MPAC 2021 Q1 State of the Business
At MPAC, we experienced many challenges as an organization, as individuals and as a part of a larger society. We learned to live with restrictions to curb the spread of COVID-19 and ultimately, save lives. Despite these challenges, we have seen signs of hope with the development and deployment of multiple vaccines and inspiration from businesses and organizations who have stepped up like never before to support their employees and their communities.
|
|
Province-wide assessment update continues to be postponed |
As part of the Ontario Government’s 2021 spring budget, the Minister of Finance announced the decision to further postpone a province-wide property assessment update, due once again to the pandemic. Property assessments for the 2022 property tax year will continue to be based on the fully phased-in January 1, 2016 assessed values.
The budget notes that the government’s consultations on the timing and valuation date for the next assessment update continues and more information will be communicated this fall.
|
|
Sharing insights through industry subcommittees |
This week, we concluded our first phase of data collection activities with each of our industry subcommittees, which were established to support our analysis of the market and help us understand how COVID-19 is affecting retail, hospitality, office and multi-residential properties.
The International Property Tax Institute (IPTI) supported the initiative, speaking one-on-one with stakeholders in each subcommittee to learn more about their unique challenges.
Here are some of the insights we’ve learned from our industry partners so far:
- Lockdowns imposed to limit the spread of COVID-19, and restrictions on movement and travel, have had a major adverse impact on both the retail and hospitality sector:
- Retail sales revenue for shopping centres declined by 40-50% in 2020.
- Hotel demand is down across all geographic locations, with downtown hotels experiencing the greatest decline in occupancy demand on a year-over-year basis.
- For the office sector, additional cleaning and installation of various social distancing measures have increased expenses during the pandemic. However, many property owners feel it is still too soon to draw conclusions about the full impact of the pandemic on the office sector.
- Vacancy rates for multi-residential properties have increased to varying degrees across the province. In some cases, owners (primarily in metropolitan areas) are offering incentives – such as 2-3 months free rent – to maintain face rent.
We thank all those who have participated thus far and we look forward to continuing regular dialogue to help support on ongoing market analysis and our understanding of the pandemic’s impact. If you are interested in learning more or taking part in a future initiative please contact industry@mpac.ca.
|
|
2021 Property Income and Expense Return Campaign Begins May 14 |
While the province-wide Assessment Update continues to be postponed, our work to monitor the market and maintain an up-to-date property database continues. One of the ways we keep property data current is through our Assessment Information Request Program, through which we obtain information about individual properties and insights on property sectors. As part of that program, our 2021 Property Income and Expense Return (PIER) campaign will kick off next month.
Starting May 14, MPAC will mail request letters to various income-producing properties, asking that income and expense information be submitted through the online portal by Friday, July 16.
This year, we are also asking property owners specific questions about the impacts of COVID-19 on various operating expenses. This important information contributes to our analysis of the market and helps better inform our understanding of how COVID-19 is affecting property sectors.
Helpful resources to support property owners submit their returns are available on mpac.ca as well as through the PIER portal. Thank you to all who submit and assist our assessors establish quality, traceable assessments.
If you have any questions or would like to learn more about our PIER program please contact industry@mpac.ca.
|
|
Gravel Pits: Landowner Notifications |
As of April 1, 2021, applicants for a licence or aggregate permit are to obtain the names and addresses of landowners from MPAC to fulfil their requirements to inform landowners as per Ontario regulation 244/97 under the Aggregate Resources Act (ARA).
This applies to:
- applicants for a licence or aggregate permit, or wayside permit for a new site.
- applicants for some significant amendments to an existing licence, permit, or site plan.
MPAC will release landowner information to applicants in compliance with the Municipal Freedom of Information and Protection of Privacy Act (MFIPPA). A licencing agreement and associated fee will be required.
More information on this change and MPAC’s notification products is available on mpac.ca. If you have questions about the ARA changes, please contact the Ministry of Natural Resources and Forestry, Natural Resources Information and Support Centre, 1 800-667-1940 or nrisc@ontario.ca.
|
|
MPAC’s 2020 Annual Report is now available! |
In a challenging year, we came together to provide vital data and insights on Ontario’s changing property landscape.
|
|
|
MPAC at CPTA
Next week, members of MPAC’s valuation team will participate in the Canadian Property Tax Association (CPTA) Ontario Chapter Virtual Symposium.
MPAC’s presentation will include an update on Ontario’s assessment cycle, the work we are doing every day to keep our property assessment database up to date and the impacts the provincial budget has on our work. We will take a deeper dive into the market outlook on business properties, the evolution of the industrial landscape, and market trend comparisons for the retail, hospitality, office buildings and multi-residential sectors.
MPAC at IMA
MPAC will be participating in the Institute of Municipal Assessors District 3 and 4 meeting in May. Brian Guerin, Director of Assessment Standards and Mass Appraisal, will discuss the evolution of mass appraisal, including spatial analysis and machine learning as a mass appraisal tool, and Greg Martino, Vice-President and Chief Valuation and Standards Officer, will provide an update on the continued postponement of the Assessment Update and MPAC’s plans for readiness.
MPAC at IPTI’s Mass Appraisal Valuation Symposium
In early June, the International Property Tax Institute (IPTI) will hold their Mass Appraisal Valuation Symposium where several MPAC speakers will be sharing an update. Our topics include:
- Declining Markets: Mass Appraisal Applications in Turbulent Times
- The Future of Mass Appraisal: Skill Sets and Training for Mass Appraisers
- Mass Appraisal: Valuation Concepts and Applications
To request an MPAC speaker at an upcoming event please contact us at industry@mpac.ca.
|
|
Know someone who would be interested in receiving this newsletter?
|
|
|
|
|
|
|
