Bill 149, Fair Municipal Finance Act, 1997 (No. 2)

Versions

[36] Bill 149 As Amended by Standing Committee (PDF)

Bill 149 1997

An Act to continue the reforms begun by the Fair Municipal Finance Act, 1997 and to make other amendments respecting the financing of local government

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) The definition of "classification" in section 1 of the Assessment Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 1, is repealed and the following substituted:

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

(2) The definition of "locality" in section 1 of the Act is repealed and the following substituted:

"locality" means territory without municipal organization that is within the jurisdiction of a board as defined in section 1 of the Education Act. ("localit")

(3) Section 1 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 1, is further amended by adding the following definitions:

"subclass of real property" means a subclass of a class of real property prescribed by the Minister under section 8; ("sous-catgorie de biens immeubles")

"theatre" does not include a cinema. ("thtre")

2. (2) Clause 2 (2) (d.2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 2, is amended by striking out "farmlands and managed forests property class" in the second and third lines and substituting "farmlands property class or managed forests property class".

(3) Clause 2 (2) (d.3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 2, is amended by striking out "farmlands and managed forests property class" in the fourth and fifth lines and substituting "farmlands property class or managed forests property class".

(4) Subsection 2 (2) of the Act, as amended by the Statutes of Ontario, 1994, chapter 36, section 1 and 1997, chapter 5, section 2, is further amended by adding the following clause:

(d.5) in relation to public hospitals that close,

(i) continuing the tax exemption under section 3 with respect to land that was used and occupied by the hospital;

(ii) continuing the application of section 157 of the Municipal Act with respect to the hospital and prescribing a limit on the annual amount levied under that section that is different from the limit under subsection (4) of that section.

3. (1) Paragraphs 1, 2, 3, 4, 5, 6, 7, 9, 11 and 12 of section 3 of the Act are repealed and the following substituted: Crown lands

1. Land owned by Canada or any Province. Cemeteries, burial sites

2. A cemetery for which a consent has been issued under the Cemeteries Act (Revised) and a burial site as defined in that Act so long as the cemetery or burial site is actually being used for the interment of the dead. Churches, etc

3. A place of worship and the land used in connection with it and a churchyard, cemetery or burying ground owned by a church or religious organization or leased to it by another church or religious organization. Public educational institutions

4. Land owned, used and occupied solely by a university, college, community college or school as defined in the Education Act or land leased and occupied by any of them if the land would be exempt from taxation if it was occupied by the owner. Philanthropic organizations, etc.

5. Land owned, used and occupied solely by a non-profit philanthropic, religious or educational seminary of learning or land leased and occupied by any of them if the land would be exempt from taxation if it was occupied by the owner. This paragraph does not apply to land with an area of more than 50 acres. Public hospitals

6. Land used and occupied by a public hospital that receives provincial aid under the Public Hospitals Act but not any portion of the land occupied by a tenant of the hospital.

. . . . . Municipal property

9. Subject to section 27, land owned by a municipality, including a regional and district municipality and the County of Oxford, a public commission or a local board as defined in the Municipal Affairs Act. The land is not exempt if occupied by a tenant who would be taxable if the tenant owned the land, except land owned by a harbour commission and used for parking vehicles for which a fee is charged.

. . . . . House of refuge, etc.

11. Land owned, used and occupied by a non-profit philanthropic corporation for the purpose of a house of refuge, the reformation of offenders, the care of children or a similar purpose but excluding land used for the purpose of a day care centre. Charitable institutions

12. Land owned, used and occupied by,

i. The Canadian Red Cross Society,

ii. The St. John Ambulance Association, or

iii. any charitable, non-profit philanthropic corporation organized for the relief of the poor if the corporation is supported in part by public funds. y

(2) Section 3 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 4, is further amended by adding the following paragraph:

b Small theatres

26. Land used as a theatre that contains fewer than 1,000 seats and that is used on a total of at least 183 days in the taxation year to present live performances of drama, comedy, music or dance, but not including land used as a dinner theatre, nightclub, tavern, cocktail lounge, bar, striptease club or similar establishment. This paragraph does not apply to a building that was converted to a theatre unless the conversion involved modifications to the building.

(2.1) Section 3 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 4, is further amended by adding the following paragraph: Large non-profit theatres

27. Land used as a theatre that contains 1,000 seats or more and that is used to present, on a total of at least 183 days in the taxation year, live performances of drama, comedy, music or dance, including opera or ballet, that are not presented with the intention of generating profit. This paragraph applies only if the theatre is owned and operated by a non-profit corporation without share capital. This paragraph does not apply to land used as a dinner theatre, nightclub, tavern, cocktail lounge, bar, striptease club or similar establishment. y

(3) Section 3 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 4, is further amended by adding the following subsections: International bridges and tunnels

(2) The following apply with respect to a bridge or tunnel that crosses a river forming the boundary between Ontario and the United States:

1. Subject to section 30, land used for the purposes of the bridge or tunnel is liable to taxation even if the land is owned by the Crown or would otherwise be exempt under a paragraph of subsection (1). However, the bridge or tunnel structure is taxable only under section 373.1 of the Municipal Act.

2. The bridge or tunnel structure shall not be considered in the assessment of the land used for the purposes of the bridge or tunnel.

3. Land used for the purposes of the bridge or tunnel is not liable to taxation for school purposes. Definition

(3) In subsection (2),

"land used for the purposes of the bridge or tunnel" includes land at the end of the bridge or tunnel used in connection with the bridge or tunnel, including duty-free stores. y Certain railway, power utility lands

(4) The following apply with respect to land described in subsection 368.3 (1) of the Municipal Act:

1. The land is liable to taxation but only as provided under section 368.3 of the Municipal Act.

2. No assessed value is required for the land.

4. Paragraph 6 of subsection 7 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 5, is repealed and the following substituted:

6. The farmlands property class.

7. The managed forests property class.

5. The Act is amended by adding the following section: Subclasses for tax reductions

8. (1) For the purposes of providing tax reductions under the Municipal Act, the Minister shall prescribe the following subclasses of classes of real property:

1. Up to three subclasses for farm land awaiting development for each of the following classes of real property,

i. the residential/farm property class,

ii. the multi-residential property class,

iii. the commercial property class,

iv. the industrial property class.

2. A subclass for vacant land for each of the following classes of real property,

i. the commercial property class,

ii. the industrial property class.

3. A subclass for vacant units and excess land for each of the following classes of real property,

i. the commercial property class,

ii. the industrial property class. Same

(2) The Minister may also prescribe a subclass for eligible theatres for the commercial property class for the City of Toronto incorporated by the City of Toronto Act, 1997. Discretion not affected

(3) Nothing in subsection (1) or (2) restricts the discretion of the Minister to define what is included in a subclass. Vacant units and excess land

(4) The subclasses for vacant units and excess land shall be prescribed so that they consist of those portions of properties that are vacant units or excess land as prescribed in the regulations under this section. Subsection 14 (5) applies, with necessary modifications, to the classification of those portions. Application, etc. may be required

(5) A subclass may be prescribed so as to require, as a condition of land being in the subclass, that an application be made in respect of the land or that information in respect of the land be given to the assessment commissioner.

6. (1) Paragraphs 3 and 4 of subsection 14 (1) of the Act are repealed and the following substituted:

3. The amount assessable against each person who is liable to assessment opposite the person's name.

4. The name of every tenant who is a supporter of a school board.

(2) Subsection 14 (3) of the Act is repealed.

7. (1) Subsection 17 (1) of the Act is repealed and the following substituted: Land assessed against owner

(1) Subject to section 18, land shall be assessed against the owner.

(2) Subsection 17 (2) of the Act is amended by striking out "or tenant thereof, as the case may require" in the third and fourth lines.

8. Subsection 18 (1) of the Act is repealed and the following substituted: Assessment of Crown lands

(1) Despite paragraph 1 of subsection 3 (1),

(a) the tenant of land owned by the Crown shall be assessed in respect of the land as though the tenant were the owner if rent or any valuable consideration is paid in respect of the land; and

(b) an owner of land in which the Crown has an interest shall be assessed in respect of the land as though a person other than the Crown held the Crown's interest.

9. Section 19 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 12, is amended by adding the following subsections: Not necessary that use be permitted

(5.3) It is not necessary, for subsection (5) to apply to farm land used only for farm purposes, that the use be permitted under municipal zoning by-laws. Non-application of subsection (5)

(5.4) Subsection (5) does not apply in the circumstances prescribed by the Minister.

9.1 The Act is amended by adding the following section: Reduced assessment for farmland awaiting development

19.4 (1) The assessed value of property in the subclasses prescribed under paragraph 1 of subsection 8 (1) shall be reduced by the percentage prescribed by the Minister, if any. Phasing out by municipalities

(2) The council of a municipality may, by by-law, decrease the reduction under subsection (1) by the number of percentage points prescribed by the Minister per taxation year subject to the following:

1. A decrease of the reduction applies to every taxation year after the taxation year with respect to which the decrease first applied.

2. To apply with respect to a taxation year, a by-law must be passed before November 1 of the previous year. As of November 1 of the previous year the decrease is irrevocable.

3. No decrease of the reduction may be made with respect to the 1998 taxation year. Definition

(3) In this section,

"municipality" means a municipality, including a county, a regional or district municipality or the County of Oxford, the council of which is required under section 363 of the Municipal Act to determine tax ratios. y

10. Subsection 27 (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 17, 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, an amount equal to the tax that would be payable if the lands and buildings were classified as land in the commercial property class.

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

b Definition

27.1 (1) In this section,

"large commercial theatre" means, in respect of a taxation year, land or any portion of land that is used as a theatre, if,

(a) the theatre contains 1,000 or more seats,

(b) the theatre is used, other than by a charitable or non-profit organization, on a total of at least 183 days in the taxation year to present live performances with the intention of generating a profit, and

(c) when the theatre is used, other than by a charitable or non-profit organization, to present live performances with the intention of generating a profit, no food or beverages may be consumed in the area in which people view the performances and any food or beverage service provided by the theatre is restricted to lobby areas. Large commercial theatres in Toronto

(2) For each taxation year, the owner of a large commercial theatre that is located in the City of Toronto and that is not liable to taxation shall pay the City of Toronto the amount calculated in accordance with the following formula:

P = (T F) - S

where,

P = the amount of the payment,

T = the taxes for municipal purposes that would be payable if the theatre were liable to taxation,

F = the fraction that represents the proportion of the taxation year during which the theatre is used, other than by a charitable or non-profit organization, to present live performances of productions presented with the intention of generating a profit,

S = any amount that a by-law under subsection (2.1) permits the owner to deduct from the payment. Subsidy

(2.1) The council of the City of Toronto may, by by-law, permit an owner to deduct from a payment under subsection (2) an amount determined in accordance with the by-law that represents all or a portion of the revenue from the use of the theatre, other than by a charitable or non-profit organization, to present live performances of productions presented with the intention of generating a profit, that is used to fund or financially support not-for-profit activities that take place on the same parcel of land or on another parcel of land in Ontario owned by the owner. City must pass a by-law

(2.2) The council of the City of Toronto shall pass a by-law under subsection (2.1). When payable

(2.3) Payments required under this section in respect of a taxation year shall be made not later than March 31 in the year following the taxation year. y Collection of payments

(3) The provisions of this Act and the Municipal Act with respect to the collection of taxes apply with necessary modifications to payments required under this section.

12. Section 28 of the Act is repealed.

13. (1) Clause 30 (2) of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 18, is further amended by striking out the portion preceding clause (a) and substituting the following:

(2) The land and property under subsection (1), other than clause (1) (a), shall be assessed as follows,

. . . . .

(2) Clause 30 (2) (a) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 18, is repealed.

(3) Clause 30 (2) (d) of the Act is amended by striking out "clauses (a), (b) and (c)" in the second line and substituting "clauses (b) and (c)".

14. Section 30.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 19, is repealed.

15. Section 31 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 20, is further amended by adding the following subsection: Rights of way

(6) Subsection (1) applies with respect to land referred to in subsection 3 (4) with the following modifications:

1. The clauses in subsection (1), other than clause (c), do not apply.

2. The notice shall show the number of acres or other measure showing the extent of the land.

16. Section 33 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 21, is further amended by adding the following subsections: Managed forests, conservation land

(4) Subsection (5) applies with respect to,

(a) land in the managed forests property class;

(b) land that is conservation land for the purposes of paragraph 25 of subsection 3 (1);

(5) If land described in subsection (4) ceases to be such land, the assessor shall make any assessment and classification necessary as a result of the land ceasing to be such land and the following apply with respect to that assessment and classification:

1. The assessment and classification shall not affect a taxation year that ends more than four years before the assessment and classification is made.

2. The assessor shall notify the clerk of the municipality and the clerk shall enter the assessment and classification on the collector's roll and the taxes that would have been paid for the years affected shall be levied and collected.

17. (1) Clause 34 (1) (b) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 22, is amended by striking out "or" at the end of subclause (iii), by adding "or" at the end of subclause (iv) and by adding the following subclause:

(v) to be classified in a subclass of real property.

(2) Section 34 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 22, is further amended by adding the following subsection: Re-classification

(3) If subclause (1) (b) (ii) or (v) apply with respect to land or a portion of land, the assessor, in addition to making a further assessment, may also change the classification of the land.

18. Subsection 35 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 23, is repealed and the following substituted: Notice of corrections, etc.

(1) The person against whom land is assessed shall be notified by mail if any of the following occur:

1. The assessment of the land is corrected under section 32.

2. The land is assessed or classified under section 33 or 34. Notice to tenants

(2) A person who receives notice under subsection (1) shall, within 14 days after receiving the notice, give a copy of the notice to each tenant who, under the tenant's lease, is required to pay or reimburse the landlord for all or part of the taxes on the land. Last day for complaining

(2.1) The last day for a person who is entitled to notice under subsection (1) or (2) to complain under section 40 is the day that is 90 days after the notice required under subsection (1) is mailed.

19. Section 39.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 25, is amended by adding the following subsection: Rights of way

(10) With respect to land referred to in subsection 3 (4), the only matter a person may request the assessment commissioner to reconsider under this section is the number of acres or other measure showing the extent of the land.

20. (1) Section 40 of the Act, as amended by the Statutes of Ontario, 1994, chapter 27, section 40 and 1997, chapter 5, section 26, is further amended by adding the following subsection: Rights of way

(13.1) With respect to land referred to in subsection 3 (4), the only matter a person may complain about to the Assessment Review Board under this section is that the number of acres or other measure showing the extent of the land is incorrect.

(2) Section 40 of the Act is amended by adding the following subsection: Correction of errors

(18) 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. y

PART II

MUNICIPAL ACT AMENDMENTS

21. The definition of "rateable property" in subsection 1 (1) of the Municipal Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 40, is repealed and the following substituted:

"rateable property" means real property that is subject to municipal taxation. ("bien imposable")

22. (1) Clause 14 (7) (k) of the Act is amended by striking out "last revised assessment roll" in the seventh line and substituting "last returned assessment roll".

(2) Clause 14 (7) (l) of the Act is amended by striking out "last revised assessment rolls" in the seventh line and substituting "last returned assessment rolls".

23. Subsection 68 (17) of the Act is repealed.

24. Clause 83 (1) (a) of the Act is amended by striking out "mill rate" in the fifth line and substituting "tax rate".

25. (1) Subsection 157 (1) of the Act is amended by striking out "the sum of $75 a year" in the tenth and eleventh lines and substituting "the prescribed amount".

(2) Subsection 157 (2) of the Act is repealed.

(3) Subsection 157 (3) of the Act is amended by striking out "the sum of $75 a year" in the eleventh and twelfth lines and substituting "the prescribed amount".

(4) Subsection 157 (4) of the Act is amended by striking out "the sum of $75 a year" in the eighth line and substituting "the prescribed amount".

(5) Subsection 157 (5) of the Act is amended by striking out "the sum of $75 a year" in the eighth line and substituting "the prescribed amount".

(6) Subsection 157 (6) of the Act is amended by striking out "the sum of $75 a year" in the eighth line and substituting "the prescribed amount".

