Bill 106, Fair Municipal Finance Act, 1997

Fair Municipal Finance Act, 1997

EXPLANATORY NOTE

The Bill amends the Assessment Act, the Municipal Act and other statutes in relation to local government financing. The amendments deal with two main aspects of such financing: assessment and the levying of property taxes by municipalities. Assessment is the determination of a value for land and buildings for the purposes of municipal taxation. Municipal property taxes are calculated by the application of tax rates to that assessed value. For example, if a parcel of land were assessed as $100,000 and the municipal tax rate was 1 per cent, the property taxes payable on the property would be 1 per cent of $100,000, or $1,000.

For the most part the changes made by the Bill become effective for the 1998 taxation year.

The following are the significant changes made by the Bill:

The assessment of land

Changes are made in how land is assessed. Currently land is assessed at market value or a portion of market value. However the land in some municipalities has not been reassessed for many years. The assessments in such municipalities reflect market values from many years ago. In many municipalities adjustments are also made to the assessed values.

Under the changes made by the Bill the assessment of land will be based on its "current value" which is defined as the amount of money the land would realize if sold (see the definition added to section 1 of the Assessment Act). The day used to determine current value will be the same for the entire province. For 1998, 1999 and 2000, the current value will be determined as of June 30, 1996. For 2001 and 2002, it will be determined as of June 30, 1999 and for 2003, as of June 30, 2001. By 2004, current value will be determined as of June 30 of the preceding year. (See the new section 19.2 added to the Assessment Act.)

Starting in 2005 land will be assessed at an average of current values for different years (see the new subsection 19.1 (1) added to the Assessment Act). In 2005 the assessed value will be a two-year average of the current values for 2004 and 2005. For taxation years after 2005, the assessed value will be a three-year average of the current values for the taxation year and the two preceding years.

Under the changes made by the Bill, regulations can be made to provide for current value to be based only on the current use of the land (see the new subsection 19 (2) added to the Assessment Act). Such regulations will not apply to land within a municipality unless the municipality opts to have them apply (see the new subsection 19 (3) added to the Assessment Act). The current value of conservation land and managed forests land, which will be defined in the regulations, will also be based on current use only (see the new subsection 19 (5.2) added to the Assessment Act).

Business assessment

Currently, in addition to the assessment of land, persons carrying on a business are assessed for business assessment. The Bill eliminates business assessment by repealing the current section 7 of the Assessment Act and making a number of other consequential amendments removing references to business assessment.

Municipal property taxes

Currently municipalities levy a basic tax rate against commercial assessment and a tax rate equal to 85 per cent of that basic tax rate against residential and farm assessment. Under the changes made by the Bill municipalities will be able to levy different tax rates against different classes of property. The classes of property will be prescribed under the Assessment Act (see the new section 7 added to the Assessment Act). The tax rates that a municipality can levy against different classes of land are subject to the limitations imposed by the municipality's "tax ratios".

There will be a set of tax ratios for every municipality. The tax ratios are the ratios that the tax rate for each property class must be in relation to tax rate for the residential/farm property class (see the new subsection 363 (1) added to the Municipal Act). A municipality that is not in a tier structure will establish tax ratios for itself (see the new subsection 363 (2) added to the Municipal Act). For municipalities in a tier structure, the tax ratios are established by the upper-tier municipality (see the new subsection 363 (3) added to the Municipal Act). If authorized by regulation, an upper-tier municipality may delegate the authority to establish the tax ratios to its lower-tier municipalities (see the new section 364 added to the Municipal Act).

A municipality's tax ratio for a property class must be within the range prescribed under the regulations (see the new subsection 363 (5) added to the Municipal Act). However anexception is provided in relation to "transition ratios" which are prescribed by regulation (see the new subsection 363 (6) and clause 363 (9) (b) added to the Municipal Act). If a municipality's transition ratio for the first year that a property class is prescribed is outside the prescribed range the municipality's tax ratio can be between the range and the transition ratio. In a subsequent year, the tax ratio can be outside the range as long as it does not move further from the range.

The tax ratio for the farmlands and managed forests property class will be .25 for all municipalities (see the new subsection 363 (13) added to the Municipal Act).

Phase in of tax changes related to 1998 assessment

The changes made by the Bill would allow municipalities to pass by-laws to phase in tax increases or decreases arising from the 1998 assessment (see the new section 372 added to the Municipal Act). Such by-laws must be passed in 1998. The period over which the tax increases or decreases are phased in cannot exceed eight years. Other restrictions on how such increases or decreases can be phased in are set out in the Bill (see the new subsection 372 (5) added to the Municipal Act).

Deferrals of taxes

The changes made by the Bill would allow municipalities to pass by-laws to defer assessment-related tax increases on property in the residential/farm property class (see the new section 373 added to the Municipal Act). Municipalities will be able to give such deferrals to owners who are, or whose spouses are, low-income seniors or low-income persons with disabilities.

Assessment of pipelines, railways and utility rights of way

The changes made by the Bill would provide for the method of assessing pipelines, railway lands and power utility rights of way to be prescribed in regulations (see the new clause 2 (2) (d), clause 30 (2) (a) and section 30.1 added to the Assessment Act).

Disputes about assessments

Currently decisions of the Assessment Review Board , which deals with disputes relating to assessments, can be appealed to the Ontario Municipal Board. The changes made by the Bill would eliminate such appeals (see the repeal of the current section 43 of the Assessment Act). An appeal will be allowed directly from the Assessment Review Board to the Divisional Court, with leave of the court, on questions of law (see the new section 43.1 added to the Assessment Act). It will also be possible for theAssessment Review Board to state a case for the opinion of the Divisional Court (see the new section 43 added to the Assessment Act).

The Bill would add a new section providing for the reconsideration of assessments and classifications without a complaint (see the new section 39.1 added to the Assessment Act). Unless the municipality objects, the Assessment Review Board can give effect to a settlement reached with a person who is assessed. If the municipality objects the matter will be dealt with as though a complaint were made.

The Bill changes the time for making a complaint relating to assessments (see the new subsections 40 (2), (2.1) and (2.2) added to the Assessment Act). The new deadline is March 31 following the return of the assessment roll. The assessment roll for a year is ordinarily returned in December of the preceding year.

Equalized assessment

Currently section 51 of the Assessment Act provides for "equalized assessments". Equalized assessment is used to apportion costs and grants between municipalities and localities. The Bill eliminates equalized assessments.

Other changes

The Bill also makes a number of less significant changes. These include the following:

1. A tax exemption is added for lands of designated airport authorities. It will be a condition of being exempt that the authority pay the amount that would have been paid as a grant in lieu of property tax by the Canadian government under the Municipal Grants Act (Canada). (See the new paragraph 24 added to section 3 of the Assessment Act.)

2. A tax exemption is added for conservation land. (See the new paragraph 25 added to section 3 of the Assessment Act.)

3. Owners of properties with at least seven residential units will be required to give certain information to the assessment commissioner for enumeration and school support purposes. (See the new section 16.1 added to the Assessment Act.)

4. Changes are made to the provisions of the Municipal Act relating to business improvement areas. (See the amendments to section 220 of the Municipal Act.)

Bill 1061997

An Act respecting the

financing of local

government

CONTENTS

Part		Sections
I	Assessment Act Amendments	1-39
II	Municipal Act Amendments	40-61
III	Complementary amendments
	Assessment Review Board Act	62
	Condominium Act	63
	Conservation Authorities Act	64
	County of Oxford Act	65
	District Municipality of Muskoka Act	66
	Ontario Municipal Support Grants Act	67
	Power Corporation Act	68
	Regional Municipalities Act	69
	Regional Municipality of Durham Act	70
	Regional Municipality of Halton Act	71
	Regional Municipality of Hamilton-Wentworth Act	72
	Regional Municipality of Niagara Act	73
	Regional Municipality of Ottawa-Carleton Act	74
	Regional Municipality of Peel Act	75
	Regional Municipality of York Act	76
IV	Transition, Commencement and Short Title
	Transition
	Tax exemption for airports	77
	Return of assessment roll for 1998	78
	Complaints under the Assessment Act	79
	Local levies for upper-tier, schools	80
	By-laws under section 363 of the Municipal Act	81
	Unpaid business taxes	82
	Commencement and Short Title
	Commencement	83
	Short Title	84

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

PART I

ASSESSMENT ACT AMENDMENTS

1. (1) Section 1 of the Assessment Act is amended by adding the following definitions:

"class of real property" means a class of real property prescribed by the Minister under section 7; ("catégorie de biens immeubles")

"classification" means a determination as to the class of real property land is in and "classified" has a corresponding meaning. ("classification")

(2) The definition of "corporation assessment" in section 1 of the Act is repealed.

(3) Section 1 of the Act is amended by adding the following definition:

"current value" means, in relation to land, the amount of money the fee simple, if unencumbered, would realize if sold at arm's length by a willing seller to a willing buyer. ("valeur actuelle")

(4) The definitions of "insurance company" and "loan corporation" in section 1 of the Act are repealed.

(5) The definitions of "Minister" and "Ministry" in section 1 of the Act are repealed and the following substituted:

"Minister" means the Minister of Finance; ("ministre")

"Ministry" means the Ministry of Finance. ("ministère")

(6) The definition of "trust corporation" in section 1 of the Act is repealed.

2. (1) Clauses 2 (1) (a) and (d) of the Act are repealed.

(2) Clauses 2 (2) (b), (c) and (d) of the Act are repealed and the following substituted:

(b) defining "conservation land" for the purposes of paragraph 25 of section 3;

(c) defining "conservation land" and "managed forest land" for the purposes of subsection 19 (5.2);

(d) governing the assessment of pipelines and providing for the depreciation of the assessed values of pipelines.

