Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE: March 23, 2020
Assessed Person(s): Monaliza Tejano
Appellant(s): Istvan Somody
Respondent(s): Municipal Property Assessment Corporation ("MPAC") Region 09
Respondent(s): City of Toronto
Property Location(s): 1174 Kipling Avenue
Municipality(ies): City of Toronto
Roll Number(s): 1919-036-070-05150-0000
Appeal Number(s): 3381156
Taxation Year(s): 2019
Hearing Event No. 727767
Legislative Authority: Section 40 of the Assessment Act, R.S.O. 1990, c. A.31, as amended
APPEARANCES:
| Parties | Representative |
|---|---|
| Monaliza Tejano and Istvan Somody | Robert Baranowski |
| MPAC | Elena Martinez |
| City of Toronto | No one appeared |
HEARD: January 13, 2020 by telephone conference call
ADJUDICATOR(S): Jennifer Griffith, Member
DECISION
Background
1Monaliza Tejano is the owner of 1174 Kipling Avenue (the "Subject Property"), which is in the City of Toronto.
2Pursuant to the provisions of the Assessment Act, R.S.O. 1990, c. A.31 (the "Act"), the assessment of land shall be based on its current value. The Act also provides that, for the 2017 to 2020 taxation years, MPAC is required to assess this value as of the valuation date, January 1, 2016 ("current value").
3MPAC has assessed the current value of the Subject Property at $685,000 for the 2019 taxation year.
4The Appellant has filed an appeal for 2019 taxation year with the Assessment Review Board (the "Board"), pursuant to s. 40 of the Act. It is the Appellant's position that MPAC's assessment of current value is too high and that the correct current value is $625,000. At this hearing, MPAC takes the position that its correct current value should be confirmed at $651,000.
5Pursuant to s. 40(11) of the Act, the City of Toronto is a party to this proceeding. However, no one appeared at the hearing on its behalf.
6Section 44(3)(b) of the Act, directs the Board to reduce the current value of the Subject Property if similar lands in the vicinity have been assessed at a lower value ("equitable reduction"). The purpose of this provision is to fairly distribute the municipal tax burden according to the value of the property possessed by each ratepayer. MPAC takes the position that an equitable reduction is not required. The Appellant asserts no position on equity. Therefore, the requirement for an equitable reduction is not at issue at this hearing.
7At the completion of the hearing, the Board reserved its decision. Based on the following evidence, the Board finds that the current value for the 2019 taxation year is $626,000. Therefore, the Board reduces the returned assessment from $685,000 to $626,000 for the 2019 taxation year.
8Pursuant to s. 44 (3)(b) of the Act, an equitable reduction of this value is not required.
Issues
9The issue(s) to be determined on this appeal is:
What is the correct current value of the Subject Property for the 2019 taxation year?
ANALYSIS
Description of the Subject Property
10The Subject Property is described as a one storey, single family detached dwelling, located at 1174 Kipling Avenue, in the City of Toronto. The Subject Property was built in 1949, with a total building area of 1,082 square feet ("sq. ft."), and a total lot size of 0.11 acres.
MPAC's Evidence
11Elena Martinez represents MPAC. Ms. Martinez presents a Valuation Report, dated September 13, 2019 ("Valuation Report") which she prepared and testifies to the information contained in the report.
12Ms. Martinez testifies that she visited the Subject Property on September 16, 2019 and confirmed that MPAC's data on the Subject Property was correct based on an external inspection which occurred on that same day.
13In support of current value, Ms. Martinez presents a sales analysis of six suggested comparable properties sold in 2015 and 2016 in the homogeneous areas identified as (A54, A56 and A82) noting that the Subject Property is in A54. Ms. Martinez states that these six suggested comparable properties include properties that are similar, superior and inferior to the Subject Property.
14These suggested comparable properties are located at 3981A Bloor Street West, sold in 2015 at a time-adjusted sale price of $678,070; 1171 Kipling Avenue, sold in 2016 at a time-adjusted sale price of $910,034; 1179 Kipling Avenue, sold in 2016 at a time-adjusted sale price of $725,708; 133 Rathburn Road, sold in 2015 at a time-adjusted sale price of $678,070; 1272 Kipling Avenue, sold in 2015 at a time-adjusted sale price of $705,872; and 1188 Islington Avenue, sold in 2015 at a time-adjusted sale price of $633,722.
15Ms. Martinez testifies that the analysis of these six suggested comparable properties shows that the lot size ranges from 0.09 to 0.14 acre; year built from 1945 to 1956; total building area range from 835 to 1,412 sq. ft; quality rating 6; and time-adjusted sale price ranges from $633,722 to $910,034. This is compared to the Subject Property with a total building area of 1,082 sq. ft.; lot size of 0.11 acre; quality rating 6; year built 1949; and assessed at $685,000.
