Ontario Request for Reconsideration Form
Let us review your MPAC Property Tax Assessment
Let us reduce your Ontario property taxes
- File an Appeal
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Use our convenient online form to signup for a free review of your MPAC Property Assessment. Pay nothing at all unless you receive a tax refund.
- Property Tax Calculator
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Generate municipal tax bills, then compare the tax impact based on different scenarios. Calculates CVA taxes and Capping/Clawback adjustments as required by the Municipal Act, 2001, Part IX.
- Sales Map
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Search for sales of Commercial, Industrial & Multi-Residential properties in Ontario. Choose comparable properties, and calculate selling prices by square foot, acre, or unit.
- 2016 Assessment Update
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Ontario's province-wide Assessment Update is currently taking place. It will be effective for the 2017-2020 property tax years, and will be based on a legislated valuation date of January 1, 2016.
- Who is PropertyTaxServices.com?
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We are a boutique law firm assisting property owners throughout Ontario obtain fair and equitable property tax assessments. Since 1992, we have acted in litigation involving all property types, including:
- office buildings
- shopping centres
- development land
- contaminated sites
- industrial operations
- multi-residential properties
Our Services
Assessment Appeals
An assessment appeal is a complaint about the assessment of a property as determined by the Municipal Property Assessment Corporation (MPAC). It is made under the Assessment Act.
We manage all aspects of an assessment appeal including settlement negotiations with MPAC prior to a hearing, recent sale investigations and preparation of a Valuation Report to be provided as evidence. We perform a comprehensive review and analysis of annual assessment notices. We will review and analyze detailed revenue and expense statements, conduct site inspections, analyze Amended Assessment Notices and Supplementary Assessment Notices, file applications and annual protective appeals where necessary.
We file all material required by legislation and will pursue the most appropriate litigation strategy. We have experienced legal counsel committed to argue your case, and valuators who will present expert evidence on your behalf. This approach has allowed us to successfully recover millions of tax dollars for our clients.
Most assessment appeals are resolved through negotiation. In order to facilitate the negotiation process, we attend to all preliminary procedural matters leading up to a hearing. We will obtain the most recent valuation records from MPAC and conduct a detailed review and analysis of the records to verify data integrity. Most importantly, we will identify all potential areas to maximize your tax recovery, and minimize your taxes going forward.
Our Services
Tax Appeals
A tax appeal is a complaint about how a municipality calculated taxes for a specific property. For most municipalities, the appeal is made under the Municipal Act, 2001. Toronto has its' own taxing statute entitled the City of Toronto Act, 2006, which in most respects mirrors the provincial counterpart.
There have been many changes to Ontario's property tax legislation in recent years. One consequence of the changes is occasional errors in property assessments and tax bills. If errors are not corrected, they can lead to excessive taxes that will be virtually impossible to correct in future years.
We are at the forefront of the changes to the Assessment Act and the Municipal Act through our successful representation of clients who have appealed their property taxes. We have consulted with the Province with respect to proposed legislative amendments to the assessment system and have successfully challenged flawed taxation practices.
We are constantly staying informed of the continuous changes to the laws relating to property taxation. Our legal advisors work co-operatively with municipal tax officials and MPAC officials to secure fast, fair, and accurate assessments and tax bills. In the vast majority of cases, results are achieved through a negotiated resolution with Tax Department representatives.
Our Services
Tax Apportionments
Owners of multi-tenanted commercial and industrial properties must allocate property taxes among tenants not only according to the terms of the lease, but also according to legislation. The amount of property taxes allocated to a tenant can be quite substantial to any business.
The process of correctly allocating property taxes is complex and involves many factors. We often review properties where there are competing leases, such that there are differing formulas in use. The terms of one lease may contradict the terms of another, which leads to a situation with some tenants underpaying, and other tenants overpaying in the tax allocation process.
Another important consideration exists when property owners obtain tax refunds. The landlord must determine whether they are contractually bound to allocate these refunds back to the tenants. Property tax allocation among tenants can be a challenging area for both landlords and tenants, and for this reason it is an area where the use of an independent advisor can be invaluable.
We are routinely asked by both tenants and landlords to review their current property tax allocation methodology and ensure compliance with applicable laws. We will review and analyze leases, rent rolls, inducements, and income and expense statements to ensure that your property taxes are being allocated correctly and to your maximum benefit.