(3) Clause 2 (2) (f) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 36, section 1, is repealed.

(4) Section 2 of the Act, as amended by the Statutes of Ontario, 1994, chapter 36, section 1, is further amended by adding the following subsection:

Minister can approve forms

(8) The Minister may approve forms for any purpose under this Act.

3. Section 2.1 of the Act, as enacted by the Statutes of Ontario, 1994, chapter 36, section 2, is repealed.

4. (1) Section 3 of the Act is amended by adding the following paragraph:

24. Land owned or leased by a designated airport authority within the meaning of the Airport Transfer (Miscellaneous Matters) Act (Canada) subject to the following limitations:

i. the authority must be designated by the Minister for the purposes of this paragraph,

ii. the authority must have paid the municipality in which the land is situated an amount the Minister estimates would be paid as a grant in lieu of property tax under the Municipal Grants Act (Canada) had the land been owned by Her Majesty in right of Canada,

iii. the amount referred to in subparagraph ii must have been paid before the end of the year to which the amount relates,

iv. the exemption is only for the year to which the amount referred to in subparagraph ii relates,

v. the exemption does not apply to land leased by the designated airport authority to another person.

(2) Section 3 of the Act is further amended by adding the following paragraph:

25. Land that is conservation land as defined in the regulations.

5. Sections 7 and 8 of the Act are repealed and the following substituted:

Property classes

7. (1) The Minister shall prescribe classes of real property for the purposes of this Act.

Same

(2) The classes prescribed by the Minister shall include, but are not restricted to, the following:

1. The residential/farm property class.

2. The multi-residential property class.

3. The commercial property class.

4. The industrial property class.

5. The pipe line property class.

6. The farmlands and managed forests property class.

Discretion not affected

(3) Nothing in subsection (2) restricts the discretion of the Minister to define what is included in a class.

6. (1) Subsection 10 (1) of the Act is amended by striking out "or of making a proper business assessment in respect thereof" at the end.

(2) Subsection 10 (2) of the Act is amended by striking out "to make a proper business assessment in respect thereof" in the tenth and eleventh lines.

7. Section 11 of the Act is repealed and the following substituted:

Request for information

11. (1) For any purpose relating to the assessment of land, an assessor may, by letter sent by mail, served personally or delivered by courier, require a person who is or may be assessedin respect of the land to provide any information or produce any document relating to the assessment of land within such reasonable time as is set out in the letter.

Return of information

(2) A person who receives a letter under subsection (1) shall, within the time set out in the letter, provide to the assessor all the information required that is within the person's knowledge and produce all the documents required that are within the person's possession or control.

8. Subsection 13 (1) of the Act is amended by inserting "every person who fails to provide information as required under section 16.1" after "it" in the fourth line.

9. (1) Paragraph 6 of subsection 14 (1) of the Act is repealed and the following substituted:

6. Current value of the parcel of land.

(2) Paragraphs 10, 11, 12, 13, 14 and 15 of subsection 14 (1) of the Act are repealed and the following substituted:

10. The classification of the parcel of land.

(3) Section 14 of the Act, as amended by the Statutes of Ontario, 1992, chapter 17, section 4, is further amended by adding the following subsection:

Multiple-use property

(5) If a property is in two or more classes of real property, the assessment commissioner shall determine the share of the value attributable to each class and assess the property according to the proportion each share constitutes of the total value and include each proportion on the assessment roll.

10. (1) Subsection 16 (3) of the Act is amended by inserting "in a form approved by the Minister" after "may apply" in the first line.

(2) Subsection 16 (6) of the Act is repealed and the following substituted:

Regulations

(6) The Minister may make regulations prescribing the procedures to be used by a person applying to the assessment commissioner under subsection (3).

11. The Act is amended by adding the following section:

Information from landlords

16.1 (1) For the purposes of sections 15 and 16, on or beforeJuly 31 in each year, every owner of a property with seven or more self-contained residential units shall provide the assessment commissioner for the assessment region in which the property is located with the information described in subsection (2).

What information is required

(2) The information referred to in subsection (1) is the names and unit numbers of the persons who, during the 12-month period that ends with, and includes, July 1 in the year in which the information is provided,

(a) have become residential tenants of the property;

(b) have ceased to be residential tenants of the property; or

(c) have continued to be residential tenants of the property but have changed units.

12. Subsections 19 (1), (2), (3), (4) and (5) of the Act are repealed and the following substituted:

Assessment based on current value

(1) The assessment of land shall be based on its current value or average current value, as determined under section 19.1.

Regulations, special rule

(2) The Minister may make regulations,

(a) providing that the current value of eligible land be based only on current use if the land would otherwise have a higher current value because of other uses to which the land could be put;

(b) prescribing what land is eligible for a determination of current value based only on current use including prescribing how long the land must have been used for its current use to be eligible.

Municipalities to opt in

(3) Regulations under subsection (2) shall provide that the regulations do not apply to land within a municipality or upper-tier municipality, the council of which is required under section 363 of the Municipal Act to pass a by-law establishing tax ratios, unless the municipality or upper-tier municipality has, in the prescribed manner, opted to have the regulations apply.

"Upper-tier municipality"

(4) In subsection (3),

"upper-tier municipality" means a county, a regional or districtmunicipality or the County of Oxford.

Farm lands and buildings

(5) For the purposes of determining the current value of farm lands used only for farm purposes by the owner thereof or used only for farm purposes by a tenant of such an owner and buildings thereon used solely for farm purposes, including the residence of the owner or tenant and of the owner's or tenant's employees and their families on the farm lands, consideration shall be given to the current value of the lands and buildings for farming purposes only, and in determining the current value, consideration shall not be given to sales of lands and buildings to persons whose principal occupation is other than farming.

Where owner dies or retires

(5.1) Where the owner of farm lands entitled to the benefit of subsection (5) dies or retires, the current value of the lands and buildings in respect of which subsection (5) applies shall be determined in the manner provided in subsection (5) for the period the lands are held by the owner after his or her retirement or held by his or her estate after his or her death, but in no case beyond the two years immediately following the owner's death or retirement unless the lands are occupied by the surviving spouse of the deceased owner or by the retired owner.

Conservation land, managed forest land

(5.2) The current value of land that is conservation land or managed forests land as defined in the regulations shall be based only on the current use of the land and not other uses to which the land could be put.

13. The Act is amended by adding the following sections:

Assessment, single years and averages

19.1 (1) Land shall be assessed,

(a) for a taxation year before 2005, at the land's current value for the taxation year;

(b) for the 2005 taxation year, at the average of the land's current value for the taxation year and the land's current value for the previous taxation year;

(c) for a taxation year after 2005, at the average of the land's current value for the taxation year and the land's current value for each of the previous two taxation years.

Special rule, subdivision of land

(2) If the subdivision of land results in a parcel of land for which no current value was determined for a previous year and the current value for such a previous year, if it existed, would havebeen used in calculating the average under clause (1) (b) or (c), the land shall be assessed at its current value for the taxation year instead of under clause (1) (b) or (c).

Special rule, improvements, etc.

(3) If an increase described in clause 34 (a) occurs in a year and the current value for that year is used in calculating the average under clause (1) (b) or (c), the increase shall be added to each current value used in calculating the average to the extent that it is not already reflected in the current value for each year.

Valuation days

19.2 (1) The day as of which land is valued for a taxation year is determined in accordance with the following table:

Taxation year	Day as of which property is valued
1998, 1999, 2000	June 30, 1996
2001, 2002	June 30, 1999
2003	June 30, 2001
2004 and subsequent years	June 30 of the year before the taxation year

Exceptions, by order

(2) For any of the 1999 to 2003 taxation years, the Minister may order that land be valued as of June 30 of a year different from that set out in the table in subsection (1).

Notice of order

(3) The Minister shall give notice of any order under subsection (2) to the persons and in the manner determined by the Minister.

Order not a regulation

(4) An order under subsection (2) is not a regulation within the meaning of the Regulations Act.

Classification day

19.3 The day as of which land shall be classified for a taxation year is October 31 of the previous year.

14. (1) Subsection 20 (1) of the Act is repealed.

(2) Subsection 20 (2) of the Act is amended by striking out "market value" in the fifth and sixth lines and substituting "current value".

15. Subsection 24 (1) of the Act is amended by striking out "market value" in the second last line and substituting "current value".

16. (1) Subsections 25 (4), (5), (6) and (7) are repealed and the following substituted:

Assessment of pipe line

(4) Despite any other provisions of this Act, a pipe line shall be assessed for taxation purposes in accordance with the regulations.

(2) Subsection 25 (11) of the Act is amended by striking out "property and business taxes" in the seventh line.

(3) Subsections 25 (15), (16), (17) and (18) of the Act are repealed.

17. (1) Subsection 27 (3) of the Act is repealed and the following substituted:

Annual payment to municipalities

(3) Every commission shall pay in each year, to any municipality in which lands or buildings owned by the commission are situated, the total amount that the rate levied in that municipality for taxation purposes on the commercial property class would produce, based on the assessed value of the land according to the value at which lands are assessed in the immediate vicinity and the assessed value of the buildings.

(2) Subsections 27 (4) and (5) of the Act are repealed.

(3) Subsection 27 (7) of the Act is amended by striking out "subsections (3), (4) and (5)" in the first and second lines and substituting "subsection (3)".

(4) Subsection 27 (8) of the Act is repealed and the following substituted:

Mode of assessment, appeals

(8) Subject to subsections (3) and (10), the property on which payment is to be made under subsection (3) shall be assessed according to this Act and the provisions of this Act respecting appeals apply.

