Bill 16, Small Business and Charities Protection Act, 1998

Versions

[36] Bill 16 As Amended by Standing Committee (PDF)

B016_E

Bill 16 1998

An Act to give Tax Relief to Small Businesses, Charities and Others and to make other amendments respecting the Financing of Local Government and Schools

CONTENTS

Part

Section

Partie

Articles

III

Assessment Act Amendments

Municipal Act Amendments

Complementary Amendments

City of Burlington Act, 1992

City of Toronto Act, 1997

(No. 2)

Conservation Authorities Act

Education Act

Fair Municipal Finance Act, 1997 (No. 2)

Municipal Tax Assistance Act

Municipal Tax Sales Act

Power Corporation Act

Provincial Land Tax Act

Transition, Commencement and Short Title

Transition

Commencement

Short title

1-10

11-30

III

Modification de la Loi sur l'évaluation foncière

Modification de la Loi sur les municipalités

Modifications complémentaires

Loi intitulée City of Burlington Act, 1992

Loi de 1997 sur la cité de Toronto (n^o 2)

Loi sur les offices de protection de la nature

Loi sur l'éducation

Loi de 1997 sur le financement équitable des municipalités (n^o 2)

Loi sur les subventions tenant lieu d'impôt aux municipalités

Loi sur les ventes pour impôts municipaux

Loi sur la Société de l'électricité

Loi sur l'impôt foncier provincial

Disposition transitoire, entrée en vigueur et titre abrégé

Disposition transitoire

Entrée en vigueur

Titre abrégé

1-10

11-30

______________

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. Section 2 of the Assessment Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 2, 1997, chapter 29, section 2, and 1997, chapter 43, Schedule G, section 18, is further amended by adding the following subsections:

Restriction on timing of option

(3.2) If a regulation prescribing classes of real property requires, for land in a municipality to be in a class, that the municipality opt to have the class apply, the municipality may not opt to have the class apply with respect to a taxation year after,

(a) for 1998, the day that is 30 days after the assessment roll is returned or such later deadline as the Minister may order for the municipality either before or after the earlier deadline has passed; or

(b) for a taxation year after 1998, October 31 of the previous year or such later deadline as the Minister may prescribe either before or after the October 31 deadline has passed.

Orders extending deadline

(3.3) The following apply with respect to an order referred to in clause (3.2) (a):

1. The order may be made only upon the request of the municipality to which the order relates.

2. The order may not provide for a deadline that is later than the day that is 60 days after the assessment roll is returned.

3. The Regulations Act does not apply with respect to the order.

2. (1) Subsection 8 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 5, is amended by striking out "under the Municipal Act" in the second line.

(2) Paragraphs 2 and 3 of subsection 8 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 5, are repealed and the following substituted:

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

i. the commercial property class and such other classes of real property prescribed by the Minister for the purposes of this subparagraph,

ii. the industrial property class and such other classes of real property prescribed by the Minister for the purposes of this subparagraph.

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

i. the commercial property class and such other classes of real property prescribed by the Minister for the purposes of this subparagraph,

ii. the industrial property class and such other classes of real property prescribed by the Minister for the purposes of this subparagraph.

3. Section 19.4 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 10, is repealed.

4. Section 23 of the Act is amended by adding the following subsections:

Update of old fixed assessment

(9) A fixed assessment is changed each year after the year with respect to which it first applies in accordance with the following:

Where, "

Previous year's taxes" means the taxes levied for municipal and school purposes in the previous year on the land to which the fixed assessment relates;

Current year's tax rate" means the total tax rate, for municipal and school purposes for the current year, for property in the residential/farm property class in the local municipality;

Tax change (class)" means an amount determined in accordance with the following:

1. Determine the total taxes levied for municipal and school purposes in the previous year on the property described in paragraph 4.

2. Determine the total taxes levied for municipal and school purposes in the current year on the property described in paragraph 4.

3. The Tax change (class) is the amount determined under paragraph 2 divided by the amount determined under paragraph 1.

4. The property referred to in paragraphs 1 and 2 is the property in the local municipality that, for both the previous year and the current year, is in the residential/farm property class. For 1998, the property referred to in paragraphs 1 and 2 is the property in the local municipality that, for 1998, is in the residential/farm property class.

Application of subsection (9)

(10) For greater certainty,

(a) subsection (9) applies with respect to an agreement entered into before or after subsection (9) came into force; and

(b) subsection (9) applies with respect to 1998 and subsequent years but not with respect to years before 1998.

5.Subsection 27 (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 11, 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 taxes for municipal and school purposes that would be payable if the land and buildings were taxable and classified in the commercial property class.

6.Section 31 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 20, 1997, chapter 29, section 16 and 1997, chapter 43, Schedule G, section 18, is further amended by adding the following subsection:

Application to certain changes

(7) Subsection (1) applies with respect to a change described in subsection 34 (1) in respect of which the assessor could have, but did not, make an assessment under that subsection.

7.Section 33 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 21 and 1997, chapter 29, section 17, is further amended by adding the following subsection:

Changes to next assessment roll

(5) If an assessor makes an assessment or classification under this section, the appropriate changes shall be made on the assessment roll for the next year, even if the day as of which land is valued for the next year is the same as for the current year.

8.(1) Subsection 34 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 22 and 1997, chapter 29, section 18, is further amended by striking out "shall" in the first line of the portion following clause (d) and substituting "may".

(2) Subsection 34 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 22, is repealed and the following substituted:

Supplementary classification

(2) If, during the taxation year or the preceding November or December, a change event, within the meaning of subsection (2.2), occurs that would change the class of real property that a parcel of land or a part of such a parcel is in, the assessor may change the classification accordingly, including any subclass, and the clerk of the municipality, upon notification of that change, shall enter it on the collector's roll and the tax levied for the taxation year shall be determined in accordance with the new classification.

Limitations

(2.1) The following apply with respect to subsection (2):

1. Subsection (2) does not affect the tax levied for the taxation year in respect of a part of the taxation year preceding the change event.

2. Subsection (2) applies with respect to a change event during the taxation year only if, as a result of the change event, the class of real property the parcel is in changes to a class with a higher tax ratio for the taxation year.

3. Paragraphs 1 and 2 do not apply with respect to a change event described in clause (c) of the definition of "change event" in subsection (2.2). "

change event"

(2.2) For the purposes of subsections (2) and (2.1), "

change event" includes,

(a) a change in the use of all or part of the parcel of land;

(b) an act or omission that results in all or part of the parcel of land ceasing to be in a class of real property; and

(c) the opting, by a council of a municipality, to have a class of real property apply or cease to apply within the municipality.

(3) Section 34 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 22 and 1997, chapter 29, section 18, is further amended by adding the following subsection:

Changes to next assessment roll

(4) If an assessor makes an assessment or classification under this section, or could have done so but did not, the appropriate changes shall be made on the assessment roll for the next year, even if the day as of which land is valued for the next year is the same as for the current year.

9.Section 35 of the Act, as amended by the Statutes of Ontario, 1997, chapter 29, section 19 and 1997, chapter 31, section 143, is further amended by adding the following subsection:

Tenant's notice, clarification

(4) For greater certainty, a notice given to a tenant under subsection (2) is not a notice of assessment and the tenant may not make a request for reconsideration under section 39.1.

10.Subsection 40 (17) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 26, is repealed and the following substituted:

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 last day of the second month after the month in which the assessment roll for the 1998 taxation year is returned.

PART II

MUNICIPAL ACT AMENDMENTS

11.(1) Subsection 159 (1) of the Municipal Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 28, is 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 at a location specified by the Minister, 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.

(2) Subsection 159 (5) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 28, is repealed and the following substituted:

When tax due

(5) The tax levied under this section shall be for the calendar year and shall be payable in four equal instalments due on March 31, June 30, September 30 and December 31 in the year in which the tax is imposed.

Tax bill

(5.1) Within 15 days after the transmission of a statement by a company under subsection (1), the Minister of Finance shall mail a notice of assessment for the amount imposed to the head office of the company or to such other address as the company directs in writing.

Reassessment

(5.2) The Minister of Finance may reassess a company with respect to a year within four years after the notice of assessment for the year is mailed under subsection (5.1) or (6).

(3) Subsection 159 (6) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 28, is amended by striking out "subsection (5)" in the last line and substituting "subsection (5.1)".

(4) Subsection 159 (7) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 28, is repealed and the following substituted:

Application of Retail Sales Tax Act

(7) The provisions of the Retail Sales Tax Act respecting the auditing of purchasers, the payment of refunds to purchasers, the assessment of erroneous refunds and the issuance of disallowances of such refunds, the liability of purchasers to pay interest or penalties and objections and appeals apply, with necessary modifications, with respect to any tax liability, claim for refund or notice of assessment or reassessment under this section and any amount due and payable that remains unpaid may be collected as if it were tax under that Act.

12.The French version of paragraph 76 of section 210 of the Act is amended by striking out "propriétaire" in the fourth line and substituting "locateur".

13.(1) Paragraph 2 of subsection 220 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 51, is repealed and the following substituted:

2. The persons referred to in paragraph 1 must be responsible for at least one-third of the sum of the taxes levied, for the purposes of the general local municipality levy as defined in subsection 368 (1), on rateable property in the area that is in a prescribed business property class plus charges under this section levied on that property. 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.

(2) Section 220 of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule, 1996, chapter 32, section 51 and 1997, chapter 5, section 51, is further amended by adding the following subsection:

Gross lease flow throughs

(34.1) An amount that a tenant could be required to pay under section 444.1 or 444.2 shall be deemed, for the purposes of this section, to be taxes that the tenant is required to pay under the tenant's lease.

14.(1) Section 363 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by the Statutes of Ontario, 1997, chapter 29, section 33 and 1997, chapter 43, Schedule F, section 9, is further amended by adding the following subsection:

Limitation

(4.1) A council of a municipality shall not pass a by-law under subsection (3) or (4) until transition ratios are established for the property classes that apply within the municipality, other than the residential/farm property class, the farmlands property class and the managed forests property class prescribed under the Assessment Act.

(2) Subsection 363 (10) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by adding the following clause:

(b.1) prescribing average transition ratios for the purposes of subsection (21).

(3) Subsection 363 (15) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 33, is amended by striking out the first line and substituting the following:

(15) In subsections (16) to (17.1),

. . . . .

(4) Subsection 363 (16) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 33, is amended by inserting after "transition ratios" in the third line "and average transition ratios".

(5) Section 363 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 33 and 1997, chapter 43, Schedule F, section 9, is further amended by adding the following subsection:

Effect of new average transition ratios

(17.1) If an average transition ratio is prescribed for a restructured municipality, that average transition ratio applies for the year instead of the average transition ratio that would otherwise apply under subsection (21).

(6) Section 363 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 33 and 1997, chapter 43, Schedule F, section 9, is further amended by adding the following subsections:

Definitions

(20) In subsections (21) to (23), "

commercial classes" means the commercial property class and the property classes each of which is a property class that a municipality may opt to have apply under the regulations under the Assessment Act and that contains property that, if the municipality did not opt to have the property class apply, would be in the commercial property class; ("catégories commerciales")

industrial classes" means the industrial property class prescribed under the Assessment Act and the property classes each of which is a property class that a municipality may opt to have apply under the regulations under the Assessment Act and that contains property that, if the municipality did not opt to have the property class apply, would be in the industrial property class.("catégories industrielles")

Average transition ratios

(21) For each municipality, the council of which is required to pass a by-law under this section to establish tax ratios, there shall be an average transition ratio for the commercial classes and an average transition ratio for the industrial classes, determined in accordance with the following:

1. For 1998, the average transition ratio shall be the prescribed average transition ratio.

2. For a subsequent year, the average transition ratio shall be the weighted average, for the previous year, of the tax ratios for the property classes to which the average transition ratio relates.

Special rule, commercial classes

(22) The tax ratio for a property class that is one of the commercial classes, may be greater than what would be allowed under subsection (6) or (7) if the following are satisfied:

1. The tax ratio is less than or equal to the average transition ratio for the commercial classes for the year.

2. The weighted average, for the year, of the tax ratios for the commercial classes does not exceed the average transition ratio for the commercial classes for the year.

