Ontario West Municipal Conference 2016 Assessment Update Retrospective and A Look Ahead City of London December 2, 2016 Carla Nell, Vice-President Municipal and Stakeholder Relations
ONTARIO S ASSESSMENT CYCLE 2008 2009-2012 Tax Years January 1, 2008 (valuation date) 2012 2013-2016 Tax Years January 1, 2012 (valuation date) 2016 2017-2020 Tax Years January 1, 2016 (valuation date)
2016 ASSESSMENT UPDATE MPAC has been preparing the 2016 assessment update since early in 2014 two years earlier than previous assessment updates 2014 2015 2016 2017 Property Assessment Notice Mailings Disclosure & Consultation PAN Redesign Municipal Connect Sales Investigations & Data Quality Checks
OUR COMMITMENT: CHANGE IN APPROACH
3 LEVELS OF DISCLOSURE
OUTREACH AND ENGAGEMENT Engaged with property owners, municipal and industry representatives at more than 1,500 events 6
CHANGES IN APPROACH Improved data and valuation readiness extensive data cleansing and post-value review 25 week Notice mailing schedule (April to November) Improved touch points and channels: Redesigned Property Assessment Notice, new videos and information sources, enhanced Aboutmyproperty.ca, new Municipal Connect 2.0
DATA COLLECTION & PREPARATION Building permits Sales reviews Site variable update project Farm forestry exemptions reviews NOVEMBER DECEMBER 2016 Requests for 2016 Reconsideration Severances and Consolidations Data integrity checks MPAC initiated reviews Over 2.8M data touch points across Ontario Tax and Vacancy Applications Appeals Property Owner Enquiries Process controls Municipal Requests
2016 PROPERTY ASSESSMENT NOTICE DELIVERY OVERVIEW Jan Mar May Jul Sep Nov Feb Apr Jun Aug Oct Dec Residential Notices Farm and Business Notices Amended Notices Assessment Roll
QUALITY ASSURANCE Quality Service Commissioner will complete independent Assessment Roll Quality (ARQ) reviews in order to attest to the accuracy and uniformity of the 2016 current value assessments and for certification of the fitness of use of the assessment roll In addition, an independent third party, IPTI has also been contracted to review and attest to MPAC values to ensure we are meeting IAAO standards
2016 PROPERTY ASSESSMENT UPDATE Residential Properties
RESIDENTIAL EXPERIENCE 4.3M Property Assessment Notices mailed from April to August reflecting a 120-day Request for Reconsideration (RfR) deadline Ontario residential property values increased on average by 4.5% annually since 2012 or over 4 years 964,062 Property Assessment Notices mailed in western Ontario Residential values in western Ontario increased on average by 2.7% annually or 11% over 4 years 12
REQUEST FOR RECONSIDERATION (RfR) To date, 20 RfR deadlines have passed and approximately 37,900 residential RfRs have been received for the 2017 tax year Following the 2012 Assessment Update, MPAC received 93,460 residential RfRs for the 2013 tax year Tax Year Received Completed Outstanding 2017 37,951 7,577 30,374 Western Ontario 9,383 7,269 2,114 2013 122,182 122,182 - Western Ontario 26,492 26,492 - *Data reflects status at November 22, 2016
REDESIGNED COMMUNICATIONS = INCREASED AWARENESS The redesigned Property Assessment Notice has increased residential property owners awareness of MPAC s role. 14
2016 PROPERTY ASSESSMENT UPDATE Farm and Business
FARMS MPAC has strengthened the accuracy and equity of farm valuations for the 2016 Assessment Update. After consulting with the Ontario Federation of Agriculture, the Ministry of Agriculture Food and Rural Affairs, farmers and municipalities, we: improved the farm sale verification process completed a comprehensive review of vacant farm land sales back to January 2008 FARMS reduced the number of farm neighbourhoods from 228 to 167 Implemented a new Agricultural Cost Guide
FARM VALUE COMPARISON 64% or 16% annually ZONE 1 South West Annual 16% 4-Year Change 64% ZONE 3 GTA Central Ontario Annual 13% 13% 4-Year Change 52% 52% ZONE 5 Central North East Annual 16% 16% 4-Year Change 64% 64% Annual 4-Year Change 72% 72% ZONE 7 North ZONE 2 Golden Horseshoe Annual 12% 4-Year Change 48% ZONE 4 City of Toronto Annual 4-Year Change ZONE 6 East Annual 19% 19% 4-Year Change 76% 76% N/A N/A 17
2016 FARM VALUES EXPLAINED
2016 PROPERTY ASSESSMENT NOTICE FARMS Assessment Overview Assessed Value as of January 1, 2016 Assessed Value as of January 1, 2012 Change between 2012 and 2016 How will my municipality use MPAC s property assessment? Explanation of phase-in provision (Assessment Act) Phase in Assessed Values (2017-2020 tax years) Request for Reconsideration Deadline (by tax year) Issue Date 2016 Assessed Value Account Information Roll Number AboutMyProperty Login Location, description, municipality and school support Property Acreage Contact Us Property Classification
2016 PROPERTY ASSESSMENT NOTICE FARMS Your municipality is responsible for setting property tax rates. Properties eligible for the Farm Property Class Tax Rate Program are typically taxed at 25% of the residential rate for municipal and education taxes. For information regarding your eligibility for the Farm Property Class Tax Rate Program, visit ontario.ca/farmtax.
