Property taxes set to rise in Toronto

If you’re thinking of buying a
property in the Canadian city of Toronto then you could shortly face a higher
tax bill. Property taxes in the Ontario city are set to rise thanks to a 22.8
per cent rise in the average value of a property in the city since 2008.

With property taxes linked to the
value of homes, this latest assessment is set to see Toronto property owners
pay over 5 per cent more in property taxes next year. We look at that this
means if you are considering buying a property in Toronto.

Rise in values may not mean a tax hike

Canadian Business reports that the average value of Toronto homes
has risen 22.8 per cent since 2008 – the last time a property assessment was
undertaken in the city. Now, a report released by Ontario’s Municipal Property
Assessment Corp. (MPAC) says that property owners will see an average
assessment increase of 5.5 per cent in each year for the next four years as it
phases in the increases.

Joe Regina, municipal relations
account manager in MPAC’s Toronto office, said: “Residential property values
have increased by an average of approximately 22.8 per cent in the City of
Toronto since 2008 when the last assessment update was delivered.

“Our values reflect the local
real estate market and confirm that most homeowners in the area have seen an
increase in the value of their property over the past four years.”

However, an increase in the value
of a Toronto home doesn’t necessarily mean that property taxes will rise. If
the assessed value of a property has risen by the same percentage as the
average in a given municipality, there may not be an increase in taxes, said
MPAC.

Mr Regina added: “Property owners
should ask themselves if they could have sold their property for its assessed
value on January 1, 2012. If the answer is yes, then their assessment is
accurate. If not, we are committed to working with them to get it right.”