Property Assessment

Spring 2006 Update

A Message from the President
April 5, 2006

Welcome to Spring, Daylight Savings Time and the ice quickly melting off the lake! 

There are many items of importance to the Golden Lake Property Owners Association that are moving forward at this time of year.  Probably the most important to us all is reflected in the Interim Tax Bill that we all recently have had to pay.  Unfortunately, this bill does not reflect the dreaded tax increase that might be expected as a result of last year’s increase in the property value assessment.

At the risk of being the bearer of bad news, let me relay news from GLPOA Director and Bonnechere Valley Township Councillor Cairine Cybulski. She has been busy this early spring bringing a motion forward at Council to appeal to the Ministry of Municipal Affairs with respect to the interim taxation process.

As Cairine says, tax bills recently mailed to ratepayers carry forward at the taxation and assessment rate from 2005.  That is, the 2006 Interim Tax Bill, which covers first half of the year, is calculated at 50% of the total billed amount from 2005.  This is the case with each of the three Municipalities covering the Golden Lake and Bonnechere catchment.

While the assessment notices went out late November 2005, in some cases advising of significant assessment increases, the 2006 Interim Tax Bill does not reflect any adjustment. These increases have yet to be applied.  The July tax bill, that is designed to cover the second half of the year with any adjustments for the year, will carry the total increase for twelve months, so be aware.

Unfortunately this may serve to compound the already contentious issue of waterfront assessment that we all face.  It’s not a pretty picture, but we feel it is important for members to have clear understanding of how things will unfold.

On the positive side of all this, there is action being taken at the Provincial level with a Homesteaders Bill introduced at Queen’s Park that may pave the way to revamping the assessment procedure.  As well, the Provincial Ombudsman, André Marin has released a scathing report on Ontario’s Municipal Property Assessment Corporation (MPAC), basically saying that the corporation’s practices are “unreasonable, unjust, oppressive and wrong.”  There is a movement growing across the province that might bring effective reforms.  Ottawa Mayor Bob Chiarelli has called on the Ontario government to suspend the current system until it can be fixed.

So, stay tuned.  We will have this on the agenda of the June 3^rd Annual Meeting of GLPOA at Killaloe Public School.  In the meantime, check our FOCA information on our web site www.goldenlake.info

Dave Lemkay
President
info@goldenlake.info

Send your letter to the Minister today: Action Requested Now!

Background: Fall 05

Many waterfront owners are concerned about the way the property assessment is calculated and how this might translate into increases in property taxes. An organization has been formed to take these concerns to government. To learn more, visit the web site of the Waterfront Ratepayers After Fair Taxation (WRAFT) 

A very good summary of the issue and the steps being planned to deal with it is found in a November 2005 speech by WRAFT Executive Director Bob Topp. In introducing the text of the speech to his Board of Directors, our President, Dave Lemkay said it is "a most comprehensive summary of the enormity of the assessment problem.  It makes a convincing case for where the problems lie and the fact that any solution to this issue will not be found in local confrontations between land owners and their municipalities."

Also, there is a situation that may be unique to Renfrew County where County Council has capped business taxes. With this element of the overall tax base being frozen, it could mean that with any increase in the County operating budget, the resulting shortfall in revenues will have to be borne by the other segments of the tax base. It should be of concern that if municipalities find they need to raise more revenues from taxes, the target for increased taxes will have to be residential properties. If the trend is that waterfront properties are seeing large increases in assessed values, it can be expected that taxes will increase too. Maybe the issue that needs addressing besides the assessment process is the County position on capping business tax. The Association Board of Directors will investigate this issue further.