MULTI-RESIDENTIAL Consultations with provincial, municipal and industry representatives to discuss multi-residential methodology, including: Federation of Rental-Housing Providers of Ontario, Co-operative Housing Federation of Canada (Ontario) and Ontario Non-Profit Housing Association. As a result of feedback, MPAC valued multi-residential properties using the Direct Capitalization approach for the 2016 Assessment Update. MPAC has received broad support from stakeholders about the change. MULTI-RESIDENTIAL Launched a Property Income and Expense Return application in aboutmyproperty.ca to collect property rental, income and expense information. 21
MULTI-RESIDENTIAL VALUE COMPARISON 28% or 7% annually ZONE 1 South West Annual 5% 4-Year Change 20% ZONE 3 GTA Central Ontario Annual 13% 6% 4-Year Change 52% 24% ZONE 5 Central North East Annual 16% 5% 4-Year Change 64% 20% Annual 7% 4-Year Change 72% 28% ZONE 7 North ZONE 2 Golden Horseshoe Annual 5% 4-Year Change 48% 20% ZONE 4 City of Toronto Annual 12% 4-Year Change 48% ZONE 6 East Annual 19% 4% 4-Year Change 76% 16% 22
2016 MULTI-RESIDENTIAL VALUES EXPLAINED 23
COMMERCIAL AND INDUSTRIAL MPAC investigated more than 69,000 sales commercial/industrial properties province-wide, representing almost 90% of all sales for the Province. Implemented a consistent valuation approach for big box stores that reflects, where appropriate, valuation methodologies used in recent appeal settlements. Data collection, review, pre-roll consultations and/or information sessions with: Large Special Purpose Property Owners Ontario Stone Sand and Gravel Association and industry members Mining Owners Ontario Business Improvement Area Association and member associations across Ontario Municipalities Ministry of Finance INDUSTRIAL COMMERCIAL 24
COMMERCIAL VALUE COMPARISON 12% or 3% annually ZONE 1 South West Annual 2% 4-Year Change 8% ZONE 3 GTA Central Ontario ZONE 2 Golden Horseshoe Annual 5% 4-Year Change 48% 20% ZONE 4 City of Toronto 7 5 1 4 2 3 6 Annual 13% 4% 4-Year Change 52% 16% ZONE 5 Central North East Annual 16% 0.3% 4-Year Change 64% 1% Annual 2% 4-Year Change 72% 8% ZONE 7 North Annual 8% 4-Year Change 32% ZONE 6 East Annual 19% 2% 4-Year Change 76% 8% 25
STANDARD INDUSTRIAL VALUE COMPARISON 12% or 3% annually ZONE 1 South West Annual 2% 4-Year Change 8% ZONE 3 GTA Central Ontario Annual 13% 2% 4-Year Change 52% 8% ZONE 5 Central North East Annual 16% 1% 4-Year Change 64% 4% Annual 2% 4-Year Change 72% 8% ZONE 7 North ZONE 2 Golden Horseshoe Annual 4% 4-Year Change 48% 16% ZONE 4 City of Toronto Annual 6% 4-Year Change 24% ZONE 6 East Annual 19% 2% 4-Year Change 76% 8% 26
QUESTIONS ABOUT PROPERTY ASSESSMENTS? Property Owners and Municipalities
A NEW AND IMPROVED ABOUTMYPROPERTY.CA The redesigned aboutmyproperty.ca has information on property values and market trends across Ontario. Property specific details and reports can be viewed through the secure, login area. 662,373 visitors 80,445 registered users 73,903+ video views How MPAC Assesses Property (most popular video) *As of October 31 28
ABOUTMYPROPERTY - FARM AND BUSINESS
HOW ASSESSMENT WORKS
HOW ASSESSMENT WORKS - TAKE A TOUR New Brochures and video tutorials that explain how properties are assessed. How MPAC Assesses Farm Properties Request for Reconsideration Process for Business Properties How Your Property Tax is calculated Understanding Phase-in AboutMyProperty
MARKET TRENDS
ABOUTMYPROPERTY.CA MY PROPERTY
REPORTS
MY NEIGHBOURHOOD
FAVOURITES AND PROPERTY PROFILES
RESOLVING ASSESSMENT CONCERNS STEP 1: Review Review and validate your Property Assessment Notice carefully to make sure the information is correct. If a factual error has been made, we will correct it. STEP 2: Compare Visit aboutmyproperty.ca to review the information MPAC has on file for your property. STEP 3: Contact us We re here to help. Contact us and one of our property assessment experts will help guide you through your Property Assessment Notice. STEP 4: Request a Reconsideration or Appeal Farms, Managed Forest and Conservation Land File a Request for Reconsideration with MPAC before the deadline shown on the Notice (120 days from the date of Notice mailing). Business File a Request for Reconsideration with MPAC before the deadline shown on the Notice or an appeal with the Assessment Review Board before March 31.