Special rule, industrial classes

(23) The tax ratio for a property class that is one of the industrial classes may be greater than what would be allowed under subsection (6) or (7) if the following are satisfied:

1. The tax ratio is less than or equal to the average transition ratio for the industrial classes for the year.

2. The weighted average, for the year, of the tax ratios for the industrial classes does not exceed the average transition ratio for the industrial classes for the year.

Weighted average

(24) For the purposes of subsections (21) to (23), the weighted average, for a year, of the tax ratios for property classes shall be determined as follows:

1. For each property class, multiply the tax ratio for the property class for the year by the total assessment of the properties in the property class for the year.

2. Add the amounts determined under paragraph 1 for each property class together.

3. Add the total assessments of the properties in the property classes for the year, used in the calculation under paragraph 1, together.

4. The weighted average is the amount determined under paragraph 2 divided by the amount determined under paragraph 3.

Replacement transition ratios

(25) The Minister of Finance may, by regulation, prescribe new average transition ratios for a municipality if, as a result of an error or of an event that occurs after the original average transition ratios are prescribed, the application of the original average transition ratios would result, in the opinion of the Minister, in a significant shift in taxation among classes of real property in the municipality.

Effect

(26) If a new average transition ratio is prescribed for a municipality under subsection (25), that average transition ratio applies for the year instead of the average transition ratio that would otherwise apply under subsection (21).

15.Subsections 366 (15) and (16) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, are repealed and the following substituted:

Regulations

(15) The Minister may make regulations,

(a) extending the time for passing an upper-tier rating by-law in any year, even if the time limit set out in subsection (2) or (3) has expired;

(b) for 1998,

(i) governing anything the upper-tier rating by-law may require under subsection (7);

(ii) extending the time for paying instalments to a county under subsection (8), even if the time for paying an instalment has passed.

General or particular

(16) A regulation under subsection (15) may be general or specific in its application and may be restricted to an upper-tier municipality.

Regulations, funding of rebates

(16.1) The Minister of Finance may make regulations allowing, subject to conditions prescribed in the regulations, the tax rate for a property class to be greater than would be allowed under paragraph 2 of subsection (4) for the purpose of allowing additional taxes to be levied on property in the property class to fund rebates under sections 442.1 and 442.2 on the following property:

1. Property in the property class.

2. If the property class is one of the commercial classes within the meaning of subsection 363 (20), property in those classes.

3. If the property class is one of the industrial classes within the meaning of subsection 363 (20), property in those classes.

16.Section 368 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by adding the following subsection:

Regulations, funding of rebates

(5) The Minister of Finance may make regulations allowing, subject to conditions prescribed in the regulations, the tax rate for a property class to be greater than would be allowed under paragraph 2 of subsection (4) for the purpose of allowing additional taxes to be levied on property in the property class to fund rebates under sections 442.1 and 442.2 on the following property:

1. Property in the property class.

2. If the property class is one of the commercial classes within the meaning of subsection 363 (20), property in those classes.

3. If the property class is one of the industrial classes within the meaning of subsection 363 (20), property in those classes.

17.(1) Paragraph 2 of subsection 368.1 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 35, is amended by striking out "subclass" in the third line and substituting "subclasses".

(2) Paragraph 3 of subsection 368.1 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 35, is amended by striking out "subclass" in the third line and substituting "subclasses".

(3) Paragraph 4 of subsection 368.1 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 35, is amended by striking out "subclass" in the third line and substituting "subclasses".

(4) Paragraph 5 of subsection 368.1 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 35, is amended by striking out "subclass" in the third line and substituting "subclasses".

18.(1) Subsection 368.2 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 36, is repealed and the following substituted:

Graduated tax rates

(1) The council of a municipality other than a lower-tier municipality may, by by-law passed on or before March 31 of the year to which it relates,

(a) establish two or three bands of assessment of property for the purposes of facilitating graduated tax rates for each property class described in subsection (1.1); and

(b) set the ratios that the tax rates for each band must bear to each other.

Property classes

(1.1) The property classes referred to in clause (1) (a) are the commercial property class and the industrial property class prescribed under the Assessment Act.

(2) Subsection 368.2 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 36, is amended by striking out the portion preceding paragraph 1 and substituting the following:

(2) The bands for each property class are subject to the following:

. . . . .

(3) Paragraph 5 of subsection 368.2 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 36, is repealed and the following substituted:

5. The bands must be the same for all properties in the property class.

(4) Section 368.2 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 36, is amended by adding the following subsection:

Setting of rates for bands

(2.1) Instead of setting a single tax rate under section 366 or 368 for a property class for which bands are established, the council of a municipality shall set a separate tax rate for each band in accordance with the ratios set under clause (1) (b).

(5) Subsection 368.2 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 36, is repealed and the following substituted:

Regulations

(3) The Minister of Finance may make regulations,

(a) governing the ratios set under clause (1) (b);

(b) governing the setting of tax rates in accordance with the ratios set under clause (1) (b);

(c) varying the application of subsection (4) with respect to a unit or proposed unit within the meaning of the Condominium Act.

(6) Subsections 368.2 (4) and (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 36, are repealed and the following substituted:

Determination of taxes

(4) The taxes for municipal purposes 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.

Regulations, general or specific

(5) Regulations under clause (3) (a) may be general or specific in their application.

Extension of time

(6) The Minister may make regulations extending the time for passing a by-law under subsection (1).

Same

(7) A regulation under subsection (6),

(a) may be made even if the time limit set out in subsection (1) has expired; and

(b) may be general or specific in its application and may be restricted to a municipality.

19.(1) Subsection 368.3 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 37, is amended by striking out the definitions of "Total commercial tax" and "Upper-tier commercial tax" and substituting the following:

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

Upper-tier commercial tax" means the Total commercial tax levied for upper-tier purposes.

(2) Subsection 368.3 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 37, is amended by adding the following clause:

(d) prescribing property classes for the purposes of the definition of "Total commercial tax" in subsection (3).

20.(1) Subsection 370 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 39, is further amended by adding the following paragraph:

4. For the purposes of calculating the total amount raised for all purposes in the previous year under paragraph 1, if any tax rates were levied in the previous year for only part of the year because assessment was added to the collector's roll during the year, an amount shall be added equal to the additional taxes that would have been levied if the tax rates had been levied for the entire year.

(2) Section 370 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 39 and 1997, chapter 43, Schedule F, section 9, is further amended by adding the following subsection:

Assessment added after the by-law

(4.2) A by-law under subsection (1) may provide for the levying of tax rates on assessment added, after the by-law is passed, to the collector's roll for the current year that was not on the assessment roll upon which the tax rates are levied.

(3) Subsections 370 (5) and (6) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, are repealed and the following substituted:

Deduction

(5) An amount levied under subsection (1) on a property in a year shall be deducted from the other amounts levied on the property for the year that are payable to the local municipality.

Refund

(6) If the amount levied under subsection (1) on a property exceeds the other amounts levied on the property that are payable to the local municipality, the treasurer of the local municipality shall refund that excess amount not later than 21 days after giving a notice of demand of taxes payable for the year.

21.(1) Subsection 372 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "under subsection (2)" at the end and substituting "under section 372.1".

(2) Subsections 372 (2) and (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 42, are repealed.

(3) Paragraph 7 of subsection 372 (5) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted:

7. The by-law may treat different property classes differently and it may provide for no phase-ins for some classes. However, if the by-law applies to property in a property class it must apply to all properties in the property class.

(4) Subsection 372 (11) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 42, is repealed and the following substituted:

Application to payments in lieu of taxes

(11) This section applies with respect to 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, as though they were taxes.

(5) Subsection 372 (13) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 42, is repealed and the following substituted:

Certain changes in 1998 assessment

(13) The following apply if the assessment of a property for 1998 changes as a result of a complaint or appeal under section 40 or 46 of the Assessment Act:

1. The 1998 assessment-related tax increase or decrease for the property shall be redetermined under section 372.1, subject to paragraph 2, using the new assessment for the property.

2. For the purposes of determining the 1998 assessment-related tax increase or decrease for the property or for any other property, none of the following amounts shall be changed as a result of the change in the assessment of the property,

i. the 1998 upper-tier assessment (class) in subsection 372.1 (4),

ii. the 1998 local assessment (class) in subsection 372.1 (5),

iii. the 1998 school assessment (class) in subsection 372.1 (6), and

iv. the 1998 special assessment (class) in subsection 372.1 (7).

3. The taxes on the property shall be recalculated using the amount determined under paragraph 1 for each year in which there is a 1998 assessment-related tax increase or decrease.

4. The collector's rolls shall be amended to reflect the recalculated taxes.

Certain changes in 1997 assessment

(14) The following apply if the assessment of a property for 1997 changes as a result of a complaint or appeal under section 40 or 46 of the Assessment Act:

1. The 1998 assessment-related tax increase or decrease for the property shall be redetermined under section 372.1, subject to paragraph 2, using the new assessment for the property to determine the 1997 taxes on the property in subsections 372.1 (4) to (7).

i. the 1997 upper-tier taxes (class) in subsection 372.1 (4),

ii. the 1997 local taxes (class) in subsection 372.1 (5),

iii. the 1997 school taxes (class) in subsection 372.1 (6), and

iv. the 1997 special taxes (class) in subsection 372.1 (7).

3. The taxes on the property shall be recalculated using the amount determined under paragraph 1 for each year in which there is a 1998 assessment-related tax increase or decrease.

4. The collector's rolls shall be amended to reflect the recalculated taxes.

Mixed use

(15) If portions of a property are classified in different property classes on the assessment roll for 1998, each portion shall be deemed to be a separate property for the purposes of this section.

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

Determination of 1998 assessment-related changes

372.1 (1) For the purposes of section 372, the 1998 assessment-related tax increase or decrease shall be determined in accordance with this section.

Calculation of amount

(2) The amount of the 1998 assessment-related tax increase or decrease for a property equals the sum of the following:

1. If, in 1997, taxes were levied on the property to raise a general upper-tier levy, the general upper-tier amount determined under subsection (4).

2. If, in 1997, taxes were levied on the property to raise a general local municipality levy, the general local amount determined under subsection (5).

3. If, in 1997, taxes for school purposes were levied on the property, the school amount determined under subsection (6).

4. If, in 1997, taxes were levied on the property to raise a special levy, a special municipal amount for each such levy determined under subsection (7).

5. If, in 1998, a by-law under section 368.2 applies to the property, the graduated tax rate amount, determined under subsection (8).

Clarification as to increase or decrease

(3) If the 1998 assessment-related tax increase or decrease is positive, it is a 1998 assessment-related tax increase and if it is negative, it is a 1998 assessment-related tax decrease.

General upper-tier amount

(4) The general upper-tier amount for the property, referred to in paragraph 1 of subsection (2), shall be determined in accordance with the following:

Where, "

1997 upper-tier taxes (class)" means an amount determined as follows:

2. Identify all the properties in the municipality that passed the by-law under section 372 that, for 1998, are classified in the same property class as the property for which the general upper-tier amount is being determined.

3. The 1997 upper-tier taxes (class) is the total of the taxes on the properties identified in paragraph 2, including business taxes imposed on persons carrying on businesses on such properties, levied for the purposes of the general upper-tier levy for 1997; "

1998 upper-tier assessment (class)" means the total assessment for 1998 of the properties identified in paragraph 2 of the definition of "1997 upper-tier taxes (class)" that are properties upon which the general upper-tier levy was levied in 1997;

1998 assessment (property)" means the assessment of the property for 1998;

1997 upper-tier taxes (property)" means the taxes on the property, including business taxes imposed on persons carrying on a business on the property, levied in 1997 for the purposes of the general upper-tier levy.

General local amount

(5) The general local amount for the property, referred to in paragraph 2 of subsection (2), shall be determined in accordance with the following:

Where, "

1997 local taxes (class)" means an amount determined as follows:

2. Identify all the properties in the same local municipality as the property for which the general local amount is being determined that, for 1998, are classified in the same property class as the property for which the general local amount is being determined.

