Frequently asked questions

Why do my cottage taxes keep rising?
If my assessment is up 20%, will my taxes also be up 20%?
If I lived at my cottage year-round, this would place a greater demand on municipal services. If I'm only at my cottage for three months, shouldn't I pay less?
Am I paying directly for the education costs in the municipality where my cottage is located?
Why are assessments being done more frequently?
I thought it was planned to average assessments over three assessment periods to further reduce volatility. Why is that not happening?
Why does WRAFT believe it has a chance to achieve property tax reform?
What types of reform is WRAFT proposing?
Why does WRAFT need to carry out a fund-raising?
What does WRAFT plan to do in the coming year?

Why do my cottage taxes keep rising?: Waterfront property values in many parts of Ontario are rising faster than values not on waterfront. Property taxes are allocated based on assessment so waterfront properties are picking up a greater share of total taxes collected. If municipal spending also rises, this contributes as well to your tax increase.
If my assessment is up 20%, will my taxes also be up 20%?: No. Your taxes can increase for two reasons: if the municipality spends more money and if your assessment increases by more than the average increase. In areas where there is two-tier municipal government, such as the District of Muskoka, your taxes have three components, the District levy, the Township levy and the education levy. If your assessment increase exceeds the District average, your share of district costs will increase, and the same for the municipality. The education tax rate is the same province-wide and is reduced to offset the average increase in assessment for the province. If your assessment increase exceeds the average for the province, your education tax will also increase.
If I lived at my cottage year-round, this would place a greater demand on municipal services. If I'm only at my cottage for three months, shouldn't I pay less?: Yes, but the present system is not based on services provided and does not recognize seasonal use. Your share of property tax is based solely on the value of your property compared to the value of all other properties in the municipality. If your assessment is five times the assessment of another property, you pay five times the tax.
Am I paying directly for the education costs in the municipality where my cottage is located?: No. The province sets a standard rate for education, collects the education tax and then redistributes the funds across Ontario. Property owners pay education tax on every property they own in Ontario.
Why are assessments being done more frequently?: Ontario is moving towards annual assessment. This was meant to start in 2004 but has been postponed to 2005. The belief is that annual assessment is fairer, and will reduce volatility.
I thought it was planned to average assessments over three assessment periods to further reduce volatility. Why is that not happening?: The averaging process was meant to start next year but has been deferred, we are told, for technical reasons.
Why does WRAFT believe it has a chance to achieve property tax reform?: Over the past two assessments, in 2001 and 2003, rising value of waterfront properties has become a much more widespread phenomenon, across many parts of Ontario. By building a unified cross-Ontario voice for change, and by demonstrating clearly the inequities of the present system, WRAFT has an opportunity to achieve meaningful property tax reform.
What types of reform is WRAFT proposing?: The first priority is to half further shifts of property tax onto waterfront properties. There are different ways of achieving this objective. A cap on future assessment increases is one possibility. Another is establishment of a separate class for waterfront properties and a freeze in that class's share of future assessment increases. WRAFT is currently studying various strategies for reform and analyzing precedents in other jurisdictions.
Why does WRAFT need to carry out a fund-raising?: The funding associations have provided seed funding to allow WRAFT to get started. It is estimated that an additional $150,000 to $200,000 is needed to engage the necessary consulting, analytical, public relations and lobbying expertise to get the job done.
What does WRAFT plan to do in the coming year?: The May 2004 Ontario budget announced a one-year deferral until 2005 for the next assessment and contained language which indicated a willingness to consider "alternate assessment stabilization measures for 2006" and beyond. The next year is critical in WRAFT's struggle towards reform. Efforts will be focused on enlisting a large number of associations across Ontario to our cause, studying alternative assessment methodologies, refining our recommendations for reform and lobbying Queens Park to introduce a more equitable property tax regime.

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