Lakeshore residents prepare for worst
Waterfront property owners living under boil water advisory expect tax hike as assessments near
By Amanda Street
August 22, 2008
Allan Root predicts his already high taxes will increase substantially in 2009.
Root bought his lakefront home on a one-acre parcel of land 12 years ago. He has seen his assessment nearly double in the past five years. His home is currently valued at $480,000. His taxes are just over $8,500, more than double what he paid 12 years ago.
That's all about to change.
This fall residents across Ontario will receive a notice in the mail, advising them their property has been reassessed. It's the first time in three years Municipal Property Assessment Corporation has done assessments after a freeze in 2005. Assessments were previously done on an annual basis.
"When they assess homes it should be the true market value," said Root. "And they should take into consideration everything, including the water problem."
Since 2006 lakeshore residents have been under a boil water advisory; their groundwater source has "significant bacterial contamination," according to the region.
There is no municipal water system in Wainfleet, residents rely on communal or private wells.
Root said the contamination issue significantly brings down property values in the area. He said one home was on the market for more than a year and in that period the selling price was dropped by more than $100,000.
"Would you want to buy a house where you have to boil the water?" he asked. "Most people wouldn't. That should be factored into the assessment."
Root has had to put in an extensive purification system that includes a water softener, UV light and reverse osmosis system. He enjoys his life on the lake, but doesn't think he should be penalized for living on the lakeshore.
If the assessments along the lakeshore significantly increase, Root said MPAC better get ready to deal with more than 100 appeals from Wainfleet alone.
Wainfleet Ratepayers Association chair Betty Konc agrees.
"MPAC probably doesn't have a clue about what's going on in Wainfleet and doesn't care," said Betty Konc, property owner and chair of the Wainfleet Ratepayers Association. "I imagine (the issues in Wainfleet) won't have any bearing on the value of our homes."
Konc owns a 900 sq. ft. home on a lakeshore property that is just under an acre. She pays $3,800 in taxes. The only municipal services she gets at her home is garbage pick up and one street light.
"I pay $3,800 in taxes for my slice of heaven on the waterfront," she said. "That's why I pay it, because it's lake front not because of the services we get."
The ratepayers association has about 250 members made up of seasonal and year round residents. Konc said some members pay roughly $12,000 in taxes. She said any increase is unacceptable, but predicts an increase on the horizon when assessments are done in the fall.
"If that happens I hope all lakeshore property owners pay the price to have it reassessed, and have them take into consideration the issues on the lakeshore," she said. "Why should we pay more in taxes?"
When doing the assessments the corporation studies sales in the area. Penny Christie, a municipal relations representative for MPAC, said if the boil water advisory is affecting the sales, it will be taken into consideration during assessments.
"If a house that was worth $200,000 and is selling for $160,000 and other similar houses are selling for the same price we investigate why," said Christie. "We analyze all sales of comparable properties in a similar area."
Christie said MPAC is aware of the boil water advisory and it will be considered if there is a direct impact on sales in the area.
Properties are assessed using MPAC's current value system, which set properties' values at what prices they should sell for on the open market. Location, lot size and dimensions, living area, age of the property, major renovations or additions and quality of construction are also factors used in determining the value.
The next assessment will take place in 2012.
Source: http://www.niagarathisweek.com/news/article/200292