Information Bulletin
Bulletin d'information

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Ministry of Revenue Queen's Park Toronto ON M7A 1Y7

Ministère des Finances Queen's Park Toronto ON M7A 1Y7

PROPERTY TAX RELIEF FOR RESIDENCES THAT ARE BUILT OR MODIFIED TO ACCOMMODATE SENIORS OR PERSONS WITH DISABILITIES

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Property owners who build or modify a residence to accommodate a senior or a person with a disability may be eligible for property tax relief.

This bulletin describes the nature and amount of property tax relief that is available, the circumstances when a property will be eligible for relief, and the procedures to apply for relief.

NATURE AND AMOUNT OF TAX RELIEF

Where an existing home is renovated through alterations or additions to the premises to accommodate a senior or a person with a disability, the value of the "alteration, improvement or addition" is exempt from property taxation.

• An example of an alteration would be the construction of ramps.
• An example of an addition would be a new room (sometimes called a "granny flat").

Where a new home is built to accommodate a senior or a person with a disability, 10% of the assessed value of the home is exempt from property taxation.

PROPERTY THAT IS ELIGIBLE FOR TAX RELIEF

To be eligible for an exemption from taxation for the portion of a property as described above, all of the following criteria must be met:

APPLYING FOR TAX RELIEF

Annual Notification:

• The alteration of an existing home or the construction of a new home must be for the purpose of providing accommodation or improved facilities for a senior (aged 65 or older) or a person with a disability.
  
• The senior or person must have required care in an institution if it had not been for the provision of the accommodation in the renovated or new home.
  
• The senior or disabled person must reside in the home as his/her principal residence.
  
• The property must be in the residential property class and must not contain more than three residential units (e.g. a six-plex would not be eligible)
  
• The property owner must not be in the business of offering care to senior or disabled persons (e.g. a nursing home would not be eligible).

Property owners who believe their home is eligible for tax relief under this program should notify their local office of the Municipal Property Assessment Corporation (MPAC) about the renovation or construction on their premises prior to the preparation of the assessment roll for the year.

• Assessment notices for a tax year are issued in November of the prior year, so it would be advisable to contact your local MPAC office by October of the year preceding the tax year to ensure that exempt status can be reflected on the assessment roll.

MPAC staff may ask the property owner to fill out a form to certify the reason for the modifications to the premises and to confirm that the senior or disabled person resides in the home as his/her principal residence. MPAC must be satisfied that the property meets the legislated eligibility criteria before conferring exempt status to the relevant portion of the property.

Special Application for 2001 for Custom-Built Homes:

The 2001 tax year is a special year because it is the first year that newly-built homes became eligible for tax relief under this program. (Prior to 2001, tax relief was only available to property owners who renovated existing homes to accommodate a senior or person with a disability. Starting in 2001, tax relief is being made available to homeowners who build new homes to accommodate a senior or person with a disability.)

Property owners who have built a new home to accommodate a senior or person with a disability and who believe they are eligible for a partial property tax exemption should submit one of the following applications for 2001:

• Application to MPAC: A "request for reconsideration" could be submitted to your local MPAC office. In this application, the property owner asks MPAC to reconsider and adjust the assessment or tax classification of a property after the delivery of the assessment roll. The authority for this request is found in section 39.1 of the Assessment Act. The deadline for submitting a request for reconsideration for the 2001 tax year is December 31, 2001. There is no charge for submitting this request.
  

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• Application to Municipality: An application may be made to your local municipality seeking a "cancellation, reduction or refund of taxes". This application would be made under the authority of section 442 of the Municipal Act which permits tax adjustments to be made in respect of property that became exempt from taxation after the delivery of the assessment roll. The deadline for submitting this type of application for the 2001 tax year is February 28, 2002. There is no charge for submitting this application.

FURTHER INFORMATION

Municipal Property Assessment Corporation:

For additional information about the process for submitting applications for tax relief in respect of homes that have been built or renovated to accommodate a senior or disabled person, please contact your local office of the Municipal Property Assessment Corporation (MPAC).

Internet: Addresses and phone numbers for MPAC offices may be obtained from the internet at: www.mpac.ca

Phone: You may call MPAC toll-free at 1-866-296-OPAC (6722).

Ministry of Finance:

For general information about this tax relief program, you may also contact the Ministry of Finance.

Phone:

English: 1 800 263-7965
Français: 1 800 668-5821
Teletypewriter (TTY): 1 800 263-7776

Web Site:

English: www.fin.gov.on.ca/english/index.html
Français: www.fin.gov.on.ca/french/index.html

Note: The information in this document is provided for general reference purposes only. For complete information or for precise interpretation, please refer to section 3(1)22 of the Assessment Act and Ontario Regulation 278/01.

For more information visit www.fin.gov.on.ca