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 Who is responsible for assessing my property? |
The Municipal Property Assessment Corporation (MPAC) is a not-for-profit and independent organization that the Province of Ontario created in 1997. MPAC accurately values and classifies all Ontario properties for municipal property tax purposes.
| | How often is property assessed? |
MPAC completes a uniform, province-wide property assessment system based on current value assessment every four years. The last province-wide assessment was completed in 2008 (based on a market value of January 1, 2008). This assessment will apply for four tax years - 2009, 2010, 2011 and 2012. MPAC may re-assess property during this period when you have changed the property and altered its value.
| | What is an assessment “phase in”? |
MPAC's province-wide assessment in 2008 has a four-year update cycle. It phases in any increases in the assessment value from the 2005 value over four years. If the assessment value decreases from the 2005 value, your next tax bill will immediately show the decrease.
| | How is my home assessed? |
To establish your property’s assessed value, the Municipal Property Assessment Corporation (MPAC) uses current value assessment to analyzes property sales in your community. Most assessment jurisdictions in Canada and throughout the world use the current value assessment. MPAC also looks at the key features of every property. It considers as many as 200 factors when assessing the value of a residential property. Five major factors usually account for 85 per cent of the value:
• location;
• lot dimensions;
• living area;
• age of the property, adjusted for any major renovations or additions; and
• quality of construction.
Other features that may affect value include: number of bathrooms, fireplaces, garages, pools, whether properties have water frontage, and so on. MPAC analyzes the key features of your property with sales of comparable properties in your community to determine your assessment.
| | What if I disagree with MPAC's assessed value of my property? |
If you believe that your assessed value is inaccurate, MPAC will review it if you file a Request for Reconsideration (RfR) by March 31st of the current tax year. There is no fee for this review. To learn more about how MPAC assesses properties or to obtain a form to apply for a Request for Reconsideration, visit www.mpac.ca or call 1-866-296-6722.
| | What if I disagree with the results of the RfR process? |
After you have received MPAC’s decision you have 90 days to appeal to the Assessment Review Board. To file an appeal with the ARB send a written request to the Assessment Review Board, 655 Bay Street, Suite 1500, Toronto, ON, M5G 1E5. A fee of $75 for residential/farm or $150 for commercial/industrial properties must accompany your appeal. For further information, please contact the ARB at 416-314-6900, or toll free 1-800-263-3237, or visit www.arb.gov.on.ca .
For commercial, industrial and multi-residential properties, you can either file an RfR with MPAC or appeal directly to the ARB – either must be done by March 31, 2009. If you choose to file an RfR with MPAC and you are not satisfied with the result, you may then appeal to the ARB within 90 days of receiving MPAC’s decision.
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| Would you explain my property tax bill? |
You pay property taxes to the municipal government to support the City of Brampton and the Region of Peel services, and help fund education. The City sends out tax bills twice annually. It usually sends out interim bills, based on 50 per cent of the previous year’s taxes, in January for February, March and April payments. Final bills reflect new tax rates and are usually issued in June for payment in July, August and September.
| | How are my taxes calculated? |
The standard formula for calculating final taxes is the tax rate multiplied by the assessed value of the home [Current Value Assessment (CVA)]. Interim taxes are 50 per cent of prior year's taxes. Due to Province of Ontario Tax Protection programs for non-residential properties, this formula may not accurately determine those taxes.
| | How is the tax rate determined? |
Three levels of government determine the property tax rate: City, Regional and Provincial (education). The City establishes a budget to provide the municipal services and infrastructure for which it is responsible. It calculates a municipal tax rate that will meet the funding requirements identified in the City's budget. The Region of Peel follows a similar process while the Province of Ontario establishes an education tax rate. Use this calculation to figure out your residential property tax:
The Municipal Tax Rate x the Assessed Value (CVA) of the Property
+
The Regional Tax Rate x the Assessed Value (CVA) of the Property
+
The Education Tax Rate x the Assessed Value (CVA) of the Property
=
The Total Property Tax
| | Why does my bill show overdue taxes when I’m up-to-date on my payments? |
Your account may indicate overdue taxes for two reasons:
1) Someone may have entered your account number incorrectly
2) The City may not have yet processed any payments you made before the City mailed the bill.
