Property tax estimator

[coronaCRASH]

Does anyone know does City of Ottawa use purchase price lists from builders or do they use a lower assessment value?
My buddy just purchased a 900K new build ready for early 2022 occupancy & thinks he'll only pay 6K annual prop taxes as per sales peeps in the office.

[HomeDream]

Originally Posted by coronaCRASH

Does anyone know does City of Ottawa use purchase price lists from builders or do they use a lower assessment value?
My buddy just purchased a 900K new build ready for early 2022 occupancy & thinks he'll only pay 6K annual prop taxes as per sales peeps in the office.

In 2019, When I signed with Mattamy they told us that we will pay 1.1% of the purchase price. We did not close yet so I don't know yet if this is true or not.

[HMBTUX]

Originally Posted by coronaCRASH

Does anyone know does City of Ottawa use purchase price lists from builders or do they use a lower assessment value?
My buddy just purchased a 900K new build ready for early 2022 occupancy & thinks he'll only pay 6K annual prop taxes as per sales peeps in the office.

I could be wrong but I would imagine they attempt to mimic the correlation between recent sales values and MPAC assessed value in the re-sale market. Most re-sale homes going for 900K currently are assessed for closer to 650K. So ya not too much more than $6,000 per year using that method (slightly more).

The other option would of course just be to plug in the purchase price as it is clearly the best objective indicator of fair market value, but then you are essentially penalizing "new build" home owners since MPAC only updates assessments every 5 years, and the assessed values traditionally trail FMV by at least 10% and as we see now upwards of 40% even. If this was a thing than they would probably just do this with re-sale homes as well.

[BrianT]

Originally Posted by HomeDream

In 2019, When I signed with Mattamy they told us that we will pay 1.1% of the purchase price. We did not close yet so I don't know yet if this is true or not.

Based on my MPAC assessment from 2016 and 1.1%, my property tax is pretty much bang on.

You can log into their website and look up MPAC assessments of other houses and maybe find one close by for reference.

https://aboutmyproperty.ca/

[OttawaC]

As it is a new build, when he closes he will be contacted by MPAC for a home inspection to determine the value for tax purposes. Based on my own experience buying pre-construction, there is little chance that someone buying a $900k home on a PA will pay only $6000 a year in property tax.