MPAC assessment / change of ownership
Anyone know the ins and outs of the MPAC assessment process around an ownership change?
We bought some recreational vacant land in late 2018 for $X.
Our 2019 municipal tax bill is based on the 2016 MPAC assessment of about 1/2 $X.
Both of these are fair - the previous owner did significant work legally resolving access ROW issues and building a driveway, increasing the value of the property, but not anything requiring a building permit or otherwise triggering an MPAC reassessment. And other neighbouring properties, with less value added work done, have recently been selling at about 30% over their 2016 assessed values too.
When should we expect our property taxes to go up and how quickly?
Will the MPAC assessment "catch up" only in the regular reassessment cycle in 2020, with the increase phased in over 4 years after that? (That means 2021-2024 taxes, right?)
Or does the sale -- at a higher valuation -- trigger an immediate reassessment, presumably at or close to the amount we paid? And if so, will the increase hit us fully in next year's taxes or be phased in?
We have no problem paying our fair share of taxes, but for our planning want to know when the increase will likely hit us. And may explore managed forest and/or conservation designation to ease the burden with the right timeline.
I've read and tried to understand https://www.mpac.ca/HowAssessmentWorks/ ... mentUpdate, but am not sure if by virtue of the sale our property has "undergone a change" to trigger a pre-2020-cycle revaluation.
We bought some recreational vacant land in late 2018 for $X.
Our 2019 municipal tax bill is based on the 2016 MPAC assessment of about 1/2 $X.
Both of these are fair - the previous owner did significant work legally resolving access ROW issues and building a driveway, increasing the value of the property, but not anything requiring a building permit or otherwise triggering an MPAC reassessment. And other neighbouring properties, with less value added work done, have recently been selling at about 30% over their 2016 assessed values too.
When should we expect our property taxes to go up and how quickly?
Will the MPAC assessment "catch up" only in the regular reassessment cycle in 2020, with the increase phased in over 4 years after that? (That means 2021-2024 taxes, right?)
Or does the sale -- at a higher valuation -- trigger an immediate reassessment, presumably at or close to the amount we paid? And if so, will the increase hit us fully in next year's taxes or be phased in?
We have no problem paying our fair share of taxes, but for our planning want to know when the increase will likely hit us. And may explore managed forest and/or conservation designation to ease the burden with the right timeline.
I've read and tried to understand https://www.mpac.ca/HowAssessmentWorks/ ... mentUpdate, but am not sure if by virtue of the sale our property has "undergone a change" to trigger a pre-2020-cycle revaluation.