3. The 1997 local taxes (class) is the total of the taxes on the properties identified in paragraph 2, including business taxes imposed on persons carrying on businesses on such properties, levied for the purposes of the general local municipality levy for 1997; "

1998 local assessment (class)" means the total assessment for 1998 of the properties identified in paragraph 2 of the definition of "1997 local taxes (class)" that are properties upon which the general local municipality levy was levied in 1997;

1998 assessment (property)" means the assessment of the property for 1998;

1997 local taxes (property)" means the taxes on the property, including business taxes imposed on persons carrying on a business on the property, levied in 1997 for the purposes of the general local municipality levy.

School amount

(6) The school amount for the property, referred to in paragraph 3 of subsection (2), shall be determined in accordance with the following:

Where, "

1997 school taxes (class)" means an amount determined as follows:

4. Identify all the properties in the municipality that passed the by-law under section 372 that, for 1998, are classified in the same property class as the property for which the school amount is being determined.

5. The 1997 school taxes (class) is the total of the taxes on the properties identified in paragraph 4, including business taxes imposed on persons carrying on businesses on such properties, levied in 1997 for school purposes; "

1998 school assessment (class)" means the total assessment for 1998 of the properties identified in paragraph 4 of the definition of "1997 school taxes (class)"\;

1998 assessment (property)" means the assessment of the property for 1998;

1997 school taxes (property)" means the taxes on the property, including business taxes imposed on persons carrying on a business on the property, levied in 1997 for school purposes.

Special municipal amount

(7) The special municipal amount for the property, referred to in paragraph 4 of subsection (2), shall be determined in accordance with the following:

Where, "

1997 special taxes (class)" means an amount determined as follows:

2. Identify all the properties that, for 1998, are classified in the same property class as the property for which the special municipal amount is being determined and that are in,

i. the municipality that imposed the special levy, if the municipality was an upper-tier municipality that still exists in 1998, or

ii. in any other case, the local municipality that the property for which the special municipal amount is being determined is in.

3. Identify the properties identified in paragraph 2 upon which the special levy was levied in 1997.

4. The 1997 special taxes (class) is the total of the taxes on the properties identified in paragraph 3, including business taxes imposed on persons carrying on businesses on such properties, levied for the purposes of the special levy for 1997; "

1998 special assessment (class)" means the total assessment for 1998 of the properties identified in paragraph 3 of the definition of "1997 special taxes (class)"\;

1998 assessment (property)" means the assessment of the property for 1998;

1997 special taxes (property)" means the taxes on the property, including business taxes imposed on persons carrying on a business on the property, levied in 1997 for the purposes of the special levy.

Graduated tax rate amount

(8) The graduated tax rate amount for the property, referred to in paragraph 5 of subsection (2), shall be determined in accordance with the following, subject to any regulations under subsection (13):

Montant lié aux

tax rate taxes

Where, "

1998 graduated tax rate taxes" means the amount the taxes would be for 1998 in the absence of any by-law under section 372;

1998 ungraduated tax rate taxes" means the amount the taxes would be for 1998 in the absence of the by-law under section 368.2 and any by-law under section 372.

Further rules

(9) 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 otherwise determined under this section with the modifications described in paragraph 1.1.

1.1 The modifications referred to in paragraph 1 are that, for the purposes of the application of subsections (4) to (7), the amounts used for the following shall be the amounts used for property in the residential/farm property class,

i. the 1997 upper-tier taxes (class) and the 1998 upper-tier assessment (class) in subsection (4),

ii. the 1997 local taxes (class) and the 1998 local assessment (class) in subsection (5),

iii. the 1997 school taxes (class) and the 1998 school assessment (class) in subsection (6), and

iv. the 1997 special taxes (class) and the 1998 special assessment (class) in subsection (7).

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,

i. the 1998 assessment (property) shall be adjusted, in each formula in subsections (4) to (7), to what it would be if the improvement was not reflected in the assessment for 1998, and

ii. the graduated tax rate amount shall be determined under subsection (8) as though the improvement were not reflected in the assessment for 1998.

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,

i. the 1998 assessment (property) shall be adjusted, in each formula in subsections (4) to (7), to what it would be if the improvement was reflected in the assessment for 1998, and

ii. the graduated tax rate amount shall be determined under subsection (8) as though the improvement were reflected in the assessment for 1998.

4. A by-law under subsection 372 (1) may provide for the school amount determined under subsection (6) to be calculated by using, instead of the actual taxes for school purposes, an amount determined by the application of a uniform mill rate to the assessment used to determine the 1997 taxes. The uniform mill rate shall be the public school mill rate for elementary and secondary school purposes that applied in the municipality in 1997 or, if there was more than one such mill rate, one of those mill rates.

5. A by-law under subsection 372 (1) that provides for the use of a uniform mill rate referred to in paragraph 4 may provide for the adjustment of the 1998 assessment related tax increase or decrease to the extent the council considers necessary to address unfairness resulting from the actual taxes for school purposes for 1997 for a property varying, by more than 5 per cent, from the amount determined by the application of the uniform mill rate.

6. If section 368.1 applies to a property for 1998, the assessment of the property in the applicable subclass shall be reduced, for the purposes of determining the 1998 assessment-related tax increase or decrease for the property or for any other property, by the percentage reduction that applies with respect to the assessment under section 368.1.

7. Paragraph 6 applies for the purposes of determining the 1998 assessment (property) in subsections (4) to (7) and for the purposes of determining the following,

i. the 1998 upper-tier assessment (class) in subsection (4),

ii. the 1998 local assessment (class) in subsection (5),

iii. the 1998 school assessment (class) in subsection (6), and

iv. the 1998 special assessment (class) in subsection (7).

Application to payments in lieu of taxes

(10) This section applies, in accordance with the regulations, with respect to 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, as though they were taxes.

International bridges and tunnels

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

1. The 1998 assessment-related tax increase or decrease for land used for the purposes of the bridge or tunnel is the amount the taxes on the land would be for 1998 in the absence of any by-law under section 372 minus the 1997 taxes on the land for municipal and school purposes.

2. In paragraph 1, "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. Amounts payable in 1997 under the International Bridges Municipal Payments Act, 1981 shall be deemed, for the purposes of paragraph 1, to be 1997 taxes.

Mixed use

(12) If portions of a property are classified in different property classes on the assessment roll for 1998, each portion shall be deemed to be a separate property for the purposes of this section.

Regulations

(13) The Minister of Finance may make regulations providing for adjustments to the graduated tax rate amount determined under subsection (8) in respect of tax rates prescribed under section 257.12 of the Education Act for different portions of a property's assessment.

Regulations, payments in lieu of taxes

(14) The Minister may make regulations governing the application of this section with respect to payments in lieu of taxes.

Different rules for different payments

(15) Regulations under subsection (14) may treat different payments in lieu of taxes differently.

Same

(16) Without limiting the generality of subsection (14), regulations under that subsection may provide,

(a) for all or part of a payment in lieu of taxes to be included in the following,

(i) the 1997 upper-tier taxes (class) in subsection (4),

(ii) the 1997 local taxes (class) in subsection (5),

(iii) the 1997 school taxes (class) in subsection (6), and

(iv) the 1997 special taxes (class) in subsection (7).

(b) for all or part of the assessment of the property to which a payment in lieu of taxes relates to be included in the following,

(i) the 1998 upper-tier assessment (class) in subsection (4),

(ii) the 1998 local assessment (class) in subsection (5),

(iii) the 1998 school assessment (class) in subsection (6), and

(iv) the 1998 special assessment (class) in subsection (7).

23.Paragraph 1 of subsection 373 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted:

1. For a tax increase beginning in 1998, the assessment-related tax increase is the 1998 assessment-related tax increase within the meaning of section 372.1 reduced, if the tax increase is being phased-in under a by-law under section 372, by the amount not yet phased-in.

24.Subsection 373.1 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 44, is amended by striking out the definitions of "Total commercial tax" and "Upper-tier commercial tax" and substituting the following:

Upper-tier commercial tax" means the amount of the Total commercial tax levied for upper-tier purposes.

25.The French version of subsection 384 (1) of the Act is amended by striking out "propriétaire" in the tenth line and substituting "locateur".

26.The French version of section 385 of the Act is amended by striking out "propriétaire" in the third line and substituting "locateur".

27.Section 442.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 48, is repealed and the following substituted:

Rebates for charities

442.1(1) Every municipality, other than a lower-tier municipality, shall have a tax rebate program for eligible charities for the purposes of giving them relief from taxes on eligible property they occupy.

Eligible charities, property

(2) For the purposes of this section,

(a) a charity is eligible if it is 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;

(b) a property is eligible if it is in one of the commercial classes or industrial classes, within the meaning of subsection 363 (20).

Program requirements

(3) A tax rebate program under this section is subject to the following requirements:

1. The program must provide for a rebate for an eligible charity that pays taxes on eligible property it occupies. However, a rebate is not required if Part XXII.1 applies to the property.

2. The amount of a rebate required under paragraph 1 must be at least 40 per cent of the taxes payable by the eligible charity on the property it occupies. If the eligible charity is required to pay an amount under section 444.1 or 444.2, the amount of the rebate shall be the total of the amounts the charity is required to pay under those sections.

3. The program must provide for the payment of a first instalment on or before January 15 of the year. The first instalment must be at least half of the estimated rebate for the year.

4. The program must provide for the payment of the balance of the estimated rebate on or before June 30 of the year.

5. The program must provide for rebates even if the charity does not begin to occupy property until after the amounts under paragraphs 3 and 4 would otherwise be payable.

6. The program must provide for final adjustments, to be made after the taxes paid by the charity can be determined, in respect of differences between the estimated rebate paid by the municipality and the rebate to which the charity is entitled.

7. The program must require, as a condition of receiving a rebate for a year, that a charity repay any other municipality amounts by which the rebates the charity received for the year from that other municipality exceed the rebates from that other municipality to which the charity is entitled for the year.

8. The program must provide for a rebate for 1998 and subsequent years.

9. Despite paragraphs 3 and 4, the rebate for 1998 and the first instalment of the rebate for 1999 must be paid on or before October 31, 1998.

Program options

(4) The following apply with respect to what a tax rebate program under this section may provide but is not required to provide:

1. The program may provide for rebates to organizations that are similar to eligible charities or a class of such organizations defined by the municipality.

2. The program may provide for rebates to eligible charities or similar organizations for taxes on property to which Part XXII.1 applies.

2.1 The program may provide for rebates to eligible charities or similar organizations for taxes on property that is not eligible.

3. The program may provide for rebates that are greater than those required under subsection (3).

4. The program may provide for adjustments in respect of the rebates for a year to be deducted from amounts payable in the next year for the next year's rebates.

5. For any year after 1999, the program may, despite paragraphs 3 and 4 of subsection (3), provide for rebates to be paid in instalments, each one of which is due 21 days before an instalment of taxes on the property is due, if the percentage that each rebate instalment is of the corresponding tax instalment is the same.

6. For any year after 1999, the program may provide for rebates to be paid in instalments other than as allowed under paragraph 5 if at no time during the year would a charity receive less than it would if the rebate were paid as allowed under paragraph 5.

Procedural requirements

(5) The program may include procedural requirements that must be satisfied for an eligible charity to be entitled to a rebate required under subsection (3).

Who gives rebates

(6) Rebates under a program of a municipality under this section shall be given by the municipality unless the municipality is an upper-tier municipality, in which case the rebates shall be given by the lower-tier municipalities.

Sharing costs of rebates

(7) 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.

Statement of costs shared by school boards

(8) The municipality that gives a rebate to a charity or similar organization shall also give the charity or similar organization a written statement of the proportion of the costs of the rebate that is shared by school boards.

No requirement for certain years

(9) A municipality is not required to establish a program to give rebates for a year if Part XXII.1 applies to all the eligible property in the municipality for the year.

Regulations governing program

(10) The Minister of Finance may make regulations governing programs under this section including prescribing additional requirements for such programs and governing the procedural requirements that such programs may include under subsection (5).

Regulations, later date for payment for 1998 and 1999

(11) The Minister of Municipal Affairs and Housing may make regulations,

(a) prescribing, for the purposes of paragraph 9 of subsection (3), a date later than October 31, 1998 on or before which rebates for 1998 and first instalments of rebates for 1999 shall be paid;

(b) requiring and governing interest to be paid by municipalities on rebates for 1998 and first instalments of rebates for 1999 that are paid after October 31, 1998.

