Topaz Posted April 30, 2016 Report Share Posted April 30, 2016 How many of u got your property assessments in the mail? We received ours and the boards reduced our value down $40,000.00, which shocked us. I suppose the good side maybe the taxes would be cheaper but then the municipality won't have the money they need to run the government. I know the news is saying many homes are overvalued but I'm also wondering if this has anything to do the wind turbines. Thoughts? Quote Link to comment Share on other sites More sharing options...
Big Guy Posted April 30, 2016 Report Share Posted April 30, 2016 When a municipality declares their mill rate, they do so with the bottom line (i.e. money to be collected through taxes) as the base. What a change in appraisal for a specific property does is change the percent of your portion of municipal taxes. The total that it collects will not change. Quote Link to comment Share on other sites More sharing options...
Topaz Posted May 1, 2016 Author Report Share Posted May 1, 2016 The head guy that makes the assessments said the municipality tell them how much money they need and then the decision on value of assessments are done. Perhaps rural Ontario is getting a downgrade from the wind turbines and the cities will pickup the slack. Quote Link to comment Share on other sites More sharing options...
Big Guy Posted May 1, 2016 Report Share Posted May 1, 2016 The head guy that makes the assessments said the municipality tell them how much money they need and then the decision on value of assessments are done. Perhaps rural Ontario is getting a downgrade from the wind turbines and the cities will pickup the slack. There might be some confusion here. Municipal taxes are based on property values and are collected only from those who own property in the municipality. Provincial and federal taxes are based on the income of individuals. Value assessment is the objective value that a particular organization has applied to properties. This is done separate from and really nothing to do with a municipal budget. The municipality decides on a budget (the total amount to be collected in municipal taxes) and the property owner pays the percentage as calculated by the value of their property as a percentage of the total value of all properties. Lets assume that your property is valued at $100,000 and the total of all properties in your municipality is $10,000,000. Your property represents 1% of the total value. The municipality budgets $96,500 to run itself in the next year. You are assessed (96,500/100) = $965 property taxes for next year. Somebody finds that the value of all properties in your municipality miraculously double: Your property is now worth $200,000 and the new total value of all municipalities in $2,000,000. Your property still represents 1% of the total value because all properties have increased proportionally. The municipality budgets the same $96,500 to run itself again in the next year. While your property may have doubled its value, it still represents only 1% of the total value of all properties so you are assessed your percentage (1%) which is $965. Quote Link to comment Share on other sites More sharing options...
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