What’s the difference is between ‘Assessed Value and Phased-In Value’

Simon asks Prof
Bruce, “What’s the difference between ‘Assessed Value and Phased-In
Value’?”

My answer—

So
let’s say that you own a property, Simon, that you bought in 2015 for $400,000.

MPAC (Ontario’s Municipal Property Assessment Corporation) comes along in 2017 and says, 

“Hey Simon, good news! Your property is now
worth[1]
$700,000, you savvy investor, you! Congratulations. 

“But now here’s the bad news—your property
taxes are going to go up… a lot. 

“But wait. 

“Before you panic, and because we
are such super nice guys, we are going to phase
in your assessment over the next three years so you’ll have plenty of time to
get used to paying (Ottawa mayor) Jim Watson more money for the privilege of owning your own property.”

That’s
the difference between AV and phased-in-value, Simon…

Bruce
M Firestone, B Eng (civil), M Eng-Sci, PhD, Century 21 Explorer Realty Inc
broker, Ottawa Senators founder, Real Estate Investment and Business coach
1-613-762-8884 bruce.firestone@century21.ca twitter.com/ProfBruce
profbruce.tumblr.com/archive brucemfirestone.com

MAKING
IMPOSSIBLE POSSIBLE

[1] This is your AV, assessed
value.