Assessment an 'unfair system'

2006-10-19 / Mailbox

Property taxation: Mr. Robert Shapton's letter printed in the Orangeville Citizen's 5th October edition clearly and accurately describes the inequities and glaring flaws in the current system and the miserable failure of MPAC to conduct its mandate with due consideration for the damage to lives that has resulted and continues to do so. This unfair system has been

reviewed by the Ombudsman's office and about 20 recommendations were submitted top the Legislature for debate and presumably action.

The Legislature kicked around the issue for a short period each party spewing it verbal diarrhea designed to appease the angered electorate but so far, little of substance has resulted that will ease the burden of property taxation based upon the "current value" system.

What is "current value"? It is the inflated cost of property in the market place which is a reflection of need and demand and the sliding value of the purchasing power of the dollar. Property owners are the victims of MPAC evaluation techniques and the rising inflationary cost of property ownership. This does not explain the increasing taxation of properties that are not on the market which amounts to the taxing of unrealized capital gains.

The result of this license to exploit people who do not have the necessary wealth to survive the continuous tax increases (pensioners and handicapped) is loss of the family home. If the home commands a price that matches that of similar properties sold in the area. the profit realized cannot be considered a capital gain because to find a replacement property the displaced individual would have to pay the market price plus real estate fees, land transfer taxes and legal fees. The system must be completely revised to ensure fairness and equality.

This writer is the victim of this rotten system: His 13 acres of marginal sandy soil are classified farmland and its assessed value rose from a ridiculous $14,000 in 2004 to the present $55,000. This is unmarketable land because it is part of a zoned estate property, and who in his right mind would pay the assessed price for farmland that cannot produce the assessed dollar value?

Property taxes should be based primarily on services available and consumed. If a home has paved roads, street lighting, water and sewer, then the consumers of these services should be assessed accordingly. If the home depends on well water and a septic system, both costly to install and maintain, the assessed value should recognize this and a fair adjustment in value applied. Failing that, the income tax returns should provide a deduction for such ongoing costs.

Probably Mr. Shapton's letter will receive about as much attention from our MPPs as will this one. None!

Ken Hayward

Mono Consistency needed

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