To the relief of Co-ownership Buildings created after 1998 but before 2008, and the individual unit owners, the submission to the Ontario Ministry of Finance has been successful. A group of property tax experts consisting of David Fleet, Peter Milligan, and David Gibson were retained by the Coalition Co-ownership Corporations to appeal the re-classification of these buildings from the Residential Property Class to the Multi-Residential Property Class which was scheduled to become effective within the 2017 calendar year.
In 2015, MPAC applied a new assessment valuation calculation to the affected Co-ownership buildings which resulted in significantly higher assessed values and consequently higher property taxes. This resulted in numerous requests for reconsideration by the Coalition Co-ownership Corporations and MPAC changed the residential property tax classification for these buildings back to the original Residential Property Tax classification for the 2015, and 2016 years.
As a result of the submission by the consultants, MPAC has now agreed and changed the relevant regulations so that the subject buildings will no longer be treated for Tax assessment property purposes as Multi Residential Property Class, confirming and restoring the original classification of the Co-ownership units as Residential Property Class buildings. Therefore, all current buildings are now classified as residential property.
All Co-ownership unit owners no longer have to be concerned about a re-classification. This is a good victory for the Co-ownership unit owners! In my opinion, this should help result in increased prices for Co-ownership units.