Definitions

(12) In this section, "

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

upper-tier municipality" has the same meaning as in section 361.1.("municipalité de palier supérieur")

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

Rebates

442.2 (1) The council of a municipality, other than a lower-tier municipality, may pass a by-law providing for rebates for owners of all or part of the assessment-related tax increases on properties in the property classes, described in subsection (2), that are designated in the by-law.

Property classes

(2) The property classes, referred to in subsection (1), are any of the commercial classes or industrial classes, within the meaning of subsection 363 (20).

Passing on of rebate

(3) A by-law under subsection (1) may require the person who receives a rebate to pay all or part of the rebate, or otherwise give the benefit of all or part of the rebate, to a person who has an interest in the property, including a leasehold interest, or who had such an interest during any part of the period to which the rebated taxes relate.

Amount to be passed on is a debt

(4) If a by-law under subsection (1) requires the person who receives a rebate to pay all or part of the rebate to another person, the amount the person is required to pay is a debt owed to that other person.

Different classes may be treated differently

(5) A by-law under subsection (1) may treat different property classes differently.

Who gives rebates

(6) 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

(7) The costs of a rebate for a property shall be shared as follows:

1. In the circumstances described in subsection (8), the costs 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.

2. If paragraph 1 does not apply, the costs shall be shared by the municipalities that share in the revenue from the taxes on the property in the same proportion as the municipalities share in those revenues.

When school boards will share the costs

(8) The costs of rebates for a year shall be shared by school boards in accordance with paragraph 1 of subsection (7) if,

(a) the municipality that has passed or proposes to pass the by-law under subsection (1) gives, in the year the rebates are for, a copy of the by-law or proposed by-law to the Minister of Finance; and

(b) the Minister of Finance does not give, within 30 days after receiving the copy of the by-law or proposed by-law, a notice to the municipality that the school boards will not share the costs of the rebates.

Statement of costs shared by school boards

(9) The municipality that gives a rebate to a person under a by-law under subsection (1) shall also give the person a written statement of the proportion of the costs of the rebate that is shared by school boards.

Rebates not restricted by section 111

(10) Section 111 does not apply with respect to rebates under a by-law under subsection (1).

Publication

(11) The municipality that passes a by-law under subsection (1) shall publish, in accordance with the regulations, information about each rebate given under the by-law.

Regulations

(12) The Minister may make regulations,

(a) governing the provision of rebates under a by-law under subsection (1);

(b) governing the publication, under subsection (11), of information about rebates that have been given including prescribing what information must be published;

(c) governing the determination of an assessment-related tax increase for a taxation year after 2000 for the purposes of clause (b) of the definition of "assessment-related tax increase" in subsection (14).

Regulations can be specific

(13) A regulation under subsection (12) may be general or specific in its application and may be restricted to the municipalities specified.

Definitions

(14) In this section, "

assessment-related tax increase" means, in relation to a property,

(a) for the 1998, 1999 or 2000 taxation year, the 1998 assessment-related tax increase within the meaning of section 372.1 reduced, if the tax increase is being phased-in under a by-law under section 372, by the amount not yet phased-in, or

(b) for a taxation year after 2000, the assessment-related tax increase determined in accordance with the regulations; ("augmentation d'impôt découlant de l'évaluation") "

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

municipality" has the same meaning as in section 361.1; ("municipalité")

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

upper-tier municipality" has the same meaning as in section 361.1.("municipalité de palier supérieur")

No double rebates

442.3 A municipality shall not give a rebate under a program under section 442.1 and a rebate under a by-law under subsection 442.2 (1) to the same person in respect of the same property for the same year.

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

Gross leases (property taxes)

444.1 (1) This section applies with respect to a lease of all or part of a property if all the following are satisfied:

1. The lease was entered into on or before the day this section came into force. A lease entered into on or before that day that is renewed or extended after that day continues to satisfy this paragraph only if, at the time of the renewal or extension, the landlord did not have the right to re-negotiate the rent under the lease.

2. The tenant is not required under the lease to pay any part of the property taxes on the property.

3. The property, or a portion of it, is in a property class that is one of the commercial classes or industrial classes within the meaning of subsection 363 (20).

4. For a lease entered into after January 16, 1997 and on or before the day this section came into force, the parties to the lease did not take into account, in determining the rent and other consideration paid to the landlord, that business taxes imposed on persons carrying on business on properties would be eliminated in 1998.

Requirement to pay an amount

(2) The landlord may require the tenant to pay an amount, not exceeding the maximum amount under subsection (3), in respect of the property taxes on the property for a year.

Maximum amount

(3) The maximum amount the tenant may be required to pay shall be determined in accordance with the following:

Where, "

Property taxes" means,

(a) except as provided in clause (b), the property taxes on the property for the year,

(b) in the case of a landlord who is not the owner of the property but who has acquired an interest in the property under a lease,

(i) the property taxes for the year that the landlord is required to pay under the landlord's lease, on the leased premises and any other part of the property in which the landlord acquired an interest under the landlord's lease, or

(ii) the amount the landlord, as the tenant of another person, is required to pay under this section for the year in respect of the leased premises and any other part of the property in which the landlord acquired an interest under the landlord's lease; "

1997 Assessment (tenant)" means the portion of the 1997 Assessment (landlord) apportioned to the leased premises in the assessment roll for 1997, as most recently revised;

1997 Assessment (landlord)" means,

(a) except as provided in clause (b), the total of the following assessments for the property,

(i) the assessment, as set out in the assessment roll for 1997, as most recently revised, used to determine business assessment,

(ii) the vacant commercial assessment or vacant industrial assessment, as the case may be, as set out in the assessment roll for 1997, as most recently revised, and

(iii) the assessment other than residential assessment, as set out in the assessment roll for 1997, as most recently revised, for a portion of the property occupied by persons not liable to business assessment under the Assessment Act,

(b) in the case of a landlord who is not the owner of the property but who has acquired an interest in the property under a lease, the amount determined under clause (a) but only for assessment in respect of the leased premises and any other part of the property in which the landlord acquired an interest under the landlord's lease; "

Business rate factor" means the business rate factor determined under subsection (10).

Reduction if lease for part of the year

(4) If the tenant leases the premises for only part of the year, the maximum amount that the tenant may be required to pay shall be reduced by multiplying the maximum amount by the fraction of the year the tenant leases the premises.

Notices

(5) The tenant is not required to pay the landlord an amount unless the landlord gives the tenant the following notices:

1. A notice in accordance with subsection (7) that the landlord intends to require the tenant to pay an amount under this section.

2. A notice in accordance with subsection (8) that the landlord requires the tenant to pay an amount under this section.

Amount is additional rent

(6) The amount that the tenant is required to pay shall be deemed to be additional rent due on the date set out in the notice, referred to in paragraph 2 of subsection (5), that the landlord requires the tenant to pay an amount under this section.

Notice of intent to require payment

(7) The following apply with respect to the notice, referred to in paragraph 1 of subsection (5), that the landlord intends to require the tenant to pay an amount under this section:

1. The notice must be given by personal service or by mail.

2. The notice must be given on or before the day that is 30 days after the assessment roll is returned.

3. If the landlord is not the owner of the property but has acquired an interest in the property under a lease, the notice may, despite paragraph 2, be given on or before the day that is 15 days after the landlord is given a valid notice referred to in paragraph 1 of subsection (5).

4. If the notice is given by mail, it shall be deemed to have been given on the day it is mailed.

5. The notice must set out statements that,

i. the landlord intends to require the tenant to pay an amount under this section, and

ii. the tenant is not required to pay an amount under this section unless a notice, referred to in paragraph 2 of subsection (5), is given requiring the tenant to do so.

Notice requiring payment

(8) The following apply with respect to the notice, referred to in paragraph 2 of subsection (5), that the landlord requires the tenant to pay an amount under this section:

1. The notice must be given by personal service or by mail.

2. The notice must be given at least 30 days before the day the amount the tenant is required to pay is due. The notice may not be given until after the property taxes for the property for the year have been determined and may not be given after September 30 of the year.

3. If the notice is given by mail, it shall be deemed to have been given on the day it is mailed.

4. The notice must set out,

i. the amount the tenant is required to pay and the date it is due,

ii. the landlord's calculation of the maximum amount the tenant may be required to pay, and

iii. the amount of the property taxes for the property for the year.

If notice requires more than the maximum

(9) If the amount that the tenant is required to pay, set out in the notice referred to in paragraph 2 of subsection (5), is more than the maximum amount the tenant may be required to pay under this section, the tenant is required to pay that maximum amount, not the amount set out in the notice.

Business rate factor

(10) The business rate factor referred to in subsection (3) shall be determined in accordance with the following:

Where, "

Total business assessment (class)" means the total business assessment in the municipality, according to the assessment roll for 1997 as most recently revised, for property that, for 1998, is in the same property class the property is in;

Total commercial assessment (class)" means the total commercial assessment and industrial assessment in the municipality, according to the assessment roll for 1997 as most recently revised, for property that, for 1998, is in the same property class the property is in.

Property classes

(11) For the purposes of subsection (10), the commercial classes, within the meaning of subsection 363 (20), shall be deemed to be a single property class and the industrial classes, within the meaning of subsection 363 (20), shall be deemed to be a single property class.

Definition

(12) In subsection (10), "

municipality" includes an upper-tier municipality within the meaning of section 361.1 but does not include a lower-tier municipality within the meaning of that section.

Local municipality to provide factors

(13) A local municipality shall, on request, provide a person with the business rate factors, determined under subsection (10), for the local municipality.

Maximum amount if taxes capped

(14) If section 447.24 applies with respect to the leased premises, the maximum amount under subsection (3) in respect of the leased premises shall be determined in accordance with subsection 447.24 (9) and not in accordance with the formula in subsection (3).

Definitions

(15) In this section, "

landlord's lease" means the lease under which the landlord acquired the landlord's interest in the leased premises; ("propre bail")

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

property taxes" means taxes under sections 366 and 368 and taxes for school purposes under the Education Act.("impôts fonciers")

Gross leases (business improvement area charges)

444.2 (1) This section applies with respect to a lease of all or part of a property if all the requirements in paragraphs 1 to 3 of subsection 444.1 (1) are satisfied and the following is satisfied:

1. The tenant is not required under the lease to pay any part of the business improvement area charges on the property.

Requirement to pay an amount

(2) The landlord may require the tenant to pay an amount, not exceeding the maximum amount under subsection (3), in respect of the business improvement area charges on the property for a year.

Maximum amount

(3) The maximum amount the tenant may be required to pay shall be determined in accordance with the following:

Where, "

Business improvement area charges" means,

(a) except as provided in clause (b), the business improvement area charges on the property for the year,

(b) in the case of a landlord who is not the owner of the property but who has acquired an interest in the property under a lease,

(i) the business improvement area charges for the year that the landlord is required to pay under the landlord's lease, on the leased premises and any other part of the property in which the landlord acquired an interest under the landlord's lease, or

1997 Assessment (tenant)" means the portion of the 1997 Assessment (landlord) apportioned to the leased premises in the assessment roll for 1997, as most recently revised;

1997 Assessment (landlord)" means,

(a) except as provided in clause (b), the total of the following assessments for the property,

(i) the assessment, as set out in the assessment roll for 1997, as most recently revised, used to determine business assessment,

(ii) the vacant commercial assessment or vacant industrial assessment, as the case may be, as set out in the assessment roll for 1997, as most recently revised, and

Reduction if lease for part of the year

Notices

(5) The tenant is not required to pay the landlord an amount unless the landlord gives the tenant the following notices:

1. A notice in accordance with subsection (7) that the landlord intends to require the tenant to pay an amount under this section.

2. A notice in accordance with subsection (8) that the landlord requires the tenant to pay an amount under this section.

Amount is additional rent

Notice of intent to require payment

(7) The following apply with respect to the notice, referred to in paragraph 1 of subsection (5), that the landlord intends to require the tenant to pay an amount under this section:

1. The notice must be given by personal service or by mail.

2. The notice must be given on or before the day that is 30 days after the assessment roll is returned.

4. If the notice is given by mail, it shall be deemed to have been given on the day it is mailed.

5. The notice must set out statements that,

i. the landlord intends to require the tenant to pay an amount under this section, and

ii. the tenant is not required to pay an amount under this section unless a notice, referred to in paragraph 2 of subsection (5), is given requiring the tenant to do so.

