On November 4, 2021, as part of its 2021 Ontario Economic Outlook and Fiscal Review: Build Ontario, the provincial government announced that it is not planning a reassessment of all property values in Ontario in the near future.
The current property tax assessment cycle, which is based on a valuation date of January 1, 2016, was intended to be in place for taxation years 2017–2020. Because of the COVID-19 pandemic, the province previously announced extensions to this assessment cycle, delaying reassessments to 2021 and again to 2022. The province’s latest economic statement confirms that the current assessment cycle will remain in place for the 2022 and 2023 tax years.
Although the announcement provides for a certain degree of tax certainty over the next two years, this development is concerning, especially for owners of property types that have been significantly impacted by the pandemic, such as the physical retail, hospitality, and travel sectors.
The current property tax assessment system in Ontario is based on market values, but the decision to further delay reassessments will result in property taxes based on assessment values that are seven years past the valuation date of January 1, 2016. Furthermore, the provincial government has not indicated when the next property tax assessment cycle will begin, adding to uncertainty for taxpayers and potentially creating inequities in assessments on a long-term basis.
Ryan will continue to work with its clients to ensure that they only pay a fair amount of property tax.
Appeals can continue to be filed on assessments under the existing cycle for 2022. The deadline to file is March 31, 2022.
Full details on Ontario’s fall economic statement can be found at: https://budget.ontario.ca/2021/fallstatement/index.html
For further information or to discuss your property tax situation in either the current or future assessment cycle, please reach out to your Ryan representative.