MUNICIPAL CONNECT
FARM AND BUSINESS Methodology Guides and Property Profile Reports
FARM AND BUSINESS Detailed Property Information
FINAL 2016 ASSESSMENT VALUES TO MUNICIPALITIES October 31 marked MPAC s official cut-off for the 2016 Assessment Update. Work continues to deliver the year-end products to municipalities. November 22 November 28 December 13 December 19 Roll-based Municipal Change Profiles (MCP) Available in Municipal Connect 2.0 (Excluding Landfill properties) 2016 Current Value Assessments and Roll-based MCP, including Landfills, available in Municipal Connect 2.0 Assessment Rolls delivered Municipal Connect Classic updated for the 2017 tax year (2016 CVAs)
CLOSING OUT THE ASSESSMENT UPDATE Assessment Update Summary Report New value-added product for municipalities designed to give a high level overview of any assessment changes and provincial trends. Key feature of the report is the customized data section for each municipality (by property class) that summarizes the totality of the assessment base. This will assist in their 2017 budget and tax policy development. Report also summarizes MPAC s work on the assessment update, specifically: delivery on our commitment to engage with and provide greater access to information for property owners, municipalities and stakeholders; improvement of valuation analysis, methods and models; improvement of the Assessment Roll quality achieved through stringent data cleansing, quality checks and testing our work through third parties; and promotion of a shared understanding through disclosure and pre-roll consultation.
SERVICE LEVEL AGREEMENT
BACKGROUND In December 2013, the Ministry of Finance released The Special Purpose Business Property Assessment Review, which included a recommendation for MPAC to work with Ontario municipalities to develop a two-way Service Level Agreement (SLA) that clearly lays out accountability frameworks, service parameters, support needs and performance indicators. A working group was formed with representation from MPAC, municipalities of all sizes across the Province and the Ministry of Finance. The group identified key services and the related timelines and Dependencies associated with each service. Feedback received from the municipal working group team members and municipal focus groups was instrumental in developing the terms of the SLA.
OVERVIEW The SLA features: Definitions so that MPAC s performance can be measured against internationally recognized technical industry standards A commitment by MPAC to meet service standards, contingent on the timely performance of municipal Dependencies, such as building permits and vacancy applications A performance dashboard for MPAC and municipalities to track performance and dependencies A formal escalation process for addressing Service Level and Dependency performance issues
SERVICE LEVELS Response to and Resolution of Municipal Inquiries
IMPLEMENTATION As municipal input was integral to the development of the SLA, MPAC has sought out the varied expertise of municipal representatives across the province to support a soft launch of the SLA. Municipal team members are being asked to: Provide municipal perspective, insight, and support/participation in outreach and implementation strategy Create opportunities for continued improvements in service delivery Offer regular feedback on the reporting of service levels This partnership creates opportunities for greater collaboration with municipalities and allows for any improvements required prior to provincial launch in 2017.
TIMELINE Soft Launch Commenced July 1, 2016 Soft Launch Ended July 1, 2017 Provincial Launch Q3 2017 Monthly meetings to review and discuss performance metrics AMO August 2017
MUNICIPAL REPRESENTATION Peel Region City of Ottawa City of Windsor Halton Region City of Mississauga District of Muskoka Town of Petrolia Town of Milton Township of Lake of Bays York Region City of Thunder Bay Atikokan Township Oxford County City of Toronto City of Barrie County of Lambton Municipality of Wawa City of Sarnia Town of Newmarket Township of Zorra City of Greater Sudbury Ministry of Finance
QUESTIONS?