What are Municipal Discount Factors and Provincial Discount Factors? 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, such as new construction, have been made to a property. 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 2008-2012 property tax years, the increase is calculated between the January 1, 2005 valuation date and the January 1, 2008 valuation date.
If you have any questions about the MDF table or your assessment in general, please contact us.
Note: There are no assessment regions 8,10,11, 12 and 22
The factors are represented in the table as discount factors.
For 2008-2012 tax years, how much, on average, would 2008 market values have to be reduced to reflect 2005 values in a property class in a municipality.
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; and
- other specified circumstances as set out in section 5 of Ontario Regulation 262/09.
For the 2008-2012 tax years, when one of these changes occurs, the 2008 current value is multiplied by the applicable MDF to determine a revised 2005 current value.
If a new house is built which increases a property’s 2008 current value to $200,000 and this occurred in a municipality where the residential MDF is .900000000, then the 2005 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.
|1 - Prescott, Russell, Stormont Dundas & Glengarry Counties|
|2 - Lanark, Leeds & Grenville Counties|
|3 - Regional Municipality of the City of Ottawa|
|4 - Renfrew County|
|5 - Frontenac, Lennox & Addington Counties|
|6 - Hastings, Northumberland, City of Prince Edward Counties|
|7 - Peterborough County, Kawartha Lakes County, Haliburton County|
|9 - City of Toronto|
|13 - Regional Municipality of Durham|
|14 - Regional Municipality of York|
|15 - Regional Municipalities of Halton and Peel|
|16 - Simcoe County|
|17 - District Municipality of Muskoka|
|18 - Regional Municipality of Niagara|
|19 - Regional Municipality of Hamilton|
|20 - City of Brantford, Brant, Haldimand County and Norfolk Counties|
|21 - Regional Municipality of Waterloo, the Counties of Dufferin and Wellington, and the City of Guelph|
|23 - Elgin, Middlesex and Oxford Counties|
|24 - Huron and Perth Counties|
|25 - Bruce and Grey Counties|
|26 - Municipality of Chatham-Kent, Lambton County|
|27 - Essex County|
|28 - Territorial Districts of Nipissing and Parry Sound|
|29 - Territorial Districts of Cochrane and Timiskaming|
|30 - Regional Municipality of Sudbury and the Territorial Districts of Sudbury and Manitoulin|
|31 - Territorial District of Algoma|
|32 - Territorials District of Kenora, Rainy River and Thunder Bay|