Your Voice Matters - 1
Some people believe their voice is insignificant. I’m here to tell you — your voice matters.
One voice can get lost in the noise. But when voices come together, they are heard. And when enough people speak out, that collective voice carries real weight.
Here in Durham Region, we have four levels of government connected to property taxation. One legislates how it is determined, two of them — the Region and your local municipality — levy taxes directly. In addition, school boards also receive a portion (set by the province) of your property taxes. Every level takes a share.
In the coming weeks, I will be sharing information based on my past experience as a retired Real Estate Broker, with a specialized background in provincial property assessment.
Some posts may include AI-assisted research — it can gather information much faster by searching across the web — but everything shared will always be reviewed through the lens of my professional experience.
To begin, it’s important to understand a bit about the history of property taxation.
For generations, property ownership has been treated as a clear measure of a person’s ability to pay. The idea became deeply embedded in public policy — and in our collective thinking — that if you own property, you must have the financial capacity to contribute more.
Rising property values do not necessarily mean rising incomes. Many property owners — particularly seniors, long-time residents, and those on fixed incomes — may appear “asset rich” on paper while lacking the cash flow to sustain increasing tax burdens.
Understanding this history helps explain why property taxation feels so entrenched — and why questioning it can seem like challenging a long-standing norm.
The Modern Reality: Yet modern economic realities challenge one of the oldest assumptions embedded in property taxation: that property ownership reflects ability to pay.
A Brief History of Property Taxation in Canada.
Property tax is the oldest form of taxation in Canada. It predates Confederation and has served as the primary source of revenue for local governments for more than 230 years. Historically, it was the only tax most Canadians paid — until the federal government introduced income tax during World War I.
- First Legislation (1793): The first formal property tax legislation was enacted in 1793 with the Assessment Act in Upper Canada (now Ontario).
- Constitutional Authority (1867): Under the British North America Act, 1867 — now known as the Constitution Act, 1867 — property taxation was defined as “direct taxation within the province.” This gave provinces exclusive authority over property taxation. Provinces, in turn, delegated that authority to municipalities to fund local services.
- Early Municipal Structure (1849 onward): Ontario’s Baldwin Act formally created a municipal governance structure requiring cities and towns to levy property taxes to support infrastructure and schools.
- Similar principles were adopted in Western Canada, including the Municipal Ordinance of the Northwest Territories in 1882.
- Evolution in the 20th Century: Over time, property taxation evolved from a broad wealth tax into what is often described as a “user charge” for local services.
- From Dominance to Diversification: Before 1917, property tax was the dominant source of public revenue. As federal and provincial governments introduced income and sales taxes, its relative share declined — though it remained essential for funding local services such as roads, water systems, fire protection, and schools.
- The Great Depression (1930s): During the 1930s, property values fell dramatically, yet municipalities still needed to fund essential services. Mill rates (the tax rate per dollar of assessed value) often remained high or increased, leading to widespread tax arrears and delinquencies.
- Shift in Assessment Responsibility (1970s): Originally, municipalities conducted their own property assessments, which led to significant inconsistencies. Beginning around 1970, provinces such as Ontario centralized assessment responsibility to create more uniform standards.
- Modern Reforms and Structural Changes: Significant structural reforms occurred in the late 1990s to improve transparency and fairness.
- Current Value Assessment (1998): In 1998, Ontario adopted Current Value Assessment (CVA), moving from outdated historical assessments to a system based on market value.
- Education Tax Reform (1998): Historically, local school boards set their own property tax rates. In 1998, the Ontario government centralized education funding and established a uniform province-wide education tax rate to promote greater equity across regions.
- First Nations Jurisdiction (1988): Amendments to the Indian Act in 1988 — often referred to as the “Kamloops Amendment” — allowed First Nations to exercise jurisdiction over property taxation on reserve lands.
Posts on property tax and assessment are my opinion based on my involvement as a taxpayer interested and involved in the process. They are for general information to provide a starting point for you to answer your questions about them.
If you would like some historical context you can get a list of some of my earlier posts on The Illusion & The Reality here
As always my posts are but a starting point for you to determine your own reality by doing your own research.
Comments(3)