Tribunals Ontario

Assessment Review Board

Commission de révision de l'évaluation foncière

ISSUE DATE: June 28, 2022

FILE NO.: WR 179842

Assessed Person(s): Chris Chung-Hua Chen

Appellant(s): Chris Chung-Hua Chen

Respondent(s): Municipal Property Assessment Corporation Region 9

Respondent(s): City of Toronto

Property Location(s): 85 Dawlish Avenue

Municipality(ies): City of Toronto

Roll Number(s): 1904-104-490-01900-0000

Appeal Number(s): 3464780 and 3486862

Taxation Year(s): 2021 and 2022

Hearing Event No.: 765268

Legislative Authority: Section 40 of the Assessment Act, R.S.O. 1990, c. A.31

APPEARANCES:

Parties	Representative
Chris Chung-Hua Chen	Surin Toor
Municipal Property Assessment Corporation	Jessie Yu
City of Toronto	No one appeared

HEARD: June 10, 2022 by telephone conference call

ADJUDICATOR(S): Dan Weagant, Member

DECISION

OVERVIEW

1For the 2021 taxation year, the Municipal Property Assessment Corporation ("MPAC") returned an assessment of $4,098,000 on the subject property at 85 Dawlish Avenue in the City of Toronto ("subject property"). Chris Chung-Hua Chen (the "Appellant") believed this returned assessment was too high and filed an appeal under s. 40 of the Assessment Act R.S.O. 1990, c. A.31("Act"). Pursuant to s. 40(26) of the Act, the Appellant is deemed to have brought the same appeal in respect of the 2022 taxation year.

2. The Appellant believes the current value of the subject property is $4,037,000, with a reduction in that value to make the assessment of the subject property equitable with the assessments of similar lands in the vicinity. The Appellant believes this reduced, equitable assessment is $3,601,000.

3In preparation for the hearing, MPAC amended the returned value to an opinion of current value to $4,593,000. It too reduced that value for the purposes of equitable assessment. MPAC's resulting opinion of equitable assessment is $4,179,640.

Issues for the Hearing

4At issue in this proceeding is:

1. A determination of the current value of the subject property; and
2. Whether an equity reduction in the current value determined should be made for it to reflect equitable assessment when reference is made to the assessments of similar lands in the vicinity?

Result

5The Assessment Review Board ("Board") finds that the current value of the subject property is $4,604,000 for the 2021 and 2022 taxation years.

6After making a reduction in the current value for the purposes of equitable assessment, the Board determined a value of $4,143,600. The current value assessment ("CVA") returned for the subject property is $4,098,000. The resulting finding of the Board is approximately 1.1% higher than the value returned on the roll. This is strong evidence that the CVA returned, on a balance of probabilities, is correct. The returned assessment is confirmed.

ANALYSIS

Description of Subject Property

7The subject property is a single-family dwelling located in a neighbourhood known as Lawrence Park in the City of Toronto. It has 4,264 square feet of living area on two storeys. It also has a partially finished basement and an attached garage.

8MPAC has applied a quality of construction ranking of 9.0. The subject dwelling was constructed on the subject 0.18-acre lot in 2012.

Issue 1 – What is the current value of the subject property?

MPAC's Case

9MPAC selected 13 properties in the same neighbourhood as the subject property to determine its current value. Each of these 13 properties sold within the range of January 2015 and November 2016. The time-adjusted sale ("TAS") prices range from $3,773,000 to $5,406,000. All 13 proposed comparable properties have a lot size of 50 feet by 150 feet. The subject property's lot is slightly larger at 50 feet by 160 feet.

10The effective year built of MPAC's sample ranges from 2007 to 2016. Two of the 13 properties have an outdoor, in-ground pool, like the subject property.

11MPAC took the TAS values of the 13 properties and dived them by their respective square footage of living area to arrive at a value per square foot for each. Those per square foot values range from $935 to $1,173. The median per square foot value of $1,077.16 was selected by MPAC as the best indicator of the current value of the subject property. When that value is applied to the 4,264 square feet of the subject property, the result is $4,593,012.

12By this approach, MPAC's opinion of the current value of the subject property is $4,593,000.

Appellant's Case

13The Appellant took the same approach as MPAC but selected four properties to create a range of value for the subject property. The Appellant selected three properties common to MPAC's list and one other not represented by MPAC's selection.

14The Appellant's sample has sale dates ranging from April 2015 through November 2016. The TAS values of those four sales were range from $3,197,000 to $4,513,000, with TAS values ranging from $891.29 to $1,006.17 per square foot.

15By applying the average of those four TAS values per square foot of $946.86 to the 4,264 square feet of living area at the subject property, the Appellant arrived at an opinion of current value of $4,037,408.

Findings on Issue 1

16Both parties elected to apply a time-adjusted sale value per square foot of the subject property, based on the sales of comparable properties in the same neighbourhood.

17A total of 14 comparable properties were in evidence. Four were adduced by the Appellant and 13 by MPAC. Three of the 14 were common to both parties.

