REPORT TO Finance & Administrative Committee

 

 

 


TO:                             Mayor and Members of Council

 

FROM:                       Barb Cribbett, Treasurer

 

PREPARED BY:       Paul Wealleans, Director, Taxation

 

DATE:                        2003-Dec-08  

 

SUBJECT:                 2004 Reassessment – Preliminary Current Value Assessment

(CVA) Impact on Town of Markham   

 

 

 


RECOMMENDATION:

 

THAT this report be received for information.

 

PURPOSE:

 

The purpose of this report is to provide preliminary information relating to the 2003 Province-wide property re-assessment and the impact on properties in the Town of Markham for the 2004 tax year.    

 

BACKGROUND:

 

All properties across Ontario have been reassessed for the 2004 tax year based on property values as of June 30, 2003. The new values are the basis for taxation for 2004 for municipal, regional and school purposes.

 

OPTIONS/DISCUSSION:

 

The Municipal Property Assessment Corporation (MPAC) reassessed all properties in Ontario for the 2004 tax year. The new property assessments are based on values as of June 30, 2003. Beginning in 2004, reassessed values will be provided each year.

The assessment cycle is as follows:

 

Tax Year                     Valuation Date

2001 & 2002               June 30, 1999

2003                            June 30, 2001

2004                            June 30, 2003

2005                            Average of 2003 & 2004

2006+                          3 year rolling average (2003, 2004 & 2005)

Preliminary CVA values have been determined by MPAC and form the basis of the figures contained in this report. Continued “fine tuning” revisions of the data are ongoing by MPAC.

 

The average Current Value Assessment (CVA) increase for all properties in the Town of Markham is 12.07%. The average change by property tax class is as follows:

 

Class Data

Town Change

Region Change

Commercial

2.97%

4.94%

Exempt

3.60%

6.19%

Farm

-1.89%

5.51%

Industrial

5.75%

9.18%

Multi-Residential

24.32%

25.08%

Pipeline

3.19%

2.89%

Residential

14.73%

15.95%

 

The average increase in CVA for the residential property class is 14.73%. If the CVA of a Markham residential property increased at a rate higher than 14.73%, it would experience a tax increase due to reassessment and, conversely, a CVA increase of less than 14.73% results in a tax decrease due to reassessment. To ensure revenue neutrality, the tax rate is adjusted to reflect the average increase in CVA. 

 

Properties in the commercial, industrial and multi-residential classes remain subject to capping protection. The decrease in farmland values requires further research. MPAC has indicated that the large increase in multi-residential class (7 residential units or more) is due mainly to the changes to provincial rent legislation that permits landlords to increase rents of units that become vacant to full market levels. Such increases in turn increase revenue to landlords and increase property values.  

 

Residential:

The table below shows values for residential homes in each ward. The residential tax rate calculation is based on the entire residential property class, which includes all properties that are assessed as residential, and, in addition to residential homes the class includes properties such as vacant residential land, co-op housing, group homes, golf course greens and fairways. The table below excludes these types of properties and instead only includes residential homes such as singles, semidetached, townhomes, condos etc. This provides a more accurate indication of residential home values. The average Town – wide CVA increase for homes is approximately $44,639 or 14.29%, which is slightly lower than the residential class increases of 14.73%. Average house values have increased from $312,000 to $356,000.  Wards 1, 3, 4, 5, 7 and 8 will, on average, experience tax increases due to reassessment, whereas residential properties in Ward 2 and 6 will, on average, experience tax decreases due to reassessment. These changes shift the tax burden among taxpayers to properties with higher values bearing a higher proportionate share. In comparison, last year’s reassessment resulted in average increases in Wards 2, 5, 7 and 8 with decreases in Wards 1, 3, 4 and 6. 

 

 

 

The table below shows the changes by ward:

 

Ward

2001 CVA for 2003 Taxation

2003 CVA for

2004 Taxation

$ Change

% Change

1

$304,558

$359,944

$55,386

18.19%

2

$335,284

$347,668

$12,384

3.69%

3

$328,626

$380,846

$52,220

15.89%

4

$276,569

$327,578

$51,009

18.44%

5

$292,202

$339,045

$46,843

16.03%

6

$391,040

$432,432

$41,392

10.59%

7

$282,868

$325,714

$42,846

15.15%

8

$283,141

$325,741

$42,600

15.05%

Town

$312,293

$356,932

$44,639

14.29%

 

Detailed impacts for each property class and ward within The Town of Markham will be provided in the new year.

 

FINANCIAL CONSIDERATIONS:

None.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

None.

 

ATTACHMENTS:

None.

 

 

 

 

 

_______________________________          _________________________

Barb Cribbett, Treasurer                                   Andy Taylor, Commissioner, Corporate Services

 

 

 

_______________________________

Paul Wealleans, Director, Taxation

 

Q:\ 2003FinAdminCtteeReports\0391 2004 Reassessment - Preliminary CVA Impact on Town of Markham.doc