How to Challenge Your Property Taxes in Toronto
Property taxes are an important source of revenue for local governments in Toronto, but sometimes they can be unjustifiably high. If you are a property owner in Toronto and believe that your property taxes are too high, you have the right to challenge them. In this blog post, I will explore the steps you can take to fight your property taxes in Toronto.
Appealing your property taxes in Toronto can be a worthwhile effort if you believe that your taxes are too high. The most common reasons why you may want to consider appealing your property taxes:
- Your Property Assessment Is Incorrect: If you believe that your property has been assessed incorrectly, you can appeal the assessment. This could be due to a variety of factors, such as errors in the property’s size, age, or location. For example, if your property is located near a noisy highway, it may be assessed at a lower value than a similar property located in a quieter area.
- Your Property Taxes Are Higher Than Comparable Properties: If you believe that your property taxes are higher than those of comparable properties in your area, you may have a case for an appeal. For example, if your neighbor’s property is similar in size and age to yours, but they pay significantly less in property taxes, you may want to investigate why this is the case. By appealing your assessment, you may be able to lower your property taxes to a more reasonable level.
Property Appeals In Toronto
Here are some examples of Toronto news stories where residential property taxes were appealed and reduced:
- In 2018, a group of Toronto condo owners successfully appealed their property assessments, resulting in a reduction in their residential property taxes. The owners argued that their assessments were too high due to the inclusion of parking spaces that they did not own.
- In 2019, a Toronto homeowner successfully appealed their residential property assessment, resulting in a reduction in their property taxes. The homeowner argued that their assessment was too high due to a nearby construction project that had caused damage to their property.
- In 2020, a Toronto homeowner successfully appealed their residential property assessment, resulting in a significant reduction in their property taxes. The homeowner argued that their assessment was too high due to a decrease in property values in their area caused by the COVID-19 pandemic.
- In 2021, a group of Toronto residents successfully appealed their residential property assessments, resulting in a reduction in their property taxes. The residents argued that their assessments were too high due to a significant increase in crime in their area, which had reduced property values
- Also in 2021, a Toronto condo owner successfully appealed their residential property assessment, resulting in a reduction in their property taxes. The owner argued that their assessment was too high due to a significant increase in condo fees, which had decreased the value of their unit.
These examples demonstrate that it is possible to successfully appeal your residential property taxes in Toronto, resulting in a reduction in your tax bill. It is important to have a strong case and to provide evidence to support your appeal. It may be helpful to consult with a real estate lawyer or professional appraiser to ensure that you are presenting your case effectively.
Understand the Property Assessment System
The first step in challenging your property taxes is to understand how the property assessment system works. The Municipal Property Assessment Corporation (MPAC) assesses the value of your property every four years based on a number of factors, including the property’s location, size, and age. This assessment determines the amount of property tax you will pay. If you believe that your property has been assessed incorrectly, you can challenge the assessment.
Gather Evidence
Before challenging your property assessment, you should gather evidence to support your claim. This evidence could include recent sales of comparable properties in your area or and any other factors that you believe may affect the value of your property. You can also hire a professional appraiser to assess the value of your property.
File an Appeal
Once you have gathered your evidence, you can file an appeal with the Assessment Review Board (ARB). The ARB is an independent tribunal that hears appeals from property owners who disagree with their assessment. The deadline to file an appeal is typically March 31 of the tax year in question.
Attend a Hearing
After you file an appeal, you will be scheduled to attend a hearing with the ARB. At the hearing, you will present your evidence and arguments to support your appeal. The ARB will consider your evidence and make a decision on your appeal. It is important to note that the ARB’s decision is final and binding, so it is important to prepare your case carefully.
Consider Hiring a Lawyer
While it is not necessary to hire a lawyer to challenge your property assessment, it may be a good idea if you feel that you need additional support. A lawyer can help you prepare your case, gather evidence, and represent you at the hearing. They can also advise you on any legal issues that may arise during the process.
Consider Other Options
If you are not successful in your appeal with the ARB, there may be other options available to you. For example, you may be able to negotiate a lower assessment with MPAC, or you may be able to apply for a property tax rebate or deferral program.
Conclusion
Challenging your property taxes in Toronto can be a complicated process, but it is important to take action if you believe that your taxes are too high. By understanding the property assessment system, gathering evidence, filing an appeal, attending a hearing, and considering other options, you can increase your chances of success. If you are unsure about how to proceed, consider consulting with a real estate lawyer or professional appraiser.
