the Assessment Act and related regulations set by the Ontario Government.

OVER 1,700 employees across

the province

WHO IS MPAC?

Accurately

assess and

classify more than

5 million

properties

Respond to

enquiries from

property

taxpayers and

municipalities/

taxing authorities

Deliver

Assessment

Rolls each year

OUR ROLE

Provide

Supplementary/

Omitted Listings

(growth)

Other legislated

products:

- Preliminary List of

Electors

- Jury Duty Lists

- Population

Reports

ONTARIO’S ASSESSMENT CYCLE

2008 2009-2012 Tax Years

January 1, 2008 (valuation date)

2012 2013-2016 Tax Years


2016 2017-2020 Tax Years


QUALITY ASSURANCE

Quality Service Commissioner complete independent

Assessment Roll Quality (ARQ) reviews in order to attest

to the accuracy and uniformity of the 2016 current value

assessments and for certification of the fitness of use of the

assessment roll.

In addition, MPAC has engaged an independent third party, the

International Property Tax Institute (IPTI), to review and attest to

MPAC values to ensure we are meeting the International

Association of Assessing Officers (IAAO) standards.

THE 2016 ASSESSMENT

UPDATE

2012 ASSESSMENT UPDATE



2012 2012 Roll Delivery

2014 2016 2015 2016 Roll Delivery

Early and frequent engagement with constituents

Open and transparent approach to pre-Roll consultation, disclosure and engagement with

property owners, municipalities and industry associations

Changes in valuation approach were communicated, with an opportunity for feedback, taking

into account the complexities of the properties.

CHANGES IN APPROACH

Property Sectors

• Residential

• Farm

• Mining

• Pits and Quarries

• Big Box & Shopping Centres

• Golf Courses

• Five-star Hotels

• Lands in Transition

• Special Purpose Business Properties

Stakeholders

• Municipal (Elected and Non-Elected)

• Property Owners

• Industry Associations

• Government

• Media

• Assessment Review Board

2016 PROPERTY ASSESSMENT NOTICE OVERVIEW

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Residential Notices

Farm and Business Notices

Amended Notices

Assessment Roll

2016

ASSESSMENT

SUMMARY

2016 Assessment Summary

Assessment Change Summary by Property Class – Merrickville-Wolford

Property Class/Realty Tax Class Percent Change

2012 to 2016 Percent Change

2012 to 2017

R Residential 6.5% 0.0%

M Multi-Residential 11.8% 2.9%

C Commercial -3.5% -6.0%

X Commercial (New Construction) 7.6% 1.7%

I Industrial -0.6% -4.1%

P Pipeline 8.1% 2.0%

F Farm 85.4% 21.4%

T Managed Forests 70.0% 17.3%

E Exempt 7.2% -2.0%

Careful and deliberate focus on increased transparency and a shared

understanding of property assessments

Deliberate attention given to property sectors where there was a change in

assessment methodology – collaboration with municipalities and property owners

to deliver fair and accurate assessments

Significant improvements introduced including the early mailing of Notices,

revamped AboutMyProperty™ site, redesigned Property Assessment Notices and

pre-roll discussions – with the common goal of greater stability and predictability to

the municipal tax base

2016 Assessment Roll for 2017 has been delivered

We enter the first year of Ontario’s next 4-year assessment cycle with a continued

focus on supporting all stakeholders with regards to 2016 base year assessments.

2016 Assessment Summary

HOW WE ASSESS

FARM PROPERTIES

The Assessment Act is the main legislative

framework used in determining how a property

is valued.

Section 19.(5): Farmland & Farm

Outbuildings

“consideration shall be given to the current value

of the lands and buildings for farming purposes

only, and in determining the current value,

consideration shall not be given to sales of lands

and buildings to persons whose principle

occupation is other than farming”

Section 19.(1): Assessment based on

Current Value

ASSESSING FARM PROPERTIES

223,082 farmland properties in

the province

$89.32 billion total CVA

MPAC has implemented the following changes for the 2016 Assessment

Update:

Improved the sales verification process to ensure that only sales to

farmers are included in the valuation process

Increased the sales period from 3-5 years to 6-8 years

Simplified the geographic areas that were used to adjust for local

conditions

ASSESSING FARM PROPERTIES

2016 ASSESSMENT UPDATE – FARM

2016 VALUES January 1, 2016 Valuation Date

DATA COLLECTION & PREPARATION

MARKET ANALYSIS

PROPERTY VALUE REVIEW

+

+

=

MPAC updates and collects data from

various sources:

Building Permits

Sales Transactions

Request for Reconsideration Applications

Appeals

Tax Applications

Land Severances

On-site Property Inspections


MPAC reviews all sales of farmland

to determine:

Purchaser is a Farmer

Conditions of Sale

Chattels

Equipment

Quota

Crops/Livestock

Use of Property

MPAC reviewed 6-8 years of farmland

sales to determine the 2016 Values



MARKET ANALYSIS


+

+

=

FARM SALES QUESTIONNAIRES

MARKET ANLYSIS



Geographic areas finalized

Class 1-6 land rates determined

Farm building costs determined

Preliminary values produced

Fine-tuning & final property value review



MARKET ANALYSIS


+

+

=

The primary components of a farm

property assessment…

ESTABLISHING FARM VALUES

Farmland

Residence

Residence land

Farm outbuildings

Other buildings

FARMLAND

Determined by extensive analysis, using only sales when a farmer purchases farmland

Assessment of a farm is not based on land’s potential use (e.g., development)

Farmland Classes (1-6) are based on the land’s productive capability and other factors such as climate and location

Qualifies for inclusion in Farm Property Tax Class if farmer meets criteria

FARM OUTBUILDINGS

Farm building values are determined using MPAC’s Agricultural Cost Guide

Replacement Cost New Less Depreciation

Qualifies for inclusion in Farm Property Tax Class if farmer meets criteria


RESIDENCE Replacement Cost New Less Depreciation Does not qualify for inclusion in Farm Tax Class

RESIDENCE LAND

Assessed as farmland if the house (+ one-acre parcel) is occupied by the farmer

Assessed as residential if the house is occupied by a non-farmer

Does not qualify for inclusion in Farm Tax Class



OTHER BUILDINGS

Replacement Cost New Less Depreciation

Value-added farm activities classified according to use (ie: commercial or industrial) Land continues to be assessed as

farmland

Dual Use activities classified according to use (ie: commercial or industrial) Land assessed as commercial or

