Tax and Assessment FAQ
Would you explain my property tax bill?
You pay property taxes to the municipal government to support the Township of King and York Region services, and help fund public education.
How are my taxes calculated?
The standard formula for calculating final taxes is the tax rate multiplied by the assessed value of your home [Current Value Assessment (CVA)].
How is the tax rate determined?
Three levels of government determine the property tax rate: Township, Regional and Provincial (education). The Township 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 budget. York Region follows a similar process while the Province of Ontario establishes an education tax rate.
Use this calculation to figure out your residential property tax:
What is the 2016 Assessment Update?
Every four years, the Municipal Property Assessment Corporation (MPAC) updates the value of every property in the province as part of Ontario's assessment cycle. The current Assessment Update took place in 2016, based on a valuation date of January 1, 2016.
The update established assessment values applicable for the 2017-2020 property taxation years. MPAC's assessments provide the foundation on which municipalities base associated property taxes.
How are assessment values determined?
To establish a property's assessment value, MPAC analyzes sales of comparable properties in the property owner's area and all the key factors that affect current market value. This method is referred to as Current Market Value.
For residential properties, there are five core factors that generally account for 85% of a property's assessment value:
- Lot dimensions
- Living area (usually expressed in square feet / square metres)
- Age of the structure on the property (adjusted for any major renovations)
- Quality of construction
Assessment values for the 2016 Update were derived from data collected to support market analysis and property level reviews.
What is the relationship between assessment and taxation?
MPAC's property assessment values form the basis on which municipalities distribute property tax burden at the property level. The annual process is as follows:
- Levy requirements at the Township and Regional level are determined on the basis of costs to provide all municipal services, such as waste management, parks, recreation and culture, fire and emergency services, roads, sidewalks, policing, public health, transit, etc.
- Once expenditure requirements are estimated for Township and Region purposes, the costs of services are divided by total assessment values to derive tax rates by property assessment classification to secure the corresponding taxation resources to support delivery of municipal services.
- The tax rate is then applied against assessment values at the property level to determine the amount of property tax payable by the property owner.
If my assessment level has increased, will I have to pay more property taxes?
For the 2017 taxation year, the answer is yes the property owner's total tax bill will increase as a result of increases in assessment value even though the tax rate has remained the same. The determination of the tax rate is made annually based on the Township's, the Region's and the Education tax supported approved budgets.
In 2017 the decision to maintain the tax rate at the same rate in 2016 is in direct response to significant capital intensive infrastructure-related funding requirements that have caused the Township portion of the total tax bill to increase. This investment is necessary to support the financial sustainability of the Township.
As is required under the Assessment Act, year-over-year assessment increases are introduced gradually over the four year re-assessment cycle for all assessment classes (i.e Residential, Commercial, Industrial, etc), while decreases in assessment value are recognized immediately.
What if I don't agree with my assessment value?
If a property owner disagrees with the MPAC assessment valuation or classification of their property, they can file a Request for Reconsideration (RfR) and MPAC will review their assessment, free of charge.
Are tax increases the same for all properties?
No, tax increases are not the same for all properties.
For the 2017 taxation year, the increase in taxes is directly linked to the % change in your assessment value. If your assessment increased, your taxes will go up. If your assessment remained the same, your taxes will be the same as last year. If your assessment has been reduced, your taxes will go down.
Who pays for new infrastructure?
New infrastructure (i.e. Roads, parks, arenas, libraries, etc) is supported through contributions from developers, reserves, limited grants and contributions from property taxation.
As a municipality that is and will continue to be relatively small in population, but large in geographic area, new infrastructure often benefits new residents as well as exiting residents. As such, there is a shared relationship / responsibility in terms of funding the construction, rehabilitation and/or acquisition of municipal assets.
What does the Township need additional reserves for?
Infrastructure reserves are used by the Township to acquire lands for future municipal uses, reconstruct and maintain facilities, roads, bridges, culverts, equipment and vehicles.
With tangible capital assets having a replacement value in access of $450 million, it is essential for the Township to establish and maintain infrastructure reserves that will support the replacement and renewal of Township infrastructure.
Will my property taxes for 2018 increase at the same % as my increase in 2018 assessment value?
Not necessarily. Municipal tax rates are determined on the basis of budget levy requirements and updated assessment values. For the 2017 taxation year the median assessment value increased by 7.5%.P reliminary estimates for the 2018 taxation year project the median assessment value to increase within a range of 6-8% depending on the amount of new assessment growth recognized by the fall of 2017. For existing properties that are projected to realize an increase in assessment value within the range of 6-8% it is reasonable to expect little or no increase in tax burden as a result of assessment.
However, if your assessment value increases above the average, it is very likely that you will experience an increase in tax burden as a direct result of assessment.
Example: Assuming the average assessment increase in the Township is 8%, if your property assessment is scheduled to increase by 12% for 2018, you can expect an increase in your taxes as a direct result of escalation in property assessment value.
If I am a senior on a fixed income, is a program available to assist me in managing a property tax increase greater than the rate of inflation?
Yes, a Tax Relief program is available for Seniors, Low-Income Seniors and Low-Income Disabled Persons.
The Regional Municipality of York administers a Tax Deferral Program for seniors over 65 years of age, low-income seniors, or low-income disable persons. You must own your principal residence in York Region and must be the owner of the property on January 1st of the taxation year for which the deferral has been requested. All deferred taxes must be repaid in full prior to transfer of title on sale of the subject property.
To determine your eligibility for participation in a property tax deferral program, please contact the Finance Department at the Township of King 905-833-5321 (ext. 4572). Applications must be received no later than September 30th of the taxation year for which you are requesting a deferral of property taxes.
Who should I contact regarding tax calculations and other taxation concerns?
Please contact the Township of King, Finance Department for any questions or concerns. If your questions remain unresolved, contact the Director of Finance & Treasurer at (905) 833-4010 or email email@example.com