The Ontario government is “perpetuating unfairness” by refusing to reassess commercial property values and locking in higher tax rates, says a leading expert.

Paul Sullivan, a property tax specialist with Ryan, made the comment in an interview with Connect, following up on his How Ontario Can Restore Fairness While Protecting Ontario Taxpayers report issued by the company. The report contends that Ontario’s prolonged freeze on property-value assessments is creating growing inequities in the province’s property-tax system, with some homeowners and businesses paying significantly more than their fair share of municipal costs.

In the province’s view, the freeze is “ensuring stability.” But from Sullivan’s perspective, Premier Doug Ford’s government is “perpetuating unfairness,” particularly in the cases of commercial property owners and developers who bear high taxation costs or pass them on to tenants.

“You’re making for an unpredictable investment environment because people don’t know when you’re going to reassess and how that’s going to impact on leasing, on development pro formas, and on the viability of future investment,” said Sullivan. “Maybe it’s the same, but it’s unfair and you’re taxing the wrong people the wrong amounts, and you’re creating an uncertainty. You’re not ensuring stability as [provincial officials] suggest.”

Retail locations, many of which are owned by small-and-medium-sized enterprises, are the most affected followed by office-buildings, Sullivan told Connect. Retail and office prices were substantially reduced due to the COVID-19 pandemic and have been slow to recover in the post-pandemic era.

In the report, he argues that the suspension of reassessments has distorted tax burdens by relying on outdated property values that no longer reflect market realities. Part of Ryan’s Unfreeze Ontario initiative, the report cites such examples as a Mississauga strip-plaza owner who is paying an estimated $49,000 more annually in property taxes than she should, and a Fort Erie homeowner whose tax bill has risen 23% while newer, more valuable properties in nearby neighbourhoods pay less.

The reassessment suspension and, therefore, the property tax freeze have been in effect since 2016, he noted. Sullivan contends that the longer the assessment freeze remains in place, the greater the inequities become, particularly for small businesses operating in lower-value commercial properties. He says the situation also creates uncertainty for homeowners, businesses and municipalities trying to plan future investments and expenditures.

Ontario’s property taxes are determined by market-value assessments. Sullivan noted that the province’s Municipal Property Assessment Corporation (MPAC) has conducted valuations annually for the purpose of reassessments but the reassessments have not been implemented.

The Ryan report notes that when reassessments eventually resume, property taxes will not automatically rise in line with increases in assessed property values. Instead, tax changes will depend on how individual properties have appreciated relative to the broader market within their municipalities. Properties that have increased in value less than the local average could see tax reductions, while those that have outperformed the market could face increases.

To ease the transition, Sullivan recommends that the Ontario government direct MPAC to release preliminary value updates before reassessments resume. He also calls for a formal pre-roll consultation process similar to systems used in British Columbia, Alberta and Nova Scotia, allowing assessment concerns to be addressed before municipal tax rates are finalized.

Previously, MPAC conducted reassessments every four years, and held some pre-roll consultations, he said.

“MPAC has had ample time over the years of not producing a roll or defending a roll to get things right,” said Sullivan. “There’s never been a case in recent history that we haven’t had a province be able to reassess in more than two years.

“[Reassessment holds] happened two other times in recent Canadian history, and in both instances they got back to annual assessment promptly within two years.”

The two other reassessment pauses occurred in New Brunswick in 2025 and B.C. in 2008 during the global financial crisis, he said.

“There’s no reason we cannot see a new [Ontario] roll in the fall of 2026 for 2027 taxation,” said Sullivan.

His report says three-quarters of commercial real estate professionals surveyed support restoring regular reassessments to improve fairness, predictability and transparency in Ontario’s property tax system. He argues that delaying action will only deepen distortions and make the eventual transition more difficult.

Pre-roll consultations result after a taxing authority releases assessed property values to property owners or agents. Once the values are delivered, the parties and taxing authority will engage in pre-roll consultation to verify the values, said Sullivan. Typically, pre-roll consultations involve commercial properties, not residences.

“That process has really reduced municipal-finance risk, because what we find is: There’s way fewer properties going to appeal because we sold them in this pre-roll window before the rolls were published,” he said. “[The pre-roll consultation process is] new to Ontario to some degree, but every other province has been doing it for a decade. And, it’s just a good business practice to adopt as part of this process.”

Sullivan said commercial property taxes are still going up every year because the value side of the equation is not being adjusted.

He contends the Ontario government is delaying the reassessments until the conclusion of municipal elections this fall.

Sullivan believes that the province will reimplement the consultations at some point. It’s just a matter of when.

“Unfortunately, this decision is going to be made by one individual,” said Sullivan. “He’s [Ontario’s] premier and he needs to do what’s right on behalf of business.”

Based in Vancouver, Sullivan leads Ryan’s Canadian advocacy and tax-policy practice. He is the is the author of the Unfreeze Ontario report series examining the impacts of Ontario’s suspended property reassessment system.

Ryan is a global tax-services and software provider that advises businesses on property tax, sales and use tax, income tax and other tax-related matters. The company is dedicated to tax fairnesss.

Pictured: Downtown Toronto

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