KENORA DISTRICT MUNICIPAL ASSOCIATION

SUBJECT: MPAC Multi-Residential Assessment

SUBMITTED BY: Kenora District Municipal Association (From the Floor)

YEAR: 2025
BACKGROUND:
Whereas The Municipal Property Assessment Corporation's (MPAC) mandate is to assess and classify all properties in Ontario thereby holding a legal monopoly with regards to assessing Ontario properties due to the fact that if a municipality is not satisfied with MPAC's services, the municipality cannot choose a different vendor.
Whereas MPAC employs the income approach to value multi-residential properties, factoring in average market rental rates, expenses, vacancy rates, and depreciation rates; and 
Whereas MPAC’s income approach for multi-residential property valuation uses non-specific property data i.e. average rental rates, average expenses, average vacancy rates, etc. resulting in inaccurate property valuations and ultimately causing inequitable municipal taxation levels. 
Whereas the Provincial Government continues to base MPAC property assessments on fully phased-in January 1, 2016 current values, thereby utilizing outdated data for new multi-residential property valuations, further intensifying inequitable municipal taxation levels; and 
Whereas MPAC’s multi-residential assessment methodology disproportionately affects small rural municipalities that have fewer financial resources and limited fiscal tools to mitigate lower taxation revenue and manage growth-related costs in the absence of development charges.
RECOMMENDATION:
NOW THEREFORE MAY IT BE RESOLVED THAT the Kenora District Municipal Association formally requests that the Government of Ontario instructs MPAC to introduce reform to multi-residential assessment where those assessments are based on property specific information or, that MPAC allocates multi-residential properties into subclasses such as low-income, average-income, and high-income properties and develops more accurate data within the sub-classes for property valuation purposes; and 
BE IT FURTHER RESOLVED that the Government of Ontario return to the assessment cycle in 2025 thereby promoting a well-functioning and up-to-date assessment system which supports strong communities and makes Ontario an attractive place to invest.
COMMITTEE ACTION: Moved with concurrence.