Volume 12 Week 5

Wednesday, July 20


 

Posted Oct. 11

Posted Sept. 21

Posted July 20

survey solution

Orléans Ward
Bob Monette

Beacon Hill,
Cyrville Ward
Tim Tierney



 

 

 



Commentary
The good news and bad news about your 2016 MPAC assessment
By Fred Sherwin
Orléans Online

If you live in the far east end of Ottawa, you very likely received your 2016 MPAC property value assessment in the mail last week.

The letters, which contain the assessed 2016 market value of your home, are mailed out to every single property owner in the province and are used to determine you property taxes over the next four years..

The assessments, at least here in Orléans, may contain both good news and bad news, depending how you feel about the perceived equity in your home and the relationship between home equity and taxes.

The average assessment for single detached family homes in Ottawa has gone up 4.6 per cent over the past four years, which is just over 1.1 per cent a year. In real dollar terms, that means that the value of the average $350,000 home in Ottawa has only increased by $16,100 over the past four years.

The increase in property values were even lower in the east end where the value of homes in Innes Ward went up by 2.86 per cent and the average increase in Orléans Ward was 2.75 per cent. Further east, property values in Cumberland Ward have increased by an average of 3.13 per cent since 2012.

The good news in all of this is that if your the assessed value of your home went up by less than 4.6 per cent, you may see a decrease in your municipal tax bill next year. It's impossible to calculate the full impact the decrease will have on your tax bill until city council passes the 2017 budget which could contain a tax increase that could wipe out any decrease homeowners might have realized as a result of their adjusted property value assessment.

One thing for certain is that the MPAC assessments won't result in a tax increase for anyone here in the east end. But that's only half the story.

The slow down in assessment is the much bigger story. In 2012, when the last MPAC assessment notices were mailed out, local property values had increased by 26 per cent, or roughly 8.25 per cent a year.

The assessed value of your home is important for several reasons. It's a relatively accurate estimation of what you can expect to get for your home if you were to sell it today.

Also, for a significant portion of homeowners, their home is their retirement plan. The higher the assessed value, the greater the potential equity. Yes, higher property values mean higher taxes, but it also means a larger payoff once you sell your home.

Personally, I'd take a 10 per cent increase in property taxes along with a 10 per cent increase in the value of my home, rather and no increase in taxes and and no increase in my property's value anyday.

(Uodated 5:30 p.m., July 23)

 

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