(5) Subsection 27 (9) of the Act is repealed and the following substituted:

Valuation to be included in apportioning levies

(9) The valuation of properties assessed under this section shall be included when apportioning levies for any purpose.

(6) Subsection 27 (10) of the Act is amended by striking out "or (5)" in the sixth line, in the ninth line and in the fourteenth line.

18. (1) Clause 30 (2) (a) of the Act is repealed and the following substituted:

(a) the roadway or right of way, other than the structures, substructures and superstructures, rails, ties, poles and other property on the roadway or right of way, in the manner prescribed by the Minister.

(2) Subsection 30 (4) of the Act is repealed and the following substituted:

Exemption from other assessments

(4) A railway company assessed under this section is exempt from assessment in any other manner for municipal purposes except for local improvements.

19. The Act is amended by adding the following section:

Assessment of rights of way

30.1. Any right within the meaning of section 48 of the Power Corporation Act that is owned by Ontario Hydro or any power utility prescribed by the Minister, other than a public utility as defined under subsection 27 (1), shall be assessed in the manner prescribed by the Minister.

20. Clause 31 (1) (a) of the Act is repealed and the following substituted:

(a) the person's assessment and the current value of the parcel of land;

(a.1) the classification of the parcel of land.

21. Subsection 33 (1) of the Act is amended by striking out "or any business assessment" in the second line.

22. Clause 34 (c) of the Act is repealed.

23. Subsections 35 (1) and (2) of the Act are repealed and the following substituted:

Notice and complaint

(1) The owner and the tenant or tenants of land in respect of which a notice of assessment under section 32 is delivered or transmitted or that has been assessed under section 33 or 34 shall be notified and be entitled to complain as if the assessment had been regularly made and the assessment roll was returned 14 days after the day of mailing of the notice ofassessment.

24. The Act is amended by adding the following section:

Assessment rolls to upper-tiers

36.1 (1) The Minister shall, at the request of an upper-tier municipality, provide the municipality with the last returned assessment rolls for the municipalities that are part of the upper-tier municipality for municipal purposes.

Definition

(2) In subsection (1),

"upper-tier municipality" means a county, a regional or district municipality or the County of Oxford.

25. The Act is amended by adding the following section:

Request for reconsideration of assessment

39.1 (1) A person who has received a notice of assessment under this Act may request the assessment commissioner to reconsider the person's assessment including the classification of the person's land.

Contents of request

(2) The request must set out the basis for the person's request and all relevant facts.

Reconsideration by assessment commissioner

(3) The assessment commissioner or an assessor shall consider the request and, for this purpose, may request further information from the person.

If no settlement

(4) If the assessment commissioner or assessor is satisfied that no settlement is possible, the assessment commissioner or assessor shall notify the person making the request of that determination, if possible, before the expiry of the time limit for making a complaint to the Assessment Review Board under subsection 40 (2).

If settlement, notice to Assessment Review Board

(5) If the person making the request and the assessment commissioner agree to a settlement, the assessment commissioner shall give notice of the settlement to the Assessment Review Board.

Notice to municipality

(6) Unless the municipality in which the land is situated has waived the right to notice, the Assessment Review Board shall ensure that the municipality is notified of the settlement and given a period of time within which to object.

No objection by municipality

(7) If the municipality does not object to the settlement within the period of time allowed by the Assessment Review Board, the Board shall change the assessment roll in accordance with the settlement.

Objection by municipality

(8) If the municipality objects to the settlement within the period of time allowed by the Assessment Review Board, section 40 applies, with necessary modifications, as though the assessment roll had been changed in accordance with the settlement and the municipality had complained about the change.

No extension of time limit for complaints

(9) The time limit under subsection 40 (2) for making a complaint to the Assessment Review Board is not affected by a failure of the assessment commissioner or an assessor to notify a person under subsection (4), within the time limit for making a complaint, that no settlement is possible.

26. (1) Subsections 40 (1) and (2) of the Act are repealed and the following substituted:

Complaint to Assessment Review Board

(1) Any person, including a municipality or a school board, may complain in writing to the Assessment Review Board that,

(a) the current value of the person's land or another person's land is incorrect;

(b) the person or another person was wrongly placed on or omitted from the assessment roll;

(c) the person or another person was wrongly placed on or omitted from the roll in respect of school support;

(d) the classification of the person's land or another person's land is incorrect;

(e) the determination, for land that is in two or more classes of real property, of the share of the value of the land that is attributable to each class, is incorrect.

Complaint requirements, fee

(2) A complaint shall be delivered or mailed to the Assessment Review Board on or before the last day for complaining under subsections (2.1) and (2.2), shall state a name and address where notices can be given to the complainant and shall be accompanied by any fee required by the Board.

Last day for complaining

(2.1) The last day for complaining with respect to a taxation year is March 31 following the return of the assessment roll for the taxation year.

Exception, if time for returning roll is extended

(2.2) If the Minister extends the time for returning the assessment roll for a taxation year, the last day for complaining is the day that is 90 days after the return of the assessment roll.

(2) Subsections 40 (3.1), (3.2), (3.3), (3.4) and (3.5) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 27, section 40, are repealed.

(3) Subsection 40 (11) of the Act is repealed and the following substituted:

Board to make determination

(11) After hearing the evidence and the submissions of the parties, the Board shall determine the matter and, in complaints involving current value, shall determine the amount of the assessment as necessary to reflect corrections to the current value.

(4) Section 40 of the Act, as amended by the Statutes of Ontario, 1994, chapter 27, section 40, is further amended by adding the following subsections:

Power to determine law and fact

(13) The Assessment Review Board, as to all matters within its jurisdiction under this section, has authority to hear and determine all questions of law or of fact and a decision of the Board under this section is final and binding.

Deemed complaints, 1998, etc.

(14) If a complaint relates to the 1998 taxation year, the complainant shall be deemed to have made the same complaint,

(a) in relation to assessments under sections 33 and 34 for the 1998 taxation year;

(b) in relation to the assessment, including assessments under sections 33 and 34, for the 1999 taxation year if the complaint is not finally disposed of before the last day for complaining with respect to that taxation year; and

(c) in relation to the assessment, including assessments under sections 33 and 34, for the 2000 taxation year if the complaint is not finally disposed of before the last day for complaining with respect to that taxationyear.

Deemed complaints, 2001, etc.

(15) If a complaint relates to the 2001 taxation year, the complainant shall be deemed to have made the same complaint,

(a) in relation to assessments under sections 33 and 34 for the 2001 taxation year; and

(b) in relation to the assessment, including assessments under sections 33 and 34, for the 2002 taxation year if the complaint is not finally disposed of before the last day for complaining with respect to that taxation year.

Deemed complaints, notice requirement

(16) If the complaint concerns the assessment of another person, the complainant is required to comply with subsection (3) only at the time of making the original complaint, not each time the complaint is deemed to be made again.

1998 taxation year, last day for complaining

(17) Despite subsections (2.1) and (2.2), the last day for complaining with respect to the 1998 taxation year is the day that is 60 days after the return of the assessment roll for the 1998 taxation year.

27. (1) If Bill 61 (An Act to simplify government processes and to improve efficiency in the Ministry of the Attorney General), introduced on June 5, 1996, receives Royal Assent before this section comes into force, section 40.1 of the Assessment Act, as enacted by section 1 of Bill 61, is repealed and the following substituted:

Correction of errors

40.1 If it appears that there are palpable errors in the assessment roll,

(a) if no alteration of assessed values or classification of land is involved, the Board may correct the roll; and

(b) if alteration of assessed values or classification of land is involved, the Board may extend the time for making complaints and direct the assessor to be the complainant.

(2) If Bill 61 does not receive Royal Assent before this section comes into force, the Assessment Act is amended by adding section 40.1 as set out in subsection (1).

28. Section 43 of the Act is repealed and the followingsubstituted:

Stating case for opinion of Divisional Court

43. (1) The Assessment Review Board may, upon the application of any person, or on its own motion, and upon such security being given as it directs, state a case in writing for the opinion of the Divisional Court upon any question that, in the opinion of the Board, is a question of law.

Same

(2) The Divisional Court shall hear and determine the stated case.

Appeal

43.1 An appeal lies from the Assessment Review Board to the Divisional Court, with leave of the Divisional Court, on a question of law.

29. (1) Subsection 44 (1) of the Act is amended by striking out "Ontario Municipal Board" in the third line.

(2) Subsection 44 (2) of the Act is amended by striking out "may" in the second line and substituting "shall".

30. (1) Subsection 45 (1) of the Act is amended by striking out "or Ontario Municipal Board" in the third line and in the tenth line.

(2) Subsections 45 (2) and (3) of the Act are repealed.

31. (1) Subsection 46 (1) of the Act is repealed and the following substituted:

Application to court

(1) The municipality, assessment commissioner or any person assessed may apply to the Ontario Court (General Division) for the determination of any matter relating to the assessment, except a matter that could be the subject of a complaint under subsection 40 (1).

(2) Subsection 46 (3) of the Act is repealed.

(3) Subsection 46 (6) of the Act is repealed and the following substituted:

Judgment of court binding on Assessment Review Board

(6) Despite the fact that a question of the assessment of any person is pending before the Assessment Review Board, the judgment of the Ontario Court (General Division) or the Divisional Court shall be given effect to and is binding upon the Board.

(4) Section 46 of the Act is amended by adding the following subsection:

Limitation on court's order

(7) No order of a court on an application under this section shall alter an assessment or classification so as to alter taxes for a taxation year before the year in which the application was made.

32. Section 47 of the Act is repealed.

33. Section 50 of the Act is repealed.

34. Section 51 of the Act, as amended by the Statutes of Ontario, 1991, chapter 11, section 3, is repealed.

35. Section 52 of the Act is repealed.

36. Subsection 53 (5) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 4, section 43, is amended by striking out "or the amount of any business assessment" in the fourth and fifth lines.