Our Services
Vacancy Rebates
For many of our commercial and industrial clients, we manage the annual requirements of the vacancy rebate program as provided for in Part X of the Municipal Act, 2001. This includes the preparation of vacancy-related tax rebate applications, and preparing the vacancy status verification documents. This process is often supplemented by a Vacancy Rebate Affidavit sworn under oath by an representative of the property owner.
We ensure not only that the rebate application has been processed by both MPAC and the municipality, but also that it has been processed correctly. We audit the resulting calculations that form the basis of the rebate amount credited by the municipality, and report our conclusions to our clients in a final report.
Fee Options
Fixed Fee
For many property owners, we are able to offer the services of a complete Property Assessment Review on a fixed-fee basis. This involves a comprehensive review and analysis of annual assessment notices, amended and supplementary notices, income and expense statements and rent rolls. We will provide you with a comprehensive report outlining our recommended tax minimization strategy.
We view ourselves as an asset to our clients by providing timely, accurate legal services that are affordable to both the client and the firm. For further information about the types of property assessment matters than can be handled on a fixed-fee basis, please contact us.
Fee Options
Hourly Rate
We take into account many factors in billing for legal services. Our fees for property tax services are significantly influenced by, but not entirely based upon, the hourly rates assigned to the lawyer, paralegal or assistant performing the services. Due consideration is also given to other factors including the complexity, difficulty and novelty of the issues involved; the degree of expertise required to handle the project; the time constraints imposed on completing the work; and the results obtained on the client’s behalf. The nature of the project will often determine how the fees are charged.
Our hourly rates for professional staff are based on years of experience, specialization in training and practice, and the level of professional attainment. We keep detailed records of the time we spend on a project, and bill the work quarterly to keep the client informed of our activities. In addition to the hourly fees, clients are billed quarterly for all costs and expenses incurred on their behalf. A schedule of our hourly rates is available on request.
Fee Options
Contingency Fee
The majority of our clients choose the contingency fee option. A contingency fee is performance-based whereby a fee is only charged if there has been a refund or reduction in taxes. Our fees are based on a percentage of the amount of any refund or reduction in taxes. If there is no tax refund, there is no fee payable.
A challenge to the quantum of assessment is a type of matter that lends itself well to the contingency fee model. On the other hand, a dispute between a landlord and tenant over the correct methodology for allocating property taxes is a type of matter that would be handled on an hourly rate basis.
We offer free consultations to find out the nature of your case and when required, we will visit your property for inspection. This will allow both parties to determine the most appropriate basis of the retainer.
You've got questions?
We've got answers.
1 - My assessment may be too high. What should I do?
Complete our online Request for Reconsideration Form and we will take care of everything for you.
Market values have increased across Ontario since 2012. Most property owners will be seeing increases on the Property Assessment Notices they have receive from MPAC in 2016. In some cases, the information that MPAC maintains on your property may be out of date or incorrect.
We will verify all the information that MPAC has on file for your property and obtain a Property Profile Report. We will also compare your assessment to similar sold and unsold properties in your area to determine its accuracy.
2 - What property tax changes are happening in Ontario right now?
Ontario is undergoing a province-wide Assessment Update effective for the 2017 to 2020 taxation years. The new values are based on a legislated valuation date of January 1, 2016. The previous Assessment Update took place in 2012 and applied to the 2013 to 2016 taxation years.
All property in Ontario is assessed by MPAC once every four years. The assessed value that is calculated by MPAC is intended to represent what a willing buyer would pay a willing seller for the property as of the legislated valuation date of January 1, 2016. The Ontario Government has introduced a "phase-in" program whereby increases in market value are phased in over four years (2017-2020). Properties not subject to "phase in" are taxed at "full-CVA" taxation, which is simply Assessment x Tax Rate = Taxes. The full benefit of any decrease is applied immediately.
3 - What factors determine my residential assessment?
There are five major factors that account for 85% of residential property value:
- location;
- lot dimensions;
- living area;
- age of the property, adjusted for any major renovations or additions; and
- quality of construction.
