CORNWALL, Ontario – The City of Cornwall announced on Wednesday, Aug. 1 that they are taking the Ontario Municipal Property Assessment Corporation (MPAC) to court.
The City filed a Statement of Claim with the Ontario Superior Court of Justice on July 11.
According to the City, damages suffered relate to inaccurate assessments prepared by MPAC on three large distribution centres. These centres accounted for over 10 per cent of the City’s entire municipal tax base from 2013 to 2016 when the City collected almost $24 million in taxes.
As a result of MPAC’s errors, the City refunded $392,543 to Shoppers through a settlement and will pay a substantial refund to Walmart. The damages sought by the City include the amount of taxes refunded to the appellants, and the amounts paid to MPAC for their services to the City.
The City pays more than $450,000 annually to MPAC.
“As a result of MPAC’s errors in assessment, the City is facing a substantial tax refund, which will have a significant financial impact,” said Mayor O’Shaughnessy.
The City expressed concerns to MPAC regarding the significant value assessment increase of these three properties in 2012.
The City is likely to refund tax dollars to property owners in the case of a successful appeal, but the City is mandated to collect property taxes based on MPAC’s assessments.
The City will be represented by Gowling WLG (Canada) LLP and has requested to the Ontario Superior Court of Justice that this matter be tried in Cornwall.