industrial land

Does not qualify for inclusion in Farm Tax Class

Property Classification is outlined in Ontario Regulation 282/98

Residence

Residence land

Other Buildings not used for farm or

commercial/industrial purposes

RESIDENTIAL TAX RATE

Farmland & farm outbuildings

FARM TAX RATE

Farm Property Class Tax Rate Program – Administered by OMAFRA

Eligibility requirements

Typically taxed at 25% of residential tax rate

RESIDENTIAL TAX RATE

If not in Farm Property Tax Class Rate Program

FARM PROPERTY CLASSIFICATION

RESIDENTIAL PROPERTY CLASS FARM PROPERTY CLASS

PROPERTY CLASSIFICATION

Property applies and

qualifies for the Farm

Property Class Tax

Rate – administered

by OMAFRA

Farm

Tax Class*

*Taxed at up to 25% of

the residential tax rate

FARMLAND & OUTBUILDINGS

Residential

Tax Class

FARM MARKET TRENDS

THIRD PARTY ANALYSIS OF FARMLAND VALUES IN ONTARIO

• Demand outweighs

supply

• Low interest rates

• Buyers moving North

to find lower priced

land

ANNUAL CHANGES IN FARM VALUES

6.6%

12.4%

15.9%

30.1%

14.3%

6.8%

6.2%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

2015

2014

2013

2012

2011

2010

2009

Source: Farm Credit Canada 2015 Farmland Report

2016 FARM VALUES EXPLAINED

Farmland Land Acreage by Class

CLASS 1 CLASS 4

CLASS 2 CLASS 5

CLASS 3 CLASS 6

ZONE 6 Eastern Ontario

Farmland Land Acreage by Class

CLASS 1 CLASS 4

CLASS 2 CLASS 5

CLASS 3 CLASS 6

Leeds & Grenville, Lanark, Brockville and area Farmland Class Breakdown

Information as on Jan 2016

1%

12%

19%

11% 14%

43%

10,971 76,508

87,555 99,029

131,226 300,772

Zone 6 Eastern Ontario – VALID FARMLAND SALES

LOCAL MARKET TRENDS Farm Neighbourhood 2012 CVA

Class 3 Farmland

2016 CVA Class 3

Farmland

Augusta, Prescott, Merrickville-Wolford, Leeds & the Thousand

Islands, Gananoque, Rideau Lakes, Westport, Tay Valley,

Drummond/North Elmsley, Perth

$1,175 $1,375 $1,425

$2,450

Edwardsburgh/Cardinal, North Grenville $1,750 $3,575

Elizabethtown-Kitley, Athens, Brockville, Front of Yonge

$1,075 $2,075

Montague, Smiths Falls, Carleton Place, Mississippi Mills $1,675 $2,475

Farm Farm Neighbourhood 2012 CVA

Class 1 Farmland

2016 CVA Class 1

Farmland

Augusta, Prescott, Merrickville-Wolford, Leeds & the Thousand

Islands, Gananoque, Rideau Lakes, Westport, Tay Valley,

Drummond/North Elmsley, Perth

$1,925 $2,250 $2,325

$4,400

Edwardsburgh/Cardinal, North Grenville $2,850 $6,400

Elizabethtown-Kitley, Athens, Brockville, Front of Yonge $1,750 $3,725

Montague, Smiths Falls, Carleton Place, Mississippi Mills $2,725 $4,450

Region 02 – 2016 Rates

Farm Neighbourhood

Description Number of

Sales Class 1 Class 2 Class 3 Class 4 Class 5 Class 6

201 Augusta, Prescott, Merrickville-Wolford, Leeds & the Thousand Islands, Gananoque, Rideau Lakes, Westport, Tay Valley, Drummond/North Elmsley, Perth

53 4,400 3,175 2,450 1,325 975 550

202 Edwardsburgh/Cardinal, North Grenville 29 6,400 4,600 3,575 1,925 1,425 800

203 Elizabethtown-Kitley, Athens, Brockville, Front of Yonge 18 3,725 2,675 2,075 1,100 825 475

205 Region 4 McNab/Region 2 Montague, Smiths Falls, Carleton

Place, Mississippi Mills 3+8=11 4,450 3,200 2,475 1,325 975 550

111

QUESTIONS ABOUT PROPERTY

ASSESSMENTS?

P r o p e r t y O w n e r s a n d

M u n i c i p a l i t i e s

STEP 1: Review Review and validate your Property Assessment Notice carefully to make sure the

information is correct. If a factual error has been made, we will correct it.

STEP 2: Compare Visit aboutmyproperty.ca to review the information MPAC has on file for your

property.

STEP 3: Contact us We’re here to help. Contact us and one of our property assessment experts will

help guide you through your Property Assessment Notice.

STEP 4: Request For Reconsideration or Appeal Farms, Managed Forest and Conservation Land – File a Request for

Reconsideration with MPAC before the deadline shown on the Notice (120 days

from the date of Notice mailing).

Business – File a Request for Reconsideration with MPAC before the deadline shown

on the Notice or an appeal with the Assessment Review Board before March 31.

RESOLVING ASSESSMENT CONCERNS

Issue Date

2016 Assessed Value

Account Information

Roll Number

AboutMyProperty Login

Location, description,

municipality and school

support

Property Acreage

Contact Us

Assessment Overview

Assessed Value as of January 1, 2016

Assessed Value as of January 1, 2012

Change between 2012 and 2016

How will my municipality use MPAC’s

property assessment?

Explanation of phase-in provision

(Assessment Act)

Phase in Assessed Values

(2017-2020 tax years)

Request for Reconsideration

Deadline (by tax year)


Property Classification


Your property is assessed as a farm, however, the farm

portion is currently in the residential property class.

You may be eligible for the Farm Property Class Tax Rate

Program, administered through the Ontario Ministry of

Agriculture, Food and Rural Affairs (OMAFRA). For more

information, please contact OMAFRA at 1 877 424-1300.

CHANGES TO FILING A REVIEW (BILL 144)

Farm property owners had 120 days from the Issue Date of

their Property Assessment Notice to file a Request for

Reconsideration (RfR)

The RfR deadline was February 8, 2017

The Issue Date and RfR deadline are included on the Notice

HOW CAN I LEARN MORE ABOUT MY

ASSESSMENT?

Through AboutMyProperty™

property owners can:

Access information on how their

property was assessed

Compare their assessment to

others in their community

Learn more about property values

through Market Trends (available

before login)

Login information is included on every

Notice mailed.

ABOUTMYPROPERTY.CA

Learn how and why your property was assessed the way it was and compare your

assessment with others in your neighbourhood.

FOUR KEYS TO ABOUTMYPROPERTY.CA

Market Trends: Learn more about property values and market trends in your area.

How Assessment Works: Learn more about how your property was assessed and more

about the relationship between property assessment and property taxation

My Property: Check out the information MPAC has on file for your property and view, print or

save your Property Assessment Notice

My Neighbourhood: Use the interactive map to compare your property to similar properties

in your neighbourhood, and view up to 100 properties and download a report with details on

up to 24 properties

ABOUTMYPROPERTY.CA

We are here to help. Contact MPAC with any questions you may

have regarding your property assessment.

CALL our Customer Contact Centre 1 866 296-MPAC (6722) or 1 877-889-MPAC

(6722) TTY

ONLINE at mpac.ca

VISIT a local field office

WRITE to P.O. Box 9808, Toronto ON M1S 5T9

FAX 1 866 297 6703

If you have accessibility needs, please let us know how we can best accommodate you

CONTACT MPAC

QUESTIONS?

merrickville-wolford - introduction to mpac farm assessment · 2018. 12. 30. · village of...

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