Some other features that may affect value include: finished basements, garages, pools, number of bathrooms, and the type of heating and air conditioning. Site features can also increase or decrease the assessed value of your property, such as:
- traffic patterns;
- being situated on a corner lot; and
- proximity to a golf course, hydro corridor, railway or green space.
4 - What factors determine my non - residential assessment?
It is the responsibility of MPAC to classify and value properties in Ontario. They achieve this through the use of a delicate mix of human assessors, computerized models, and self-assessment by taxpayers. To establish assessed values, MPAC will analyze property sales in your area. They are continually collecting and updating their information for every property in Ontario on a daily basis.
Like many other businesses, MPAC has experienced a dramatic increase in the use of technology, alongside a reducing workforce. There simply are not enough assessment personnel in the province to be able to visit every property at least once during the assessment cycle. MPAC attempts to determine accurate values for properties based on common data and mass appraisal techniques.
Our approach to the review of an assessed value is different. We do not employ a broad brush approach; but instead we paint a picture of value based on a finer brushstroke. It is not enough for similar property types to be valued consistently, since they may be similarly valued incorrectly. Properties must be assessed according to their actual values, and there must also be equity amongst classes of similar property.
In additional to reviewing the information maintained by MPAC regarding your property, we also analyze the following sources of property information:
- real estate sale reports;
- land titles documents;
- building permits;
- site inspections; and
- income and expense information (for apartments, office buildings, shopping centres, hotels and other income producing property).
5 - What do the terms "Capping" and "Clawback" refer to?
The basic formula for property taxes in Ontario is:
Assessed Value X Tax Rate = Property Tax
Unfortunately, this basic formula varies significantly for commercial, industrial and multi-residential properties. The Province of Ontario has passed legislation which is designed to protect commercial, industrial, and multi-residential properties from significant tax increases. In reality, what the program does is impose a "cap" of 10 per cent on assessment-related tax increases from one year to the next. This protection protects one class of property owners from paying the full amount of taxes based on their property's assessed value.
Like all things in life, the "capping" offered to one class of property owners comes at a price. And the price is "clawback".
To fund the revenue shortfall caused by capping increases on one class of property, municipalities must then withhold, or "clawback", some or all of the reduction in property taxes which would otherwise be due to another class of property. Essentially, the municipality is funding one taxpayers' property tax obligations at the expense of another. Sort of like a modern-day Robin Hood story, if you will - Robbing from the rich and giving to the poor.
If you'd like to know whether your property is subjet to capping or clawback, it will be necessary to take a close look at the property's Final Property Tax Bill. Look for a line which reads similar to: Tax Capping/Clawback Adjustment.
- If the adjustment amount is positive, this means the property is receiving a clawback adjustment to increase the taxes above the level of full-CVA taxation (ratio > 1.00). The greater the clawback amount in percentage terms, the greater the prejudice.
- If the adjustment amount is negative, this means the property is receiving a clawback adjustment to decrease the taxes below the level of full-CVA taxation (ratio < 1.00).
- Finally, if there is no line appearing on the Final Property Tax Bill for a Tax Capping/Clawback Adjustment, this means that the property has reached full-CVA taxation (ratio = 1.00), and will remain taxed in that manner, . . . unless a change in assessment is implemented through an Assessment Appeal or Request for Reconsideration which has the effect of bringing the property back into a capped or clawback position.
Understanding the details of when, and when not, to pursue assessment changes is crucial. We will investigate these issues thoroughly and correctly on your behalf to ensure your taxes are at the lowest level possible. We will make sure that you do not inadvertently accept a seemingly beneficial settlement that would ultimately provide short-term gain, and long-term pain.
6 - Fee Schedule (MPAC Requests for Reconsideration)
No tax savings, No fee. It's really that simple.
We provide services to our clients on a Contingency Fee basis. This means that unless we are able to generate tax savings for you, there are no fees payable at all. Our team of professionals will investigate all options in our attempts to generate the maximum possible property tax savings on your behalf.
As a result of the Ontario Government "phase-in" program, decreases in market value are phased-in over four years (2013-2016). The "phase-in" program also means that any tax refunds we obtain are also similarly phased-in during the same period. Accordingly, benefits to be obtained from a successful assessment review increase each year.
For example, consider a home with a previous assessment of $800,000 (2012 Current Value), which has recently been assessed by MPAC at $1,000,000 (2016 Current Value).
