Just wanted you to know about the experience of living at Grand Ovation community– 310 Burnhamthorpe Rd. Ever since the new Board of Directors were elected in 2009, there have done a marvellous job in up keeping the building from maintenance to social events for the residents. I am so happy that my home and investment is being managed by conscientious board of directors.

As you are a very active real estate broker at the Ovation Community and many clients have sold and purchased through you. I believe you should know about our great building. Both myself and my husband love our Grand Ovation community.

Natasha C

Re: Tax Rate and MPAC

Thank you for your email regarding tax increases and the impact of reassessment.

In regards to your inquiry, please find below a response from Jeff Jackson, Director, Revenue and Material Management. You may post the reply on your blog.

There are two main reasons that property taxes can change after a reassessment.

Tax Changes as a Result of Reassessment:

The City does not receive a windfall in revenues as a result of a reassessment. If the assessment on all properties in the City increased at the same rate, no property would see an increase in taxes as a result of reassessment. This is because the City reduces tax rates after each reassessment to ensure that it collects no more taxes after the reassessment than it would have if the reassessment had not occurred. The problem of tax increases caused by reassessment only occurs when properties increase in value at different rates. Since the tax reduction is based upon the average city wide assessment increase, properties where the assessment increased by more than the city wide average will see a tax increase. Similarly, properties with an assessment increase of less than the City wide average will see a decrease. And of course, properties with an average assessment increase will see that their taxes are unchanged.

It should be noted that Council has no control over the impact of reassessment on individual properties. It can only ensure that the average taxpayer is not impacted by reassessment.

Tax Changes as a Result of Budget Requirements:

Taxes fund approximately 50% of City services. Each year the City prepares an annual budget to guide its spending. Council considers its proposed spending and revenue sources and approves a budget. While Council takes every step possible to minimize tax increases, sometimes an increase is unavoidable. These increases help to maintain existing service levels and often fund new services such as recreation centres, fire halls, roads, etc.

A review of property taxes in the Greater Toronto Area shows that Mississauga taxes are very competitive with those of other municipalities.

For those interested in how reassessment and budget impact their tax bill, this information is shown on the bottom of the final tax bill which is mailed in May of each year.

Yours truly,

Jeffrey J. Jackson, CA
Director, Revenue and Material Management
City of Mississauga
905-615-3200 x5477

________________________________________________________

From: Amit Kalia
Sent: November-18-08
To: Tax Info
Subject: MIL rate and MPAC

The Director,

Someone has asked me the below question. I will appreciate if you can answer this for me.

“MPAC has already increased the CVA of our property, which means more tax money for the City. Why did the City also increased its MIL rate? Don’t you think this way our City is getting more than what they should be getting in property taxes?

Please reply.

Regards,

Amit Kalia

It looks to be a good deal for someone who needs cash at closing. However, their rate is much higher than what other financial institutions are offering; i.e., around 5.90% p.a. for 5 year term mortgage. The client will be on the losing end as his interest cost is much higher than what he would get back towards the Land Transfer Cost.

Typical example on $ 250,000 mortgage, TD offers 1.50% = $ 3750. Right?

Interest cost difference is more than $ 5800 in 5 years. Or nett amount of $2050 is paid extra by the home buyer.

Cheers,

Vik Gupta, Mortgage Specialist
CIBC Mortgages
416-865-9050 # 8854

Cheers
Aly Azam