To resolve this situation, we need proof of your payment. You can send us copies of your proof of payment by clicking here. Alternately you can mail/deliver it to the Tax Office on the 2nd floor of City Hall at 2 Wellington Street West, Brampton, ON, L6Y 4R2 or fax it to 905-874-2296. Call 905-874-2200 for service available 24 hours per day, every day.
| | Where can I pay my tax bill? |
Taxes can be paid at Brampton City Hall at the cashier’s office on the main floor, at most financial institutions, by Internet or telephone banking, or by post-dated cheques (post-dated cheques cannot exceed one year from the first issue date), mailed to the Tax Section, P.O. Box 1725 Brampton, Ontario L6V 4J3. Cheques can also be deposited in the drop box located at Brampton City Hall, 2 Wellington St. West. Please make cheques payable to "Brampton Taxes" and write your 17 digit Tax Roll Number on the front of each cheque.
| | What is the penalty/interest rate on unpaid balances? | The rate on unpaid balances is 1.25% charged to the account after the payment is due and again on the first business day of each month until paid. Properly applied Penalty and Interest charges cannot be waived. | | What payment methods are acceptable? |
You can pay by cash, cheque, debit, or through the bank (either in person or through internet or telephone banking). You can also choose from three pre-authorized payment plans. Please allow for seven business days' processing time for payments by mail, telephone or internet banking before due date.
| | Why is the final tax bill sometimes larger than the interim? |
If any of the three tax rates (City Property Tax, Regional Property Tax or Education Property Tax) have changed, or the assessed value on the house has increased, the second billing will be for a larger amount. The City bases the interim bill on 50 per cent of the previous year's taxes.
| | What are pre-authorized monthly payments and am I eligible to participate? |
The City takes pre-authorized monthly payments directly from your bank account. To be eligible, your property must be fully assessed. You must have no overdue taxes and cannot have a mortgage company responsible for their payments. Please click here for an application.
The requirements are: a valid chequing account and a void cheque. Credit cards or lines of credit are not acceptable as payment. For additional information, please refer to the Pre-authorized Payment Plan page. | | Can my taxes be paid through my mortgage company? |
Yes. You must make the arrangements with your mortgage company. Contact your mortgage company for further information.
| | How do I enter my property tax account in my online or telephone banking? |
The account number is the 17-digit Tax Roll number that appears on your tax bill. The payee is usually listed as “Brampton Taxes."
| | Why is there an Ownership Fee added to my taxes? | The Change of Ownership or Change of Deed Fee was a decision of Council. It is charged when the ownership of a house, or the name on a deed, changes. This includes the change from the builder’s name to the purchaser’s. Mortgage companies and lawyers do not pay this fee as part of the closing or initial mortgage payment. Many municipalities and utility companies charge a similar administrative fee. | | How can I calculate what my taxes will be on my new home or a home I am considering buying? | The formula for estimating the taxes on a new home is: current tax rate multiplied by the purchase price of the house. | | Why is the second tax bill on my newly built home significantly larger than the first? |
If MPAC had not assessed your house before the City billed you, the City may base taxes on the value of the land only. You will get another bill when MPAC assesses the house. The formula for determining the approximate taxes on a home is the tax rate multiplied by the purchase price of the house. To find out about property assessment, please contact the Municipal Property Assessment Corporation (MPAC) at 1-866-296-6722 or www.mpac.ca. | | My house is sold and the closing is scheduled in the middle of the tax billing period. How do the new owner and I split the tax bill? | Your lawyer will do a statement of adjustment, which will show what portion of the tax bill the current owner is responsible for and what the new owner will be required to pay. The lawyers will make these adjustments at the closing. Owners are required to make all tax payments as they are due up to the date of closing. | | Why haven’t I received a tax bill? | When there is delay in receiving information from MPAC, the City cannot issue a tax bill. This delay can be considerable, with some people not receiving a tax bill for as long as three years or more after occupancy. (See supplementary tax bill). Please call (905) 874-2200 for more information. | | Is there tax relief available for seniors or disabled taxpayers? |
Qualifying (low-income) seniors, who are 65 and older may apply for a tax credit of $400 per year. Seniors must receive the Guaranteed Income Supplement, own and live on the property for which they are applying, and must not claim for other properties that year. In addition to the residency requirements noted above, disabled applicants must be in receipt of the Income Supplement under the Ontario Disability Support Program Act (ODSPA). You must apply for this program before December 31st of the current year. Applications are available by calling the Tax Office at 905-874-2200 or click here to download a copy. The Region of Peel also offers a program to defer property tax increases for low-income seniors. | | What is a supplementary tax bill? |
The City issues supplementary tax bills when MPAC has reassessed a property because of additions or improvements that increase its market value or when MPAC has fully assessed a new building. In the case of a newly constructed home, there can be a considerable delay between the occupancy dates and when the City receives the assessment information from MPAC. Until the City receives this information, the City cannot issue a full tax bill. Once the assessment information becomes available, it sends a supplementary bill, dating back to when the new owners took possession of the property. Bills received prior to the supplementary billing are usually smaller and represent land only. If you receive a supplementary billing and you did not own the home during this time, the bill should be forwarded to your lawyer to arrange for payment.
| | What is an apportionment? |
An Apportionment is an adjustment to land taxes paid on properties that have not received individualized assessments for previous years (i.e. Semi-Detached Lots, Townhouse Blocks) and may be for all or part of one or more years. When the City of Brampton first issues a tax bill for semi-detached or townhouse properties, it is based on a land assessment of the whole lot or block. The Municipal Property Assessment Corporation (MPAC) subsequently assigns an individual roll number to each part of the lot or block, based on the final "built on" configuration. When the City of Brampton receives the revised Assessment (Apportionment) information from MPAC, re-allocation of the taxes can be created and a billing is issued accordingly.
| | How do I obtain a tax certificate? | To buy a tax certificate, please mail your request with payment to the City of Brampton Tax Section, 2 Wellington Street West, Brampton, Ontario, L6Y 4R2. Click here for our current service fees. | | How do I get a tax statement? |
You can get a tax statement for the taxes you paid in 1998 and every year after for $14 each. Statements for 1997 and the years before are $35 for each year. Only the homeowner, or the person whose name appears on the title, can receive the statements and only with proper identification.
| | How do I change my school support? | Please click here for a copy of the application form. After completing the form you must send it to: Municipal Property Assessment Corporation 601 Milner Avenue Suite 200 Scarborough ON M1B 6B8 Attention: Data Processing Unit | | How do Brampton’s residential taxes compare to other cities in the Greater Toronto Area (GTA)? |
How do Brampton’s residential taxes compare to other cities in the Greater Toronto Area (GTA)?
To understand how Brampton’s taxes compare to other cities it is important to understand how taxes are determined. Taxes are calculated using two factors. The first is the assessed value of the property and the second is the local tax rate. Throughout the Province of Ontario the responsibility for determining the value of property rests with the Municipal Property Assessment Corporation (MPAC), an independent organization established by the Province of Ontario. MPAC establishes values based on sales data for a given area to estimate the current or market value of similar properties. As property values differ from area to area similar houses can have very different assessed values.
The second factor used to determine property taxes is the local tax rate. In Brampton the tax rate comes from three sources. The first is for local services and it is set by the Brampton City Council annually. The second is for regional services and that rate is also determined by Peel Regional Council annually. The last component is for education and the Province of Ontario establishes a standard rate across the province for all residential properties.
Because tax rates, other than education, are established locally they differ from municipality to municipality. For example the total 2012 residential tax rate in Brampton is approximately 1.1617%, while Toronto’s is approximately 0.7712%. On the surface it would appear that taxes in Brampton are higher, but this is not the case.
Annually an independent consulting firm, BMA Management Consulting (BMA), reviews the taxes of several Ontario municipalities comparing “like” properties. In the residential property class they review a detached bungalow and an executive home.
The detached bungalow is described as a three-bedroom single storey home with 1.5 bathrooms and a one-car garage. Total area of the house is approximately 1,200 square feet and the property is situated on a lot that is approximately 5,500 square feet. For this property the 2011 Brampton taxes were estimated at $3,424. The Toronto taxes on a similar property ranged from $2,486 in the east part of the city to $4,562 in the south. The average for the Toronto quadrants was $3,441, while the GTA average is $3,442.
