4: Assessments & Bills
There are two calculations to keep in mind when you examine your tax bill to see any changes from year-to-year. These are the presentation of interim versus final tax bills and the impact from the Municipal Property Assessment Corporation (MPAC).
Interim Versus Final Tax Bills
When you get your first tax bill for the year, in early February, it is based on 50% of your previous year’s taxes. So, it does not reflect any tax increase for the year. When you get your final tax bill in early June, it reflects the full year’s increase (if any). For example, if a tax increase was 5% for the year, you would see no increase for the first half of the year and a 10% increase in the second half of the year — working out to that 5% when spread over the twelve months. This is not that remarkable for most people in a normal year, but with unusually high inflation and the tax increase that comes with it, it can be quite a jolt in June — despite averaging out over the year.
If you make upgrades to your property that increase its value, or the value of your property goes up dramatically relative to other properties in the jurisdiction, the assessed value will increase when the Municipal Property Assessment Corporation next conducts a review. MPAC is a provincial agency over which the City has no authority. Any tax increase from a reassessment is phased in over four years. So, in addition to a regular tax increase, you could have four years of increases from a reassessment. This calculation is labelled ‘202x Tax Change due to Reassessment’ on your tax bill.