Tuesday, November 25, 2008

MPAC and Property Assessment - Solving the Wrong Problem

When you have a hammer everything looks like a nail. That old truism comes to mind when I read about MPAC property assessments, property taxes and fairness.

The latest news in this morass is a proposal to decrease volatility in property assessments. As described in the article it doesn't sound half bad. Unfortunately it isn't likely to be implemented any more than so many other schemes that have come and gone over the years. Putting "fairness" into the system is hardly a novelty; it isn't all that hard to do, and has been a feature of earlier proposals.

Every new idea that comes up is attacked, often with great vehemence, by those who feel disadvantaged by the proposal. The political outcome is stasis since governments are loathe to stir up controversy; no matter the proposal they are sure to come up losers. They would also quite rightly note that it isn't that terrible an issue since folks are indeed still paying their taxes, which is a type of confirmation that the system is working. Sure it's imperfect, but it does work.

In my view this is all a pointless distraction from the bigger issue. That issue is Ottawa city council's inability and lack of motivation to rein in spending. The best way to reduce property taxes is to cut spending, not by inventing new property assessment algorithms. It's also eminently fair since every homeowner benefits from reduced city spending.

My advice for property tax activists is to focus on council's unwillingness to tackle a budget that is spiralling out of control. Even the province is helping out, at least a little, by starting to reverse the Harris government's program downloads. Council should be under our control, if we hold them to account for their budgetary philandering. So call your councillor and tell them just how they can lower your property taxes. Or else.

1 comment:

Anonymous said...

Excellent Post. It's not MPAC thats the problem but Council spending. The try to defelct the blame onto MPAC and yet, your Assessment could be $10, $100, $100000....they council will still get their money!
Council has a spending problem!