37. Section 55 of the Act is amended by striking out "business assessment or" in the twenty-fifth and twenty-sixth lines.

38. Sections 58, 59, 60, 61, 62 and 63 of the Act are repealed.

39. The Schedule to the Act, as enacted by the Statutes of Ontario, 1994, chapter 36, section 3, is repealed.

PART II

MUNICIPAL ACT AMENDMENTS

40. Subsection 1 (1) of the Municipal Act, as amended by the Statutes of Ontario, 1996, chapter 32, section 2, is further amended by adding the following definition:

"rateable property" means real property other than property that is exempt from taxation under the Assessment Act. ("bien imposable")

41. Clause 14 (7) (n) of the Act is repealed.

42. Subsection 108 (4) of the Act is amended by striking out "subsection 162 (1)" in the last line and substituting "sections 365 and 367".

43. Clause 123 (14) (b) of the Act is amended by striking out"apportioned under section 366" in the fourth and fifth lines and substituting "under section 365".

44. Section 139 of the Act is repealed.

45. Sections 155 and 156 of the Act are repealed.

46. Section 160 of the Act is repealed.

47. (1) Subsection 161 (1) of the Act is amended by striking out "not exceeding one-half of one mill" in the third line.

(2) Section 161 of the Act is amended by adding the following subsection:

Maximum

(1.1) The special rate shall be expressed as a percentage of the assessment of property and shall not exceed .05 percent.

48. Section 162 of the Act is repealed.

49. (1) Subclause (ii) of clause (f) of paragraph 56 of section 207 of the Act is amended by striking out "assessment" in eighth line and in the ninth line and substituting in each case "weighted assessment".

(2) Clause (f) of paragraph 56 of section 207 of the Act is amended by adding the following subclause:

(ii.1) In this clause,

"weighted assessment" means the assessment for a property multiplied by the tax ratio, established under section 363, for the property class the property is in.

(3) Subclause (iv) of clause (f) of paragraph 56 of section 207 of the Act is amended by striking out "assessed value" in seventh and eighth lines and substituting "total weighted assessment".

50. (1) Subsection 209 (21) of the Act, as amended by the Statutes of Ontario, 1993, chapter 20, section 2, is amended by striking out "Despite section 374" in the first line and substituting "Despite section 366".

(2) Subsection 209 (23) of the Act, as amended by the Statutes of Ontario, 1993, chapter 20, section 2, is further amended by striking out "Despite sections 369 and 374" in the first line and substituting "Despite section 366".

51. (1) Subsection 220 (2) of the Act is repealed and thefollowing substituted:

Notice of intention

(2) Before passing a by-law designating an improvement area, notice of the intention of the council to pass the by-law shall be sent by prepaid mail to every person who, on the last returned assessment roll, is assessed with respect to rateable property in the area that is in a prescribed business property class.

(2) Section 220 of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule and 1996, chapter 32, section 51, is further amended by adding the following subsection:

Duties of landlords

(2.1) If a person who receives notice under subsection (2) has leased any of their rateable property in the area that is in a prescribed business property class, the person shall, within 14 days after the notice was mailed,

(a) give a copy of the notice to each tenant of such property who, under the tenant's lease, is required to pay all or part of the taxes on the property; and

(b) give the clerk of the municipality a list of every tenant described in clause (a) and the share of the taxes on the property that each tenant is required to pay.

(3) Subsections 220 (3) and (4) of the Act are repealed and the following substituted:

Petition objecting to by-law

(3) The council shall not pass the by-law referred to in subsection (2) if the clerk of the municipality receives, within two months after the latest day of the mailing of the notices referred to in that subsection, a petition objecting to the by-law that satisfies both of the following:

1. The petition must have been signed by at least one-third of the persons who are entitled to notice under subsection (2) or clause (2.1) (a).

2. The persons referred to in paragraph 1 must be responsible for at least one-third of the taxes on rateable property in the area that is in a prescribed business property class levied for the purposes of the general upper-tier levy as defined in subsection 366 (1) or the general local municipal levy as defined in subsection 368 (1). For the purposes of this paragraph, a landlord is not responsible for the part of the taxes that a tenant is required to pay under the tenant's lease.

Approval of O.M.B.

(4) A by-law referred to in subsection (2) shall not come into force without the approval of the Municipal Board if the clerk of the municipality receives, within 30 days after the latest day of the mailing of the notices referred to in subsection (2), a petition objecting to the by-law that is signed by at least one person who is entitled to notice under subsection (2) or clause (2.1) (a).

(4) Subsection 220 (6) of the Act is repealed and the following substituted:

Board of management

(6) A board of management established under subsection (1) is a body corporate and shall consist of such number of members appointed by council as the council considers advisable, at least one of whom shall be a member of the council and the remaining members shall be individuals who are persons who are entitled to notice under subsection (2) or clause (2.1) (a) or who are nominated by such persons.

(5) Subsection 220 (17) of the Act is repealed and the following substituted:

Special charge

(17) Subject to such maximum and minimum charges as the council may specify by by-law, the council shall in each year levy a special charge upon rateable property in the area that is in a prescribed business property class sufficient to provide a sum equal to the sum of money provided for the purposes of the board of management for that area, together with interest on the sum at such rate as is required to repay any interest payable by the municipality on the whole or any part of such sum.

(6) Subsection 220 (18) of the Act is repealed and the following substituted:

Special charge where special benefit derived

(18) Despite subsection (17), the council may by by-law provide that the sum required for the purposes mentioned therein shall be levied as a special charge upon the rateable property in the area that is in a prescribed business property class and that, in the opinion of the council, derives special benefit from the establishment of the area, and the sum chargeable to such property shall be equitably apportioned among the separate parcels of property in accordance with the benefits that, in the opinion of the council, accrue to them from the establishment of the area.

(7) Clause 220 (19) (b) of the Act is amended by striking out "thirty days" in the fourth line and substituting "forty-five days".

(8) Section 220 of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule and 1996, chapter 32, section 51, is further amended by adding the following subsection:

Duties of landlords

(19.1) If a person who receives notice under clause (19) (b) has leased any of their rateable property in the area that is in a prescribed business property class, the person shall, within 14 days after the notice was mailed, give a copy of the notice to each tenant of such property who, under the tenant's lease, is required to pay all or part of the taxes on the property.

(9) Subsection 220 (20) of the Act is amended by inserting after "(18)" in the sixth line "or any tenant who would be required under their lease to pay all or part of the taxes on the property against which such a charge would be levied".

(10) Subsection 220 (22) of the Act is amended by inserting after "(19)" in the first line "(19.1)".

(11) Subsection 220 (25) of the Act is repealed and the following substituted:

Charges are taxes

(25) Any charge imposed under subsection (17) or (18) shall be deemed to be taxes on property and section 382 applies with respect to such a charge.

(12) Subsection 220 (27) of the Act is amended by inserting after "(2)" in the first line "(2.1)".

(13) Subsection 220 (33) of the Act is amended by inserting after "(2)" in the first line "(2.1)".

(14) Section 220 of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule and 1996, chapter 32, section 51, is further amended by adding the following subsection:

Regulations, prescribing classes

(35) The Minister may make regulations prescribing one or more classes of real property prescribed under the Assessment Act as business property classes for the purposes of this section.

52. Paragraph 4 of subsection 221 (9) of the Act is repealed.

53. Part XXII of the Act is amended by adding the following section:

Definitions

361.1 In sections 362 to 375 and in this section,

"assessment" means the assessment for real property made underthe Assessment Act according to the last returned assessment roll; ("évaluation")

"lower-tier municipality" means a municipality that is part of an upper-tier municipality for municipal purposes; ("municipalité de palier inférieur")

"municipality" includes an upper-tier municipality; ("municipalité")

"property class" means a class of real property prescribed under the Assessment Act; ("catégorie de biens")

"residential/farm property class" means the residential/farm property class prescribed under the Assessment Act; ("catégorie des biens résidentiels/agricoles")

"school board" means a board as defined in section 1 of the Education Act; ("conseil scolaire")

"tax rate" means the tax rate to be levied against property expressed as a percentage, to three decimal places, of the assessment of the property; ("taux d'imposition", "taux de l'impôt")

"upper-tier municipality" means a county, a regional or district municipality or the County of Oxford. ("municipalité de palier supérieur")

54. (1) Section 362 of the Act is amended by striking out "business" in the fourth line.

(2) Section 362 of the Act is amended by adding the following subsection:

All rates subject to tax ratios

(2) If, in this or any other general or special Act or in any by-law passed under any such Act, the yearly rates or any special rates are expressly or in effect directed or authorized to be levied upon rateable property of a municipality for municipal purposes then, unless other express provisions are made, such rates shall be calculated as percentages of the assessment for real property in each property class and the rates shall be in the same proportion to each other as the tax ratios established under section 363 for the property classes are to each other.

55. Sections 363 to 381 of the Act, as amended or enacted by the Statutes of Ontario, 1991, chapter 11, section 5, 1992, chapter 15, sections 18 and 19, 1993, chapter 11, sections 44 and 45, 1993, chapter 27, Schedule, 1994, chapter 17, section 49 and 1994, chapter 23, section 57, are repealed and the following substituted:

Establishment of tax ratios

363. (1) A set of tax ratios for every municipality shall be established in accordance with this section. The tax ratios are the ratios that the tax rate for each property class must be to the tax rate for the residential/farm property class.

Single tier municipalities

(2) The council of a municipality that is not an upper-tier or a lower-tier municipality shall pass a by-law on or before March 15 in each year to establish the tax ratios for that year for the municipality.

Tiered municipalities

(3) The council of an upper-tier municipality shall pass a by-law on or before March 15 in each year to establish the tax ratios for that year for the upper-tier municipality and its lower-tier municipalities.

Tiered municipalities, ratios are uniform

(4) A by-law under subsection (3) must establish, for each property class, a single tax ratio for the upper-tier municipality and its lower-tier municipalities.

Ratios within prescribed ranges

(5) The tax ratio for a property class must be within the allowable range prescribed in the regulations for the property class.

Exception

(6) Despite subsection (5), the tax ratio for a property class for a municipality may be outside the allowable range in the following circumstances:

1. For the first year for which the property class is prescribed under the Assessment Act, the tax ratio may be,

i. above the range if it is less than or equal to the prescribed transition ratio for the property class for the municipality, or

ii. below the range if it is greater than or equal to the prescribed transition ratio for the property class for the municipality.

2. For a subsequent year the tax ratio may be,

i. above the range if it is less than or equal to the tax ratio for the property class for the previous year, or

ii. below the range if it is greater than or equal tothe tax ratio for the property class for the previous year.

Regulations, Minister

(7) The Minister may make regulations,

(a) extending the time limit in subsection (2) or (3);

(b) requiring municipalities to provide the Minister with the information prescribed in the regulations at the times, and in the manner, prescribed in the regulations;

(c) requiring municipalities that pass by-laws under this section or that otherwise establish tax ratios under regulations under this section to give notice of the tax ratios to such persons and in such manner, as the regulations prescribe.

Regulations extending time

(8) A regulation under clause (7) (a) extending a time limit may be made even if the time limit has expired.

Regulations, Minister of Finance

(9) The Minister of Finance may make regulations,

(a) prescribing, for the purposes of subsection (5), the allowable ranges for the tax ratios for the property classes;

(b) prescribing transition ratios for the property classes for the purposes of subsection (6) or prescribing a method for determining such ratios.

(c) designating a group of municipalities specified in the regulations, each one of which is a municipality whose council is required under subsection (2) or (3) to pass a by-law establishing tax ratios for a year, and requiring each such municipality, despite subsections (5) and (6), to establish, as the tax ratio for the year for each property class specified in the regulations, the ratio specified in the regulations for the property class.

Regulation under clause (9) (c), municipal request required

(10) A regulation under clause (9) (c) may not be made unless, before the regulation is made, the council of each municipality to be specified in the regulation passes a resolution requesting that such a regulation be made, specifying the property classes with respect to which the regulation is to apply and specifying what the tax ratio for each such class shall be.

Regulations can be specific

(11) A regulation under this section may be general or particular in its application and may be limited to specific municipalities.

Regulations can be retroactive

(12) A regulation under subsection (9) may be retroactive to a date not earlier than January 1 of the year in which the regulation was made.

Farmlands and managed forests property class

(13) Despite anything in this section the tax ratio for the property class prescribed under the Assessment Act as the farmlands and managed forests property class shall be .25 for all municipalities.

Delegation to lower-tiers

364. (1) The council of an upper-tier municipality may, by by-law passed before January 15 of a year, delegate to the council of each of its lower-tier municipalities the authority to pass a by-law establishing the tax ratios for the year within the lower-tier municipality for both lower-tier and upper-tier purposes.

By-law must apportion upper-tier levies

(2) A by-law under subsection (1) must set out the portion of the general upper-tier levy and any special upper-tier levy that will be raised in each lower-tier municipality or a method by which the portion can be determined.

Lower-tiers must consent

(3) A by-law under subsection (1) establishing tax ratios for a year is not in force unless, before January 15 of the year, the council of every lower-tier municipality that is part of the upper-tier municipality passes a resolution consenting to the by-law.

Upper-tier must be designated by regulation

(4) A by-law under subsection (1) establishing tax ratios for a year does not come into force unless a regulation is made, before March 1 of the year, designating the upper-tier municipality for the purposes of this section.

Limitation on amendment, revocation

(5) A by-law under subsection (1) establishing tax ratios for a year may not be amended or repealed on or after January 15 of the year.

Delegated authority is exclusive

(6) The council of a lower-tier municipality that has been delegated authority to pass a by-law establishing the tax ratios for a year within the municipality has the exclusive authority to pass such a by-law for the year.

When tax ratios must be established

(7) If a council has been delegated the authority to pass a by-law establishing the tax ratios for a year, the council shall do so on or before March 15 of the year.

Application of section 363

(8) Subsections 363 (5) to (12) apply, with necessary modifications, with respect to a by-law made under a delegation under subsection (1).

Single set of tax ratios

(9) The tax ratios established by the council of a municipality must be the same for both upper-tier and lower-tier purposes.

Regulations

(10) The Minister may make regulations,

(a) designating an upper-tier municipality for the purposes of this section;

(b) prescribing conditions that must be satisfied before the council of an upper-tier municipality may make a delegation under subsection (1);

(c) extending the time limit in subsections (1), (3), (4), (5) and (7);

(d) governing the requisitions or levies that may be made by the council of an upper-tier municipality that has made a delegation under subsection (1) or that may be made by any other body;

(e) doing any of the following that, in the opinion of the Minister, are necessary or desirable as a result of a delegation being made under subsection (1) or as a result of a delegation under subsection (1) not being made in the year following a year in which such a delegation was made,

(i) varying the application of this or any other Act,

(ii) prescribing provisions to operate in place of any part of this or any other Act,

(iii) prescribing provisions to operate in addition to this or any other Act.

Regulations extending time

(11) A regulation under clause (10) (c) extending a time limit may be made even if the time limit has expired.

Regulations can be specific

(12) A regulation under this section may be general or particular in its application and may be limited to specific municipalities.

Regulations can be retroactive

(13) A regulation under this section may be retroactive to a date not earlier than January 1 of the year in which the regulation was made.

Yearly estimates, upper-tier

365. (1) The council of an upper-tier municipality shall in each year prepare and adopt estimates of all sums required during the year for the purposes of the upper-tier municipality including amounts sufficient to pay all debts of the upper-tier municipality falling due within the year, amounts required to be raised for sinking funds, amounts in respect of debenture debt of lower-tier municipalities for the payment of which the upper-tier municipality is liable and amounts required by law to be provided by the upper-tier municipality for any of its local boards, excluding school boards.

Detail and form

(2) The estimates shall set out the estimated revenues and expenditures in such detail and form as the Minister may require.

Allowance

(3) In preparing the estimates, the council of the upper-tier municipality shall make due allowance for a surplus of any previous year that will be available during the current year and shall provide for any operating deficit of any previous year and for uncollectible taxes and may provide for taxes that it is estimated will not be collected during the year and for such reserves as the council of the upper-tier municipality considers necessary.

Application

(4) Section 34 of the Assessment Act and section 421 apply with necessary modifications to the upper-tier municipality.

Yearly estimates from boards, etc.

(5) The council of the upper-tier municipality may by by-law require that the current year's estimates of every board, commission or other body for which the council is required by law to provide money, be submitted to the council on or before March 1 in each year and that such estimates shall be in such detail and form as the by-law provides.

General upper-tier levy, etc.

366. (1) In this section,

"general upper-tier levy" means an amount sufficient for paymentof the estimated expenditures adopted for the year under section 365 less the amount of any special upper-tier levies to be raised; ("impôt général de palier supérieur")

"special upper-tier levy" means an amount to be raised on less than all the rateable property in the upper-tier municipality. ("impôt extraordinaire de palier supérieur")

General rating by-law

(2) For purposes of raising the general upper-tier levy, the council of an upper-tier municipality, on or before March 31 in each year, shall pass a by-law directing the council of each lower-tier municipality to levy a separate tax rate, as specified in the by-law, on the assessment in each property class in the lower-tier municipality rateable for upper-tier purposes.

Special levies

(3) For purposes of raising a special upper-tier levy, the council of an upper-tier municipality shall, on or before March 31 in each year, pass a by-law directing the council of each applicable lower-tier municipality to levy a separate tax rate, as specified in the by-law, on all or part of the assessment, as specified in the by-law, in each property class in the lower-tier municipality rateable for upper-tier purposes.

Restrictions on rates

(4) The tax rates that the council of an upper-tier municipality shall direct to be levied in an upper-tier rating by-law are subject to the following restrictions:

1. The rates must be set so that, when they are levied on the applicable assessment rateable for upper-tier purposes, an amount equal to the general upper-tier levy or special upper-tier levy, as the case may be, is raised.

2. The rates on the different classes of property must be in the same proportion to each other as the tax ratios established under section 363 for the property classes are to each other.

3. The rate for each class of property must be the same for each lower-tier municipality.

Rates adopted

(5) In each year, the council of each lower-tier municipality shall levy, in accordance with the upper-tier rating by-law passed for that year, the tax rates specified in the by-law.

Estimate of amount to be raised

(6) An upper-tier rating by-law shall estimate the amount to be raised in a lower-tier municipality as a result of a levybeing made in that municipality in accordance with the by-law.

Instalments, other than counties

(7) An upper-tier rating by-law passed by the council of an upper-tier municipality, other than a county, may require specified portions of the estimate to be paid to the treasurer of the upper-tier municipality on or before specified dates.

Instalments, counties

(8) An upper-tier rating by-law passed by the council of a county shall provide that the amount to be raised by each lower-tier municipality shall be paid to the county in the following instalments:

1. 25 per cent of the amount required for county purposes in the prior year, on or before March 31.

2. 50 per cent of the amount required for county purposes in the current year, less the amount of the instalment paid under paragraph 1, on or before June 30.

3. 25 per cent of such current amount, on or before September 30.

