News

29 May 2008
Prue Pushes Assessment Act Change in Aid of Seniors

Loophole puts low-income seniors under burden of unfair property tax bills

QUEEN’S PARK—NDP Finance Critic Michael Prue used today’s Question Period to press the McGuinty government to change the Assessment Act to protect low-income seniors.

Prue’s change would end the present practice of taxing so-called “Granny Flats” (modular homes). Granny Flats are self-contained small units that are placed on lots usually belonging to adult children of senior citizens.

Prue spoke on behalf of Ms. Julia Sangster, a low-income senior who resides in a “Granny Flat” in the City of Kawartha Lakes. When she and her daughter applied for the right to place the structure on the daughter’s property, they agreed that, in accordance with municipal by-laws, it would be removed upon the future sale of the property.

“This effectively means that the flat is not a value-added addition to the property. It is not a permanent structure, and therefore, we think that it should not be assessable. To assess and tax it is completely unfair. The McGuinty government must change the act,” said Prue.

Ms. Sangster says she is able to live independently and within her means without being a burden to the social service system or to her family.

“It’s not fair that my children’s property is assessed and therefore taxed more highly because they have given me a place to stay on their land. No one will make any money on the resale value of my flat because we will have to take it down upon the sale of this property. We are being punished by the Assessment Act. The government should be encouraging this type of living arrangement, not discouraging it through excessive taxation,” said Sangster.

Prue agrees and has asked the Minister of Finance to make a simple change to the regulations that would exclude Granny Flats from assessment.

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Media Inquiries: Laurie Orrett (416) 325-1303

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Click here to read Michael's exchange with the Minister of Finance on closing this unfair loophole.
 
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