Condominium common elements are generally not subject to separate realty assessment and taxation.
But what about assets of the condominium corporation – not part of the common elements – such as a recreation centre owned in whole or in part by the corporation? How should these sorts of assets be treated for purposes of realty assessment and taxation? Most condominium corporations have felt that the value of these sorts of assets is included in the value of the units. [For example, in the case of a recreation centre, the purchase price for a unit normally takes into account the purchaser’s right to make use of the recreation centre.] In other words, the value of the condominium corporation’s assets is generally included in the value of each of the units. Assuming that’s the case, taxation of the assets would amount to double taxation.
However, assessment authorities have often taken the position that the assets of a condominium corporation are subject to taxation, because they can be sold on the open market. And the assessment authorities have often asserted that the value of a condominium corporation’s asset is not necessarily included in the values of the units.
A recent decision of Ontario’s Assessment Review Board will have condominium directors nodding their heads: