8 December 2010
11,500 residences sold in 2007 and 2008 were numbered in the report: in case of 1,400 the assessed value differed by more than 20%.
The reasons for higher or lower prices can be various. If it’s higher than the assessed value the explanation can be simple. It often happens so that an older house had been torn down and a new one was built on the property. That’s why the price is higher. If the sale price is much lower than the assessed value it could be a distress sale or a sale to relatives.
“If ten houses in a neighbourhood are sold for $400,000 and one – just for $200,000, it’s strange. We will do a better job of finding out the reasons for it. If the value is wrong, we will correct it,” – Carl Isenburg said.
MPAC is responsible for province-wide property assessment system. It’s based on the provisions of the Assessment Act. MPAC should provide the municipalities with different services, such as the annual assessment rolls preparation used for calculating the property taxes.