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Managed Forest Property Assessment 101

Many woodlot owners, particularly those in the Managed Forest Tax Incentive Program (MFTIP), often wonder how their assessments were calculated. And it seems that when talking about property assessment, it is never simply a “black and white” explanation.

Hopefully, this article will shed some light on how managed forest properties are assessed. It is intended to serve as a refresher for everyone on MPAC’s assessment methodology, which was implemented in 2006 as part of enhancements to the MFTIP program.

First, let’s look at the main overriding principles of how managed forest (MF) properties are assessed.

Definitions

Current Value

Current value means, in relation to land, the amount of money the fee simple, if unencumbered, would realize if sold at arm’s length by a willing seller to a willing buyer
(Source: Assessment Act).
For assessment purposes MPAC refers to this as current market value.

Land Band

Land band means a geographic area in which similar farm properties sell for similar prices, as determined by the assessment corporation.
(Source Regulation 656/05)

A Guide to Stewardship Planning for Natural Areas

A Guide to Stewardship Planning for Natural Areas

Published by 
Ontario Ministry of Natural Resources

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