If you have recently bought a new home or made any additions or improvements to your property, remember to make allowance for a Supplementary Tax Bill in your budget plans.
You will receive a supplementary tax bill for one of the following reasons:
- New House/Building assessment
- Your house was recently built and when you purchased it, it was only assessed for vacant land; or
- You had some renovations/improvements done to your property that has increased its market value.
For the first 12 to 18 months after occupying a new home, property tax bills may cover the land only, not the building, until the Municipal Property Assessment Corporation (MPAC) is able to complete an assessment of the home. The land taxes often represent approximately one third (1/3RD) of the total tax bill, depending on the type of house. There may be a considerable delay from your occupancy (closing) date until you receive a tax bill that includes the house.
Once the property is assessed, the new homeowner will receive a "Property Assessment Notice". A Supplementary Tax Bill covering the building from the date of occupancy will follow. If your mortgage payment includes taxes, the Supplementary Tax Bill will be sent to the financial institution dealing with payments.
Residents Are Strongly Encouraged To Budget For This Billing.