(7) Subsection 157 (11) of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule, is repealed and the following substituted: Regulations

(11) The Minister of Finance may make regulations prescribing amounts for the purposes of subsections (1), (3), (4), (5) and (6).

(8) Subsections 157 (12) to (18) of the Act are repealed.

26. Subsections 158 (5) and (6) of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule, are repealed.

27. (1) Subsections 159 (1) and (2) of the Act are repealed and the following substituted: Returns by telegraph and telephone companies

(1) Every telegraph and telephone company doing business in Ontario shall, on or before March 1 in each year, transmit to the Minister of Finance a statement in writing of the amount of the gross receipts of the company from the business it carries on in all local municipalities for the next preceding year ending on December 31. Apportionment of gross receipts

(2) In determining the amount of the gross receipts of a telephone company in all local municipalities, a telephone company shall apportion the total gross receipts of the company in all of Ontario to local municipalities in the proportion that the number of telephones connected to the company's system in local municipalities bears to the total number of telephones connected to the company's system in all of Ontario as of December 31 of the year in respect of which the statement is transmitted.

(2) Subsections 159 (4) to (25) of the Act, as amended or enacted by the Statutes of Ontario, 1993, chapter 27, Schedule and 1994, chapter 17, section 49, are repealed and the following substituted: Rate of tax

(4) In each year there is payable by every telegraph and telephone company that is required to file a statement under subsection (1) an annual tax to the Crown in right of Ontario equal to the prescribed percentage of the total gross receipts that are required to be shown by the company in the statement to be transmitted by it for that year under subsection (1). Tax bill

(5) The tax levied under this section shall be for the calendar year and becomes due and payable on March 31 in the year in which it is imposed, and a notice of assessment for the amount imposed shall be mailed by the Minister of Finance to the head office of every telegraph and telephone company subject to the tax under this section or to such other address as the company has directed in writing to the Minister, on or before March 15 in the year in which the tax is payable. Minister not bound by statements

(6) The Minister of Finance is not bound by a statement delivered under this section by any telephone or telegraph company and may, despite a statement so delivered, or if no statement has been delivered as required, determine the tax payable under this section by the company and mail a notice of assessment for the amount to the company as provided under subsection (5). Application of Retail Sales Tax Act

(7) The provisions of the Retail Sales Tax Act respecting objections and appeals apply, with necessary modifications, to a notice of assessment under this section and any amount due and payable that remains unpaid may be collected as if it were tax under that Act. Regulation

(8) The Minister of Finance may make regulations prescribing a percentage for the purposes of subsection (4).

28. Section 209.6 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 1, Schedule M, section 6, is amended by adding the following subsection: Services include tax billing, etc.

(3) Without limiting the generality of what a regulation under clause (1) (a) or (b) may prescribe, such a regulation may prescribe tax billing, tax collecting or preparing the tax collector's roll as services.

29. (1) Paragraph 16 of section 236 of the Act is repealed.

(2) Paragraph 17 of section 236 of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule and 1996, chapter 1, Schedule M, is further amended by striking out the portion preceding clause (b) and substituting the following:

17. For licensing, regulating and governing transient traders.

For the purpose of this paragraph,

(a) "transient trader" means a person who offers goods, wares or merchandise for sale in any manner in the municipality,

i. other than on a permanent basis, or

ii. on a permanent basis if the total time the person has operated the business on a permanent basis and the time the person continuously resided in the municipality immediately before beginning to operate the business on a permanent basis is less than three months.

(3) Clause (f) of paragraph 17 of section 236 of the Act is repealed and the following substituted:

(f) The licence fee shall be applied on account of taxes payable on the land used for the purposes of or in connection with the business if the land is owned by the person carrying on the business during the year in which the license was issued and five years thereafter. y

30. Subsection 337 (3) of the Act is repealed and the following substituted: Limitation

(3) The amount that the trustees may require to be levied under this section shall not exceed the amount that could have been levied for the 1997 taxation year under this section as it read immediately before January 1, 1998.

31. Section 361.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 53, is amended by adding the following definitions:

"commercial property class" means the commercial property class prescribed under the Assessment Act\; ("catgorie des biens commerciaux")

"payment in lieu of taxes" means an amount referred to in subparagraph ii of paragraph 24 of subsection 3 (1) of the Assessment Act or an amount that a local municipality receives under,

(a) subsection 27 (3) or section 27.1 of the Assessment Act,

(b) section 157 and subsection 158 (4) of this Act,

(d) section 71 of the Ontario Water Resources Act,

(e) section 52 of the Power Corporation Act, y

(f) section 10 or 11 of the Trees Act,

(g) the Municipal Grants Act (Canada), or

(h) any Act of Ontario or of Canada or any agreement where the payment is from any government or government agency and is in lieu of taxes on real property, but not including a payment referred to in section 445 of this Act. ("paiement tenant lieu d'impts")

32. (1) Subsection 363 (14) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted: Farmlands property class and managed forests property class

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

(2) Section 363 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by adding the following subsections: Definitions

(15) In subsections (16) and (17),

"municipal restructuring" means,

(a) the incorporation of a new municipality,

(b) the amalgamation of municipalities,

(d) the dissolution of an upper-tier municipality; ("restructuration municipale")

"restructured municipality" means, in relation to a municipal restructuring,

(a) the municipality that is incorporated,

(b) the municipality that results from the amalgamation,

(d) a municipality that formed part, for municipal purposes, of the upper-tier municipality that is dissolved. ("municipalit restructure") Municipal restructuring, new transition ratios

(16) To facilitate a municipal restructuring, the Minister of Finance may make regulations prescribing transition ratios for the property classes for a restructured municipality the council of which is required to pass a by-law under this section to establish tax ratios. Effect of new transition ratios

(17) If transition ratios are prescribed for a restructured municipality, paragraph 1 of subsection (7) applies, with necessary modifications, for the year with respect to which the new transition ratios apply.

33. Section 366 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by adding the following subsections: Percentages for instalments, 1998

(17) The Minister may make regulations prescribing percentages to apply, instead of the percentages in paragraphs 1, 2 and 3 of subsection (8), for the 1998 taxation year. Same

(18) A regulation under subsection (17) may be general or specific in its application and may be restricted to an upper-tier municipality.

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

b Prescribed subclass tax reductions

368.1 (1) The tax rates that would otherwise be levied for municipal purposes for the subclasses prescribed under subsection 8 (1) of the Assessment Act shall be reduced in accordance with the following rules:

1. The tax rates that would otherwise be levied for municipal purposes for the subclasses prescribed under paragraph 1 of subsection 8 (1) of the Assessment Act shall be reduced by the prescribed percentages.

2. The tax rates that would otherwise be levied for municipal purposes for the subclass prescribed under subparagraph i of paragraph 2 of subsection 8 (1) of the Assessment Act shall be reduced by 30 per cent or by the percentage, if any, under subsection (2.2).

3. The tax rates that would otherwise be levied for municipal purposes for the subclass prescribed under subparagraph ii of paragraph 2 of subsection 8 (1) of the Assessment Act shall be reduced by 35 per cent or by the percentage, if any, under subsection (2.2).

4. The tax rates that would otherwise be levied for municipal purposes for the subclass prescribed under subparagraph i of paragraph 3 of subsection 8 (1) of the Assessment Act shall be reduced by 30 per cent or by the percentage, if any, under subsection (2.2).

5. The tax rates that would otherwise be levied for municipal purposes for the subclass prescribed under subparagraph ii of paragraph 3 of subsection 8 (1) of the Assessment Act shall be reduced by 35 per cent or by the percentage, if any, under subsection (2.2). Same

(2) The Minister of Finance may make regulations,

(a) prescribing percentages for the purposes of paragraph 1 of subsection (1);

(b) requiring percentage reductions of the tax rates for municipal purposes for any subclasses prescribed under subsection 8 (2) of the Assessment Act. Choice of percentage within range

(2.1) If the regulations made under subsection (2) require tax rates to be reduced by a percentage within a range described in the regulations,

(a) the percentage shall be specified, by by-law, by the council of the local municipality or, if the local municipality is a lower-tier municipality, by the council of the upper-tier municipality; and

(b) if no percentage is specified under clause (a), the percentage shall be the highest percentage in the range. Municipal option for certain paragraphs

(2.2) The council of a municipality, other than a lower-tier municipality, may pass a by-law providing for a single percentage that is not less than 30 per cent and not more than 35 percent to apply instead of the percentages set out in paragraphs 2 to 5 of subsection (1). y Overlap with graduated tax rates

(3) The Minister of Finance may make regulations governing the application of this section and section 368.2 and regulations or by-laws made under those sections in situations in which both of those sections, or the regulations or by-laws made under them, apply.

