2017-Feb-21
MPAC and Small Undevelopable Island Assessments
UPDATE – Feb 21st, 2017
Representatives from GBA met with officials from the Municipal Property Assessment Corporation (MPAC) to discuss our concerns with how MPAC assess small undevelopable islands. Attending from MPAC were senior managers as well as assessment modellers. We expressed our position that their current model for assessing small undevelopable islands is unfair and illogical. Under their current model the assessment on undevelopable islands of 1 acre and less is reduced by 90% but by only 50% on undevelopable islands between 1 and 2 acres and by nothing on larger undevelopable islands. We pointed out that some municipalities along the coast have regulations that preclude development on islands that are even larger than 2 acres. We stated that we feel strongly that all small undevelopable islands under the minimum size threshold for that location should be discounted by 90%, regardless of size, and thereby have relatively nominal assessed value. After much discussion there was agreement that their current model may not be defensible and should be reviewed. They made a commitment to us to: review all small islands that are zoned as undevelopable under the terms of the Municipal Official Plans to determine how many of these there are; determine what the impact would be if they apply a 90% discount across the board; and review the overall policy. If they do adjust their model it will not apply until 2018 on islands whose owners have not filed a Request for Approval (RfR) in the recent 2017 assessment window.
Once we hear back from MPAC to confirm what they propose to do about this situation we will post a further update.
