What is a Supplementary Tax Bill?
A. A supplementary tax bill may be issued as we receive information that changes the assessed value or the tax class of a property. An example would be the completed building of a new home. The taxes billed prior to the building of the home are generally for the land only. When we are advised by MPAC, a supplementary tax bill will be created to reflect the amount of taxes for the “new residential unit” portion of the property. A supplementary tax bill is usually due in one instalment.
This is an additional bill issued by the Municipality, which reflects the increase in the value of your property as a result of improvements. Usually, owners of new homes are initially assessed on the basis of the value of the land only. Keep in mind that a new homeowner is responsible for the full amount of taxes as determined by the appropriate agency. Please also bear in mind that it may take a while before the assessment is made. It is best to check with the municipality s tax agency regarding this matter.
The City issues supplementary tax bills when MPAC has reassessed a property based on additions or improvements that increase its market value or when MPAC has fully assessed a new building. In the case of a newly constructed home, there is a considerable delay between the occupancy dates and when the City receives the assessment information from MPAC. Until this information is received, the City cannot issue a full tax bill. Once the assessment information becomes available, a supplementary bill is issued, which bills the owner back to the date they took possession of the property, for the house portion of the taxes. Bills received prior to the supplementary billing are usually smaller and represent land only. If a property owner receives a supplementary billing and they did not own the home during this time, the bill should be forwarded to his/her lawyer to arrange for payment.