35. The Act is amended by adding the following section: Graduated tax rates for commercial property

368.2 (1) The council of a municipality other than a lower-tier municipality may, by by-law, establish two or three bands of the assessment of property for the purposes of facilitating graduated tax rates for the commercial property class. Restrictions on bands

(2) The bands are subject to the following:

1. The lowest band must be the portion of the assessment of a property that is less than or equal to an amount set out in the by-law.

2. The highest band must be the portion of the assessment of a property that is greater than an amount set out in the by-law.

3. If there is a third band it must cover the portion of the assessment between the lowest and highest bands.

4. The bands must be established so that they cover all of the assessment of a property and do not overlap.

5. The bands must be the same for all properties. Regulations, graduated tax rates

(3) The Minister of Finance may make regulations providing for graduated tax rates for the commercial property class which shall consist of a tax rate for each of the bands established under subsection (1). Graduated tax rates

(4) The taxes on a property shall be determined by applying the tax rate for each band to the portion of the assessment of the property within that band. Regulation-making power

(5) The following apply with respect to regulations under subsection (3):

1. The regulations may govern the determination of the tax rates.

2. The regulations may provide for the determination of any matter by the council of the municipality. In the case of an upper-tier municipality and its lower-tier municipalities, the regulations may provide for the determination of any matter by the council of the upper-tier municipality or by the councils of the lower-tier municipalities.

36. The Act is amended by adding the following section: Taxation of certain railway, power utility lands

368.3 (1) Every local municipality shall impose taxes, in accordance with the regulations, on the following land:

1. The roadway or right of way of a railway company, other than the structures, substructures and superstructures, rails, ties, poles and other property on the roadway or right of way, not including land leased by the railway company to another person for rent or other valuable consideration.

2. Land owned by a power utility prescribed by the Minister of Finance (other than a public utility defined in subsection 27 (1) of the Assessment Act) and used as a transmission or distribution corridor, not including land leased by the power utility to another person for rent or other valuable consideration. Distribution of the tax

(2) Part of the taxes imposed by a local municipality on land described in subsection (1) shall be distributed to the upper-tier municipality, if any. Amount of share

(3) The upper-tier municipality's share of tax under this section shall be determined in accordance with the following:

Where,

"Total commercial tax" means the total tax levied on land in the commercial property class, for upper-tier and lower tier purposes, in the local municipality;

"Upper-tier commercial tax" means the tax levied on land in the commercial property class, for upper-tier purposes, in the local municipality. Regulations

(4) The Minister of Finance may make regulations,

(a) prescribing, for each geographic area described in subsection (5.1), the rate of tax to be imposed by a local municipality on land described in subsection (1); y

(b) prescribing power utilities for the purposes of paragraph 2 of subsection (1);

(5) The following apply to regulations under subsection (4):

1. The regulations may provide for land described in paragraph 1 of subsection (1) to be taxed differently from land described in paragraph 2 of subsection (1).

2. A regulation may be general or specific in its application.

b Geographic areas

(5.1) For the purposes of this section, Ontario is divided into the following geographic areas:

1. The City of Toronto and the regional municipalities of Durham, Halton, Peel and York.

2. The Regional Municipality of Ottawa-Carleton and the counties of Lanark, Leeds and Grenville, Prescott and Russell, Renfrew, and Stormont, Dundas and Glengarry, including the separated municipalities situated in those counties.

3. The counties of Frontenac, Haliburton, Hastings, Lennox and Addington, Northumberland, Peterborough, Prince Edward and Victoria, including the separated municipalities situated in those counties.

4. The regional municipalities of Hamilton-Wentworth, Niagara and Waterloo.

5. The Regional Municipality of Haldimand-Norfolk, the County of Oxford and the counties of Brant, Elgin, Essex, Kent, Lambton and Middlesex, including the separated municipalities situated in those counties.

6. The counties of Bruce, Dufferin, Grey, Huron, Perth, Simcoe and Wellington, including the separated municipalities situated in these counties.

7. The Regional Municipality of Sudbury and the districts of Algoma, Manitoulin and Sudbury.

8. The District Municipality of Muskoka and the districts of Cochrane, Nipissing, Parry Sound and Temiskaming.

9. The districts of Kenora, Rainy River, and Thunder Bay. References to municipalities and districts

(5.2) In the description of a geographic area in subsection (5.1), a reference to a municipality or district is a reference to the municipality or district as it was on December 31, 1997 except for the reference to the City of Toronto which is a reference to the City of Toronto as it was on January 1, 1998. y Collector's roll

(6) The clerk of a municipality shall, for land described in subsection (1), enter on the collector's roll the number of acres or other measure showing the extent of the land and the amounts of the taxes under this section. Amount to be distributed is a debt

(7) An amount that a local municipality is required to distribute to an upper-tier municipality is a debt of the local municipality to the upper-tier municipality. Default

(8) If a lower-tier municipality fails to make any payment, or portion of it, to an upper-tier municipality as required under this section, 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. Interest on advance payments

(9) An upper-tier municipality may, by by-law, 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 under this section, or portion of such a payment, made in advance by a local municipality. Transitional taxation for "grandparented" owners

(10) The Minister of Finance may make regulations providing for the taxation under this section for the taxation years 1998 to 2005, both inclusive, of land that the owner owned on December 31, 1997, for the purposes of providing for the transition from the taxation of such land as it was taxed in 1997. Same

(11) The following apply to regulations under subsection (10):

1. The regulations may provide for land described in paragraph 1 of subsection (1) to be taxed differently from land described in paragraph 2 of subsection (1).

2. A regulation may be general or specific in its application.

3. The regulations may provide for different taxation of particular parcels of land or of parcels of land owned by particular owners.

37.(1) Subsection 369 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted: Interim financing, upper-tier

(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 not exceeding the prescribed percentage (or 50 per cent if no percentage is prescribed) 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) Section 369 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by adding the following subsections: Amount to be paid is a debt

(3.1) An amount that a lower-tier municipality is required to pay under a by-law passed under subsection (1) is a debt of the local municipality to the upper-tier municipality. Default

(3.2) If a lower-tier municipality fails to make any payment, or portion of it, to an upper-tier municipality as required under a by-law passed under subsection (1), 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.

38.(1) Paragraph 1 of subsection 370 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted:

1. The rate on a property class must be set so that the total 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 total amount raised for all purposes in the previous year by the levying of tax rates on all the properties that, in the current year, are in the property class.

(2) Subsection 370 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by adding the following paragraph:

3. 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) Subsection 370 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted:

b Assessment roll

(4) If a by-law is passed under subsection (1) before the assessment roll for taxation in the current year is returned the tax rate levied under subsection (1) shall be levied on the assessment according to the assessment roll for taxation in the previous year as most recently revised before the by-law is passed or a preliminary assessment roll provided by the assessment commissioner for the purpose. y Tax ratios

(4.1) If a by-law is passed under subsection (1) before the tax ratios for the current year are established, the reference to tax ratios in paragraph 3 of subsection (3) shall be deemed to be a reference to the tax ratios for the previous year.