Notice requiring payment

(8) The following apply with respect to the notice, referred to in paragraph 2 of subsection (5), that the landlord requires the tenant to pay an amount under this section:

1. The notice must be given by personal service or by mail.

2. The notice must be given at least 30 days before the day the amount the tenant is required to pay is due. The notice may not be given until after the business improvement area charges for the property for the year have been determined and may not be given after September 30 of the year.

3. If the notice is given by mail, it shall be deemed to have been given on the day it is mailed.

4. The notice must set out,

i. the amount the tenant is required to pay and the date it is due,

ii. the landlord's calculation of the maximum amount the tenant may be required to pay, and

iii. the amount of the business improvement area charges for the property for the year.

If notice requires more than the maximum

Definitions

(10) In this section, "

business improvement area charges" means charges imposed under subsections 220 (17) and (18); ("redevances d'aménagement commercial")

landlord's lease" means the lease under which the landlord acquired the landlord's interest in the leased premises.("propre bail")

30.The Act is amended by adding the following Part:

PART XXII.1

CAPPING OF TAXES FOR CERTAIN PROPERTY CLASSES FOR 1998, 1999 AND 2000

Interpretation

447.1(1) In this Part,

frozen assessment listing" means the frozen assessment listing maintained under section 447.5; ("liste des évaluations gelées")

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

municipality" has the same meaning as in section 361.1; ("municipalité")

property class" has the same meaning as in section 361.1; ("catégorie de biens")

upper-tier municipality" has the same meaning as in section 361.1.("municipalité de palier supérieur")

Specific property classes

(2) A reference to a specific property class is a reference to the property class prescribed under section 7 of the Assessment Act.

Application of Part

Part applies to 1998, 1999 and 2000

447.2 (1) This Part applies only with respect to the 1998, 1999 and 2000 taxation years.

Regulations for transition after 2000

(2) Subsection (1) does not affect the application of regulations under clause 447.34 (1) (d).

By-law making Part apply

447.3 (1) The council of a municipality, other than a lower-tier municipality, may pass a by-law to make this Part apply with respect to property in the municipality that is in a property class designated in the by-law.

Property classes that may be designated

(2) The following are the property classes that may be designated in a by-law under subsection (1):

1. The commercial property class.

2. The industrial property class.

3. The multi-residential property class.

Commercial classes

(3) If the commercial property class is designated in a by-law under subsection (1), this Part also applies to the other commercial classes within the meaning of subsection 363 (20).

Industrial classes

(4) If the industrial property class is designated in a by-law under subsection (1), this Part also applies to the other industrial classes within the meaning of subsection 363 (20).

Deadline for passing by-law

(5) A by-law under subsection (1) may not be passed after the day that is 30 days after the assessment roll for 1998 is returned or such later deadline as the Minister of Finance may order for the municipality either before or after the earlier deadline has passed.

Orders extending deadline

(6) The following apply with respect to an order referred to in subsection (5):

1. The order may be made only upon the request of the municipality to which the order relates.

2. The order may not provide for a deadline that is later than the day that is 60 days after the assessment roll is returned.

3. The Regulations Act does not apply with respect to the order.

Restrictions if by-law passed

447.4The following apply if the council of a municipality passes a by-law under subsection 447.3 (1):

1. The by-law applies with respect to 1999 and 2000 as well as with respect to 1998 and the council may not amend the by-law after the deadline for passing such a by-law under subsection 447.3 (5) has passed.

2. The council of the municipality shall be deemed to have established, under section 363, tax ratios for 1999 and 2000 that are the same, for all property classes with respect to which the by-law applies, as the tax ratios for 1998.

3. If the municipality is an upper-tier municipality, the council may not delegate the authority to establish tax ratios under section 364 for 1998, 1999 or 2000.

4. If the by-law applies with respect to the commercial property class, the municipality may not opt, under the regulations under the Assessment Act, to have a property class begin to apply within the municipality for 1999 or 2000 or cease to apply within the municipality for 1999 or 2000 if the property class is one of the commercial classes, within the meaning of subsection 363 (20).

5. If the by-law applies with respect to the industrial property class, the municipality may not opt, under the regulations under the Assessment Act, to have a property class begin to apply within the municipality for 1999 or 2000 or cease to apply within the municipality for 1999 or 2000 if the property class is one of the industrial classes, within the meaning of subsection 363 (20).

Frozen Assessments

Frozen assessment listings

447.5(1) A local municipality shall maintain frozen assessment listings for the 1998, 1999 and 2000 taxation years for the taxation of properties to which this Part applies.

Basis of 1998 listing

(2) The frozen assessment listing for 1998 shall be based on the assessment roll for 1997, as most recently revised, with the changes required under this Part.

Basis of 1999, 2000 listings

(3) The frozen assessment listings for 1999 and 2000 shall be based on the frozen assessment listing for the previous year with the changes required under this Part.

Contents of frozen assessment listing

(4) The frozen assessment listing shall include the following for each property to which this Part applies:

1. Total assessment.

2. Commercial assessment.

3. Business assessment.

4. Vacant commercial assessment.

5. Non-business assessment.

Assessments in frozen assessment listing

447.6 The assessments, referred to in subsection 447.5 (4), in the frozen assessment listing for 1998 shall be determined as follows:

1. The total assessment shall be the sum of the commercial assessment, the vacant commercial assessment and the non-business assessment, determined under paragraphs 2, 4 and 5.

2. The commercial assessment shall be the commercial assessment or industrial assessment, as the case may be, as set out in the assessment roll for 1997, as most recently revised.

3. The business assessment shall be the business assessment as set out in the assessment roll for 1997, as most recently revised.

4. The vacant commercial assessment shall be the vacant commercial assessment or vacant industrial assessment, as the case may be, as set out in the assessment roll for 1997, as most recently revised.

5. The non-business assessment shall be the assessment as set out in the assessment roll for 1997, as most recently revised, for the portion of the property occupied by persons not liable to business assessment under the Assessment Act for 1997.

Addition of properties

447.7 (1) This section sets out the changes to be made to the frozen assessment listing if this Part applies to a property after either of the following occur:

1. The property is added to the assessment roll for 1999 or 2000 because the property ceases to be exempt from taxation or as a result of the subdivision of land.

2. The property is assessed under subsection 33 (3) of the Assessment Act for 1998, 1999 or 2000.

Added to listing

(2) The property shall be added to the frozen assessment listing for the year.

Changes to frozen assessments

(3) The assessments, referred to in subsection 447.5 (4), in the frozen assessment listing for the year shall be determined as follows:

1. The total assessment shall be the assessment set out in the assessment roll for the year, as most recently revised, multiplied by a factor prescribed in the regulations.

2. The commercial assessment shall be the total assessment, determined under paragraph 1, minus the vacant commercial assessment, determined under paragraph 4.

3. The business assessment shall be the commercial assessment, determined under paragraph 2, multiplied by the average business rate determined under section 447.13.

4. The vacant commercial assessment shall be determined in accordance with subsection 447.12 (2).

Removal of properties

447.8 If this Part ceases to apply to a property or if the property is removed from the assessment roll, the property shall be removed from the frozen assessment listing.

Changes to classification

447.9 (1) This section sets out the changes to be made to the frozen assessment listing for 1998, 1999 or 2000 if the classification of a property changes and, as a result of that change in classification, this Part begins to apply, or ceases to apply, to the property.

Part beginning to apply

(2) If the change in classification resulted in this Part beginning to apply to the property, section 447.7 applies.

Part ceasing to apply

(3) If the change in classification resulted in this Part ceasing to apply to the property, section 447.8 applies.

Increases in assessment

447.10 (1) This section sets out the changes to be made to the frozen assessment listing for 1999 or 2000 if the assessment of a property to which this Part applies, as set out in the assessment roll for that year, as most recently revised, increases from the assessment set out in the assessment roll for the previous year as a result of,

(a) an assessment made during the previous year under subsection 33 (1) of the Assessment Act\; or

(b) an adjustment made on the assessment roll for the year.

Changes to frozen assessments

(2) The assessments, referred to in subsection 447.5 (4), in the frozen assessment listing for the year shall be changed as follows:

1. The total assessment shall be increased so that it equals the assessment set out in the assessment roll for the year multiplied by a factor prescribed in the regulations unless subsection (3) applies, in which case the total assessment shall be increased by the amount determined under that subsection.

2. The commercial assessment shall be increased by the same amount the total assessment was increased by under paragraph 1.

3. The business assessment shall be increased by the increase in the commercial assessment multiplied by the average business rate determined under section 447.13.

Special rule for alterations, etc.

(3) If the assessment of the property is increased as a result of the alteration, enlargement or improvement of any building, structure, machinery, equipment or fixture or any portion thereof, the total assessment shall be increased under paragraph 1 of subsection (2) by an amount determined in accordance with the following:

Where, "

Increase in assessment" means the increase in the assessment on the assessment roll;

Old assessment" means the assessment on the assessment roll before the increase;

Frozen assessment" means the total assessment on the frozen assessment listing.

Certain tax reductions for demolition, etc.

447.11 (1) If the council of a municipality cancels, reduces or refunds taxes under section 442 on an application under clause 442 (1) (c), the council shall also make such changes as are appropriate to the assessments referred to in subsection 447.5 (4).

Application to appeals

(2) Subsection (1) also applies to the Assessment Review Board when it is exercising the powers of the council under subsection 442 (7).

Changes relating to vacancies

447.12 (1) This section sets out the changes to be made to the frozen assessment listing for 1999 and 2000 in respect of vacant portions of a property.

Adjusted vacant commercial assessment

(2) The vacant commercial assessment for a property in the frozen assessment listing shall be adjusted for 1999 and 2000 in accordance with the following:

Where, "

Adjusted vacant commercial assessment" means the vacant commercial assessment as adjusted under this subsection;

Frozen assessment" means the total assessment on the frozen assessment listing;

Vacant subclass assessment" means the assessment for the property, as set out in the assessment roll for the year as most recently revised, in the subclass for vacant units and excess land prescribed under the Assessment Act for the property class the property is in;

Total assessment" means the total assessment for the property set out in the assessment roll for the year as most recently revised.

Adjusted commercial assessment

(3) Subject to subsection (4), the commercial assessment for a property in the frozen assessment listing shall be adjusted in accordance with the following:

Where, "

Adjusted commercial assessment" means the commercial assessment as adjusted under this subsection;

Total commercial assessment" means the sum of the commercial assessment and the vacant commercial assessment as set out in the frozen assessment listing before the adjustments under this section;

Adjusted vacant commercial assessment" means the vacant commercial assessment as adjusted under subsection (2).

Exception relating to non-business assessment

(4) If the adjusted commercial assessment under subsection (3) is less than zero the following apply:

1. The commercial assessment in the frozen assessment listing shall be zero instead of as adjusted under subsection (3).

2. The non-business assessment for the property in the frozen assessment listing shall be adjusted so that it is equal to the total assessment as set out in the frozen assessment listing minus the vacant commercial assessment as adjusted under subsection (2).

Adjustments to business assessment

(5) The business assessment for a property in the frozen assessment listing shall be adjusted as follows if the commercial assessment for the property is increased or decreased under subsection (3) or (4):

1. If the commercial assessment is increased, the business assessment shall be increased by the increase in the commercial assessment multiplied by the average business rate determined under section 447.13.

2. If the commercial assessment is decreased, the business assessment shall be decreased by the same percentage.

Average business rate

447.13(1) The average business rate for calculating business assessment for a property shall be determined in accordance with the following:

Where, "

Total business assessment (class)" means the total business assessment in the municipality for property that, for 1998, is in the same property class the property is in;

Total commercial assessment (class)" means the total commercial assessment in the municipality for property that, for 1998, is in the same property class the property is in.

Use of listing

(2) For the purposes of subsection (1), the total business assessment and the total commercial assessment shall be determined using the frozen assessment listing or listings for 1998 with the assessments determined under section 447.6 without any changes under any other provisions of this Part.

