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Small Commercial and Industrial Property Assessment in Ontario

How MPAC assesses properties
Property Information
Assessing Small Commercial and Industrial Properties
Property Features
Where sales are few and far between
Property Classification
A simple test
To Learn More
Property taxes

How MPAC assesses properties

MPAC’s job is to accurately classify and value properties in Ontario in compliance with the Assessment Act and regulations established by the Ontario Government.

To establish your property’s assessed value, MPAC’s assessment professionals analyze property sales in your area. These sales provide the basis for assessed values. Our experts work in our 33 offices located across the province and understand local real estate markets.

We continually collect and update detailed information for every property in Ontario to ensure that similar property types are valued consistently within the market area.

This method is called Current Value Assessment. It is used by most assessment jurisdictions in North America.

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Property Information

In addition to sales, our experts regularly analyze property information through a number of sources, including:

  • land title documents;
  • building permits;
  • on-site property inspections and communication with property owners; and
  • income and expense information (for apartments, office buildings, shopping centres, hotels and others).

MPAC's database contains over two billion pieces of data, and is one of the most detailed in the world. Like all assessing authorities, MPAC is able to determine accurate values for large groups of properties based on common data and mass appraisal techniques.

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Assessing Small Commercial and Industrial Properties

In addition to recent sales, MPAC looks at the key features of every property. All structure and site characteristics are considered when assessing the value of a small commercial or industrial property.

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Property Features

The major factors that affect the value of a property include:

  • location;
  • lot dimensions;
  • building area
  • age of the property, adjusted for any major renovations or additions; and
  • quality of construction.

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Where sales are few and far between

When assessing small commercial and industrial properties that do not sell often on the open market, or in areas of the province (i.e., rural areas) where there is low sales activity, MPAC uses the cost approach.

This is often referred to as the "bricks and mortar" approach. It is based on the cost of the land and the value of existing buildings or improvements. This approach also takes into account the economic conditions that affect the property as well as depreciation.

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Property Classification

In addition to valuing your property, MPAC also classifies your property.

There are seven major property classes: Residential, Multi-Residential, Commercial, Industrial, Pipe line, Farm and Managed Forests. There are also several sub-classes for properties with specific or unique characteristics.

Some properties may belong to more than one class. For example, if building has an apartment on the top floor and a retail store on the main floor it would then fall into two classes - Residential for the apartment and Commercial for the store.

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A simple test

To find out if your assessed value is accurate, simply ask yourself this question - could you have sold your property for its assessed value on the valuation date listed on your Property Assessment Notice? If the answer to this question is yes, then your assessed value is probably correct.

We want to make sure the classification and assessed value of your property are accurate. If you don't think they are, call us.

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To Learn More

You can obtain detailed information about your property and information on up to 24 additional properties of your choice and up to six selected by MPAC, free of charge.  Your written request can be sent to:

Mail:

MPAC
Attention: GRAD
P.O. Box 9808
Toronto  ON M1S 5T9
Fax:  1 866 297-6703

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Property taxes

When your municipality/local taxing authority sets property tax rates, they are applied to the assessed value of your property to determine your property taxes.  Questions about your local tax rate should be directed to your municipality/local taxing authority.  Education tax rates, which are set by the Ontario Government, are also applied to the assessed value when determining property taxes.

Note:  The information contained in this brochure has been developed to provide the public with a general understanding of the legislation respecting the assessment of small commercial and industrial properties.  The applicable law prevails to the extent there is any conflict between this brochure and the current law.  This brochure is not intended to provide legal advice and should not be relied upon as such.

Click here for a printable PDF version of the Small Commercial and Industrial Property Assessment Brochure.

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