(4) Subsections 370 (7) to (10) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, are repealed and the following substituted: Application after municipal restructurings

(7) If as a result of a municipal restructuring parts of a local municipality as it exists on January 1 of a year were, at any time in the preceding year, in different local municipalities or were, at any time in the preceding year, territory without municipal organization, this section applies for the purposes of the current year with respect to each such area as though it were a separate municipality. Interim levy for 1998

(8) For 1998, the council of a local municipality may, before the adoption of the estimates for the year, pass a by-law levying taxes on the assessment of property in the municipality rateable for local municipality purposes. Determination of interim taxes

(9) Taxes under subsection (8) shall be levied on the assessment according to the assessment roll, as most recently revised before the by-law is passed, for taxation in 1997 in accordance with the following:

1. Taxes on residential and farm assessment shall be set by levying a mill rate that does not exceed the prescribed percentage (or 50 per cent if no percentage is prescribed) of the residential mill rate levied in 1997.

2. Taxes on commercial and industrial assessment shall be set by levying a mill rate that does not exceed the mill rate that would raise, on all the commercial and industrial assessment rateable for local municipality purposes in 1997, the prescribed percentage (or 50 per cent if no percentage is prescribed) of the total taxes raised on that commercial and industrial assessment in 1997 including all business taxes levied in 1997. For the purposes of this paragraph, "commercial and industrial assessment" does not include business assessment.

3. For the purposes of calculating the total taxes in 1997 under paragraph 2, if any taxes were levied in 1997 for only part of the year because assessment was added to the assessment roll during 1997, an amount shall be added equal to the additional taxes that would have been levied if the taxes had been levied for the entire year. Relief for excessive interim taxes

(10) If the council of the municipality is of the opinion that the taxes under subsection (8) on a property are excessive in relation to its estimate of the total taxes that will be levied on the property for 1998, the council may, by by-law, reduce the taxes on the property under subsection (8) to the extent it considers appropriate. Clarification, property not taxable in 1997

(11) Taxes may be levied under subsection (8) on a property that is rateable for local municipality purposes for 1998 even if the property was not rateable for local municipality purposes for 1997. Assessment added after by-law passed

(12) A by-law under subsection (8) may provide for the levying of taxes on the assessment of property that is added to the assessment roll after the by-law is passed. Application of subsections (5) and (6)

(13) Subsections (5) and (6) apply, with necessary modifications, to amounts levied under subsection (8). y

39.(1) Clauses 371 (1) (a) and (c) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, are repealed and the following substituted:

(a) prescribing a percentage for the purposes of subsection 369 (1);

. . . . .

(2) Subsection 371 (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed.

(3) Section 371 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by adding the following subsection: Retroactive

(5) A regulation under this section may be retroactive to a date not earlier than December 1 of the year before the year in which the regulation is made.

40.The Act is amended by adding the following section: Payments in lieu of taxes, distribution

371.1(1) The Minister of Finance may make regulations governing the distribution of payments in lieu of taxes received by local municipalities. Same

(2) Regulations under this section may,

(a) govern which municipalities or school boards payments in lieu of taxes shall be distributed to;

(b) govern how much shall be distributed to each municipality or school board;

(3) Regulations under this section may treat different payments in lieu of taxes differently. Variation of time of distribution

(4) Regulations under clause (2) (c) may provide for the time the distribution shall be made to be varied by all or some of the interested municipalities and school boards. Amount to be distributed is a debt

(5) An amount that a local municipality is required to pay under this section is a debt of the local municipality to the municipality or school board to which the amount is required to be paid. Overpayments by local municipalities

(6) A local municipality that distributes more than is required under this section shall notify the municipality or school board to which the overpayment was distributed of the amount of the overpayment and that municipality or school board shall promptly pay that amount to the local municipality. Default

(7) If a local municipality fails to make any payment, or portion of it, as required under this section, the local municipality shall pay to the municipality or school board to which the amount is required to be paid, interest on the amount in default at the rate of 15 per cent per year, or such lower rate as the municipality or school board to which the amount is required to be paid may by by-law determine, from the date payment is due until it is made. Payments credited to general funds

(8) The portion of payments in lieu of taxes received and not distributed by a local municipality shall be credited to its general fund.The portion of payments in lieu of taxes that are distributed to another municipality shall be credited to the general fund of that municipality. End of year statement

(9) On or before December 31 in each year, the treasurer of a local municipality shall give each municipality or school board to which the local municipality is required to distribute payments in lieu of taxes a statement setting out sufficient information to enable the municipality or school board to which the statement is given to determine the amount that the local municipality is required to distribute to the municipality or school board under this section. Conflict

(10) In the event of a conflict between a regulation under this section and a provision of this or of any other Act or regulation, the regulation under this section prevails.

41.(1) Subsections 372 (2) and (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, are repealed and the following substituted:

"1998 assessment-related tax increase or decrease"

(2) In this section,

"1998 assessment-related tax increase or decrease" means the amount for a property calculated in accordance with the following formula, subject to subsection (3):

Where,

"1997 Taxes (class)" means the total 1997 taxes for municipal and school purposes on land in the municipality that is in the property class that the property is in including business taxes imposed on persons carrying on a business on such land,

"1998 Assessment (class)" means the total assessment for 1998 of the land in the municipality that is in the property class that the property is in and that is rateable for municipal purposes,

"1998 Assessment (property)" means the assessment of the property for 1998,

"1997 Taxes (property)" means the 1997 taxes for municipal and school purposes on the property, including business taxes imposed on persons carrying on a business on the property. Same

(3) The determination of the 1998 assessment-related tax increase or decrease for a property is subject to the following:

1. The 1998 assessment-related tax increase or decrease for a property in the farmland property class or the managed forest property class prescribed under the Assessment Act is 25 percent of the amount determined using the formula in subsection (2).

2. This paragraph applies with respect to a bridge or tunnel that crosses a river forming the boundary between Ontario and the United States. The 1998 assessment-related tax increase or decrease for land used for the purposes of the bridge or tunnel is the 1998 taxes on the land minus the 1997 taxes on the land for municipal and school purposes. In this paragraph, "land used for the purposes of the bridge or tunnel" includes land at the end of the bridge or tunnel used in connection with the bridge or tunnel, including duty-free stores.

3. 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 Assessment (property) shall be adjusted, in calculating the amount under subsection (2), to what it would be if the improvement was not reflected in the assessment for 1998.

4. 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 Assessment (property) shall be adjusted, in calculating the amount under subsection (2), to what it would be if the improvement was reflected in the assessment for 1998.

(1.1) Subsection 372 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by adding the following paragraph:

8. For each property class for each year, the adjustments made under the by-law must not affect the total taxes for municipal and school purposes on the land in the municipality that is in the property class and that is rateable for municipal purposes. For the purposes of this paragraph, the residential/farm property class, the farmlands property class and the managed forests property class prescribed under the Assessment Act shall be deemed to be a single property class.

(1.2) Subsection 372 (9) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted: Sharing so that no surplus or shortfall

(9) The council of an upper-tier municipality that passes a by-law under subsection (1) shall pass a by-law requiring adjustments between the upper-tier municipality and the lower-tier municipalities so that neither the upper-tier municipality nor any lower-tier municipality has a surplus or shortfall as a result of the phase-in of 1998 assessment-related tax increases or decreases. y

(2) Section 372 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by adding the following subsections:

b Application to payments in lieu

(11) For the purposes of this section, payments in lieu of taxes, other than an amount referred to in subparagraph ii of paragraph 24 of subsection 3 (1) of the Assessment Act or an amount received under section 157 or subsection 158 (4) of this Act, shall be deemed to be taxes and the land with respect to which such payments in lieu of taxes relate shall be deemed to be rateable for municipal purposes. y Taxes for school purposes

(12) No phase-in of a 1998 assessment-related tax increase or decrease under this section affects the amount a local municipality is required to pay a school board. International bridges

(13) Amounts payable in 1997 under the International Bridges Municipal Payments Act, 1981 shall be deemed, for the purposes of this section, to be 1997 taxes.

42.Subsections 373 (7) and (8) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, are repealed and the following substituted: Amounts transferred by local municipalities adjusted

(7) If a local municipality levies a tax rate for upper-tier or school purposes in respect of which there is a deferral or cancellation of tax increases or other relief in respect of tax increases, the amount of taxes the local municipality shall pay the upper-tier municipality or school boards shall be reduced accordingly. Deferred taxes, payments to upper-tier, school boards

(8) If a local municipality levies a tax rate for upper-tier or school purposes in respect of which there is a deferral of tax increases, the local municipality shall pay the upper-tier municipality or school boards their share of any deferred taxes and interest when they are paid.

