All residential condominium corporations that have guest suites, gatehouse units, recreational units, service units, or other units that are owned by the Corporation should be checking the property tax assessments for these units to ensure that there has been no double taxation.
The amenity units owned by the Corporation are assets of the condominium corporation. As set out in Section 18(2) of the Condominium Act the owners share the assets of the condominium in the same proportions as their common interest proportions set out in the declaration.
In the past the Municipal Property Assessment Corporation ("MPAC") was separately assessing a value to these amenity units owned by the condominium corporation, with the result that property taxes were assessed against the amenity units. Since the assessed value of each of the residential units (which is based on market sales) already includes the value attributable to each unit's proportionate common interest in the common amenities, condominium corporations have taken the position that this has resulted in double taxation.
There have been recent decisions in court and at the Assessment Review Board that were favorable to condominium corporations on this issue. As a result it is anticipated that MPAC will be changing the way it is assessing the amenity units.
Condominium corporations should be carefully reviewing the assessments of their amenity units. If the assessed value of these units is greater than a nominal amount, you should consider filing a Request for Reconsideration. There is no no fee to do so, but it must be done prior to March 31, 2012. No extensions are allowed. The Request for Reconsideration, which can be done on-line, should include the property's roll number set out in the assessment as well as reasons for the request.
Unit owners who see a significant increase in their unit assessments should also be filing a Request for Reconsideration.
MPAC will respond to the Request for Reconsideration. If MPAC does not change the assessment then an appeal to the Assessment Review Board can be made. An appeal to the Assessment Review Board will be much more complex and will require the expertise of a property tax professional.
Additional information can be obtained at MPAC's website.