The Municipal Property Assessment Corporation (MPAC) – a Provincial Crown Corporation conducts Ontario property assessments. For the municipal tax year starting in 2017, all Ontario properties were reassessed by MPAC based on market value at January 1, 2016. Notice of the reassessed property values were mailed in November 2016. It is these values that London and other municipalities have in their Tax Roll (the list used for charging property taxes).
The reassessed values will apply to the tax years 2017 through 2020. Increases in assessment values will be phased in over four years; decreases in assessment will be effective in 2017.
Note: Property assessment values may increase or decrease for a variety of reasons including changes in economic conditions, structural alterations and re-zonings. Details concerning the assessment process and information on the assessed value of your home and neighbouring properties can be accessed at the MPAC website.
As this overview indicates, property assessment is a key component of municipal tax systems. However, the MPAC notice you received last year does not automatically increase or change your property taxes.
The bottom line is the City of London does not get one more dollar from the MPAC property reassessment. Property reassessment is a redistribution of who pays the municipal tax bill based on the value of the property owned - it has no effect on the overall tax amount collected.
Assessed Value x Tax Rate (for the Property Class) = Property Tax
A municipality determines its budget requirements each year. If the average value for the properties increases, the tax rate decreases to keep the same amount of property tax levy.
Reassessments have no impact on the total property tax amount a municipality raises.
Reassessments only affect the way the tax levy is allocated amongst the various properties and property classes.