December 09, 2005 - Glebe Report
December 09, 2005 - Glebe Report
December 09, 2005 - Glebe Report
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3 <strong>Glebe</strong> <strong>Report</strong> <strong>December</strong> 9, <strong>2005</strong> NEWS<br />
Tax assessment cont'd from page 1<br />
BY JOHN SMART<br />
Historian John Taylor compared the present tax collection system in Ottawa<br />
with 19th-century practices when an Ottawa tax assessor's income depended<br />
partly on how high he set assessments. Taylor believes that taxes based on<br />
property values are always regressive and that such systems need serious modification<br />
by politicians if they are not to be unfair. He picked pensioners as a<br />
group likely to be harmed by an unmodified property tax system.<br />
Councillor Doucet applauded the provincial ombudsman's decision to review<br />
the system and pointed out the system's adverse effects on Capital Ward<br />
taxpayers, who have endured high tax increases from the city, while suburban<br />
wards have avoided increases or even had decreases in their city taxes in recent<br />
years. At present, the older parts of the city are paying for new roads and<br />
other services in the suburbs and newer portions of the amalgamated city.<br />
(Eighty percent of the audience raised their hands when asked if they had received<br />
assessment increases greater than 25 per cent in November <strong>2005</strong>.)<br />
Councillor Doucet suggested that a system in which assessments were based<br />
on the original purchase price, plus annual increases in value based on the<br />
Consumer Price Index, would be preferable and fairer in the long run.<br />
An hour of questions and comments from the audience followed the panel.<br />
A number of people complained they'd had inaccurate MPAC assessments reduced<br />
in the past, only to have MPAC re-assert the original high assessment<br />
in the next cycle. Marcel Clement said that MPAC's intention was always to<br />
have the most accurate assessment for each property in its database, but that a<br />
lowered assessment was never frozen and would be altered as market values<br />
changed. In answer to another question, Clement said that MPAC currently<br />
had on hand 2,500 requests for reconsideration of November <strong>2005</strong> assessments<br />
from Ottawa property-owners, but hoped to have them all processed by<br />
the end of March 2006. Property-owners unhappy with their assessments<br />
could obtain comparisons with 12 other properties in the city.<br />
More than one person questioned the whole idea of using property value assessments<br />
to determine municipal taxes. It was claimed that the system divorces<br />
the cost of services from the taxes paid and gives municipal councils<br />
little incentive to be prudent in setting taxes. As long as property values as determined<br />
by MPAC continue to rise, the city can be confident that its revenues<br />
will rise. An Ottawa East resident said that city councils across Ontario should<br />
object more strongly to the MPAC system and to the provincial legislation behind<br />
it.<br />
Forms to request reviews of MPAC assessments were available at the meeting<br />
and 100 audience members took forms home with them. If they use them,<br />
they will be part of what seems to be a growing movement of people looking<br />
for ways to lower the impact of the present system on their finances. People at<br />
the meeting said they weren't opposed to paying their fair share of Ottawa municipal<br />
taxes, but they doubted that the MPAC system currently contributed to<br />
a fair tax system in Ontario.<br />
Photo: Suzanne Landis<br />
Brown's Inlet update<br />
The Brown's Inlet meeting on <strong>December</strong> 6, <strong>2005</strong> had not talcen place at the<br />
time of printing. Please see the January 20, 2006 issue for details about this<br />
community meeting.<br />
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