Property classes

(3) For the purposes of this section, the commercial classes, within the meaning of subsection 363 (20), shall be deemed to be a single property class and the industrial classes, within the meaning of subsection 363 (20), shall be deemed to be a single property class.

Definition

(4) In this section, "

municipality" does not include a lower-tier municipality.

Determination of Taxes

Determination of taxes under this Part

447.14 (1) The taxes for municipal and school purposes for 1998, 1999 and 2000 for a property to which this Part applies shall be determined in accordance with section 447.15 and not in accordance with Part XXII of this Act or Division B of Part IX of the Education Act.

Determination of tax rates but for this Part

(2) Despite subsection (1), a municipality shall determine the tax rates that would have been levied but for the application of this Part.

Determination of amount of taxes

447.15 (1) The taxes for municipal and school purposes shall be determined in accordance with the following:

1. The adjusted mill rates shall be determined in accordance with section 447.16.

2. The 1997-level taxes for municipal and school purposes shall be determined, in accordance with section 447.17, using the adjusted mill rates.

3. The 1997-level taxes shall be adjusted, in accordance with section 447.18, to phase-in 1998 tax changes.

4. The 1997-level taxes shall be adjusted by making the reductions, if any, prescribed in the regulations in respect of reductions in taxes for school purposes.

5. The 1997-level taxes shall be adjusted by making the reductions, if any, under a by-law under subsection (5) in respect of reductions in taxes for municipal purposes.

6. The taxes for the property equal the 1997-level taxes, as adjusted under paragraphs 3 and 4.

Regulations, reductions for school taxes

(2) The Minister of Finance may make regulations providing for reductions under paragraph 4 of subsection (1) in respect of reductions in taxes for school purposes.

Different reductions for different classes and municipalities

(3) Regulations under subsection (2) may provide for different reductions for different property classes and different municipalities.

Different reductions if phase-ins different

(4) Regulations under subsection (2) may provide for different reductions for properties for which different adjustments are made under paragraph 3 of subsection (1) to phase-in 1998 tax changes.

By-laws, reductions for municipal taxes

(5) The council of a municipality, other than a lower-tier municipality, may pass a by-law providing for reductions under paragraph 5 of subsection (1) in respect of reductions in taxes for municipal purposes.

Reductions must be passed on

(6) A by-law under subsection (5) must ensure that the total reductions under the by-law are equal, for each property class, to the reductions that would have resulted if the provisions referred to subsection (8) applied.

Property classes

(7) For the purposes of subsection (6), the commercial classes, within the meaning of subsection 363 (20), shall be deemed to be a single property class and the industrial classes, within the meaning of subsection 363 (20), shall be deemed to be a single property class.

By-law reductions replace other reductions

(8) If a by-law under subsection (5) is in force in a municipality, paragraph 3 of subsection 447.16 (2), paragraph 2 of subsection 447.16 (3) and subsection 447.16 (4) do not apply with respect to property in the municipality.

Powers to treat differently

(9) Subsections (3) and (4) apply, with necessary modifications, with respect to a by-law under subsection (5).

Determination of adjusted mill rates

447.16 (1) This section governs the determination of the adjusted mill rates for a property under paragraph 1 of subsection 447.15 (1).

1998

(2) For 1998, the adjusted mill rates shall be determined in accordance with the following:

1. A commercial mill rate shall be determined by adding together the commercial mill rates, for municipal and school purposes, that were levied on the property in 1997 or that would have been levied on the property in 1997 if commercial mill rates had been levied on the property in that year.

2. A residential mill rate shall be determined by adding together the residential mill rates, for municipal and school purposes, that were levied on the property in 1997 or that would have been levied on the property in 1997 if residential mill rates had been levied on the property in that year.

3. The commercial and residential mill rates shall be adjusted in accordance with subsection (4) to reflect any decreases in the taxes needed for municipal purposes from the previous year to the current year for the property class the property is in.

1999, 2000

(3) For 1999 and 2000, the adjusted mill rates shall be determined in accordance with the following:

1. The adjusted commercial and residential mill rates that applied to the property under this Part in the previous year, or that would have applied to the property if the property had been taxed in the previous year under this Part, shall be determined.

2. The adjusted commercial and residential mill rates shall be further adjusted in accordance with subsection (4) to reflect any decreases in the taxes needed for municipal purposes from the previous year to the current year for the property class the property is in.

Municipal tax decreases

(4) The following apply with respect to the adjustments, under paragraph 3 of subsection (2) and paragraph 2 of subsection (3), of the adjusted mill rates to reflect decreases in the taxes needed for municipal purposes for the property class the property is in:

1. If the property is not in an upper-tier municipality, the part of the mill rates, as adjusted, that were derived from mill rates for municipal purposes shall be decreased by the percentage decrease, if any, in the total amount to be raised for municipal purposes by property taxes from the previous year to the current year on property in the property class.

2. If the property is in an upper-tier municipality,

i. the part of the mill rates, as adjusted, that were derived from mill rates for upper-tier purposes shall be decreased by the percentage decrease, if any, in the total amount to be raised for upper-tier purposes by property taxes from the previous year to the current year on property in the property class, and

ii. the part of the mill rates, as adjusted, that were derived from mill rates for lower-tier purposes shall be decreased by the percentage decrease, if any, in the total amount to be raised for lower-tier purposes by property taxes from the previous year to the current year on property in the property class.

3. For the purposes of determining, under paragraphs 1 and 2, the percentage decrease in the total amount to be raised by property taxes from one year to the next year on property in the property class, the following apply,

i. for the comparison from 1997 to 1998, the total amount for 1997 shall be determined using the taxes levied for 1997 on all the property that, for 1998, is classified in the property class and the total amount for 1998 shall be determined using the taxes that would be levied for 1998, if this Part did not apply, on the same property,

ii. for the comparison from 1998 to 1999 or from 1999 to 2000, the total amount for each year shall be determined using the taxes that would be levied for that year, if this Part did not apply, on all the property that, for that year, is classified in the property class.

Regulations

(5) The Minister may make regulations providing for decreases, in addition to those under subsection (4), in the mill rates for properties prescribed in the regulations in the circumstances prescribed in the regulations and modifying the application of subsection (4) with respect to other properties in the same property class as the prescribed properties.

Determination of 1997-level taxes

447.17 (1) This section governs the determination of the 1997-level taxes for a property under paragraph 2 of subsection 447.15 (1).

Method of determination

(2) The 1997-level taxes shall be determined as follows:

1. An amount shall be determined by applying the adjusted commercial mill rate to the commercial assessment and the business assessment in the frozen assessment listing.

2. An amount shall be determined by applying the adjusted residential mill rate to the vacant commercial assessment and the non-business assessment in the frozen assessment listing.

3. The 1997-level taxes equal the sum of the amounts determined under paragraphs 1 and 2.

Phase-in adjustments

447.18 (1) This section governs the adjustment of the 1997-level taxes under paragraph 3 of subsection 447.15 (1) to phase-in 1998 tax changes.

Increases

(2) If there is a 1998 tax increase phase-in for the property for the year or a previous year under section 447.19, the 1998 tax increase phase-in for the year, if any, and the 1998 tax increase phase-ins for any previous year, if any, shall be added to the 1997-level taxes.

Decreases

(3) If there is a 1998 tax decrease phase-in for the property for the year or a previous year under section 447.19, the 1998 tax decrease phase-in for the year, if any, and the 1998 tax decrease phase-ins for any previous year, if any, shall be subtracted from the 1997-level taxes.

Determination of phase-ins

447.19 (1) This section governs the determination of the phase-ins for 1998 tax changes.

Cases in which phase-ins determined

(2) Phase-ins shall be determined for a property as follows:

1. 1998 tax increase phase-ins shall be determined for a property if the uncapped 1998 taxes for the property are greater than the capped 1998 taxes for the property.

2. 1998 tax decrease phase-ins shall be determined for a property if the uncapped 1998 taxes for the property are less than the capped 1998 taxes for the property.

Determination of 1998 tax increase phase-ins

(3) The 1998 tax increase phase-in for a property for a year shall be determined in accordance with the following:

1. The 1998 tax increase phase-in for the year shall be 2.5 per cent of the capped 1998 taxes or such lesser amount as would be necessary to increase the capped 1998 taxes, as increased by any 1998 tax increase phase-ins for previous years, so that the capped 1998 taxes equal the uncapped 1998 taxes.

Determination of 1998 tax decrease phase-ins

(4) The 1998 tax decrease phase-in for a property for a year shall be determined in accordance with the following:

1. The tax decrease phase-in for the year shall be the percentage, determined under paragraph 2, of the difference between the 1997-level taxes determined under section 447.17 for the year and the uncapped 1998 taxes.

2. A percentage shall be determined for the purposes of paragraph 1 so that the total of the 1998 tax decrease phase-ins for the year for all the properties in the property class equals the total 1998 tax increase phase-ins for the year for all the properties in the property class.

3. For the purposes of paragraph 2, the commercial classes, within the meaning of subsection 363 (20), shall be deemed to be a single property class and the industrial classes, within the meaning of subsection 363 (20), shall be deemed to be a single property class.

Definitions

(5) In this section, "

capped 1998 taxes" means, in relation to a property,

(a) if this Part applies to the property for 1998, the 1997-level taxes determined under section 447.17 for 1998, or

(b) if this Part first applies to the property for 1999 or 2000, the 1997-level taxes that would have been determined under section 447.17 for 1998 if this Part applied for that year; ("impôts de 1998 plafonnés") "

uncapped 1998 taxes" means, in relation to a property,

(a) if this Part applies to the property for 1998, the taxes for municipal and school purposes that would have been imposed for 1998 but for the application of this Part,

(b) if this Part first applies to the property for 1999, the taxes for municipal and school purposes that would have been imposed for 1998 if the property had been assessed and classified for 1998 as it is for 1999 and this Part did not apply, or

(c) if this Part first applies to the property for 2000, the taxes for municipal and school purposes that would have been imposed for 1998 if the property had been assessed and classified for 1998 as it is for 2000 and this Part did not apply.("impôts de 1998 non plafonnés")

Modifications if assessment is increased

(6) If any increases are made, under section 447.10, to the assessments for the property in the frozen assessment listing for 1999 or 2000, the capped 1998 taxes and the uncapped 1998 taxes shall be determined as follows for the purposes of the application of subsections (3) and (4) to the year and to subsequent years:

1. The capped 1998 taxes shall be what they would be if the corresponding increases were made to the assessments in the frozen assessment listing used to determine the capped 1998 taxes.

2. The uncapped 1998 taxes shall be what they would be if the corresponding increase were made to the assessment on the assessment roll used to determine the uncapped 1998 taxes.

Miscellaneous

Distribution of taxes

447.20 The following apply for the purposes of distributing the taxes for municipal and school purposes determined under this Part among municipalities and school boards:

1. The taxes that are for school purposes shall be distributed in accordance with sections 257.8 and 257.9 of the Education Act and the taxes that are for municipal purposes shall be distributed in accordance with paragraph 4.

2. The taxes on a property that are for school purposes shall be determined by multiplying the taxes by the taxes on the property for school purposes that would have been imposed on the property if this Part did not apply divided by the total taxes on the property for municipal and school purposes that would have been imposed on the property if this Part did not apply.

3. The taxes on a property for municipal purposes are the taxes minus the amount of the taxes for school purposes.

4. If the property is in an upper-tier municipality, the upper-tier municipality's share of the taxes for municipal purposes on the property equals the taxes for municipal purposes on the property multiplied by the taxes on the property for upper-tier purposes that would have been imposed on the property if this Part did not apply divided by the total taxes on the property for municipal purposes that would have been imposed on the property if this Part did not apply.

5. An amount that is owed by the municipality to which taxes are payable to an upper-tier municipality under this Act or a school board under the Education Act shall be adjusted to reflect the changes under this Part to the amount of the taxes and their distribution.

Multi-residential property class

447.21 The following apply with respect to the multi-residential property class:

1. For each property, the frozen assessment listing shall include the total assessment but no other assessment referred to in subsection 447.5 (4).

2. Under section 447.6, the total assessment in the frozen assessment listing shall be the assessment as set out in the assessment roll for 1997, as most recently revised.

