Ontario Proposes Significant Changes to Property Tax Exemptions and Assessment Roll Access – but No Reassessment Planned

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On October 29, 2026, Ontario released its 2026 Ontario Economic Outlook and Fiscal Review: A Plan to Protect Ontario (the “Fall Economic Statement”).

As part of the measures announced in the Fall Economic Statement, the provincial government (the “Province”) introduced Bill 143, Plan to Protect Ontario Act (Budget Measures), 2026 (No. 2), which proposes several important amendments to the Assessment Act affecting property tax exemptions and public access to property assessment information.

Temporary Change to Charitable Exemption for Affordable Housing

One of the more significant proposed changes affects charitable and not-for-profit organizations providing affordable rental housing.

Section 3(1)12(iii) of the Assessment Act provides a property tax exemption for qualifying charitable, non-profit philanthropic corporations organized for the relief of the poor. Bill 143 proposes that, for the 2027 taxation year only, this exemption will generally not apply to residential units used or intended to be used as rented residential premises.

There are important exceptions. The 2027 restriction would not apply where:

• the property was shown on the tax roll as exempt immediately before October 29, 2026, provided there has been no change in ownership or use;
• the property was determined to be exempt for 2026 by a court order under section 46 of the Assessment Act made before October 29, 2026, again provided ownership and use have not changed; or
• the property or circumstances fall within an exception subsequently prescribed by the Minister of Finance (the “Minister”).

The wording is noteworthy because the restriction is expressly confined to the 2027 taxation year. As presently drafted, Bill 143 does not eliminate the underlying exemption for affordable rental housing in 2026 or from 2028 onward. A charitable affordable housing provider that is not grandfathered may therefore potentially qualify for the exemption for 2026, be ineligible for the exemption for 2027, and qualify again in 2028, assuming the statutory requirements continue to be satisfied and there are no further legislative changes.

New Property Tax Framework for University Student Housing

Bill 143 proposes to standardize the property tax treatment of university student housing by requiring universities to rely on the exemptions available under the Assessment Act, rather than exemptions contained in their individual governing statutes.

Currently, some universities have exemptions under their own governing legislation that may apply to student residences. Bill 143 would provide that land leased or owned by a university and used to provide residential accommodation for its students cannot be exempt from municipal or school taxation by reason of an exemption granted under the university's governing statute. Bill 143 does not provide for the grandfathering of existing student-housing exemptions obtained on that basis.

Instead, the tax treatment of university student residences would be determined under the following hierarchy in section 3(1) of the Assessment Act:

Paragraph 4: University-owned land

Paragraph 4 provides a full exemption from municipal and school taxation for qualifying land owned, used and occupied solely by a university. Accordingly, a university-owned student residence that meets the requirements of para. 4 would continue to be fully exempt.

Paragraph 4.0.1: University-leased land

Paragraph 4.0.1 provides a full exemption for certain land leased and occupied solely by a university where the university is a not-for-profit corporation without share capital and the property is used for specified university purposes.

Bill 143 would amend this provision so that its student-housing component extends to residential accommodation provided for the university’s own students or for its students together with students of a post-secondary institution federated or affiliated with the university.

A student residence satisfying para. 4.0.1 would therefore remain fully exempt from both municipal and school taxation.

New Paragraph 4.0.2: Student housing that does not qualify for a full exemption

Bill 143 would add a third category specifically for university student housing. New para. 4.0.2 applies only where the property does not qualify for a full exemption under para. 4 or 4.0.1.

In those circumstances, the property would be taxable for municipal purposes but exempt from school taxes if:

• the university is a not-for-profit corporation without share capital;
• the land is used to provide residential accommodation for the university’s students or those students together with students of an affiliated or federated post-secondary institution;
• the university receives regular and ongoing operating funding from Ontario or Canada for the purpose of providing post-secondary education; and
• any additional conditions prescribed by the Minister are satisfied.

The practical effect is that universities currently relying on exemptions in their individual governing statutes will need to determine whether each student residence qualifies for a full exemption under para. 4 or 4.0.1. If it does not, the new para. 4.0.2 may preserve the exemption from school taxes, while making the property liable for municipal taxes. Bill 143 does not appear to grandfather an existing exemption merely because the residence was previously treated as exempt under the university’s governing statute.

Property Assessment Rolls to Become Available Online

Bill 143 also proposes a significant change to public access to assessment information.

New section 39.0.1 of the Assessment Act would require the Municipal Property Assessment Corporation (“MPAC”) to make specified assessment roll information publicly available electronically, including:

• assessment roll number and property address;
• current value assessment and property classification;
• assessment for the taxation year;
• the value of the property liable to taxation; and
• importantly for exempt properties, the value of the property that is exempt from taxation.

MPAC would be permitted to impose reasonable conditions on access, including terms of use and limits on the number of properties for which information may be accessed during a specified period.

The Fall Economic Statement describes this initiative as the creation of a centralized online property assessment roll, intended to replace the current system under which viewing an assessment roll generally requires attendance at a municipal office. The Province expects the MPAC-delivered online service to become available in mid-2027.

The statutory publication obligation itself would apply to assessment rolls returned for the 2028 and subsequent taxation years.

Provincewide Reassessment Continues to Be Deferred

The Fall Economic Statement also confirms that the Province will continue to defer the provincewide property reassessment, citing the objective of providing stability for taxpayers in challenging economic circumstances. No date has been announced for the next provincewide reassessment.

Ontario property assessments currently remain based on a current value assessment date of January 1, 2016, subject to changes arising from matters such as new construction, renovations, changes in use, requests for reconsideration and Assessment Review Board decisions.

The continued deferral means that the Province has again declined to return to a general reassessment cycle at this time. Property owners should therefore continue to expect assessments based on the existing valuation framework unless and until the Province announces a new reassessment.

What Property Owners Should Consider

If enacted in its current form, Bill 143 will have immediate implications for charitable affordable housing providers whose properties are not presently fully exempt. Organizations that may qualify under section 3(1)12(iii) should consider whether there is a basis to establish an exemption for 2026, notwithstanding the proposed one-year restriction for 2027, and should continue to assess their eligibility for 2028 and subsequent years.

Universities should similarly review their student housing portfolios to determine whether properties presently relying on exemptions under their governing statutes would qualify for a full exemption under paragraph 4 or 4.0.1 of section 3(1) of the Assessment Act or instead would fall within the more limited school-tax exemption proposed under new paragraph 4.0.2.

Bill 143 remains before the Ontario legislature. Its provisions may change before enactment, and the legislation and any accompanying regulations should continue to be monitored.

The Municipal, Land Use Planning & Development Group at Aird & Berlis LLP will continue to monitor developments related to Bill 143 and property tax assessments. Please contact the author or a member of the group if you have questions or require assistance.