Your Taxes = Your Assessment Value * Total Tax Rate Multiplier

Your taxes are comprised of the market assessment value of your property multiplied by the total tax rate multiplier for your property class.

Your Taxes = Your Assessment Value * Total Tax Rate Multiplier

Your assessment value is assigned by MPAC (Municipal Property Assessment Corporation).  It is referred to as the current value assessment (CVA) and is based on the current market value of your property.  The current market value is determined by applying a formula against a database of properties of similar nature to yours within your region.

 

Your Taxes = Your Assessment Value * Total Tax Rate Multiplier

The total tax rate for your property class is computed by adding the three tax rates (municipal, county and education) applicable to your class.  Each of those tax rates are computed by dividing their corresponding revenue requirement by the total assessment values of all properties in the township weighted by their property class (see Total Assessment Values below).

Example in 2003: 

A property classed as residential with an assessed value of $100,000 would pay $1,607.93.
$1,607.93 = $100,000 * 0.01607935
 

Municipal	$942.94	*58.6%
County	$329.99	*20.5%
Education	$335.00	*20.8%
Total	$1,607.93	*100%
*Percentages are rounded to nearest decimal place.

Central Frontenac does not have any Industrial Assessment, except for an Ontario Hydro property which is assessed as a payment in lieu property and is not part of the tax rate calculation, but is part of the other revenues used to arrive at net expenditures for calculation of the tax rate.

Commercial and Industrial assessed property's taxes are calculated using "tax capping" as required by provincial law.  Also Commercial and Industrial properties can apply for a property tax rebate, using the application form, if buildings have been vacant and meet criteria.  In addition to the tax ratio, "Capping Legislation" affects these properties and the tax bill they receive will have a capping adjustment.  These properties cannot use the standard tax formula (Your Assessment Value * Total Tax Rate Multiplier) to calculate their taxes.

Unlike some other municipalities, commercial and industrial properties in Central Frontenac DO NOT contribute to the municipal or county coffers at a higher rate than residential properties.

A typical farm would have two portions to their assessment an RT and FT portion.  Typically the house and 1 acre is classed (and therefore assessed) as RT (Residential) and the remaining lands, etc. are classed (and therefore assessed) as FT (Farmland).

Municipal Budget

The municipal budget is comprised of three portions: municipal, county and education.  In Central Frontenac the county portion is managed by the Frontenac Management Board (F.M.B.).  In 2003 the portions were municipal (58.6%), county (20.5%) and education (20.8%).

The municipal portion is set and controlled by the municipal council.  The county is set and controlled by the F.M.B.  The education portion is set by the province.

All revenues for a municipality are not limited to those collected via property taxes.  A municipality may have other revenues such as, but not limited to, user fees, payments (as in the Ontario Hydro payment) and other transfers.  The dollar value that used for taxation calculation is the net expenditures left from the over-all budgetary requirements less other revenues.

Total Assessment Values

The total assessment values for the township are comprised of all of the properties multiplied by a tax ratio related to the class of each property.  The tax ratio correlates directly with the associated tax rate multiplier (as in the property class table above you see Residential (RT) has a tax rate multiplier of 0.01607935 and a tax ratio of 1.00 while Farmland (FT) has a tax rate multiplier of 0.00401984 and a tax ratio of 0.25 since FT tax rate multiplier is 1/4 of the RT tax rate multiplier).

Examples in 2003: 

A residential property with a market assessment value of $100,000 would be counted at $100,000 towards the total assessment value of the township because residential properties (RT) have a tax ratio of 1.00. 

A farm with a market assessment value of $100,000 for the farm and $100,000 for the farm house would be taxed at rate which is 100% of the residential rate for the farm house and 25% of the residential rate for the rest of the farm since farms (FT) have a tax ratio of 0.25.  In this case the net assessment value would be $125,000.

Tax ratios for Central Frontenac are established by by-law at the upper tier (Frontenac County).  In 1998 the ratio for Commercial, Industrial and Multi Residential (Central Frontenac only has 1 MT property) was moved to 1 and is therefore the factor used instead of the default provincial factor of 2.278.  This means that except for the Education rate the tax rate multiplier for Township and County purposes for these properties are treated the same as Residential.