4. The balance of the entitlement for the year, on or before December 15.

County variation by agreement

(9) Despite subsection (8), the council of a county may, by agreement with a majority of the lower-tier municipalities in the county representing at least two-thirds of the total weighted assessment of all the lower-tier municipalities in the county, provide by by-law for any number of instalments and their due dates other than those provided in subsection (8) and those alternative instalments and due dates shall be applicable to all the lower-tier municipalities in the county.

Definition

(10) For the purposes of subsection (9),

"weighted assessment" means the assessment for a property multiplied by the tax ratio, established under section 363, for the property class the property is in.

Interest on advance payments

(11) An upper-tier rating by-law may provide that the upper-tier municipality shall pay interest at a rate to be determined by the council of the upper-tier municipality on any payment, or portion of such a payment, made in advance by a lower-tier municipality.

Payment

(12) The amount levied by a lower-tier municipality pursuant to an upper-tier rating by-law shall be deemed to be taxes and is a debt of the lower-tier municipality to the upper-tier municipality and the treasurer of the lower-tier municipality shall pay the amount owing by the lower-tier municipality to the treasurer of the upper-tier municipality on or before the dates and in the portions specified in the upper-tier rating by-law.

Default

(13) If a lower-tier municipality fails to make any payment, or portion of it, as provided in the upper-tier rating by-law, the lower-tier municipality shall pay to the upper-tier municipality interest on the amount in default at the rate of 15 per cent per year, or such lower rate as the upper-tier municipality may by by-law determine, from the date payment is due until it is made.

Amount payable, adjustments if estimate incorrect

(14) If the amount levied by a lower-tier municipality pursuant to an upper-tier rating by-law is different from the amount estimated in the by-law the lower-tier municipality is required to pay only the amount levied and the appropriate adjustments shall be made in respect of any amounts already paid.

Extension of time

(15) The Minister may make regulations extending the time for passing an upper-tier rating by-law in any year.

Same

(16) A regulation under subsection (15),

(a) may be made even if the time limit set out in subsection (2) or (3) has expired; and

(b) may be general or specific in its application and may be restricted to an upper-tier municipality.

Yearly estimates, local municipalities

367. (1) The council of a local municipality shall in each year prepare and adopt estimates of all sums required during the year for the purposes of the municipality including amounts sufficient to pay all debts of the municipality falling due within the year, amounts required to be raised for sinking funds and amounts required for any board, commission or other body.

Detail and form

(2) The estimates shall set out the estimated revenues and expenditures in such detail and form as the Minister may require.

Allowance

(3) In preparing the estimates, the council of the localmunicipality shall make due allowance for a surplus of any previous year that will be available during the current year and shall provide for any operating deficit of any previous year and for the cost of collection, abatement of and discount on taxes and for uncollectible taxes and may provide for taxes that it is estimated will not be collected during the year and for such reserves as the council of the municipality considers necessary.

Yearly estimates from boards, etc.

(4) The council of the local municipality may by by-law require that the current year's estimates of every board, commission or other body, other than an upper-tier municipality or school board, for which the council is required by law to levy a tax rate or provide money, be submitted to the council on or before March 1 in each year and that such estimates shall be in such detail and form as the by-law provides.

General local municipality levy, etc.

368. (1) In this section,

"general local municipality levy" means an amount sufficient for payment of the estimated expenditures adopted for the year under section 367 less amounts to be raised for upper-tier or school purposes and less the amount of any special local municipality levies to be raised; ("impôt général local")

"special local municipality levy" means an amount to be raised on less than all the rateable property in the local municipality. ("impôt extraordinaire local")

General local municipality levies

(2) For purposes of raising the general local municipality levy, the council of a local municipality shall, each year, pass a by-law levying a separate tax rate, as specified in the by-law, on the assessment in each property class in the local municipality rateable for local municipality purposes.

Special local municipality levies

(3) For purposes of raising a special local municipality levy, the council of a local municipality shall, each year, pass a by-law levying a separate tax rate, as specified in the by-law, on all or part of the assessment, as specified in the by-law, in each property class in the local municipality rateable for local municipality purposes.

Restrictions on rates

(4) The tax rates to be levied under subsection (2) or (3) are subject to the following restrictions:

1. The rates must be set so that, when they are levied on the applicable assessment rateable for local municipality purposes, an amount equal to the generallocal municipality levy or special local municipality levy, as the case may be, is raised.

2. The rates on the different classes of property must be in the same proportion to each other as the tax ratios established under section 363 for the property classes are to each other.

Interim financing, upper-tier

369. (1) The council of an upper-tier municipality, other than a county, before the adoption of the estimates for a year, may by by-law requisition a sum from each lower-tier municipality subject to the following:

1. The sum must not exceed 50 per cent of the amount that, in the upper-tier rating by-law for the previous year, was estimated to be raised in the particular lower-tier municipality.

2. The sum must not exceed any limit in a regulation under section 371.

Instalments

(2) A by-law passed under subsection (1) may require specified portions of the sum to be paid to the treasurer of the upper-tier municipality on or before specified dates.

Interest on advance payments

(3) A by-law passed under subsection (1) may provide that the upper-tier municipality shall pay interest at a rate to be determined by the council of the upper-tier municipality on any payment, or portion of such a payment, made in advance by a lower-tier municipality.

Yearly amount reduced

(4) The amount of any requisition made under subsection (1) in a year upon a lower-tier municipality shall be deducted from the amounts to be paid by the lower-tier municipality to the upper-tier municipality under the upper-tier rating by-law for the year.

Interim levy, local municipality

370. (1) The council of a local municipality, before the adoption of the estimates for a year, may pass a by-law levying a separate tax rate, as specified in the by-law, on the assessment in each property class in the local municipality rateable for local municipality purposes.

By-law

(2) A by-law for levying tax rates under subsection (1) shall be passed in the year that the rates are to be levied or may be passed in December of the previous year if it provides that itdoes not come into force until a specified day in the following year.

Restrictions on rates

(3) The tax rates to be levied under subsection (1) are subject to the following restrictions:

1. The rate on a property class must be set so that the amount raised, when the tax rate is levied on the applicable assessment rateable for local municipality purposes, does not exceed 50 per cent of the amount raised for all purposes in the previous year by the levying of tax rates on the properties that, in the current year, are in the property class.

2. The rates must be set so that the amount raised does not exceed any limit in a regulation under section 371.

Assessment roll

(4) If the assessment roll for taxation in the current year has not been returned, the tax rate levied under subsection (1) may be levied on the assessment according to the assessment roll used for taxation purposes in the previous year or a preliminary assessment roll provided by the assessment commissioner for the purpose.

Deduction

(5) An amount levied under subsection (1) on a property in a year shall be deducted from the amounts levied on the property for the year under sections 366 and 368.

Refund

(6) If the amount levied under subsection (1) on a property exceeds the amounts levied on the property for the year under sections 366 and 368, the treasurer of the local municipality shall refund that excess amount not later than twenty-one days after giving a notice of demand of taxes payable for the year.

Regulations to vary interim powers

371. (1) The Minister may make regulations with respect to a taxation year,

(a) for the purposes of paragraph 2 of subsection 369 (1), establishing the maximum amount that can be requisitioned by an upper-tier municipality on an interim basis;

(b) for the purposes of paragraph 2 of subsection 370 (3), establishing the maximum amount that can be requisitioned by a local municipality on an interim basis.

Regulations can be specific

(2) A regulation under this section may be general or specific in its application and may be restricted to the municipalities designated.

Restriction for taxation years after 1998

(3) The Minister may make a regulation with respect to a taxation year after 1998 only if the day or one of the days as of which current value is determined for the purposes of assessment for the taxation year is different from the corresponding day or days for the previous taxation year.

Phase-in of 1998 assessment-related changes

372. (1) In 1998, the council of a municipality, other than a lower-tier municipality, may pass a by-law to phase-in a 1998 assessment-related tax increase or decrease as determined under subsection (2).

"1998 assessment-related tax increase or decrease"

(2) In this section,

"1998 assessment-related tax increase or decrease" means the increase or decrease from the 1997 taxes on a property to the 1998 taxes on a property subject to the following:

1. If the tax ratio for any property class for the municipality established under section 363 for 1998 is different from the transition ratio for the property class prescribed for the purposes of subsection 363 (6), the 1998 taxes shall be calculated, for the purposes of determining the 1998 assessment-related tax increase or decrease, at the tax rate that would have been levied had the tax ratios for the municipality been equal to the transition ratios.

2. If a new improvement to a property is reflected in the assessment used to determine the 1998 taxes but was not reflected in the assessment used to determine the 1997 taxes, the 1998 taxes shall be calculated, for the purposes of determining the 1998 assessment-related tax increase or decrease, as though the improvement were not reflected in the assessment used to determine the 1998 taxes.

3. If an improvement to a property was reflected in the assessment used to determine the 1997 taxes and, because of a change related to the improvement, the improvement is not reflected in the assessment used to determine the 1998 taxes, the 1998 taxes shall be calculated, for the purposes of determining the 1998 assessment-related tax increase or decrease, as though the improvement were reflected in the assessment usedto determine the 1998 taxes.

"1997 taxes" and "taxes"

(3) In subsection (2),

"1997 taxes", in relation to a property, includes business taxes imposed on a person carrying on a business on the property; ("impôts de 1997")

"taxes" does not include taxes for school purposes. ("impôts")

Application to lower-tiers

(4) A by-law under subsection (1) of an upper-tier municipality also applies with respect to the taxes of its lower-tier municipalities.

By-law requirements

(5) A by-law under subsection (1) is subject to the following:

1. The first year in which a 1998 assessment-related tax increase or decrease is phased-in must be the 1998 taxation year and the last year must be the 2005 taxation year or an earlier taxation year.

