On this week’s episode of Fiduciary Fridays Joe Gonzalez, Wainfleet Realtor breaks down the major questions about what are property taxes?
What Are Property Taxes?
First of all, property taxes are the amount of money you pay to your city to own your home or property. Two major components used to calculate your property taxes are; the home assessment and the tax rate (also called mill rate) in the city your property is located in. Multiplied together, these two values will dictate the amount of taxes you will pay on your property. Interested in finding out what the taxes are on a property you are interested in? Click here and ask Joe!
Who Calculates Property Taxes?
In the Niagara Region, The Municipal Property Assessment Corporation (MPAC) calculates the property taxes.
How Does MPAC Calculate Property Taxes?
MPAC uses 5 major components to calculate 85% of the value of your home.
- Location- The city in which your home is located in the Niagara Region. Also relevant, the location within the city that your property is located.
- Amount Of Living Area In Your Home- This includes square footage of all upper levels and any finished rooms on lower levels, such as a finished basement.
- Age Of The Home- How old your home is. If the home is newer, the value is higher, therefore taxes tend to me more.
- Lot Size- A larger lot adds to the overall value of the property, as a result, the taxes can be higher, while a smaller lot may have lower taxes.
- Quality Of Construction Of Your Home- Looked at are land title documents as well as building permits and often conducted are on-site property inspections to ensure the most up-to-date and accurate information on your property.
When Are Property Taxes Calculated?
Finally, in the city which you live, taxes change on a yearly basis, and typically go up. Assessments are done by MPAC every four years. There is a four year phase in period where your taxes are either lowered, raised or remain the same. To find out what you should be paying in taxes, click here.