GOVERNMENT ANNOUNCES PROPERTY “RE-ASSESSMENT” FREEZE
On November 4th, as part of the Ontario Economic Outlook and Fiscal Review, the government announced it was postponing property assessment updates for the 2022 and 2023 taxation years. Property assessments will remain the same as they were for the 2021 tax year, unless there have been changes to the property.
This move by the province is expected to stabilize property taxes through the COVID recovery period. We do note that many municipalities across Ontario continue to move forward with phased multi-year tax rate increases. So, despite assessed property values remaining unchanged, increased tax rates continue to drive municipal property taxes and charges higher.
TAX AGIs POST RENT FREEZE
Building operating costs for insurance and utility services have risen dramatically; however, there is no above guideline cost recovery mechanism available through the Residential Tenancies Act.
On a positive note, the government’s 2021 rent freeze is winding down. The rent freeze rule prevented landlords from implementing above guideline increases for municipal property taxes and charges during 2021.
In many areas around the province municipal tax increases have outpaced the extraordinary threshold of 1.8%. There is a limited period to apply to the Landlord and Tenant Board for approval to recover extraordinary tax increases experienced in 2020 and 2021. Landlords are encouraged to review their property taxes in an effort to keep pace with inflation.
Story by: Cohen Highley LLP Lawyers