The type of property you own decides two things at MPAC before your tax bill is even calculated: which tax class it sits in, and which method MPAC uses to arrive at its assessed value.
Ontario’s assessment system does not treat all commercial and industrial property the same way. Tax classes such as commercial, industrial, large industrial, multi-residential, new multi-residential, shopping centre, office building, and the vacant and excess land subclasses each carry a different tax rate set by the local municipality. Two buildings worth the same amount can end up with different tax bills simply because they are classified differently.
The valuation method matters just as much. For property that is typically leased, such as a plaza, an office building, an industrial building or an apartment building, MPAC generally works from the income approach: the rent the space could earn, an allowance for vacancy, the operating expenses, and a capitalization rate. For property that rarely trades or rents on the open market, MPAC leans more on the cost approach, building up a value from replacement cost, depreciation and land value. Getting the wrong method, or the right method with the wrong inputs, applied to your property is one of the most common reasons an assessment does not match reality.
Property types we work with
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Industrial
Warehouses, distribution centres, manufacturing plants and flex buildings, and the subclasses that apply to them.
Retail and plazas
Neighbourhood plazas, grocery-anchored centres and standalone retail buildings.
Office
Office buildings and the income approach MPAC applies to rent, vacancy and lease-up.
Multi-residential
Apartment buildings of seven units or more. Not condominium units or houses.
Special purpose
Hotels, long-term care, gas stations, golf courses and other properties MPAC values with the cost approach.