Child Care Centre Assessments
Child care centres, regardless of their classification as either residential or commercial, are valued based on the current value of the land and structure(s) they occupy. They are assessed using what's called the "direct comparison approach."
- If the child care centre is within a residential property, its assessed value is partitioned based on how much area it occupies.
- If the child care centre is in an industrial or commercial mall, its assessed value would be similar to that of an adjacent unit.
- There may be properties that have a combination of residential and commercial uses, such as a private for-profit child care centre in a specific area of a residence. In this case, the residence and child care area would be classified and separately partitioned.
How child care centres are classified
Classified as residential properties
Child care centres may be classified as part of the residential property class if they meet the following conditions:
- The land is owned by a non-profit organization and used for child-care purposes and the property would not otherwise be in the commercial or industrial property class.
If the above criteria are not met, the child care centre is assessed as a commercial property.
Classified as commercial properties
The following child care centres do not qualify for inclusion in the residential property class, and are therefore assessed as commercial property:
- For-profit child care centres.
- Non-profit child care centres that lease space in a commercial or industrial property.
- Home-based child care centres, if a separate, definable area exists on the land or in the home for child care.
Determining non-profit and for-profit
To determine if a child care centre is for profit or non-profit, we collect the following information:
- letters patent/articles of incorporation/charter
Determining ownership and leasing
To determine if the child care centre owns or leases the space, we request a copy of the deed, occupancy agreement or lease.
We may complete a property inspection to:
- Identify the areas occupied by the child care centre.
- Confirm the presence other tenants or occupiers of the site.
Child care property tax classes
Child care centres can be exempt from property taxation if they meet the following conditions:
- The child care centre must be a non-profit and occupy an exempt property.
Please contact your local municipality for more information.