2. If the by-law is phasing in a 1998 assessment-related tax increase, the following adjustments shall be made to taxes for a property for a taxation year,

i. the 1998 assessment-related tax increase shall be subtracted from the taxes,

ii. the amounts phased-in in each of the previous years shall be added to the taxes, and

iii. the amount to be phased-in in the current taxation year shall be added to the taxes.

3. If the by-law is phasing in a 1998 assessment-related tax decrease, the following adjustments shall be made to taxes for a property for a taxation year,

i. the 1998 assessment-related tax decrease shall be added to the taxes,

ii. the amounts phased-in in each of the previous years shall be subtracted from the taxes, and

iii. the amount to be phased-in in the current taxation year shall be subtracted from the taxes.

4. The amount to be phased-in in a year, other than 1998, must be the same or less than the amount phased-in inthe previous year.

5. The amount phased-in in the last year in which an 1998 assessment-related tax increase or decrease is phased-in plus the total of the amounts phased-in in the previous years must equal the 1998 assessment-related tax increase or decrease.

6. The by-law must set out, for each property with respect to which the by-law applies, the 1998 assessment-related tax increase or decrease.

7. The by-law may provide for different phase-ins for different property classes and it may provide for no phase-in for some classes.

If change in use, character, classification of land

(6) If there has been a change in the use or character of any land or in its classification under the Assessment Act that, in the opinion of the council of the municipality, makes a phase-in or the continuation of a phase-in in respect of such land inappropriate, the council may in the by-law under subsection (1) or in another by-law exclude such land from the application of the phase-in.

Improvements replaced after scheme begins

(7) If an improvement to a property is substantially destroyed before a by-law under subsection (1) is passed and, before the end of the last year in which an increase or decrease is phased in, the improvement is replaced, the council of the municipality may amend the by-law under subsection (1) so that the by-law applies to the property as though the improvement had not been substantially destroyed.

Same

(8) Subsection (7) does not apply with respect to an improvement if the destruction of the improvement is by the owner, is permitted by the owner or is done by a person who had a right to destroy the improvement.

Amounts transferred by local municipalities adjusted

(9) If a local municipality levies taxes for upper-tier purposes in respect of which a 1998 assessment-related tax increase or decrease is being phased-in the amount of taxes the local municipality shall pay the upper-tier municipality shall be adjusted in accordance with the following principles for sharing the shortfall or surplus arising from a phase-in:

1. A shortfall in taxes resulting from the phasing in of an increase shall be shared in proportion to the upper-tier and lower-tier portions of the taxes with respect to which the phase-in applied.

2. A surplus of taxes resulting from the phasing in of a decrease shall be shared in proportion to the upper-tier and lower-tier portions of the taxes with respect to which the phase-in applied.

Information on tax bill

(10) A notice of demand of taxes payable in respect of which there is a phase-in shall indicate the amount of taxes that would have been payable without the phase-in, the amount of taxes that are payable, and the difference.

Tax deferrals, low-income seniors, etc.

373. (1) For the purposes of relieving financial hardship, the council of a municipality, other than a lower-tier municipality, may pass a by-law providing for deferrals of all or part of assessment-related tax increases on property in the residential/farm property class for owners who are, or whose spouses are,

(a) low-income seniors as defined in the by-law; or

(b) low-income persons with disabilities as defined in the by-law.

Definitions

(2) For the purposes of this section,

"assessment-related tax increases" means tax increases beginning in 1998 or beginning in a subsequent taxation year for which the day or one of the days as of which current value is determined for the purposes of assessment for the taxation year is different from the corresponding day or days for the previous taxation year; ("augmentation d'impôt découlant de l'évaluation")

"owner" means a person assessed as an owner. ("propriétaire")

Determination of assessment-related tax increase

(3) The amount of an assessment-related tax increase shall be determined as follows:

1. For a tax increase beginning in 1998, the assessment-related tax increase is the tax increase within the meaning of the definition of "1998 assessment-related tax increase or decrease" in subsection 372 (2) reduced, if the tax increase is being phased-in under a by-law under section 372, by the amount not yet phased-in.

2. For a tax increase beginning in a subsequent year, the assessment-related tax increase is the amount determined in accordance with the regulations.

Regulations, assessment-related tax increases

(4) The Minister may make regulations governing the determination of an assessment-related tax increase for the purposes of paragraph 2 of subsection (3).

Application to lower-tiers

(5) A by-law of an upper-tier municipality providing for a deferral of tax increases also applies with respect to the tax increases of its lower-tier municipalities.

Amounts transferred by lower-tier municipalities adjusted

(6) If a lower-tier municipality levies a tax rate for upper-tier purposes in respect of which there is a deferral of tax increases,

(a) the amount of taxes the lower-tier municipality shall pay the upper-tier municipality shall be reduced accordingly;

(b) the lower-tier municipality shall pay the upper-tier municipality its share of any deferred taxes and interest when they are paid.

Deferred taxes, etc. shown on tax certificates

(7) The treasurer of a municipality who issues a tax certificate in respect of a property for which taxes have been deferred shall show the amount of the deferred taxes and any accrued interest on the certificate.

Interest

(8) Interest may be charged on taxes deferred under a by-law of a municipality at a rate not exceeding the market rate as determined by the municipality.

Part payments credited to interest first

(9) An amount received in part payment of deferred taxes and interest shall be credited towards the interest before being credited towards the taxes.

Special lien, application of s. 382

(10) Section 382 applies, with necessary modifications, with respect to deferred taxes and interest on such taxes.

Definitions

374. (1) In this section,

"district board" means a district welfare administration board established under the District Welfare Administration Boards Act or a board of management established under the Homes for the Aged and Rest Homes Act; ("conseil de district")

"supporting municipality" means,

(a) a lower-tier municipality, or

(b) a municipality that is located wholly or partly within an area under the jurisdiction of a district board or a conservation authority and against which an apportionment is to be made in any year by the district board or conservation authority. ("municipalité participante")

Regulations

(2) Despite this or any other Act, the Lieutenant Governor in Council may, in each year, make regulations prescribing the basis on which apportionments, levies and requisitions are to be made by the councils of municipalities or class of municipality specified in the regulations, by any conservation authority or class of conservation authority specified in the regulations and by any local board or class of local board specified in the regulations.

Retroactivity

(3) A regulation is, if it so provides, effective with reference to a period before it is filed.

Application for review

(4) Where, in respect of any year, the council of a supporting municipality is of the opinion that an apportionment made pursuant to a regulation made under subsection (2) is incorrect because of an error, omission or failure set out in subsection (5) the council may apply to the Ministry, within 30 days after notice of an apportionment was sent to the supporting municipality, for a review to determine the correct proportion of the apportionments, levies or requisitions that each supporting municipality or part thereof shall bear in each year.

Same

(5) The errors, omissions and failures referred to in subsection (4) are,

(a) an error or omission in the amount of the assessment of one or more supporting municipalities;

(b) an error or omission in a calculation; or

(c) a failure to apply one or more provisions of the regulation made under subsection (2).

Appeal to Municipal Board

(6) The council of a supporting municipality may appeal the decision resulting from the Ministry review to the Municipal Board within 30 days after notice of the decision was sent to themunicipality.

Interest on county debentures

375. Nothing in this Act or in the Assessment Act alters or invalidates any special provisions for the collection of a rate for interest on county debentures in any general or special Act or in any county by-law providing for the issue of debentures.

56. Subsection 383 (2) of the Act is repealed.

57. Subsection 387 (2) of the Act is amended by striking out "and taxable business" in the sixth line.

58. Section 398 of the Act is amended by striking out "or business assessment" in the fourth line.

59. (1) Subsection 400 (2) of the Act is repealed.

(2) Subsection 400 (3) of the Act is amended by striking out "subsections (1) and (2)" in the first line and substituting "subsection (1)".

60. (1) Clause 442 (1) (a) of the Act is repealed and the following substituted:

(a) in respect of real property that has ceased to be liable to be taxed at the rate at which it was taxed.

(2) Clause 442 (1) (g) of the Act is repealed and the following substituted:

(g) in respect of real property which by reason of repairs or renovations could not be used for its normal use for a period of at least three months during the year.

(3) Subsection 442 (2) of the Act is amended by striking out "subsections (7), (12) and (19)" in the fifth line and substituting "subsections (7) and (12)".

(4) Subsection 442 (19) of the Act is repealed.

61. Subsection 443 (5) of the Act is amended by striking out "or business, as the case may be" in the fifth line.

PART III

COMPLEMENTARY AMENDMENTS

Assessment Review Board Act

62. The Assessment Review Board Act is amended by adding the following section:

Fees

8.1 The Board may establish fees for the purposes of subsection 40 (2) of the Assessment Act.

Condominium Act

63. Subsection 7 (11) of the Condominium Act is amended by striking out "that will constitute separate parcels for business assessment under the Assessment Act" at the end and substituting "that are in the commercial property class prescribed under the Assessment Act".

Conservation Authorities Act

64. (1) Subsection 33 (1) of the Conservation Authorities Act is repealed and the following substituted:

Assessment of lands of authority

(1) Land vested in an authority, except works erected by an authority for the purposes of a project, is taxable for municipal purposes by levy under section 368 of the Municipal Act upon the assessment and classification of such land determined in each year by the Ministry of Finance and the land shall be assessed under the Assessment Act as if the works erected by the authority on the land had not been erected.

(2) Subsection 33 (3) of the Act is repealed and the following substituted:

Notice

(3) The Ministry of Finance shall deliver or mail to each authority concerned and to the clerk of each municipality in which any of the land is situated a notice setting out the assessment and the classification of the land in the municipality.