3. If a property's classification changes to or from the multi-residential property class and this Part applied to the property both before and after the change in classification,

i. paragraph 1 of subsection 447.7 (3) applies, if the classification change was to the multi-residential property class, and

ii. subsection 447.7 (3) applies, if the classification change was from the multi-residential property class.

4. The 1997-level taxes shall be determined, under subsection 447.17 (2), by applying the adjusted residential mill rate to the total assessment in the frozen assessment listing.

5. Taxes levied under paragraph 1 of subsection 447.30 (1) shall be determined by applying the adjusted residential mill rate to the total assessment in the frozen assessment listing and not as provided under paragraph 2 of subsection 447.30 (1).

Mixed use

447.22 If portions of a property are classified in different property classes on the assessment roll the following apply:

1. Each portion shall be deemed to be a separate property for the purposes of this Part.

2. For the purposes of determining the assessments in the frozen assessment listing under section 447.6, if the assessment roll for 1997 does not contain sufficient information to apportion the amounts on that roll among the portions of the property, the amounts shall be apportioned among the portions of the property in proportion to the assessment for the portions of the property as set out in the assessment roll for 1998.

Supplementary assessments, etc.

447.23 (1) The following apply if a supplementary assessment or change in classification is made under section 34 of the Assessment Act with respect to a property to which this Part applies:

1. If this Part begins to apply to the property, section 447.7 applies with respect to the property.

2. If this Part ceases to apply to the property, the property shall be removed from the frozen assessment listing.

3. If the assessment of the property is increased, section 447.10 applies with respect to the property. This paragraph applies even if the supplementary assessment is for 1998.

4. If the property's classification changes to or from the multi-residential property class and this Part applied to the property both before and after the change in classification, paragraph 3 of section 447.21 applies.

Limitation for current year

(2) Changes to the frozen assessment listing under subsection (1) apply, with respect to the current taxation year, only with respect to the portion of the year left remaining after the occurrence of the change in respect of which the supplementary assessment or change in classification under section 34 of the Assessment Act was made.

Tenants of leased premises

447.24 (1) This section applies with respect to a tenant of leased premises that form all or part of a property if,

(a) this Part applies to the leased premises; and

(b) the tenant's tenancy commenced on or before December 31, 1997 and has been continuous since that date.

No application to multi-residential

(2) This section does not apply if the leased premises are classified in the multi-residential property class.

Clarification of application, new leases of property

(3) This section applies with respect to a tenant described in subsection (1) even if the tenant enters into a new lease for the leased premises after this section comes into force.

Limitation on requirement to pay taxes

(4) No tenant is required under any lease, despite any provision in the lease, to pay an amount on account of taxes levied for municipal and school purposes that is greater than the tenant's cap determined under subsection (7).

Recouping of landlord's shortfall

(5) A landlord may require a tenant to pay an amount on account of taxes levied for municipal and school purposes that is more than the tenant would otherwise be required to pay under the tenant's lease subject to the following:

1. The landlord may not require the tenant to pay an amount that would result in the tenant paying more on account of taxes levied for municipal and school purposes than is allowed under subsection (4).

2. The landlord may require a tenant to pay an amount under this subsection only to the extent necessary for the landlord to recoup shortfalls, within the meaning of paragraph 3, for other leased premises that form part of the property.

3. The shortfall referred to in paragraph 2 is the sum determined by,

i. determining, for each of the other leased premises with respect to which this section applies that form part of the property, the amount, if any, by which the amount that the landlord could have required the tenant to pay under the tenant's lease in the absence of subsection (4) exceeds the amount that the landlord may require the tenant to pay under the tenant's lease under subsection (4), and

ii. adding the amounts determined under subparagraph i together.

Same

(6) The following apply with respect to an amount a tenant is required to pay under subsection (5):

1. The amount shall be deemed to be additional rent.

2. The amount is payable in the proportions and at the times that amounts in respect of taxes are payable under the lease.

3. If the lease does not provide for the payment of amounts in respect of taxes, the amount the tenant is required to pay under subsection (5) is due on the last day of the year.

Tenant's cap

(7) The tenant's cap referred to in subsection (4) shall be determined in accordance with the following:

1. An amount in respect of property taxes shall be determined in accordance with subsection (8).

2. An amount in respect of business taxes shall be determined in accordance with subsection (9).

3. The amount in respect of property taxes shall be added to any amount in respect of business taxes and the sum shall be increased by,

i. for 1998, 2.5 per cent,

ii. for 1999, 5 per cent, or

iii. for 2000, 7.5 per cent.

4. The amount determined and adjusted under paragraph 3 shall be adjusted by making the prescribed adjustments, if any, in respect of any increase, under section 447.10, to the assessments for the property in the frozen assessment listing.

5. The amount, as adjusted under paragraph 4, shall be further adjusted by making the reductions, if any, prescribed in the regulations in respect of reductions under paragraph 4 or 5 of subsection 447.15 (1) or under paragraph 3 of subsection 447.16 (2) or paragraph 2 of subsection 447.16 (3).

6. The tenant's cap is the amount determined under paragraph 3 and adjusted under that paragraph and paragraphs 4 and 5.

Property tax portion

(8) The amount in respect of property taxes, referred to in paragraph 1 of subsection (7), shall be determined in accordance with the following:

1. The amount shall be the amount the tenant was required under the lease to pay on account of taxes for 1997.

2. If the amount that the landlord required the tenant to pay on account of taxes for 1997 was less than the amount the landlord could have required under the lease, the amount shall be the amount the landlord could have required under the lease.

3. If the amount determined under paragraph 1 or 2 is in respect of less than the full 1997 taxation year, the amount shall be increased to what it would be if it were for the full year.

Business tax portion

(9) The amount in respect of business taxes, referred to in paragraph 2 of subsection (7), shall be determined in accordance with the following:

1. If the leased premises were occupied on December 31, 1997, the amount is the amount of the business taxes that would have been levied against the occupant if that occupation had been for all of 1997.

2. If the leased premises were not occupied on December 31, 1997, the amount is zero.

Amounts under gross lease flow-through

(10) The following apply with respect to amounts a tenant is required to pay under section 444.1 or 444.2:

1. For the purposes of subsections (4) and (5), an amount the tenant is required to pay under section 444.1 shall be deemed to be an amount the tenant is required to pay under the lease on account of taxes levied for municipal and school purposes.

2. For the purposes of subsections (4) and (5), an amount the tenant is required to pay under section 444.2 shall be deemed to not be an amount the tenant is required to pay under the lease on account of taxes levied for municipal and school purposes.

Application for partial year

(11) If this section applies with respect to taxes attributable to part of a year, the tenant's cap determined under subsection (7) for the year shall be reduced proportionally.

When section ceases to apply

(12) If the tenant ceases to lease any part of the leased premises, this section does not apply with respect to the taxes attributable to the part of the year after the tenant ceases to lease that part of the leased premises and this section does not apply with respect to taxes for subsequent years.

Clarification of application

(13) For greater certainty,

(a) subsection (12) applies even if the tenant ceased to lease any part of the leased premises before this section comes into force; and

(b) subsection (12) applies with respect to all the taxes for the leased premises not just the taxes attributable to the part of the leased premises the tenant ceases to lease.

No application to additional premises

(14) This section does not apply with respect to any part of the leased premises that was not a part of the tenant's leased premises on December 31, 1997.

Information from municipality

(15) The local municipality shall give the owner of a property to which this Part applies a list showing the business taxes levied on each tenant of the property for 1997.

Recouping of landlord's shortfall

447.25 (1) A landlord may require a tenant to pay an amount on account of taxes levied for municipal and school purposes that is more than the tenant would otherwise be required to pay under the tenant's lease to the extent necessary for the landlord to recoup shortfalls, within the meaning of paragraph 3 of subsection 447.24 (5), for other leased premises that form part of the property.

Same

(2) Subsection 447.24 (6) applies, with necessary modifications, with respect to an amount a tenant is required to pay under subsection (1).

No application to new leases

(3) This section does not apply with respect to a tenant if the tenant's lease was entered into on or after the day this section comes into force.

No application if section 447.24 applies

(4) This section applies with respect to a tenant only if section 447.24 does not apply with respect to the tenant.

Limitation on appeals

447.26 (1) Except as provided for under subsection (2), no appeal lies from any determination by a municipality of any assessment in the frozen assessment listing.

Applications to council

(2) Section 442 applies to an application by any person who is overcharged by reason of,

(a) a gross or manifest error that is a clerical error, the transposition of figures, a typographical error or similar type of error but not an error in judgment other than an error in judgment described in clause (b); or

(b) an error in judgment in a determination under section 447.8, subsection 447.10 (2) or (3), section 447.11, a regulation under subsection 447.16 (5), paragraph 3 of section 447.21, paragraph 2 of section 447.22 or paragraph 2, 3 or 4 of section 447.23.

Upper-tier request for listing

447.27 A lower-tier municipality shall, at the request of its upper-tier municipality, provide the upper-tier municipality with the lower-tier municipality's frozen assessment listing, as most recently revised.

References to assessment

447.28 Except where specifically provided, a reference to assessment in any Act or regulation shall not be construed as a reference to any amount on a frozen assessment listing.

No phase-in under section 372

447.29 Section 372 does not apply with respect to property to which this Part applies.

Interim levy, local municipality

447.30 (1) The following apply instead of section 370, for 1999 and 2000, with respect to properties to which this Part applies:

1. The council of a local municipality, before the adoption of the estimates for the year, may pass a by-law levying taxes on the assessment in the frozen assessment listing, as most recently revised, for property in the municipality rateable for local municipality purposes.

2. The taxes to be levied under paragraph 1 shall be determined by applying,

i. a mill rate to the commercial assessment and business assessment, as set out in the frozen assessment listing, and

ii. a mill rate to the vacant commercial assessment and non-business assessment, as set out in the frozen assessment listing.

3. The mill rate applied under subparagraph i of paragraph 2 shall not exceed the prescribed percentage (or 50 per cent if no percentage is prescribed) of the adjusted commercial mill rate, determined under section 447.16, that was applicable to the property for the previous year or that would have applied to the property for the previous year if this Part had applied.

4. The mill rate applied under subparagraph ii of paragraph 2 shall not exceed the prescribed percentage (or 50 per cent if no percentage is prescribed) of the adjusted residential mill rate, determined under section 447.16, that was applicable to the property for the previous year or that would have applied to the property for the previous year if this Part had applied.

5. A by-law under paragraph 1 may provide for the levying of taxes on assessment added to the frozen assessment listing after the by-law is passed.

6. Subsections 370 (2), (5), (6) and (7) apply, with necessary modifications, with respect to a by-law under paragraph 1.

Regulations

(2) The Minister may make regulations prescribing percentages for the purposes of paragraphs 3 and 4 of subsection (1).

Regulations can be specific

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

Retroactive

(4) A regulation under subsection (2) may be retroactive to a date not earlier than December 1 of the year before the year in which the regulation is made.

Modifications to this Act, Education Act

447.31 The following modifications to this Act and the Education Act apply for 1998, 1999 and 2000:

1. An upper-tier rating by-law under section 366,

i. shall be deemed to have directed tax rates to be levied on the amounts in the frozen assessment listing for each property to which this Part applies sufficient to raise the upper-tier municipality's share of the taxes, determined under section 447.20, and

ii. shall set out the percentage decrease, referred to in paragraph 2 of subsection 447.16 (4), for each property class with respect to which this Part applies.

2. Each lower-tier municipality subject to an upper-tier rating by-law to which subparagraph i of paragraph 1 applies shall be deemed to have levied, under subsection 366 (5), the tax rates referred to in that subparagraph.

3. A local municipality rating by-law under section 368 shall be deemed to have levied tax rates on the amounts in the frozen assessment listing for each property to which this Part applies sufficient to raise the local municipality's share of the taxes, determined under section 447.20.

4. A local municipality shall be deemed to have levied, under paragraph 1 of subsection 257.7 (1) of the Education Act, tax rates on the amounts in the frozen assessment listing for each property to which this Part applies sufficient to raise the taxes for school purposes, determined under section 447.20.

5. The part of the collector's roll that relates to properties to which this Part applies shall be based on the amounts in the frozen assessment listing.

