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Capitalization rate of 6.6% approved for industrial mall property tax assessments in Halton and Peel.
The Appellants appealed the property tax assessments of industrial malls in Halton and Peel Regions for the 2013 to 2016 taxation years.
The central issue was the appropriate capitalization rate to apply to the net operating income of the properties.
MPAC had originally used a 7% capitalization rate but revised it to 6.6% for appealed properties after reducing fair market rents.
The Appellants argued the 6.6% rate was incorrect and inequitable compared to unappealed properties that remained at 7%.
The Assessment Review Board accepted MPAC's expert evidence supporting the 6.6% rate, finding that equity applies to the final assessed value rather than individual valuation components.
The Board concluded the 6.6% capitalization rate produced correct and equitable current values.
No co-appearing lawyers found.
No judges found.