43.The Act is amended by adding the following section: Taxes on international bridges and tunnels

373.1(1) The owner of a bridge or tunnel that crosses a river forming the boundary between Ontario and the United States shall pay a tax on the bridge or tunnel structure to the local municipality in which the Ontario end of the bridge or tunnel is located. Amount of tax

(2) The amount of the tax for a taxation year is the prescribed amount plus the amount under subsection (3) for the taxation year, if applicable. Additional amount

(3) For prescribed bridges or tunnels, the amount of the tax shall be increased by any amount by which the American municipal and school taxes for the year on the bridge or tunnel exceed the Ontario municipal taxes for the year on the bridge or tunnel, determined in accordance with the following:

1. The American municipal and school taxes on the bridge or tunnel are the taxes for municipal or school purposes on the bridge or tunnel structure and on land used for the purposes of the bridge or tunnel, converted to Canadian dollars in accordance with the prescribed method.

2. The Ontario municipal taxes on the bridge or tunnel are the taxes for municipal purposes on the bridge or tunnel structure and on land used for the purposes of the bridge or tunnel. Distribution of the tax

(4) The local municipality shall pay a share of the tax to the upper-tier municipality of which it forms part for municipal purposes, if any. Amount of share

(5) The upper-tier municipality's share of tax under this section shall be determined in accordance with the following:

Where,

"Total commercial tax" means the total tax levied on land in the commercial property class, for upper-tier and lower tier purposes, in the local municipality;

"Upper-tier commercial tax" means the tax levied on land in the commercial property class, for upper-tier purposes, in the local municipality. When share paid

(6) The local municipality shall pay the upper-tier municipality its share of the tax under this section for a taxation year in accordance with the following:

1. The upper-tier municipality's share of the prescribed amount referred to in subsection (2) shall be paid,

i. if the upper-tier municipality is a county, on or before December 15 of the taxation year, or

ii. if the upper-tier municipality is not a county, on or before the day the local municipality's last instalment of taxes for the taxation year is due under the upper-tier rating by-law.

2. The upper-tier municipality's share of the amount under subsection (3) shall be paid on or before January 31 ofthe year after the taxation year. Information from owners

(7) The council of the municipality to which the tax must be paid may, by by-law, require owners of bridges and tunnels to provide information for the purposes of verifying the amount of the tax.The by-law may specify the information to be provided and the date by which it must be provided. Regulations

(8) The Minister may make regulations prescribing anything that under this section is to be prescribed. Taxes are taxes on land

(9) Taxes under this section shall be deemed to be taxes on the land used for the purposes of the bridge or tunnel. Exception, railway bridges

(10) This section does not apply with respect to a bridge or tunnel used exclusively for railway purposes.

b Definition

(11) In this section,

"land used for the purposes of the bridge or tunnel" includes land at the end of the bridge or tunnel used in connection with the bridge or tunnel, including duty-free stores. y

44.Subsection 400 (8) of the Act is amended by striking out "to bailiffs under the Courts of Justice Act" at the end and substituting "under the Costs of Distress Act".

45.Section 414 of the Act is repealed and the following substituted: Appeal

414.An owner may appeal a decision of the council of a municipality under section 413 to the Assessment Review Board.

46.(1) Subsection 442 (17) of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule, is repealed.

(2) Subsection 442 (18) of the Act is amended by striking out "The Assessment Review Board and the Municipal Board have," at the beginning and substituting "The Assessment Review Board has".

(3) Subsection 442 (22) of the Act is amended by striking out "Assessment Review Board or Municipal Board" in the second and third lines and substituting "or Assessment Review Board".

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

b Rebates to eligible charities, etc.

442.1(1) The council of a municipality, other than a lower-tier municipality, may pass a by-law providing for rebates of taxes to all eligible charities and to any similar organizations specified in the by-law, for the purpose of giving the charities and similar organizations relief from taxes on property that they occupy. Amount of relief

(2) The rebate provided by a by-law under subsection (1) to each eligible charity and similar organization shall not exceed 40 per cent of the taxes that would otherwise be levied in respect of land occupied by the charity or similar organization. Equal treatment

(3) The amount of the rebate provided by a by-law under subsection (1) to each eligible charity and similar organization shall be the same, when expressed as a percentage of the taxes that would otherwise be levied in respect of land occupied by each charity and similar organization. Application

(4) A by-law under subsection (1) may apply only to land in,

(a) the commercial property class or the industrial property class, as prescribed under section 7 of the Assessment Act\; or

(b) a property class prescribed under section 7 of the Assessment Act that is not mentioned in subsection 7 (2) of that Act. Who gives rebates

(5) Rebates under a by-law under subsection (1) shall be given,

(a) if the by-law is passed by the council of a local municipality, by the local municipality;

(b) if the by-law is passed by the council of an upper-tier municipality, by the lower-tier municipalities. Sharing costs of rebates

(6) The costs of a rebate of taxes on a property shall be shared by the municipalities and school boards that share in the revenue from the taxes on the property in the same proportion as the municipalities and school boards share in those revenues. Definitions

(7) In this section,

"eligible charity" means a registered charity as defined in subsection 248 (1) of the Income Tax Act (Canada) that has a registration number issued by the Department of National Revenue; ("organisme de bienfaisance admissible")

"lower-tier municipality" has the same meaning as in section 361.1; ("municipalit de palier infrieur")

"upper-tier municipality" has the same meaning as in section 361.1. ("municipalit de palier suprieur") y

48.(1) Subsection 444 (5) of the Act is amended by striking out "subject to subsection (11)" in the fourth line.

(2) Subsection 444 (11) of the Act is repealed.

(3) Subsection 444 (12) of the Act is repealed and the following substituted: Powers of Assessment Review Board

(12) In dealing with appeals and recommendations the Assessment Review Board has the powers of the council under subsection (5).

(4) Subsection 444 (15) of the Act is amended by striking out "Assessment Review Board or Municipal Board" in the second and third lines and substituting "or Assessment Review Board".

PART III

OTHER ACTS, AMENDMENTS AND REPEALS The Baudette and Rainy River Municipal Bridge Act, 1961-62

49.The Baudette and Rainy River Municipal Bridge Act, 1961-62 is repealed. The City of Toronto Act, 1939

50.Section 2 of The City of Toronto Act, 1939, is repealed. The City of Toronto Act, 1949

51.Section 9 of The City of Toronto Act, 1949, as amended by the Statutes of Ontario, 1956, chapter 125, section 7, is repealed. City of Burlington Act, 1992

52.Clause 1 (2) (b) of the City of Burlington Act, 1992 is repealed and the following substituted:

(b) apportion the entire cost chargeable to land in the defined parking area among all parcels of land (other than tax exempt parcels) in the commercial property class or industrial property class, prescribed under the Assessment Act, in the proportion that the assessment of each parcel, as shown on the last returned assessment roll, bears to the total assessment of all such parcels. Conservation Authorities Act

53.(1) Subsection 27 (1) of the Conservation Authorities Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule, is repealed.

(2) Subsection 27 (3) of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule and 1996, chapter 1, Schedule M, section 47, is repealed and the following substituted: Apportionment of administration costs

(3) Subject to the regulations made under subsection (16), after determining the approximate administration costs for the succeeding year, the authority shall apportion the costs to the participating municipalities and the amount apportioned to each such municipality shall be levied against the municipality. County of Oxford Act

54.Section 131 of the County of Oxford Act is repealed and the following substituted: County library system

131. The operating costs of the County library system shall be raised by a special upper-tier levy on the rateable property in the area municipalities other than the City of Woodstock and the Town of Tillsonburg. County of Simcoe Act, 1993

55.(1) Sections 20 to 27 of the County of Simcoe Act, 1993 are repealed.

(2) The definition of "urban service area" in subsection 29 (1) of the Act is amended by striking out "including business assessment" in the second and third lines.

(3) Clause 29 (2) (c) of the Act is amended by striking out "including business assessment" in the second and third lines.

