• Mitch Speigel – Mortgage Agent
    Your Mortgage Group Professional
    Kora Management
    License #M08003984, FSCO #10315

  • Property Taxes in Ontario: Are they equitable?

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    Last week, the Globe and Mail published a table showing the property taxes paid in cities across Ontario, at different assessments. These assessments are set by MPAC, the Municipal Property Assessment Corporation, the entity charged with establishing the “market value” of all Ontario properties. Appraisals, upon which mortgages are dependent, establish a similar short-term value. Unfortunately, the values established by MPAC are similar to appraised values only coincidently.

    Table of taxes

     

     

     

     

    The table of taxes here shows a large disparity among cities if you use the property tax rate, shown in column 1. In Toronto, the tax rate is .614, while in Sudbury, the tax rate is 1.462. Those in a $250,000 home in Toronto would pay $1,537 a year and in Sudbury, $2,655 per year.

    Is this equitable?

    Well, sort of. Without being precise, that $250,000 home in Sudbury would be similar to a $500,000 home in Toronto and those in a $500,000 home in Toronto would pay $3,074 per year, higher than those in a Sudbury home of $250,000.

    One other anomaly to consider:

    The market value of assessment of Ontario homes was established over 20 years ago with the goal of providing a more equitable method of municipal taxes. The difficulty is that the system pays no attention to the services provided for the municipal tax assessed. In Sudbury, many of the highest-priced and highest valued residential areas have the fewest services. The area in which I live is one of those. We have no sewer, no water, and no fire hydrants. We have garbage pickup once a week and this garbage pickup is the only service we get, in spite of the high market value assessed and the high taxes resulting. This is not equitable.

     

     

     

     

     

     

     

     

     

     

     

    We’re having a quick and easy dinner tonight: chicken fingers with a twist. Cut the chicken breasts into strips; roll them in an egg wash and then in a mixture of spices, parmesan cheese and rice flour. Tonight, I have a leftover eastern rub od salt, pepper, cumin cardamom, cinnamon and cloves, mixed with lots of parmesan and rice flower Fry 10 minutes or so and serve.