Prior to our review, the Original assessment represented an increase of $200,000 which would be phased-in at the rate of $50,000 per year over the years 2017-2020. Following analysis of the assessment it is found to be excessive by 10%, resulting in a revised assessment of $900,000.
The Revised assessment of $900,000 represents savings of $100,000, or 10%. The difference between the Original Phase-In Assessment and the Revised Phase-In Assessment is the amount of assessment reduction saved each year. This table shows how only $100,000 of assessed value reduction will result in Total Tax Savings of over $1,800 during the 2017-2020 assessment cycle:
Of course, the figures shown above represent a hypothetical example only, but the amounts shown are typical of the results that are routinely achieved for our clients. We have sometimes advanced cases on behalf of our clients seeking as little as a 5% reduction in assessment. And we also seek reductions of 10%, 25% or more, depending on the circumstances of each case. Each assessment review is handled on an individual basis and all factors relevant to the valuation will be considered. The amount of tax savings that you will ultimately receive from this review cannot be predicted.
It is also important to note that due to the "phase-in" program, the property only receives 25% of the reduction in 2017, 50% in 2018, 75% in 2019, and finally 100% of the reduction in 2020. Accordingly, the majority of the tax savings are realized in the latter years of the assessment cycle. In fact, the savings in 2017 represent only approximately 10% of the total savings over the period.
If a Request for Reconsideration or subsequent appeal results in a change in assessment, then we charge a Contingency Fee equal to 40% of the Total Tax Savings achieved during the 2017-2020 phase-in period, plus HST. Fees are payable annually, only after Final Tax Rates are established by the municipality. If the property is sold during the phase-in period, the contract shall be cancelled as of the sale date.
7 - Fee Schedule (ARB Assessment Appeals)
No tax savings, No fee. It's really that simple.
We provide services to our clients on a Contingency Fee basis. This means that unless we are able to generate tax savings for you, there are no fees payable at all. Our team of professionals will investigate all options in our attempts to generate the maximum possible property tax savings on your behalf.
As a result of the Ontario Government "phase-in" program, decreases in market value are phased-in over four years (2017-2020). The "phase-in" program also means that any tax refunds we obtain are also similarly phased-in during the same period. Accordingly, benefits to be obtained from a successful assessment review increase each year.
To fund the revenue shortfall caused by capping increases on one class of property, municipalities must then withhold, or "clawback", some or all of the reduction in property taxes which would otherwise be due to another class of property. Essentially, the municipality is funding one taxpayers' property tax obligations at the expense of another.
There is no risk to you in the Assessment Appeal process as we work on a contingent basis. We charge no fees whatsoever unless we successfully recover property tax savings on your behalf. The fee is payable only after the reduction in assessment has been officially documented.
If an Assessment Appeal results in a change in assessment, then we charge a Contingency Fee equal to 40% of the Total Tax Savings achieved during the 2017-2020 phase-in period, plus HST. Fees are payable annually, only after Final Tax Rates are established by the municipality. If the property is sold during the phase-in period, the contract shall be cancelled as of the sale date.
8 - The Review Process
We provide a comprehensive service that helps Ontario taxpayers reduce their property taxes. We are a firm of professionals licensed by the Law Society of Upper Canada. Through our knowledge of assessment law and property valuation, we are able to generate the maximum tax savings on your behalf.
As a property taxpayer, it is your right to be assessed on an equitable basis with similar real property in the vicinty. You also have the right to have your assessment independently reviewed and to file a Request for Reconsideration with MPAC or an appeal to the Assessment Review Board, if necessary.
A review of your assessment can lead to lower taxes. In many cases we are able to identify errors that exist within the MPAC assessment data. Due to the large number of properties to be assessed, and the declining numbers of assessors, MPAC relies very heavily on mass appraisal techniques. This approach sometimes results in errors when it fails to take into account unique features of your property.
We manage the entire review process for you, including all necessary filings, exchange of Statements of Issues, property inspections, attendance at hearings, negotiations and settlement of your appeal. If you miss the March 31 filing deadline, you will have to wait until the next year to file. You have nothing to lose by initiating a review since we are only paid from the savings we generate for you. If there are no tax savings, there is no fee payable.