(4) Clause 29 (2) (d) of the Act is amended by striking out "including the business assessment" in the second and third lines.

(5) Subsection 29 (3) of the Act is repealed.

(6) Clause 29 (4) (c) of the Act is amended by striking out "including business assessment" in the second and third lines.

(7) Section 31 of the Act is repealed. District Municipality of Muskoka Act

56.(1) Subsection 85 (3) of the District Municipality of Muskoka Act is repealed and the following substituted: Pollution control fund

(3)The District Council shall establish and maintain a pollution control fund and shall contribute to the fund, in each year, an amount determined in accordance with the following:

1. For 1998, the amount is the amount payable under the predecessor of this subsection for 1997.

2. For a year after 1998, the amount is determined in accordance with the following formula:

Where,

"Amount" means the amount payable under this subsection;

"Tax rate" means the tax rate for the general upper-tier levy for the residential/farm property class prescribed under the Assessment Act.

(2) Subsection 85 (6) of the Act is amended by striking out "the levy under section 72" in the third line and substituting "the general upper-tier levy or a special upper-tier levy". Homes for the Aged and Rest Homes Act

57.(1) Subsections 24 (1), (2) and (3) of the Homes for the Aged and Rest Homes Act are repealed.

(2) Subsection 24 (4) of the Act is amended by striking out "in proportion to the amounts of their assessments according to their assessment rolls as revised and equalized in the immediately preceding year" in the last four lines and substituting " in accordance with the regulations under section 374 of the Municipal Act".

(3) Subsections 24 (8) and (9) of the Act are repealed.

(4) Subsection 25 (1) of the Act is amended by striking out "in proportion to the amounts of their assessments according to their last revised assessment rolls as equalized" in the last four lines and substituting "in accordance with the regulations under section 374 of the Municipal Act".

(5) Subsection 26 (2) of the Act is amended by striking out "in proportion to the amounts of their assessments according to their last revised assessment rolls as equalized" in the eighth, ninth, tenth and eleventh lines and substituting "in accordance with the regulations under section 374 of the Municipal Act".

(6) Paragraph 30 of subsection 31 (1) of the Act is amended by striking out "equalized assessment" in the seventh and eighth lines and substituting "assessment of rateable property". Housing Development Act

58.Subsections 7 (6), (7), (8) and (10) of the Housing Development Act are repealed. International Bridges Municipal Payments Act, 1981

59.The International Bridges Municipal Payments Act, 1981 is repealed. London-Middlesex Act, 1992

60.(1) The definitions of "commercial assessment", "net lower tier levy" and "residential and farm assessment" in section 37 of the London-Middlesex Act, 1992 are repealed.

(2) Sections 38 to 42 of the Act are repealed.

(3) Subsection 43 (3) of the Act is repealed.

(4) The definition of "urban service area" in subsection 45 (1) of the Act is amended by deleting "including the business assessment thereon" in the second and third lines.

(5) Clause 45 (2) (c) of the Act is amended by deleting "including the business assessment thereon" in the second and third lines.

(6) Clause 45 (2) (d) of the Act is amended by deleting "including the business assessment thereon" in the second and third lines.

(7) Subsection 45 (3) of the Act is repealed.

(8) Clause 45 (4) (c) of the Act is amended by striking out "including business assessment thereon" in the second and third lines.

(9) Clause 45 (4) (d) of the Act is amended by striking out "including business assessment thereon" in the third line.

(10) Subsections 48 (2) and (3) of the Act are repealed and the following substituted: Payments to County of Middlesex

(2) The City of London shall, on or before March 1 in each year, pay the County of Middlesex, as compensation for the reduction in income due to the dissolution of the London-Middlesex Suburban Roads Commission, an amount determined in accordance with the following:

1. For 1998, the amount is the amount payable under the predecessor of this subsection for 1997.

2. For a year after 1998, the amount is determined in accordance with the following formula:

Where,

"Amount" means the amount payable under this subsection;

"Tax rate" means the City of London's tax rate for the general local municipality levy for the residential/farm property class prescribed under the Assessment Act. Regulation

(3) The Minister may make regulations providing for a different amount to be payable under subsection (2) than the amount that would otherwise be payable under that subsection. Municipal Extra-Territorial Tax Act

61.(1) The definitions of "commercial assessment", "designated business", "Minister", "municipality" and "yearly tax equivalent amount" in section 1 of the Municipal Extra-Territorial Tax Act are repealed and the following substituted:

"commercial assessment" means the assessment of land in the prescribed extra-territorial property classes taxable for school purposes; ("valuation relative aux activits commerciales")

"designated business" means a person owning or operating any business that is situated within a municipal taxing area and that the Minister has designated under subsection 2 (1); ("entreprise dsigne")

"Minister" means the Minister of Municipal Affairs and Housing; ("ministre")

"municipality" means a local municipality; ("municipalit")

"yearly tax equivalent amount" means the tax resulting from the operation of section 5. ("montant quivalant aux impts annuels")

(2) Section 1 of the Act is amended by adding the following subsection: Regulations

(2) For the purposes of the definition of "commercial assessment", the Minister may make regulations prescribing, as extra-territorial property classes, classes of real property prescribed under the Assessment Act.

(3) Subsection 3 (2) of the Act is repealed and the following substituted: Determination of attributable commercial assessment

(2) The Minister shall, in each year and for each designated municipality, determine the attributable commercial assessment from each designated business in accordance with the following formula:

Where,

"CA" is the commercial assessment of a designated business;

"WFDB" is the work force of a designated business;

"WFDM" is the work force in a designated municipality.

(4) Sections 5, 6 and 7 of the Act are repealed and the following substituted: Levy in respect of commercial assessment

5.If the treasurer has received notice under section 4, the land of the designated business shall be deemed, for the purposes of taxation by the designated municipality, to be land within the designated municipality with an assessment equal to the attributable commercial assessment. Assessment

6.The land of a designated business shall be assessed under section 17 or 18 of the Assessment Act as applicable.

(5) Section 11 of the Act is repealed and the following substituted: Increase of assessment for certain purposes

11.The attributable commercial assessment shall be included in determining the assessment of a designated municipality for purposes of apportioning the requisition or levy of any body other than a school board.

(6) Section 13 of the Act is repealed. Municipal Tax Assistance Act

62.(1) The definitions of "Minister", "municipality" and "rates levied for general municipal purposes" in section 1 of the Municipal Tax Assistance Act are repealed and the following substituted:

"Minister" means the Minister of Municipal Affairs and Housing; ("ministre")

"municipality" means a local municipality. ("municipalit")

(2) Subsections 4 (1), (2), (3) and (4) of the Act are repealed and the following substituted: Payments

(1) The Minister, in respect of provincial property owned by the Crown in right of Ontario and not occupied by a Crown agency, may pay in each year to the municipality in which the property is situate an amount equal to the tax for municipal purposes that would be payable if the property were taxable. Idem

(2) Every Crown agency, in respect of provincial property owned or occupied by it, may pay in each year to the municipality in which the property is situate an amount equal to the tax for municipal purposes that would be payable if the property were taxable. Crown tenants

(3) The following apply if section 18 of the Assessment Act would, but for this section, apply to a tenant of provincial property:

1. Section 18 of the Assessment Act does not apply to the tenant.

2. The Minister or Crown agency that owns the property may pay in each year to the municipality in which the property is situate an amount equal to the tax for municipal and school purposes that would be payable if the property were taxable.

3. The tenant shall owe a debt to the Crown or Crown agency, as the case may be, equal to any amount paid under paragraph 2.

4. The assessment roll shall be prepared under the Assessment Act as though section 18 of that Act still applied to the tenant.

5. If the Crown or Crown agency that owns the provincial property is required, under an agreement made before January 1, 1998, to pay any tax payable as a result of the application of section 18 of the Assessment Act, the tenant's debt under paragraph 3 shall be reduced to the extent that the Crown or Crown agency would have been required under the agreement to pay the tax payable if section 18 of the Assessment Act still applied. Prescribed payments

(4) The Minister of Finance may make regulations, in relation to property that is not taxable, authorizing the Minister of Municipal Affairs and Housing or a Crown agency to make payments to the municipality in which the property is situate, subject to the following:

1. The regulations shall apply only with respect to property of a class prescribed in the regulations.

2. The amount that the Minister or Crown agency is authorized to pay shall be determined by the Minister or Crown agency but shall not exceed the tax for municipal and school purposes that would be payable if the property were taxable.

