If the assessment process on your cottage has been carried out correctly, the way you choose to classify appurtenances such as docks, boats, and furniture should make no difference whatsoever to your tax bill, say our experts.

Tax assessors are required to follow the guidelines set out by each province, points out Toronto public finance consultant Peter Tomlinson, but the basic precept is the same across the country. Property taxes are based on the estimated value of "real" property - in essence the land, plus the buildings and other permanent installations. No assessor is going to include a boat, the furniture, or the water toys, Tomlinson says, though fixed docks would be factored in whether you call them chattels or not.

That said, it's easy to imagine grey areas - such as a removable floater dock, a light inflatable hot tub, or a small portable shed - where a difference of opinion could arise between assessor and cottager. Larry Hummel is vice-president of property values with the Municipal Property Assessment Corporation (MPAC), the organization that carries out property assessments in Ontario. Hummel explains that if cottagers believe they've been unfairly assessed (for whatever reason), they should contact MPAC for an explanation of how the assessment was reached. After that, if you feel you have a legitimate dispute, you can apply for a Request for Reconsideration (RFR). This relatively informal process has resulted in a dramatic drop in formal tax hearings by Ontario's Assessment Review Board. You can get an RFR form at your local tax office, or download it from MPAC's website at www.mpac.ca. If the process (which might be as simple as a phone call or might involve a reinspection of your property) doesn't satisfy you, you're still free to go the formal route.

If you've recently bought a cottage or are planning to, Hummel suggests that you pay close attention to the land transfer tax affidavit, the notarized document that will be registered along with the deed at the time of sale. The affidavit should specify what part of the sale price relates to the real estate and land - it's this value the assessor will use to determine your taxes - and what part relates to the sale of chattels or "other considerations." Since these last two shouldn't be included in the assessment, it behooves you to make sure the values are correctly assigned.