Assessment Procedure for the Valuation of Daycare Centres


To provide information on how the Municipal Property Assessment Corporation (MPAC) values and classifies daycare centres.


Daycare centres are defined under the Day Nurseries Act:

“day nursery means premises that receives more than five children who are not of common parentage, primarily for the purpose of providing temporary care or guidance, or both temporary care and guidance, for a continuous period not exceeding twenty-four hours where the children are,

  1. Under eighteen years of age in the case of a day nursery for children with a developmental disability, and
  2. under ten years of age in all other cases, but does not include,
  3. part of a public school, separate school or private school school within the meaning of the Education Act or part of a school continued or established under section 13 of the Education Act.”

Section 19(1) of the Assessment Act provides the authority for the valuation of daycare centres at their current value.

Daycare Property Tax Classes

Ontario Regulation 282/98, section 3(1). 2.ii, includes certain daycare centres in the residential property class.

The following conditions must be met in order to place the daycare centre in the residential property class:

  • the land is not used for residential purposes;
  • the land is used by a non-profit organization for child care purposes; and is either
    • land owned by the organization, or
    • land leased by the organization (other than land that would otherwise be in the commercial property class or the industrial property class).

If the above criteria are not met, the daycare centre is placed in the commercial property class (section 5(1).1) of Ontario Regulation 282/98.

Daycare centres that do not qualify for inclusion in the residential property class include:

  • for-profit daycare centres;
  • non-profit daycare centres that lease space in a commercial or industrial property; and
  • home-based daycare centres, if a definable area exists.

To determine if a daycare centre is for profit or non-profit, some or all of the following information is collected by MPAC:

  • copy of Day Nurseries Act licence;
  • Letter’s Patent/Articles of Incorporation/Charter;
  • financial statements; and
  • client profile (i.e., number of children, ages).

To determine if the daycare centre owns or leases the space, an owner/occupant verification is completed. This may include requesting a copy of the occupancy agreement or lease.

MPAC may complete a property inspection when the daycare centre leases space to establish if it occupies a commercial or industrial property.

The Process

Daycare centres, regardless of property class, are valued based on the current value of the land and structure(s) they occupy.

If the daycare centre occupies space in a residential property, the residential property is valued using the sales comparison approach and the current value attributed to the daycare centre is based on the area occupied by the centre.

If the daycare centre occupies space in an industrial or commercial mall, the current value attributed to the daycare centre would be similar in value to that of an adjacent unit.

There may be properties that have a combination of residential and commercial uses such as a private for-profit daycare centre located in a specific area of a residence. Where this situation exists, the current value is apportioned to the appropriate property class based on the value attributable to the portion of the property used for each purpose.

Related Information

Assessment Act
Ontario Regulation 282/98
Day Nurseries Act

Note: This procedure has been developed to provide the public with a general understanding of the valuation and classification of daycare centres. The applicable law prevails to the extent there is any conflict between the procedure and the relevant law.

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.