Ontario’s Action Plan: Responsding to COVID-19
March 25, 2020
Today, Finance Minister Rod Phillips released Ontario's Action Plan: Responding to COVID-19 (March 2020 Economic and Fiscal Update).
The government's action plan is a first step in its response to COVID-19 and includes $7 billion in additional resources for the health care system and direct support for people and jobs. It also will make available $10 billion in support for people and businesses through tax and other deferrals to improve their cash flow, protecting jobs and household budgets.
The government's plan also includes measures that will make available $10 billion in support for people and businesses through tax and other deferrals to improve their cash flows over the coming months, including:
School Board Remittances
Over $1.8 billion by deferring the upcoming school board remittances:
- June 30th due September 30th
- September 30th due December 15th
- December 15th due December 15
This provides municipalities the flexibility to, in turn, provide property tax deferrals to residents and businesses, while ensuring school boards continue to receive their funding.
Postponing Planned Property Tax Reassessment
The government is postponing the planned property tax reassessment for 2021.
This will ensure that municipal governments are able to focus their resources on critical public health initiatives and other efforts to manage the local response to the COVID‐19 outbreak. Postponing the reassessment will also provide stability for Ontario’s property taxpayers and municipalities.
Property taxation is based on the assessed value of properties and in Ontario those assessments are updated every four years. The next property valuation update, known as a reassessment, had been scheduled to be completed by the Municipal Property Assessment Corporation (MPAC) in 2020 for the 2021 taxation year. As a result, MPAC would have issued new assessments for more than five million properties beginning this spring.
However, in view of the unique and unforeseen challenges that all municipalities, residents, and businesses are facing during 2020, the government is postponing the reassessment. This means that assessments for the 2021 taxation year will continue to be based on the same valuation date that was in effect for the 2020 taxation year.
This measure will not have a financial impact on municipalities, because MPAC will continue to maintain the assessment roll and ensure that it is updated to reflect changes such as new construction.
This postponement will also provide an opportunity to better reflect the advice received through the Property Assessment and Taxation Review that is currently underway. Through this review, the government is seeking stakeholder input to explore opportunities to support a competitive business environment and enhance the accuracy and stability of property assessments. The feedback received during this review will help to inform the development of policies for the next reassessment.