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The City of Toronto mails property tax bills twice per year, however, tax bills for Supplementary or Omitted Assessments may also be issued during the year.
Supplementary Property Assessment
Property Assessment Change Notices are issued by the Municipal Property Assessment Corporation (MPAC) when there has been a change to a property during the current taxation year due to a change in property classification, an addition, renovation or new construction. Supplementary assessments are issued under the authority of Section 34 of the Assessment Act.
Omitted Property Assessment
Property Assessment Change Notices are issued when the current value assessment resulting from an improvement to the property (e.g., a new home or addition) was not previously captured on the annual assessment roll. An Omitted Assessment may apply to the current year and, if applicable, for any part or all of the previous two years. Omitted assessments are issued under the authority of Section 33 of the Assessment Act.
Frequently Asked Questions
Can I Appeal the Supplementary or Omitted Assessment?
If you disagree with the assessment value on your Supplementary or Omitted Property Assessment Change Notice, you may appeal free of charge by filing a Request for Reconsideration (RfR) with MPAC. RfR forms are available on the MPAC website.
Contact MPAC at 1-866-296-MPAC (6722) www.mpac.ca
You may also file a formal appeal with the Assessment Review Board (ARB) within 90 days of the mailing of the Assessment Notice. There is a fee for filing a complaint.
Contact the ARB at 1-800-263-3237 or 416-314-6900 or visit www.arb.gov.on.ca
How is the Supplementary or Omitted Assessment information used?
The City of Toronto uses information from the Supplementary or Omitted assessment information on the Property Assessment Change Notices to issue tax bills. It is important to note that if you own a new property, the first regular bill you receive from the City may only be for a portion of the full assessment of your property (the portion relating to land value only).
Assessments for any improvements or structures are determined by MPAC after the improvements or structures are completed. This process may take up to two years and as such tax bills can be issued for Omitted Assessments for the current and up to two prior years.
How can I pay Supplementary/Omitted tax bill?
Supplementary/Omitted Tax Bills are due in two instalments only regardless of the number of years for which you are billed.
Bills can be paid by:
- telephone or internet banking through your financial institution
- cheque payable and mailed to:
Treasurer, City of Toronto
Box 5000
Toronto ON M2N 5V1
- At any Civic Centre or City Hall tax and water enquiry/payment counter.
Please allow sufficient time for payment to reach our office by the due date. It may take 3-4 days if paying through a financial institution or by mail.
If you are currently enrolled in the Pre-Authorized Tax Payment Program, supplementary/omitted tax bills will not be withdrawn from your financial institution account. Supplementary/omitted tax bills must be paid directly.
It is strongly recommended that you set aside funds in anticipation of supplementary or omitted tax bills if you have purchased a new property, made any physical changes to a property or changed the use of your property.
How can I estimate what my omitted tax bill will be for my new condominium?
Assessed values are determined by MPAC. The City of Toronto cannot project the assessed value for your new property. However, in order to set aside funds in anticipation of the receipt of omitted tax bills, you can use the purchase price as a guide.
To estimate what you may be required to pay in property taxes for prior years, you can use the purchase price as an estimated assessed value and multiply that amount by the applicable year's tax rate.
The actual value of your property will be determined by MPAC. When you receive your Supplementary or Omitted Property Assessment Change Notice, it may not exactly match the amount you paid for your condominium. If you disagree with the assessed value of your property identified on your Property Assessment Change Notice, you may appeal. Regardless of any appeal that may be initiated, you must pay your supplementary or omitted tax bills as issued. Any tax credits resulting from successful appeals will be refunded or transferred accordingly.
Penalty and Interest
Payment must be received by the due date to avoid penalty and interest charges.
A penalty of 1.25% is added on the unpaid amount of an instalment on the first day after the instalment due date. A further 1.25% will be added on the first day of each month thereafter, as long as the taxes remain unpaid.
Monthly interest charges will also be imposed on any unpaid taxes from prior years. Penalty and interest rates are set by City bylaws pursuant to the City of Toronto Act, 2006. Penalty and interest charges cannot be waived.
Vacant Commercial and Industrial Buildings
You may qualify for a vacancy tax rebate, if your commercial or industrial building was entirely or partially vacant during the taxation year and you meet the eligibility criteria.
For rebates of your current property taxes, one application may be submitted no later than last day of February following the year the vacancies occurred.
Alternatively two separate applications may be submitted. One application may be submitted by July 31 in the same year that the vacancies occurred during the first six months and a second application may be submitted by the last day of February of the year following for vacancies occurred from July to December of the prior year.
Applications received after this date will not be accepted.
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