The Auditor General’s 2014 Audit Work Plan included an audit of Property Tax Billing and Collection processes. The overall objective of this review was to assess the efficiency and effectiveness of processes in place to bill and collect property taxes. The review of collections was limited to the collection of Payment in Lieu of Taxes (PILTs) for government properties.
Property tax assessments are based on property assessment values provided by the Municipal Property Assessment Corporation (MPAC). MPAC is legislatively authorized to assess properties in Ontario. As the single largest municipality, the City of Toronto pays approximately $40 million annually to MPAC for services provided. Our review did not include an assessment of the quality of services provided by MPAC.
However, based on our review of property tax assessments and the related appeal process, City efforts to coordinate with MPAC should be strengthened. As well, review and follow-up on services provided by MPAC could be improved.
In 2010, the Ontario Auditor General’s review of MPAC operations raised similar concerns regarding valuation of properties, and more recently the Province of Ontario has raised similar concerns. The Ontario Auditor General’s report and Globe and Mail article on MPAC valuations of certain government properties are available at:
- http://www.auditor.on.ca/en/reports_en/en10/308en10.pdf
- http://www.theglobeandmail.com/news/national/ontario-aims-to-cash-in-on-torontoproperty-assessment-rebates/article26556045/.
The report contains 15 recommendations. The implementation of recommendations contained in this report will improve controls over the administration and review of property assessment data, evaluation and appeal of property assessments, and property tax billing and collection of outstanding payments.