(3) Subsections 4 (10) and (11) of the Act are repealed. Niagara Parks Act

63.Subsections 15 (3) and (4) of the Niagara Parks Act are repealed. Planning Act

64.Subsection 14.3 (5) of the Planning Act, as enacted by the Statutes of Ontario, 1994, chapter 23, section 8, is repealed and the following substituted: County levy

(5) If a municipal planning authority has been established, a county shall raise the amounts required for county land use planning purposes by levying a special rate on rateable property not in the municipal planning area. Power Corporation Act

65.(1) Subsection 52 (1.1) of the Power Corporation Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 68, is repealed.

(2) Section 52 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 68, is further amended by adding the following subsections: Same

(3.1) In addition to the amounts payable under subsections (2) and (3), the Corporation shall pay in each year, to any municipality in which land described in paragraph 2 of subsection 368.3 (1) of the Municipal Act is situated, an amount equal to the tax that would be imposed under section 368.3 of the Municipal Act on that land if the land were taxable.

b Same

(3.2) The Corporation shall pay in each year to any municipality in which is situated land used as a transmission or distribution corridor and leased to another person for rent or other valuable consideration the total amount that the tax rate in the municipality for the property class prescribed under the Assessment Act in which the land is classified would produce based on the current value of the land as defined in section 1 of the Assessment Act and subsection (2) does not apply with respect to the land. y

(3) Subsections 52 (7) and (8), as amended by the Statutes of Ontario, 1997, chapter 5, section 68, are repealed.

(4) Subsection 52 (9) of the Act is repealed.

(5) Subsection 52 (11) of the Act is amended by striking out "Where a school board is entitled to a payment under subsection (9)" in the first two lines and substituting "Where a school Board is entitled, under the regulations made under section 371.1 of the Municipal Act, to any part of a payment under this section". Regional Municipality of Hamilton-Wentworth Act

66.(1) Subsection 39 (2) of the Regional Municipality of Hamilton-Wentworth Act is amended by striking out "levy under subsection 30 (1)" in the first and second lines and substituting "general upper-tier levy".

(2) Subsection 39 (3) of the Act is repealed. Regional Municipality of Ottawa-Carleton Act

67.(1) Subsection 13 (3) of the Regional Municipality of Ottawa-Carleton Act is amended by striking out "equalized assessment" in the tenth line and substituting "the assessment of rateable property".

(2) Subsection 13 (4) of the Act is repealed. Regional Municipality of Waterloo Act

68.(1) Subsection 11 (3) of the Regional Municipality of Waterloo Act is amended by striking out "equalized assessment" in the sixth line and in the eighth line and substituting in each case, "assessment of real property".

(2) Subsection 11 (4) of the Act is amended by striking out "the equalized assessment of the municipality bears to the equalized assessment of the electrical service area" in the last four lines and substituting "the assessment of rateable property of the municipality bears to the assessment of rateable property of the electrical service area". Sarnia-Lambton Act, 1989

69.(1) The definitions in section 68 of the Sarnia-Lambton Act, 1989, other than the definition of "merged area", are repealed.

(2) Sections 69 to 74 of the Act are repealed.

(3) Subsections 75 (1), (2) and (3) of the Act are repealed.

(4) Subsection 75 (4) of the Act is amended by striking out "and business assessment" in the fourth line.

(5) Subsection 76 (1) of the Act is repealed.

(6) Subsection 78 (1) of the Act is amended by striking out "Ontario Unconditional Grants Act" in the first and second lines and substituting "Ontario Municipal Support Grants Act".

(7) The definition of "urban service area" in subsection 79 (1) of the Act is amended by striking out "including the business assessment thereon" in the second line.

(8) Clause 79 (2) (c) of the Act is amended by striking out "including the business assessment thereon" in the second line.

(9) Clause 79 (2) (d) of the Act is amended by striking out "including the business assessment thereon" in the second line.

(10) Subsection 79 (3) of the Act is repealed.

(11) Clause 79 (5) (c) of the Act is amended by striking out "including business assessment thereon" in the second line. St. Clair Parkway Commission Act

70.Section 10 of the St. Clair Parkway Commission Act is repealed and the following substituted: Limit on levy

10. (1) No participating municipality shall be required to raise in any year, under section 7, an amount that exceeds the maximum amount determined in accordance with the following:

1. For 1998, the maximum amount is the maximum amount for section 7 determined under the predecessor of this section for 1997.

2. For a year after 1998, the maximum amount is determined in accordance with the following formula:

Where,

"Maximum" means the maximum amount determined under this subsection;

"Tax rate" means the tax rate for the general levy for the participating municipality for the residential/farm property class prescribed under the Assessment Act. Same

(2) No participating municipality shall be required to raise in any year, under section 8, an amount that exceeds the maximum amount determined in accordance with the following:

1. For 1998, the maximum amount is the maximum amount for section 8 determined under the predecessor of this section for 1997.

2. For a year after 1998, the maximum amount is determined in accordance with the following formula:

Where,

"Maximum" means the maximum amount determined under this subsection;

"Tax rate" means the tax rate for the general levy for the participating municipality for the residential/farm property class prescribed under the Assessment Act. Variation by agreement

(3) A participating municipality may be required to raise in a year, under section 7 or 8, an amount that exceeds the maximum amount under subsection (1) or (2) if, in that year, the council of the participating municipality agrees with the Commission to do so.

PART IV

TRANSITION, COMMENCEMENT AND SHORT TITLE Transition Tax exemptions under the Assessment Act

71.A paragraph of section 3 of the Assessment Act that is amended or repealed by this Act continues to apply, as though it had not been amended or repealed, with respect to land to which it applied for the entire 1997 taxation year until there is a change in who owns or occupies the land or in the use of the land. Writing off taxes on international bridges, etc.

72.(1) The council of a local municipality may, by by-law, direct that all or part of the taxes for a taxation year before 1998 on a bridge or tunnel that crosses a river forming the boundary between Ontario and the United States be struck off the roll. Same

(2) The council of a local municipality shall not pass a by-law under subsection (1) unless written notice is given to every school board and municipality against which a deficiency resulting from the by-law may be charged.

b Interim levy by-law

72.1A by-law passed in December of 1997 levying rates for the purposes of interim financing under a provision of the Municipal Act or any other Act ceases to have any effect on January 1, 1998. This section does not apply to a by-law passed under section 370 of the Municipal Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by section 38 of this Act. y Appeals to O.M.B.

73.The Municipal Act, as it reads on December 31, 1997, continues to apply with respect to an appeal to the Ontario Municipal Board under sections 414, 442 or 444 of the Municipal Act commenced on or before December 31, 1997. Applications with respect to business taxes

74.(1) Section 442 of the Municipal Act, as it reads on December 31, 1997, continues to apply with respect to applications made under that section before March 1, 2000 for the cancellation, reduction or refund of business taxes.For that purpose section 442 of the Municipal Act shall be deemed to have been amended as provided in this Act. Same

(2) This section does not apply with respect to appeals with respect to which section 73 applies. Commencement and Short Title Commencement, Fair Municipal Finance Act, 1997

75.Despite section 84 of the Fair Municipal Finance Act, 1997, subsection 4 (2) of that Act comes into force on January 1, 1998. Commencement

76.(1) Except as provided in this section, this Act comes into force on December 1, 1997.

b Same

(2) Sections 3 and 11, Part II (sections 21 to 48), Part III (sections 49 to 70) and sections 71, 73 and 74 come into force on January 1, 1998. Same

(3) Subsection 6 (2) and section 7 come into force on a day to be named by proclamation of the Lieutenant Governor. Same

(4) Subsection 20 (2) comes into force on a day to be named by proclamation of the Lieutenant Governor. y Short title

77.The short title of this Act is the Fair Municipal Finance Act, 1997 (No. 2).