Property Tax

For over twenty five years NMI has been a leader in the field of property assessment valuation and taxation. The company has amassed knowledge and experience based on collective effort from a dedicated staff of experienced tax consultants, accredited appraisers, professional engineers, real estate brokers, a statistician and research specialists.

NMI provides innovative and creative solutions to assessment and taxation problems across a variety of sectors. NMI has expertise in many property types: office, medical, retail, industrial, multi-residential and residential buildings, community and regional shopping centres, as well as special purpose properties such as hotels, nursing homes, health clubs, entertainment parks and airport facilities.

NMI's goal is to position its client to pay the least amount of property taxes possible by providing the highest quality of service. Success of the company has been attributed not only to the continual enhancement of knowledge and skills but also to the building of relationships with clients, fellow employees and assessors based on respect, commitment and integrity.

Our excellent performance along with our caring attitude toward our clients is why we feel you will benefit from our services: Assessment consulting; Tax apportionment; Vacancy rebates, Acquisition reviews & Complete monitoring.

Today the property assessment function is much different than in previous years. Not only is the assessment now based on the current value of your property, but also , starting in 2005 this value is changed every year. It is up to the property owner to produce a reasonable case as to why their property value is too high. This is where NMI can assist you in the preparation of this information.

Facts to Consider:

• Did you know that approximately 50% of the assessments questioned are probably incorrect and should be altered?
• The Assessment Review Board confirms approximately 50% of these assessment values that are incorrect because the property owner was not prepared for the hearing.
• Those property owners who have prepared a good case generally are successful in getting their taxes reduced.
• Did you know that your property value could be based on sales of property from other subdivisions because the assessor has not considered sales in your immediate vicinity?
• Most assessment reductions are a least 5%. For an average $3,000 tax bill, you would save a minimum of 450.00 over the 3 year period of that assessment.
• If you are successful the average minimum assessment reductions under this new current market value system are a least 10%. For an average $200,000 assessment, you would save a minimum of $320.00 in taxes annually.

At NMI, we will give you an honest opinion on whether your assessment is accurate in order that you do not waste your time and efforts. Many property assessments are accurately done. There are also many assessments that need to be adjusted. A fair estimate would be 20% to 30% of the properties need this adjustment. However, many property owners do not question their property assessment and thus continue to pay higher taxes for many years.

A recent client of mine had been paying taxes on an inaccurate square footage due to an incorrect calculation of the second floor area of their house. This error existed for approximately 5 years. The assessment was reduced by approximately 15%. This amounted to $500.00 in taxes or $2,500 over the five years that the assessment was incorrect. Do not take for granted that the value is correct, everything should be reviewed before accepting your value.

Things most property owners should do for the next reassessment:

• Engage a property tax consultant to advise you. The cost is rather insignificant for the potential tax savings that you may realize.
• Take current photos of your buildings and property.
• Create a property assessment file for correspondence with the Municipal Property Assessment Corporation (MPAC).
• Never send any information to MPAC until your consultant has reviewed the request.
• Make a list of properties that have sold in your area.
• Keep track of any construction costs and contracts for new buildings and yard improvements.
• Maintain building plans for future reference.
• If you are an industrial property never build an addition or new building without talking to your consultant. This could cost you dearly in taxes if you make certain mistakes.
• Multi-residential property owners should not add additional units on to their property without first talking to your consultant. Again, it could increase your overall tax rate.
• Any nuisances near or adjacent to your property should be documented and photographs taken for future reference. These nuisances can reduce your property value and your taxes.
• Property tax bill versus Assessment Notice: Do not confuse your property tax bill with your assessment notice, if you wait to receive your tax bill before you decide to complain about your taxes it may be too late to appeal your assessment. These two notices are two entirely different things. Many people wait until it is too late to appeal their assessment and thus end up paying taxes on property values that are too high. Your assessment notice is your first line of defence against high property taxes.
• Last date for appealing your property assessment is March 31 for each year unless extending by Ontario regulation.
• if you demolished a building or had it razed by fire in the past year, you have until the last day of February in the following year to apply for a tax rebate on your previous year's taxes. This rebate would be based on the value of the building that was demolished. In certain instances, you may make application for the two preceding years as well which would allow you to receive a tax refund for three years. I would be glad to ensure that you get the tax reduction that you deserve if you need assistance.
• Change in Use: If you had a change in use from commercial / industrial, to residential or otherwise then your taxes could be too high. Ask your consultant, I can assist in getting this change reviewed by the assessor and your taxes lowered.
• The Ontario Government has opened up the assessment values for review for the entire year. This allows property owners to ask for a reconsideration of their assessment even after the last date for an appeal. However, in most cases the assessor will not alter your value unless they find a clerical or mathematical error. Errors of judgement in most cases will not be dealt with under this regulation. A consultant who knows the assessor's manual has a good chance of finding such an error and therefore, be successful in getting the reconsideration approved by the assessor. It should be recognized though that this is a last line of defence only after the appeal date has passed. The assessor may completely ignore your request and you have no recourse.