In Ontario, the Assessment Review Board (ARB) hears property assessment appeals to ensure that properties in Ontario are assessed and classified in accordance with the provisions of the Assessment Act. The Board also operates under multiple other legislative acts (including the Statutory Powers Procedure Act; Assessment Review Board Act; Adjudicative Tribunals Accountability, Governance and Appointments Act; Municipal Act; City of Toronto Act) and hears appeals on property tax matters.
The Board’s Authority
The Assessment Review Board is an independent adjudicative tribunal established under the Assessment Review Board Act. It hears appeals regarding property assessments, property classification, and municipal taxation.
Property assessments have been conducted in Ontario since 1793. In 1970, the province assumed the role of assessing property from municipalities and replaced the Courts of Revision with the Assessment Review Court (ARC). ARC was renamed the Assessment Review Board in 1983.
The ARB became Ontario’s only adjudicative tribunal for property assessment appeals after the enactment of the Fair Municipal Finance Act. The legislation ensured that the ARB was the final tribunal of appeal for property assessment appeals.
The ARB’s jurisdiction and authority are defined by the Assessment Review Board Act; the Assessment Act; the Municipal Act; the City of Toronto Act; the Provincial Land Tax Act; the Education Act; and the Statutory Powers Procedure Act.
The Board’s Work
The Government of Ontario, through the Ministry of Finance, sets the laws pertaining to property assessment (valuation) in Ontario. Municipalities, on the other hand, are responsible for setting tax rates and collecting property taxes. The Municipal Property Assessment Corporation (MPAC) is the body responsible for assessing and classifying all properties in Ontario. Municipalities use MPAC’s assessed value assigned to each property to calculate the property taxes (ad valorem) collectible from property owners within their jurisdictions. Property owners receive their Notices of Assessment from MPAC, indicating MPAC’s determined value of their property, and municipal tax bills are issued from municipalities.
The ARB is the sole source of administrative justice in this area. Disputes over property valuations regularly arise between property owners and MPAC. When such a dispute arises, the property owner can file a request for reconsideration (RfR) with MPAC or file an appeal with the ARB (Note: beginning with the 2009 tax year, amendments to the Assessment Act require owners of residential, farm, and conservation lands, and managed forests, to file a request for reconsideration (RfR) with MPAC before they can file an appeal). The ARB also hears disputes between property owners and municipalities over property taxes. For example, if the property underwent renovation rendering it unavailable for its normal use for at least 3 months, the property owner may argue for an adjustment to the property tax in the form of a cancellation, reduction, or refund.
The Board must resolve disputes impartially, fairly, and with respect for administrative law principles. Cases can resolve prior to a hearing through a settlement approved by the Board or proceed to an appeal hearing to be adjudicated on the merits. At the appeal hearing, Members of the Board (adjudicators i.e. decision-makers) preside to hear each party’s evidence and submissions. Upon hearing the evidence and submissions, the Board will render a decision. Decisions by the ARB are final and binding. The Board’s decisions are subject to the supervisory authority of the Divisional Court for Ontario which allows the parties to seek judicial review of the Board’s decisions, upon being granted leave.
Blog posts are not legal advice.
Fahd Ahmed | Lawyer 