(3) Subsections 33 (4), (5), (6) and (7) of the Act are repealed and the following substituted:

Reconsideration under Assessment Act

(4) The authority may request a reconsideration under section 39.1 of the Assessment Act.

Complaint to the Assessment Review Board

(5) The authority or the municipality may make a complaint to the Assessment Review Board under section 40 of the Assessment Act and the last day for making the complaint is the day that is 40 days after the authority or the clerk of the municipality, as applicable, is notified.

Assessment Act to apply

(6) The Assessment Act applies, with necessary modifications,with respect to a request for a reconsideration or a complaint.

(4) Subsection 33 (8) of the Act is amended by striking out "Ministry of Revenue" in the second and third lines and substituting "Ministry of Finance".

County of Oxford Act

65. (1) Section 77 of the County of Oxford Act is repealed.

(2) Sections 79 to 84.14 of the Act, as amended or enacted by the Statutes of Ontario, 1992, chapter 15, section 59, 1993, chapter 11, sections 1 , 2 and 3, 1994, chapter 17, section 46 are repealed.

District Municipality of Muskoka Act

66. (1) Section 69 of the District Municipality of Muskoka Act is repealed.

(2) Sections 71 to 81 of the Act as amended by the Statutes of Ontario, 1993, chapter 11, sections 4 to 7, 1993, chapter 27, Schedule, 1994, chapter 17, section 47 are repealed.

Ontario Municipal Support Grants Act

67. (1) The definitions of "area municipality", "commercial assessment", "merged area", "net levy" and "upper-tier municipality" in section 1 of the Ontario Municipal Support Grants Act are repealed.

(2) Section 8 of the Act is amended by striking out "for real property and business assessment" in the eighth and ninth lines and substituting "of rateable property".

(3) Section 9 of the Act is repealed.

Power Corporation Act

68. (1) Section 52 of the Power Corporation Act is amended by adding the following subsection:

Rights of way not exempt

(1.1) This section does not apply to a right within the meaning of section 48.

(2) Subsections 52 (2) and (3) of the Act are repealed and the following substituted:

Annual payments to municipalities

(2) The Corporation shall pay in each year to any municipality in which are situated lands owned by the Corporation or buildingsused exclusively for executive and administrative purposes and owned by the Corporation, or buildings owned by the Corporation and rented by it to other persons the total amount that the tax rate in the municipality for the commercial property class prescribed under the Assessment Act would produce based on the current value of the land according to the average value of land in the locality and the assessed value of such buildings.

Same

(3) In addition to the amounts payable under subsection (2), the Corporation shall pay in each year to any municipality in which is situated generating station buildings or transformer station buildings owned by the Corporation the total amount that the tax rate in the municipality for the industrial property class prescribed under the Assessment Act would produce based on an assessed value of such buildings to be determined on the basis of $86.11 for each square metre of the actual building housing the generating, transforming and auxiliary equipment and machinery.

(3) Subsections 52 (4) and (5) of the Act are repealed.

(4) Subsection 52 (6) of the Act is amended by striking out "subsections (2), (3), (4) and (5)" in the first and second lines and substituting "subsections (2) and (3)".

(5) Subsection 52 (7) of the Act is amended by striking out "subsections (2), (3), (4) and (5)" in the second and third lines and substituting "subsections (2) and (3)".

(6) Subsection 52 (8) of the Act is amended by striking out "subsections (2), (3), (4) and (5)" in the second line and substituting "subsections (2) and (3)".

(7) Subsection 52 (12) of the Act is repealed and the following substituted:

Valuation

(12) The assessments and assessed values referred to in this section are valuations made in each year for the purposes of this section by the Ministry of Finance, and subject to subsections (2), (3) and (18), the valuation shall be made on the same basis as real property liable to municipal taxation in the municipality.

(8) Subsection 52 (13) of the Act is amended by striking out "Treasurer of Ontario" in the first and second lines and substituting "Minister of Finance".

(9) Subsection 52 (14) of the Act is amended by striking out "Ministry of Revenue" in the first line and substituting "Ministry of Finance".

(10) Subsection 52 (15) of the Act is amended by striking out "Ontario Municipal Board" in the second line and substituting "Assessment Review Board".

(11) Subsection 52 (16) of the Act is amended by striking out "Ontario Municipal Board" in the third line and substituting "Assessment Review Board".

(12) Subsection 52 (17) of the Act is amended by striking out "Ontario Municipal Board" in the first line and substituting "Assessment Review Board".

(13) Subsection 52 (18) of the Act is amended by striking out "subsection (2), (3) or (5)" in the sixth line and in the twelfth line and substituting "subsection (2) or (3)".

Regional Municipalities Act

69. Sections 135.1 to 135.14 of the Regional Municipalities Act, as enacted or amended by the Statutes of Ontario, 1992, chapter 15, section 83, 1993, chapter 11, sections 57 to 61, 1994, chapter 17, section 50, 1996, chapter 32, section 85, are repealed.

Regional Municipality of Durham Act

70. Part V (sections 25 to 32) of the Regional Municipality of Durham Act, as amended by the Statutes of Ontario, 1992, chapter 15, section 94, is repealed.

Regional Municipality of Halton Act

71. Part V (sections 23 to 30) of the Regional Municipality of Halton Act, as amended by the Statutes of Ontario, 1992, chapter 15, section 94, is repealed.

Regional Municipality of Hamilton-Wentworth Act

72. Part V (sections 27 to 34) of the Regional Municipality of Hamilton-Wentworth Act, as amended by the Statutes of Ontario, 1992, chapter 15, section 94, is repealed.

Regional Municipality of Niagara Act

73. (1) Section 22 of the Regional Municipality of Niagara Act is repealed.

(2) Sections 24, 25, 26, 27, 28 and 29 of the Act are repealed.

Regional Municipality of Ottawa-Carleton Act

74. Part V (sections 33 to 41) of the Regional Municipality of Ottawa-Carleton Act, as amended by the Statutes of Ontario, 1992, chapter 15, section 94, is repealed.

Regional Municipality of Peel Act

75. Part V (sections 22 to 29) of the Regional Municipality of Peel Act, as amended by the Statutes of Ontario, 1992, chapter 15, section 94, is repealed.

Regional Municipality of York Act

76. Part V (sections 21 to 29) of the Regional Municipality of York Act, as amended by the Statutes of Ontario, 1992, chapter 15, section 94, is repealed.

PART IV

TRANSITION, COMMENCEMENT AND SHORT TITLE

Transition

Tax exemption for airports

77. For the purposes of the 1996 taxation year, subparagraph iii of paragraph 24 of section 3 of the Assessment Act shall be deemed to read as follows:

iii. the amount referred to in subparagraph ii must be paid before the end of 1997.

Return of assessment roll for 1998

78. The application of section 36 of the Assessment Act, with respect to the 1998 taxation year, is varied as follows:

1. The assessment roll of a municipality shall be returned to the clerk of the municipality under subsection 36 (1) of the Assessment Act not later than April 30, 1998.

2. Subsection 36 (2) of the Assessment Act, authorizing the Minister of Finance to extend the time for the return of an assessment roll under subsection 36 (1) of the Assessment Act, applies with respect to the paragraph 1.

Complaints under the Assessment Act

79. (1) The Assessment Act, as it appeared immediately before December 1, 1997, continues to apply with respect to a complaint under section 40 of the Assessment Act relating to the 1997 taxation year or an earlier year.

(2) Unless the hearing by the Assessment Review Board is completed before January 1, 1998 (whether or not a decision is made before that date), the following modifications apply, on and after January 1, 1998, with respect to a complaint referred to in subsection (1):

1. Subsection 40 (3.1) of the Act does not apply to deem a complaint to be made with respect to the 1998 taxation year or a subsequent year.

2. Subsection 40 (13) of the Act, as enacted by this Act, applies.

3. Section 43 of the Act, as it appears immediately before December 1, 1997, does not apply.

4. Sections 43 and 43.1 of the Act, as enacted by this Act, apply.

Local levies for upper-tier, schools

80. (1) If the amount levied by a local municipality for upper-tier purposes or school purposes in 1997 differs from the amount the local municipality was required to raise for upper-tier or school purposes, the local municipality shall debit or credit such deficit or surplus, as applicable, to the general funds of the municipality and shall not revise the rates to be levied for those purposes in 1998.

(2) Subsection (1) applies despite subsection 244 (2) of the Education Act.

By-laws under section 363 of the Municipal Act

81. (1) In this section,

"section 363 by-law" means a by-law under section 363 of the Municipal Act as it read on December 31, 1997.

(2) Subject to subsection (3) a section 363 by-law expires on January 1, 1998.

(3) If a municipality passes a by-law before the end of 1998 continuing a section 363 by-law, the section 363 by-law continues, despite the repeal of section 363 of the Municipal Act as it read on December 31, 1997, until the section 363 by-law expires or is repealed.

Unpaid business taxes, etc.

82. The Municipal Act, as it reads on December 31, 1997, continues to apply with respect to the following that remain unpaid on December 31, 1997:

1. Business taxes.

2. Other rates, charges or levies that are not taxes on property.

Commencement and Short Title

Commencement

83. (1) Except as provided in subsections (2), (3) and (4), this Act comes into force on December 1, 1997.

Same

(2) Subsection 4 (1) and section 77 shall be deemed to have come into force on December 2, 1996.

Same

(3) Section 34 shall be deemed to have come into force on January 1, 1997.

Same

(4) Part II (sections 40 to 61) and sections 63 to 76 and 80 to 82 come into force on January 1, 1998.

Short title

84. The short title of this Act is the Fair Municipal Finance Act, 1997.