16Ms. Martinez further testifies that the time-adjusted sales reflect a mean sale price of $620 per sq. ft. and a median sale price of $605 per sq. ft. based on total building area. She testifies that when the mean sale price is applied to the Subject Property it results in a value of $670,000 rounded ($620 x 1,082 sq. ft.); and the median sale price results in a value of $651,000 rounded ($602 x 1,082 sq. ft.).
Based on this analysis, Ms. Martinez is of the view that the current value should be $651,000.
17On cross-examination, Ms. Martinez submits that the most similar properties to the Subject Property are the four suggested comparable properties located at 3981A Bloor Street West; 1179 Kipling Avenue; 133 Rathburn Road; and 1272 Kipling Avenue. Ms. Martinez further states that these four sales have an average sale price of $579 per sq. ft. based on total building area and when applied to the Subject Property it results in a value of $626,000 rounded ($579 x 1,082 sq. ft.).
MPAC's Submissions
18Relying on its evidence, Ms. Martinez argues that the correct current value for the Subject Property for the 2019 taxation year 2019 is $651,000.
19Ms. Martinez opposes the Appellant's request to have the correct current value applied to the 2017 and 2018 taxation years which are not subject to this appeal.
Appellant's Evidence
20Robert Baranowski represents the Appellant.
21In support of his argument that the returned assessment of $685,000 is too high for the Subject Property, Mr. Baranowski presents three suggested comparable properties at 1197 Kipling Avenue, sold in 2015 for $680,000; 1179 Kipling Avenue, sold in 2016 for $730,000; and 52 Burrows Avenue, sold in 2015 for $730,000. However, Mr. Baranowski submits that he is only relying on the sale at 1179 Kipling Avenue (which was also presented by MPAC).
22Based on the suggested comparable properties presented by MPAC and identified as similar to the Subject Property, Mr. Baranowski is of the view that the current value should be $626,000.
Appellant's Submissions
23Relying on his evidence, the Appellant submits that the correct current value for taxation year 2019 is $626,000.
24The Appellant also argues that the correct current value should be applied to the 2017 and 2018 taxation years pursuant to s. 44(1) and s. 45 of the Act even though this issue was not raised in evidence. The Appellant argues that it would make no sense for the 2017 and 2018 current value to be different than the current value determined for the 2019 taxation year, because these taxation years are within the same assessment cycle.
Findings on Current Value
25Under s. 44 (3)(a) of the Act, the Board must first determine "the current value of the land." The best evidence the Board can receive of current value is an arm's length and market-tested sale of the property on the valuation date or close to it.
26Based on the evidence presented, the Board finds that MPAC presents the best evidence of current value with the four suggested comparable properties located at 3981A Bloor Street West; 1179 Kipling Avenue; 133 Rathburn Road; and 1272 Kipling Avenue. These four sales have an average a total lot size of 0.13 acre; total building area of 1,204 sq. ft.; same quality; year built 1954; and a sale price of $579 per sq. ft. based on total building area. This is compared to the Subject Property with a lot size of 0.11 acre; total building area of 1,082 sq. ft.; quality rating 6; year built 1949; and assessed at $685,000. The Board finds that these four comparable properties are similar to the Subject Property and when the sale price per sq. ft. is applied to the Subject Property it results in a current value of $626,000 rounded ($579 x 1,082 sq. ft.).
27The Board notes that the Appellant only presented one sale at 1179 Kipling Avenue, which was also presented by MPAC and is considered in the above analysis for current value.
28Regarding the Appellant's request to apply the correct current value to the 2017 and 2018 taxation year pursuant to s. 44(1) and s. 45, the Board finds that it has no jurisdiction to reopen the assessments for the 2017 and 2018 taxations, because no appeals were filed with the Board for these two taxation years. Section 36 of the Act confirms that assessments are made annually, and s.40(5) of the Act confirms the deadline date for filing an appeal for a taxation year. The Act makes no provision for retroactive application of an appeal to previous taxation years.
29Based on the evidence, the Board finds the correct current value of the Subject Property is $626,000.
ORDER
30The correct current value of the Subject Property is $626,000. Therefore, the Board reduces the returned assessment from $685,000 to $626,000 for the 2019 taxation year.
"Jennifer Griffith"
JENNIFER GRIFFITH MEMBER Assessment Review Board
A constituent tribunal of Tribunals Ontario - Environment and Land Division Website: www.elto.gov.on.ca Telephone: 416-212-6349 Toll Free: 1-866-448-2248