As the 2005 property tax assessments landed in Ontario mailboxes this fall, cries of shock and fear resonated across the province. As Amelisburg resident Virginia Oakley told the Canadian Taxpayers Federation (CTF) in a recent e-mail, her home has transformed from sanctuary to burden overnight. "I am a pensioner, a recent widow, I live on $2000 a month. I worked hard for my home and the improvements we completed on it. Last year's assessment was $141,000, this year's assessment is $178,000 - How does the government expect pensioners to keep up with house taxes I am terrified I will lose this home due to taxes."

Oakley is just one of countless outraged Ontario property taxpayers suffering under the province's current value assessment (CVA) system. Tax bills are skyrocketing, and with them, taxpayer outrage. Last year there were 210,000 complaints to the Municipal Property Assessment Corporation, up 30% over the previous year.

The situation is so grave that on October 17, 2005, provincial Ombudsman André Marin announced an investigation into whether the Municipal Property Assessment Corporation's (MPAC) process for valuing properties is fair and transparent. While the Ombudsman's efforts should be applauded, the investigation will not be complete unless it addresses the root cause of property taxpayers' woes: the CVA system itself.

CVA was implemented in 1998 to replace the old market assessment system, whereby many homes had not been re-assessed for decades. It was supposed to make property taxation fairer - but its timing couldn't have been worse. CVA was brought in at a time of rising property values, an aging population, and municipal amalgamation. Taken together, these factors meant that people who happened to live in booming real estate markets saw their home values - and tax bills - skyrocket.

Seniors and people on fixed incomes were particularly hard hit, facing the stark possibility of having to sell their home because of tax bills that outstripped their income. Meanwhile, municipal amalgamation meant that new, larger municipalities now encompassed a wide variety of real estate markets - some hot, some not. It became impossible for towns and cities to adjust the mill rate to compensate for the great disparity of assessment increases. In addition, many areas which saw the greatest increases also received the fewest services, such as waterfront and farm properties. The result was a shift in municipalities' tax burden onto these higher-value properties, with no link between services received and taxes paid.

What is the solution Quite simply, a reform of the system to provide greater equity, predictability, and value for money to Ontario property taxpayers. Solutions include the CTF's recommendation of doing away with annual assessments, basing assessment value on the purchase price, and instituting an annual property tax cap, to avoid sudden increases. The CTF is also recommending a greater link between taxes and services, by taxing different types of properties at differing mill rates based on the type of services consumed.

In the meantime, the CTF has called on the Ontario government to disregard the 2005 property assessments until the province's property tax system is reformed. To this end, the CTF has launched a new petition calling on the government to freeze assessments at 2003 levels and to begin anew the property tax reform process. The petition can be accessed on the CTF's website at www.taxpayer.com.

The time to act on property tax reform is now - before the 2005 assessments take effect on January 1, 2006. The provincial government cannot allow taxpayers to be forced out of their homes by an unworkable and unfair property tax system. It must ensure that property taxes stop going through the roof - and that the Virginia Oakleys of this province can still afford the roof over their head.