Town of Tillsonburg Presentation by the Municipal Property Assessment Corporation

1. Town of Tillsonburg Presentationby theMunicipal Property Assessment Corporation Nov. 22, 2004

2. Who Does What Legislate Province of Ontario Administer Adjudicate Assessment Review Board (ARB) Municipalities – upper, lower & single Province - education Tax

3. New Board Appointed by the Province Eight Municipal Representatives Margaret Black-Mun of York, Doug Craig –Sudbury, Howard Greig – Chatsworth, Jacques Hetu – Hawkesbury, Case Oates – Toronto, Jim Prine -Hastings, Larry Ryan – Waterloo, Debbie Zimmerman – Niagara (chair). Two Provincial Representatives John Wilkinson MPP (Vice Chair) Perth Middlesex Peter Suma – Start Seed Capital Inc. Five Taxpayer Representatives Judith Andrew – Canadian Federation of Ind. Business, Vince Brescia – Fair Rental Policy Org. of Ont., Ian Howcroft – Can. Manufactures & Exporters, Terry Mundell – Ont. Restaurant,Hotel,Motel Association. Neil Rodgers – Ont. Professional Planners Institute & Reg. Professional Planners

4. Does What • Provide annual assessments – 4.3 million properties • Inspect new construction & calculate assessed value • Determine assessments for Section 357 Applications • Prepare assessment reports to support Commercial, Industrial, Multi-Res capping • Defend assessments at all levels • Perform enumeration for municipal elections & produce Preliminary List of Electors, Population Reports, Jury Duty Lists • Collect and maintain information for: • Ownership, Tenancy, School Support & mailing address • Property changes both severances and consolidations • French language education rights • Residency for voter identification

5. Current Value • Current Value Assessment (CVA) “the amount of money the fee simple, if unencumbered, would realize if sold at arm’s length by a willing seller to a willing buyer”

6. Why Use Current Value • Current Value > Most common assessment approach used in the world • used in every province in Canada • used in 128 other countries A sale price is an indication of current value that represents the price a buyer and seller agree to in a particular transaction. • current value is the most probable price a property should bring in a competitive and open market under all conditions of a fair sale.

7. Property Inspection • Every property at time of construction is inspected • If a building permit is taken out it will be inspected • If a property sale takes place and during the sales check/questionnaire property features are updated a property inspection may take place. • If a Request for Reconsideration is filed and property features are under dispute a property inspection may be required. • The filing of an appeal the property will be reviewed. • If a property is selected as a comparable for any reason and data is challenged a property inspection may be carried out.

8. Key Legislated Items • Current Value Assessment is legislated – Assessment Act. • Annual assessment update is legislated – Assessment Act. • Bill 83 deferred next assessment update to Jan. 1, 2006 • Classification of properties is regulated (regulations augment or provide specifics to legislation – Reg 282/98). • Adding assessment for improvements, sometimes retroactively, is legislated – Assessment Act. • “Capping” (providing tax protection to Commercial, Industrial and Multi-residential properties) is legislated Bill 14 and Bill 140.

9. Amending Legislation in 2004 Bill 83 – Budget Measures Act, 2004 • Deferred assessment update to January 1, 2006 • Date assessments are based on changed from June 30 to Jan 1 of the year prior to the assessment base year. • Moved Assessment Roll Return back one week now 2nd Tuesday in December – For 2005 taxation Roll delivered Dec. 14, 2004. • Deferred Assessment averaging • Authority granted to the Minister of Revenue to set the date Assessment Notices must be mailed

10. The Assessment Cycle Assessment Taxation Valuation Year Year(s)Date 1997 1998, 1999, 2000 June 30, 1996 2000 2001, 2002 June 30, 1999 2002 2003 June 30, 2001 2003 2004 & 2005 June 30, 2003 2005 2006 Jan. 1, 2005 Annual Updates thereafter based on Jan. 1 of the year prior to the taxation year

11. Key Components of Residential Value • Location of Property • Property Size • Quality & Size of structures • Age & Condition of the structures • Other value features or additives • Finished basements • Number of Bathrooms • Heating & Cooling Types • Garages or in-ground pools • sheds over 200 sq. ft.

12. What Isn’t Assessed? • Driveway Finish • Sidewalks • Above-ground swimming pools • Sheds under 200 sq. ft. • Open framing/roughed-in plumbing in basements • Landscaping

13. 3 Approaches to Establish Current Value

14. Regulation 356/00 • For the 2000 and subsequent taxation years, a building that is used exclusively for storage purposes at the site where manufacturing, production or processing takes place is included in the commercial property class if the building is, • (a) not attached to a building or structure or portion of a building or structure that is included in the industrial property class; or • (b) linked to a building or structure or portion of a building or structure that is included in the industrial property class by means of a minimal connection or corridor constructed only for the purpose of moving material or goods between the buildings