18The Board disregards five of these proposed comparable properties, as follows:

• MPAC No. 1: 51 St. Leonard's Avenue has 2 ¼-storeys whereas the subject property is a two-storey dwelling;
• MPAC No. 3 / Appellant No. 1: 118 Dawlish Avenue has 2 ¼-storeys whereas the subject property is a two-storey dwelling;
• MPAC No. 4: 162 Dawlish Avenue has a quality of construction rating of 8.5 whereas the quality of construction rating of the subject property is 9.0;
• MPAC No. 5 / Appellant No. 3: 153 St. Leonard's Avenue has a quality of construction rating of 8.5 whereas the subject property has a quality of construction rating of 9.0;
• Appellant No. 4: 128 St. Leonard's Avenue has a quality of construction rating of 8.5 whereas the subject property has a quality of construction rating of 9.0. This property also has a smaller dwelling than the subject property, with 3,587 square feet of living area whereas the subject property has 4,264 square feet of living area and is a 2 ½-storey dwelling, whereas the subject property is a two-storey dwelling.

19The remaining nine proposed comparable properties all have a similar lot size and have a quality of construction rating of 9.0. and an effective year built within seven years of the effective year built of the subject property. The comparable attributes of these nine properties are summarized in Table A.

Table A

	Living Area (Square feet)	Time adjusted Sale price (rounded)	TAS price / square foot	2016 Current Value Assessment
Subject Property	4,264	N/A		$4.098
MPAC No. 2 – 19 St. Leonard's Avenue	4,015	$4.497 mil	$1,125	$3.901
MPAC No. 6 – 153 St. Leonard's Avenue	4,499	$5.276 mil	$1,173 ($1,158 net of pool value)	$4.232
MPAC No. 7 – 205 St. Leonard's Avenue	4,327	$4.808 mil	$1,111	$4.480
MPAC No. 8 – 248 Dawlish Avenue	4,694	$5.406 mil	$1,152	$4.479
MPAC No. 9 – 135 Rochester Avenue	4,637	$5.099 mil	$1,100	$4.377
MPAC No. 10 – 137 Buckingham Avenue	4,448	$4.432 mil	$996	$4.328
MPAC No. 11 / Appellant No. 2 – 276 Dawlish Avenue	4,649	$4.347 mil	$935	$4.138
MPAC No. 12 – 162 Rochester Avenue	4,337	$4.325 mil	$997	$3.894
MPAC No. 13 – 261 St. Leonard's Avenue	4,639	$4.682 mil	$1,009	$4.453

20The subject property features an in-ground swimming pool. Of the nine comparable properties in this sample, only MPAC's No. 6 has a swimming pool. The Board heard in testimony that the value attributed to the swimming pool in the returned assessment is $67,000. This value is accounted for in the comparison of the subject property and MPAC's No. 6 to the other properties in the sample. The net TAS value of MPAC No. 6 is $5.209 million or $1,158 per square foot of living area.

21The average per square foot TAS value of this nine-property sample is $1,064. When applied to the square footage of living area, the result is $4,537,000. When $67,000, for the assessed value of the swimming pool at the subject property is added, the result is $4,604,000, rounded.

22The Board finds that the current value of the subject property is $4,604,000.

Issue 2 - Is a reduction in the current value determined required for it to reflect equitable assessment when reference is made to the assessments of similar lands in the vicinity?

23Both parties provided a comprehensive comparison of the assessment to sale ratios ("ASRs") of multiple properties that sold in 2015 and 2016. The Appellant's sample of 29 properties resulted in a median ASR of 0.892. MPAC's sample of 30 properties resulted in a median ASR of 0.910.

24The Board notes that the median ASR of the best nine comparable properties in evidence used to determine the current value of the property is 0.90. This is strong evidence that similar properties in the vicinity of the subject property are assessed at an amount demonstrably lower than their corresponding current values as determined by sales.

25The Board finds that the current value determined for the subject property requires a reduction for that value to reflect equitable assessment when reference is made to the assessments of similar lands in the vicinity. The Board finds that the reduction is ten percent of the current value determined, noting that this percentage reflects the equitable assessments of the nine best comparable properties in evidence and that this reduction reflects the mid-point between the positions of the two parties on this issue.

26The current value assessment determined is therefore reduced, from $4,604,000 to $4,143,600.

CONCLUSION

27The Board finds that the current value of the subject property is $4,604,000 for the 2021 and 2022 taxation years.

28After making a reduction in the current value for the purposes of equitable assessment, the Board determined a value of $4,143,600. The CVA returned for the subject property is $4,098,000. The resulting finding of the Board is approximately 1.1% higher than the value returned on the roll. This is strong evidence that the CVA returned, on a balance of probabilities, is correct.

29The Board finds that the assessment of the subject property is confirmed for the 2021 and 2022 taxation years.

ORDER

30The Board orders that the assessment of the subject property at 85 Dawlish Avenue is confirmed at $4,098,000 for the 2021 and 2022 taxation years, in the Residential property class.