Property taxes are calculated based on the assessment value of your home or business calculated by the Municipal Property Assessment Corporation (MPAC) and the tax levy needed to meet the required municipal expenditures for the year.

At the beginning of each year Council reviews the financial position of the municipality. They also review proposed projects combined with the community needs to determine the amount of revenues that must be generated to cover the expenses, as every municipality must have a balanced budget (revenues equal expenditures). Revenues are raised through user fees, planning fees, and service charges. The new Municipal Act, 2001 stipulates that most user fees must be cost recovery only. This leaves little room for a municipality to raise monies from sources other than property taxes. Therefore, property taxes are the main source of revenue for municipalities.

The total amount of tax revenue required is then divided by the total property assessments for the Municipality and thus a "tax rate" is determined. The rate is applied to the assessment value to come up with the current taxes for the ratepayer. For example, if a home is assessed at $100,000 and the tax rate is $.012003, the taxes for the year would be $100,000 x .012003 which equals $1,200.30.

If a homeowner feels his assessment is incorrect then he must submit a Request for Reconsideration to MPAC. MPAC will review the ratepayers concerns and then make the necessary adjustments to the value of the property. A copy of any adjustments is then forwarded to the Municipality and the appropriate changes made to the taxes if that particular year.

Request for Reconsideration Form http://www.mpac.ca/pag...nsideration.pdf

If you have any questions regarding your tax or utility account please feel free to contact the Treasurer at mlang@powassan.net