15. Request for Reconsideration (RfR) • Free, informal review by MPAC, available January 1 to December 31 of each taxation year • Acknowledgment letter sent in response to each request, improved tracking and follow-up for quicker review and response • New brochure included with each acknowledgement and available at field offices, municipalities and www.mpac.ca • Simplified application form allowing additional space for owner’s concerns. Improved online form – key directly into form, print and mail • Continually working to improve the information provided to property owner on completion of review

16. Requests for Reconsiderations - Tillsonburg

17. RfR CVA Changes - Tillsonburg 367 RfR’s Filed: as of Nov 11, 2004 1 Farm property formerly industrial = $528,000 loss 1 Multi-residential vacant land= $80,000 loss 271 or 76% were from Vacant Residential Land =$8,081,600 loss 58 from Residential Properties = $545,000 loss 22 from Commercial Property = $870,000 loss 14 from Industrial Property = $1,088,000 loss

18. 2004 Valuation Status - Tillsonburg • Tax Class Comparison Jan 1, 2004 to Nov 11, 2004

19. Assessment Appeals - Tillsonburg Our goal is to keep appeal loses under 1% (0.75%) of the total assessment on the current Assessment Roll.

20. Land Transfer Affidavits - Tillsonburg • Straight sales are processed within 10 days of receipt from Land Registry offices. • 2004 figures are as of September 30, 2004.

21. Reference Plans - Tillsonburg As of October 31st

22. M-Plan and Condominium Plans - Tillsonburg As of October 31st

23. Summary of Outstanding Building Permits As of Nov 12, 2004 - 243 Outstanding Building Permits • Priority Permits: Residential permits that are older than 365 days Commercial permits that are older than 455 days Industrial permits that are older than 515 days

24. Omitted and Supplementary Assessments • All 2004 Supplementary/Omitted Assessment Rolls have been delivered to the Town of Tillsonburg. No additional extracts are scheduled for 2004.

25. Vacancy Rebate Requests - Tillsonburg As of September 28, 2004

26. Vacant Commercial or Industrial Buildings • Ont Reg. 325/01 provided eligibility • To be eligible for a rebate a building or portion of a building must satisfy the conditions noted: • Entire Building - unused for at least 90 consecutive days • Or • Partial Building – Commercial • Unused for 90 consecutive days and, • clearly delineated or physically separated from used portions of the building and, • Either capable of being leased for immediate occupation or • Not capable of immediate lease because it was undergoing repairs or renovations or in need of repairs or unfit for occupation • Partial Building – Industrial • Unused for 90 consecutive days and, • clearly delineated or physically separated from used portions of the building and, • Exclusions: Seasonal property, leased property, new buildings never occupied

27. Appeal Process (ARB–Assessment Review Board) • A ratepayer can opt for this process if not satisfied with the results of the informal review • Assessment Review Board is an independent administrative tribunal • Complaints must be postmarked by March 31, 2005, e-file www.attorneygeneral.jus.gov.on.caor by writing to the Assessment Review Board • Required fees (Revised) as of Nov 22, 2004 • Residential/Farm, Managed Forest and Conservation Land properties ($75 per roll number) • Multi-Residential properties, Commercial, Industrial and other properties ($150 per roll number)

28. Taxpayer Access • Assessment Notices mailed over 10 week period starting in 2005 • Assessment Notice may contain additional information – under review 1-866-296-6722 hours 8-8 weekdays, 9-4 Saturdays Sept. through Dec 2005. Now 8-5 weekdays • www.mpac.ca available 24 -7 • Questions and answers • Downloadable forms • Links to ARB and Province • Free access to comparable properties • 36 field offices and head office for walk-ins

29. About My Property™ • Online access to assessment data for the home owner • Over 95,000 user ids issued to property owners • Large property owners gain quick access to multiple look ups • Access to purchase data through common e-commerce portal • Information for each property available freeof charge: • One (1) Property Profile Report • Six (6) Assessment Roll Look Ups for properties of the user’s choice • Six (6) Detailed Property Reports for properties of the user’s choice NEW

30. Remember for 2005 Taxation • Notices will only be mailed to property owners where a change to the property information contained on the notice has occurred since the last assessment update. • Notices (1,350 est) will be delivered starting Nov. 17, 2004. • The same base year assessment value will be used for 2005 taxation that was used for 2004 taxation. • Primary Consideration For Property Owner: Does your assessed value reflect what you would have expected to sell your property for in June 2003.

31. Critical Dates Appeal - Assessment Review Board Deadline March 31, 2005 “Request for Reconsideration”. Jan 1 to Dec. 31, each year

32. Municipal Relations – Local Contact • Account Manager - Dennis McMeekin Phone 1-877-215-0043 ext 207 Fax 1-519-524-5271 Email mcmeekde@mpac.ca • Municipal Relations Representative – Terry Day Phone 1-877-205-4216 ext 2355 Fax 1-519-681-0892 Email dayte@mpac.ca • Municipal Relations Assistant – Brenda Slater Phone 1-877-205-4216 ext 2333 Fax 519-681-0892 Email Slaterbr@mpac.ca

33. Questions

34. Thank you on behalf of the Municipal Property Assessment Corporation