Municipal Discount Factors and Provincial Discount Factors - 2016 Assessment Update

Municipal Discount Factors (MDFs)/Provincial Land Discount Factors (PLDFs) are one of a number of methodologies used in the recalculation of phased-in assessments. MDFs/PLDFs are used when changes have been made to a property, such as new construction. The factors are used to ensure the phase-in for that property represents only the market increase. They are calculated for each property class, in each municipality.

  • For the 2017-2020 property tax years, the increase is calculated between the January 1, 2012 and January 1, 2016 valuation dates.

Click on your area below for local Municipal Discount Factors.

Note: There are no assessment regions 8,10,11, 12 and 22

How do I understand the MDF table?

The factors are represented in the table as discount factors.

For 2016-2020 tax years, how much, on average, would 2016 market values have to be reduced to reflect 2012 values in a property class in a municipality.

When are MDFs used?

The MDFs are used only when certain types of changes occur on a property. More details about these changes are contained in Ontario Regulation 262/09, however, the types of changes include:

  • where vacant land is improved by a new building or structure
  • where land becomes, or ceases to be, exempt from taxation
  • where the land is subdivided
  • where a new unit is created by a condominium plan
  • where the land is reclassified, for example, from the residential to commercial class
  • other specified circumstances as set out in section 5 of Ontario Regulation 262/09

For the 2016-2020 tax years, when one of these changes occurs, the 2016 current value is multiplied by the applicable MDF to determine a revised 2012 current value.

How are MDFs used to recalculate the phased-in assessment?

If a new house is built which increases a property’s 2016 current value to $200,000 and this occurred in a municipality where the residential MDF is .900000000, then the 2012 current value that will be used for phase-in purposes is $180,000 ($200,000 x .900000000). The phased-in assessment is the difference between $180,000 and $200,000, or $20,000. This is the amount of assessment that is eligible to be phased-in.

The result of the application of the MDF is that this property now has a level of phase-in that represents the average level of phase-in for all property in that property class in the municipality.

If you have any questions about the MDF table or your assessment in general, please contact us.

Note: The applicable law prevails to the extent there is any conflict between this information and the current law. This information is not intended to provide legal advice and should not be relied upon as such.