Child Care Centre Assessments
Child care centres are valued based on the current value of the land and structure(s) they occupy. They may be classified as residential, commercial or if eligible, as exempt from property taxation.
- A free-standing, purpose-built child care centre is assessed using the cost approach to value.
- If the child care centre is in an industrial or commercial mall, its assessed value is determined using the income approach to value, similar to the rest of the property.
- 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 partitioned and separately classified based on use.
- A for-profit child care centre that is part of a condominium, is assessed based on the direct comparison approach to value.
- Some child care centres may be part of a Section 37 Planning Act Agreement. These properties may have a nominal assessed value applied.
How child care centres are classified
Classified as residential
Child care centres may be classified as part of the residential property class if they meet the following conditions:
- The land is owned and used by a non-profit child care centre for child care purposes, or
- The land is used and leased by a non-profit child care centre for child care purposes and the land would not otherwise be in the commercial or industrial property class.
Classified as commercial
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 building.
- 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 a non-profit, we collect the following information:
- Governing documents (i.e., Letters Patent/Articles of Incorporation/Certificate of Continuance), including objects of Incorporation or purpose, if applicable
- Evidence that the child care centre is licensed under the Child Care and Early Years Act, 2014.
To determine if the child care centre occupies the premise, we may request a copy of the deed or occupancy agreement (i.e., license or lease).
We also may complete a property inspection to:
- Identify the areas occupied by the child care centre.
- Confirm the presence of other tenants or occupiers of the site.
Child care exemption requirements
A child care centre can be exempt from property taxation if they meet the following conditions:
- The child care centre is non-profit and the centre is located within an exempt property.
- The child care centre is licensed under the Child Care and Early Years Act, 2014.
Note: Property tax exemption does not extend to a property owned by a child care centre.