To dispute a commercial property tax assessment in London, Ontario, you must file an appeal with the Assessment Review Board (ARB) or submit a Request for Reconsideration to MPAC. The standard ARB filing fee for a commercial property is $318 CAD (discounted to $308 CAD if e-filed), and you will need strong appraisal evidence to prove your property is overvalued.
Running a business in London, Ontario, comes with significant overhead, and commercial property taxes often represent one of the largest annual expenses. The Municipal Property Assessment Corporation (MPAC) assesses the value of your commercial property, and the City of London uses that value to calculate your tax bill. If you believe MPAC has overvalued your warehouse, retail plaza, or office space, you have the legal right to dispute it to lower your overhead.
Disputing a commercial property tax assessment is a formal legal process that relies entirely on facts and figures. 🔍 It requires solid evidence, such as independent appraisals or income statements, to demonstrate that similar commercial properties in London are assessed at a lower rate. Generally, having a local law firm or a property tax consultant guide you through the process is the most effective way to lower your tax burden and avoid complex administrative errors.
Step-by-Step Process in London, Ontario
The system for challenging an assessment is standardized across the province of Ontario. Whether your commercial property is located in the downtown core or in an industrial park near Highway 401, you must follow strict statutory deadlines to preserve your right to appeal.
Step 1: Reviewing Your MPAC Assessment Notice
While MPAC historically followed a four-year assessment cycle, the Ontario government has frozen the general reassessment program. As a result, commercial property tax assessments for 2026 are still calculated using property values pegged to January 1, 2016. However, MPAC still issues notices when changes occur (such as new construction, demolitions, or classification changes), which must be reviewed carefully to ensure your classification and base assessment are correct.
Step 2: Filing a Request for Reconsideration (RfR)
For most property types, the first step is filing a free Request for Reconsideration (RfR) directly with MPAC. However, for commercial and industrial properties, you often have the choice to either file an RfR or skip straight to filing an appeal with the Assessment Review Board (ARB). If you choose the RfR route, MPAC will review your submitted evidence and issue a decision, which usually takes up to 180 days.
Step 3: Appealing to the Assessment Review Board (ARB)
If MPAC denies your RfR, or if you choose to bypass it entirely, you must file a formal appeal with the ARB. 🔮 The ARB is an independent provincial tribunal that acts like a court. Your lawyer or tax agent will submit an appeal application before the strict deadline (typically March 31 of the tax year). The ARB will schedule a mandatory settlement conference where both sides attempt to negotiate a new value before going to a full hearing.
How Much Does it Cost in London?
Disputing a commercial tax assessment requires an upfront investment, but a successful appeal can save your business thousands of dollars annually. Here are the typical costs associated with a commercial property tax appeal in Ontario.
| Expense Type | Estimated Cost (CAD) | Details |
|---|---|---|
| ARB Filing Fee | $318 | The standard provincial fee to file an appeal for a commercial property ($308 if e-filed). |
| Commercial Appraisal | $2,000 – $5,000+ | Fee for a certified appraiser to determine the fair market value of your property. |
| Lawyer / Consultant Fees | Contingency or Hourly | Many tax agents charge a percentage (often 20% to 50%) of the first year’s tax savings. |
How Long Does the Process Take?
The property tax appeal process is notoriously slow. ⏳ If you file a Request for Reconsideration, MPAC has up to 180 days to respond. If you proceed to the Assessment Review Board, the backlog of cases means it typically takes 12 to 24 months to reach a final settlement conference or hearing. Fortunately, if you win, the City of London will apply the tax reduction retroactively for the tax years under appeal.
Frequently Asked Questions (FAQ)
Do I have to keep paying my property taxes while I appeal?
Yes. You must continue paying your commercial property tax bills to the City of London as they come due. If you win your appeal, the city will credit your account or issue a refund cheque for the overpaid amount.
What evidence do I need to win my appeal?
You need factual data showing the property is overvalued. This includes recent sales data of similar commercial buildings in London, detailed rent rolls, income and expense statements, or a professional appraisal report.
Can the ARB increase my property taxes?
Yes. When you appeal to the ARB, you open your entire assessment for review. If MPAC discovers they actually undervalued your property, the tribunal has the authority to increase your assessment, making legal consultation highly advisable.
What is the deadline to file a dispute?
For commercial properties, the deadline to file a direct appeal to the ARB is typically March 31 of the applicable tax year. Missing this statutory deadline means you lose your right to appeal for that year.
Can a tenant dispute the property taxes?
Under certain commercial leases (like triple net leases), tenants pay the property taxes. In Ontario, a commercial tenant who is contractually obligated to pay the taxes can legally file a complaint with the ARB, provided they notify the landlord.
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