Ontario Ratepayers' Petition Steadily Growing
Homeowners signing on to let the Ontario Government know their frustration
August 19, 2008
TORONTO, ON — Battered by skyrocketing property taxes and expecting worse to come later this year, hundreds of Ontario homeowners are joining a petition to urge the provincial Government to review the whole property tax system. More than 1,500 people have signed onto the petition, which has been organized jointly by two province-wide organizations, CAPTR (Coalition After Property Tax Reform) and WRAFT (Waterfront Ratepayers After Fair Taxation).
"Considering that it's been driven only by word-of-mouth, the number of petitioners that have signed on is terrific," says Bob Topp, Executive Director of CAPTR. "It just shows that people are very frustrated, and they're feeling that no one is listening or cares — even though high property taxes are affecting countless thousands of homeowners in Ontario."
And it is going to get much worse, says Topp. A new series of property value assessments, completed as of the end of 2007, will be mailed out to homeowners this Fall. The new assessments will come as a huge blow — especially to people who live in urban neighbourhoods where sales have been brisk, and to those who own waterfront properties.
"In these areas, real estate prices have gone through the roof since the last assessments were done in 2005," Topp says. "People who live in these neighbourhoods suddenly have properties worth much more 'on paper', even though they may have done nothing to improve their actual homes or properties. But with higher values come proportionately higher property taxes.
"For some people, the higher taxes may be unaffordable, and in some cases, it's forcing them to sell their cherished homes and family cottages."
No one knows yet what the new property assessments will be, except the Municipal Property Assessment Corporation, which undertakes the valuations for the Government. But an independent study undertaken for CAPTR and WRAFT by real estate firm Cushman & Wakefield Lepage, based on available assessment and property sale data, indicates that the coming assessments will be drastically higher in certain urban and rural areas. It also indicates that there are vast differences between a property's assessed market value, and what a property ultimately may sell for — throwing further confusion into the issue.
Recognizing this, the government introduced changes to the assessment/property tax regime in 2007, promising to "phase in" assessment increases over a four-year period, which will soften annual property tax increases. But that's far from a perfect solution, according to CAPTR and WRAFT.
"This is a bandaid on the wound, not a cure," says WRAFT Director Terry Rees. "People will still be penalized for living in "hot" neighbourhoods or on waterfront lots — paying higher taxes for the same, or even less services than owners in other areas. It's simply not fair, and the system still needs real reform."
CAPTR and WRAFT launched their petition at a news conference at Queen's Park in April. They plan to deliver the document to the Government later in the year, after homeowners have received their new assessments and have had time to absorb the shock of their increases.
"We expect a surge in signatures in the Fall," says Bob Topp. "It's unfortunate that we have to wait for the hammer to fall, instead of grappling with the issue now."
Homeowners interested in joining the petition can find it at www.captr.org or www.wraft.com.
For more information:
Jim Deeks
416-689-8421
jdeeks@primarycounsel.com