The executive home sampled is a two-storey, four or five bedroom home with three bathrooms, main floor family room plus atrium or library, an unfinished basement and an attached two-car garage. The house is approximately 3,000 square feet and would pay approximately $5,073 in Brampton. The range quoted in the survey for Toronto is $4,104(east) to $11,676(south) in Toronto. The average for the Toronto quadrants is $7,253, while the average for the GTA is $5,758.
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| Why is my tax bill different than the amount I calculate using the tax rate and assessed value? |
The general formula for property taxes in Ontario is tax rate multiplied by property assessment value. However, this formula varies significantly for properties in the non-residential tax classes. The Province of Ontario protects commercial, industrial, and multi-residential properties from tax increases. The program limits or "caps" at 10 per cent any change to the property taxes of any individual property.
Effectively, capping protects landowners from paying their full level of taxes. They are paying less tax than they should if they calculate their taxes using the formula for residential taxes.
On the other side, when MPAC re-assesses all properties in Ontario, some commercial, industrial or multi-residential properties decline in value. Ordinarily, this decline would decrease property tax. However, capping uses "clawback" to fund revenue shortfall resulting from lower assessment values by withholding some or all of the reduction to property owners.
| | Is my property eligible for a vacancy rebate? | A vacancy rebate is a pro-rated rebate of property tax available to commercial and/or industrial taxpayers who are not using or unable to use all or a portion of their business property for a period of at least 90 consecutive days. | | How often can I apply for a vacancy rebate? | There are a maximum of two applications per year. Interim applications for the period of January to June will be accepted until July 31 of the taxation year. A final application must be submitted by February 28 of the year following the taxation year for which the application applies. | | How are vacancy rebates calculated? | The rebate percentage is 30% for both commercial and industrial properties. The calculation is as follows:
(Assessed value of vacant portion) x (tax rate) x (# of days vacant /365) x (level of taxation) x 30%
| | How do Brampton’s commercial and industrial taxes compare to other cities in the Greater Toronto Area (GTA)? | How do Brampton’s commercial and industrial taxes compare to other cities in the Greater Toronto Area (GTA)?
To understand how Brampton’s taxes compare to other cities it is important to understand how taxes are determined. Taxes are calculated using two factors. The first is the assessed value of the property and the second is the local tax rate. Throughout the Province of Ontario the responsibility for determining the value of property rests with the Municipal Property Assessment Corporation (MPAC), an independent organization established by the Province of Ontario. MPAC establishes values based on sales, income, or costing data for a given area to estimate the current or market value of similar properties. As property values differ from area to area similar buildings can have very different assessed values.
The second factor used to determine property taxes is the local tax rate. In Brampton the tax rate comes from three sources. The first is for local services and it is set by the Brampton City Council annually. The second is for regional services and that rate is also determined annually by Peel Regional Council. The last component is for education and the Province of Ontario establishes those rates across the province for all non-residential properties.
Because tax rates are established by various governments they differ from municipality to municipality. For example the total 2012 commercial tax rate in Brampton is approximately 2.3976%, while Toronto’s is approximately 3.1816%.
Annually an independent consulting firm, BMA Management Consulting (BMA), reviews the taxes of several Ontario municipalities comparing “like” properties. In the commercial property class they review four different types of property; a neighbourhood shopping centre, an office building, a hotel and a motel. In the industrial class there are two developed types of property surveyed; large industrial and standard industrial.
As an example of the tax survey information, an office building within the Commercial Tax Class is described as buildings in prime locations within the municipality. Comparison of taxes is shown per square foot of gross leasable area basis.
For this property the 2011 municipal taxes were estimated at $1.63 per square foot, plus $1.65 for education, for a total of $3.28. The Mississauga taxes on a similar property are estimated at $1.43 for local taxes and $1.73 for education, for a total of $3.16 per square foot.
A standard industrial property is described as less than 125,000 square feet in size and characterized as being of newer construction with a flexible design.
The 2010 taxes for this type of property were estimated at $2.35 per square foot in Brampton, with municipal taxes accounting for $1.13 for the total. Property taxes for similar properties in Mississauga were $1.03 for municipal taxes and $1.34 for education, for a total of $2.37 per square foot.
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