Municipal Property Assessment Corporation
Encyclopedia
About MPAC
The Municipal Property Assessment Corporation, or MPAC, administers property assessments and appeals of assessment in the Province of OntarioOntario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
It is NOT a crown corporation of the Government of Ontario
Government of Ontario
The Government of Ontario refers to the provincial government of the province of Ontario, Canada. Its powers and structure are set out in the Constitution Act, 1867....
- see 2.(3) of MPAC Act. MPAC determines the assessed value
Assessor (property)
An assessor is a specialist who calculates the value of property. The value calculated by the assessor is then used as the basis for determining the amounts to be paid or assessed for tax or insurance purposes....
for all properties
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
across the province of Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. This is provided in the form of an Assessment Roll, which is delivered to municipalities throughout the province on the second Tuesday in December. Municipalities then take the assessment roll, and calculate property taxes for each individual property in their jurisdiction. Tax payers often confuse MPAC's role as an assessment agency for taxes; however, they only provide assessments. Municipalities set the tax rates, and distribute the tax burden
Tax incidence
In economics, tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare. Tax incidence is said to "fall" upon the group that, at the end of the day, bears the burden of the tax...
based on the assessed values provided by MPAC.
The head office is located in Pickering, Ontario
Pickering, Ontario
Pickering is a city located in Southern Ontario, Canada immediately east of Toronto in Durham Region. It is part of the Greater Toronto Area, the largest metropolitan area in Canada.- Early Period :...
. MPAC, formerly known as OPAC (Ontario Property Assessment Corporation), was created on December 31, 1997, as a method to create accurate and equitable assessments across Ontario. MPAC came into existence with the MPAC Act, and administers the Assessment Act, both part of Ontario provincial legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
. On December 31, 1998, the Government of Ontario transferred responsibility for property assessment from the Ministry of Finance to the Ontario Property Assessment Corporation, an independent body established by the Ontario Property Assessment Corporation Act, 1997.
According to MPAC:
"Every municipality in Ontario is a member of MPAC, a non-share capital, not-for-profit corporation whose main responsibility is to provide its customers - property owners, tenants, municipalities, and government and business stakeholders - with consistent and accurate property assessments.
MPAC is accountable to the public through a 15-member Board of Directors. Eight members of the Board are municipal representatives; five members represent property taxpayers; and two members represent provincial interests. The Minister of Finance appoints all members of the Board.
MPAC administers a uniform, province-wide property assessment system based on current value assessment in accordance with the provisions of the Assessment Act. It provides municipalities with a range of services, including the preparation of annual assessment rolls used by municipalities to calculate property taxes.
Municipal enumerations are also conducted by MPAC in order to prepare a Preliminary List of Electors for each municipality and school board during an election year. Today, MPAC is responsible for the assessment of nearly 4.7 million properties in the province."
Prior to the creation of MPAC, municipalities in Ontario had discretion on how they chose to assess properties. This created inequity across the province, as similar properties across the province had separate values.
In 2008, MPAC sent out approximately 4.7 million property assessment notices, advising properties of their assessment value. The current values are based on a January 1, 2008, valuation date.
Pre-1970
Although property assessment originally came under the jurisdiction of Upper Canada, it was transferred to Ontario municipalities in 1849. Over time, each municipality developed its own assessment system and methods of valuing property. This resulted in inconsistencies in property assessment and the distribution of property taxes. Within a municipality, properties with a similar appearance and value could have very different assessments. There were also very different assessments from municipality to municipality.In 1963, the Provincial Government appointed the Ontario Committee on Taxation to study taxation and recommend changes. Its report, published in 1967, highlighted many inequities in the assessment system.
1970-1997 – Market value assessment introduced
In response to The Ontario Committee on Taxation Report, the Provincial Government assumed responsibility for property assessment in 1970 to create a uniform assessment system for all Ontario municipalities. The Government introduced market value assessment and the new system was offered to municipal governments on a voluntary basis.Since the new system was voluntary, not all municipalities implemented market value assessment. As a result, property assessments differed from municipality to municipality. This situation was addressed by the Province with the introduction of the Fair Municipal Finance Act, 1997. With this Act substantial amendments to the Assessment Act, the Municipal Act and other related legislation were implemented, setting the stage for reshaping Ontario’s assessment and property tax system in 1998.
Post-1997 – Ontario Fair Assessment System
Under the Ontario Fair Assessment System, property assessments across the province were updated to their current value, using a common valuation date.In addition, on December 31, 1998, responsibility for property assessment was transferred to a new, not-for-profit corporation called the Ontario Property Assessment Corporation, later renamed the Municipal Property Assessment Corporation (MPAC). Every municipality in Ontario is a member of MPAC, which is governed by a Board of Directors composed of taxpayer, municipal, and provincial representatives.