As the COVID-19 pandemic continues to disrupt economic activity, some property owners and their representatives are exploring available options for tax relief, including by filing a municipal tax application or Request for Reconsideration.
Here is what you need to know about how MPAC is responding to these requests for the 2020 and 2021 property tax years.
Municipal Tax Applications
In situations where a building withstands damage by fire, demolition or otherwise that renders it substantially unusable, a property owner may file an application with their municipality to cancel, reduce or refund property taxes based on specific criteria in accordance with Section 357(1)(d)(ii) of the Municipal Act.
MPAC’s role in the municipal tax application process is to provide factual information to the municipality to assist the decision-maker in determining whether a tax refund, cancellation or reduction is warranted.
In the case of tax applications citing COVID-19, MPAC will review applications provided by municipalities and determine whether any information exists demonstrating there was physical damage to a building on the land during the applicable taxation year. Where MPAC has no record of any physical damage to a building, MPAC will provide the current value assessment as returned for the subject property for the 2020 and 2021 tax years.
Any influence the COVID‐19 pandemic may have on property values was not in effect on January 1, 2016 – the current legislated valuation date. For that reason, MPAC will not adjust a property’s current value assessment as a result of COVID-19.