Conflict with restructuring orders

447.32 Despite subsection 25.2 (11), an order of the Minister under section 25.2 or a commission under section 25.3 does not prevail over this Part.

Conflict with orders under Municipal Boundary Negotiations Act

447.33 An order under section 14 of the Municipal Boundary Negotiations Act does not prevail over this Part.

Regulations, general

447.34 (1) The Minister of Finance may make regulations,

(a) governing and clarifying the application of this Part;

(b) prescribing anything that, under this Part, may or must be prescribed;

(c) varying the application of this Part if, in the opinion of the Minister of Finance, it is necessary or desirable to do so in order to further the purposes of this Part including, without limiting the generality of the foregoing, varying the application of this Part in connection with a municipal restructuring;

(d) providing for such transitional matters as the Minister of Finance considers necessary or desirable in connection with this Part ceasing to apply at the end of 2000 including, without limiting the generality of the foregoing, allowing municipalities to phase-in the resulting tax increases and decreases in a manner similar to that allowed under section 372 for 1998 assessment-related tax increases and decreases.

Regulations prescribing factors

(2) A regulation prescribing factors for the purposes of paragraph 1 of subsection 447.7 (3) and paragraph 1 of subsection 447.10 (2) may prescribe different factors for different property classes and different municipalities. "

municipal restructuring"

(3) In this section, "

municipal restructuring" means,

(a) the incorporation of a new municipality,

(b) the amalgamation of municipalities,

(d) the dissolution of an upper-tier municipality.

PART III

COMPLEMENTARY AMENDMENTS

City of Burlington Act, 1992

31.Clause 1 (2) (b) of the City of Burlington Act, 1992, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 53, 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 classes and industrial classes, within the meaning of subsection 363 (20) of the Municipal 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.

City of Toronto Act, 1997 (No.2)

32.(1) The City of Toronto Act, 1997 (No.2) is amended by adding the following section:

Regulations

119.1 (1) The Minister of Municipal Affairs and Housing may make regulations providing for and governing the matters to which sections 96 to 101 relate, for 2001 and subsequent years, with respect to property in property classes with respect to which Part XXII.1 of the Municipal Act applied before 2001.

Conflicts

(2) Section 120 applies with respect to regulations under subsection (1).

(2) Section 120 of the Act is amended by adding the following subsection:

Exception, tax freezes

(2) Despite subsection (1), sections 96 to 101 do not apply, for any taxation year, with respect to a property class if Part XXII.1 of the Municipal Act applied, with respect to 1998, to property in the city in that property class.

Conservation Authorities Act

33.Subsection 33 (5) of the Conservation Authorities Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 64, is amended by striking out "40 days" in the fifth line and substituting "90 days".

Education Act

34.(1) The Education Act is amended by adding the following section:

Tax relief, etc., in unorganized territory

257.2.1 (1) The Minister of Finance may make regulations to limit the changes in taxes for school purposes from the taxes for school purposes in 1997 or to give relief from taxes for school purposes in territory without municipal organization.

Exception

(2) This section does not apply with respect to territory without municipal organization that is deemed to be attached to a municipality for the purposes of taxation.

What regulations can provide for, etc.

(3) The following apply with respect to regulations under subsection (1):

1. Without limiting what a regulation may provide for, the regulations may provide for any matter provided for under sections 372, 372.1, 373, 442.1, 442.2 and 444.1 of the Municipal Act.

2. A regulation may require rebates to be paid by boards.

3. A regulation made in 1998 or a later year may relate to the entire year in which it is made.

4. A regulation may delegate anything to boards or other persons or bodies and may attach conditions to such delegations.

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

Conflicts

(4) In the case of a conflict between a regulation and this Act or the Provincial Land Tax Act, the regulation prevails.

(2) Clause (c) of the definition of "business property" in section 257.5 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is repealed and the following substituted:

(3) Subsection 257.10 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is repealed and the following substituted:

Collection of certain taxes

(5) This section applies with necessary modifications in respect of the collection of a tax under section 21.1 of the Provincial Land Tax Act.

(4) Section 257.11 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is amended by adding the following subsections:

Extension of instalment due dates

(12) The Minister may make regulations relating to instalments under paragraph 2 of subsection (1) for 1998,

(a) extending the time for paying the instalments even if the time for paying the instalments has passed,

(b) in conjunction with the provision of interim financing to boards under subsection (14), directing the instalments to be paid to the Province.

Same

(13) A regulation under subsection (12) may be general or particular.

Interim financing for 1998

(14) The Minister may provide interim financing to boards in respect of instalments to be paid to the Province as directed under a regulation under clause (12) (b) and the following apply with respect to such financing:

1. The Minister may pay amounts, on behalf of the municipality or board required to pay an instalment, to the boards to which the instalment would have been distributed in the absence of the direction to pay the instalment to the Province.

2. The amount of the instalment to be paid to the Province by the municipality or the board shall be equal to the total of the amounts paid by the Minister, on behalf of the municipality or board, under paragraph 1.

3. Subsections (2), (3) and (4) apply with respect to the Minister as though the Minister were the recipient board.

Interim financing for 1998, agreements

(15) The Minister may provide interim financing for 1998 to a board that is a party to an agreement under subsection (5) and the following apply with respect to such financing:

1. The Minister may pay to the board, on behalf of a municipality to which the agreement applies, an amount the municipality is required to pay under the agreement before September 30, 1998 and the amount shall be deemed to be an amount paid by the municipality under the agreement.

2. A municipality on whose behalf the Minister pays an amount under paragraph 1 shall repay the Province for that amount. The municipality shall repay the amount on the dates and in the amounts specified by the Minister and the municipality shall pay interest, at the rate specified in subsection (4), on any of those amounts that are paid late.

Payments from Consolidated Revenue Fund

(16) Amounts paid by the Minister under subsection (14) or (15) shall be paid out of the Consolidated Revenue Fund.

Amounts deemed to be education funding

(17) Amounts paid by the Minister under subsection (14) or (15) shall be deemed, for the purposes of clause (b) of the definition of "education funding" in subsection 234 (14), to be revenue available to a board from tax rates levied under this Division.

Information relating to agreements

(18) For the purposes of interim financing under subsection (15), the Minister may require a municipality or board to provide,

(a) a copy of any agreement under subsection (5);

(b) information about amounts paid under the agreement; and

Enforcement of requirement

(19) The Minister may apply to the Ontario Court (General Division) for an order requiring a municipality or board to comply with a requirement of the Minister under subsection (18).

Additional power

(20) Subsection (19) is additional to and not intended to replace any other available means of enforcement.

(5) Subsection 257.12 (8) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is repealed and the following substituted:

Definition

(8) In subsection (7), "

municipality" does not include any part of territory without municipal organization that is deemed to be a district municipality.

(6) Clause 257.12 (10) (b) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is repealed and the following substituted:

(b) a county, a regional municipality, The District Municipality of Muskoka and the County of Oxford.

(7) The Act is amended by adding the following section:

Requisitions for amounts on business property

257.12.1 (1) The Minister of Finance may requisition amounts for a year from an upper-tier municipality or a single-tier municipality to be raised by levying tax rates on business property, other than property taxed under section 368.3 of the Municipal Act.

Contents of requisition

(2) The requisition shall specify an amount to be raised on each of the following:

1. The commercial classes.

2. The industrial classes.

3. The pipeline property class prescribed under the Assessment Act.

Setting of tax rates, upper-tiers

(3) The council of an upper-tier municipality that is requisitioned shall, for the purposes of raising the amounts requisitioned, pass a by-law directing the council of each lower-tier municipality to levy tax rates, as specified in the by-law, on the assessment in the lower-tier municipality rateable for school purposes.

When rates set

(4) A by-law required under subsection (3) shall be passed on or before the date by which the council of the upper-tier municipality must pass the upper-tier rating by-law for the year.

Setting of tax rates, single-tiers

(5) The council of a single-tier municipality that is requisitioned shall, for the purposes of raising the amounts requisitioned, pass a by-law levying tax rates, as specified in the by-law, on the assessment in the municipality rateable for school purposes.

When rates set

(6) A by-law required under subsection (5) shall be passed on or before the date specified in the requisition.

Restrictions on tax rates

(7) The following apply with respect to the tax rates specified in a by-law under subsection (3) or (5):

1. The rates shall be set so that, when levied on the applicable assessment,

i. the amount that the requisition requires to be raised on the commercial classes is raised from the commercial classes,

ii. the amount that the requisition requires to be raised on the industrial classes is raised from the industrial classes, and

iii. the amount that the requisition requires to be raised on the pipeline property class is raised from the pipeline property class.

2. There shall be a single rate for each class of real property prescribed under the Assessment Act.

3. If there are two or more commercial classes, the rates for the commercial classes must be in the same proportion to each other as the tax ratios established under section 363 of the Municipal Act for the classes are to each other.

4. If there are two or more industrial classes, the rates for the industrial classes must be in the same proportion to each other as the tax ratios established under section 363 of the Municipal Act for the classes are to each other.

Tax rates deemed to be prescribed

(8) The tax rates specified in a by-law under subsection (3) or (5) shall be deemed to be tax rates prescribed by the Minister of Finance under clause 257.12 (1) (b).

Graduated tax rates

(9) Subsections 368.2 (2.1) and (4) of the Municipal Act and the regulations under clause 368.2 (3) (b) of that Act apply, with necessary modifications, with respect to the tax rates specified in a by-law under subsection (3) or (5).

Subclass tax reductions

(9.1) Section 368.1 of the Municipal Act applies, with necessary modifications, with respect to the tax rates specified in a by-law under subsection (3) or (5).

Definitions

(10) In this section, "

commercial classes" has the same meaning as in subsection 363 (20) of the Municipal Act\; ("catégories commerciales")

industrial classes" has the same meaning as in subsection 363 (20) of the Municipal Act\; ("catégories industrielles")

lower-tier municipality" means a municipality within the meaning of subsection 1 (1) that forms part of an upper-tier municipality for municipal purposes; ("municipalité de palier inférieur")

single-tier municipality" means a municipality within the meaning of subsection 1 (1) that is not a lower-tier municipality; ("municipalité à palier unique")

upper-tier municipality" means a county, a regional municipality, The District Municipality of Muskoka and the County of Oxford.("municipalité de palier supérieur")

(8) The Act is amended by adding the following section:

Regulations, unpaid taxes in territory being organized

257.13.2 The Lieutenant Governor in Council may make regulations governing the collection of unpaid taxes for school purposes, including unpaid taxes under section 21.1 of the Provincial Land Tax Act, on property in unorganized territory that is annexed to a municipality or that is incorporated as a municipality including, without limiting the generality of the foregoing,

(a) requiring the municipality to make payments in respect of unpaid taxes to boards;

(b) for the purposes prescribed in the regulations, deeming the taxes to be taxes for municipal purposes levied by the municipality.

(9) Subsection 257.14 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is amended by adding the following clause:

(c.1) providing for boards that are required to levy tax rates under section 257.7 of this Act or section 21.1 of the Provincial Land Tax Act to levy tax rates, in accordance with the regulations, for the purposes of raising interim levies including, without limiting the generality of the foregoing, providing for anything provided for under section 370 of the Municipal Act.

Fair Municipal Finance Act, 1997 (No.2)

35.Subsection 21 (2) of the Fair Municipal Finance Act, 1997 (No.2) is repealed.

Municipal Tax Assistance Act

36.Section 3 of the Municipal Tax Assistance Act is amended by adding the following subsection:

Exception

(3) Despite subsection (1), regulations under subsection 4 (4) may apply to property described in subsection (1).

Municipal Tax Sales Act

37.The definition of "real property taxes" in subsection 1 (1) of the Municipal Tax Sales Act is amended by striking out "Ontario Unconditional Grants Act" in the fourth line and substituting "Ontario Municipal Support Grants Act, the amount of any taxes levied on real property under section 21.1 of the Provincial Land Tax Act".

Power Corporation Act

38.(1) Subsections 52 (2) and (3) of the Power Corporation Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 68, 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 buildings used exclusively for executive and administrative purposes and owned by the Corporation or buildings owned by the Corporation and rented by it to other persons, an amount equal to the taxes for municipal and school purposes that would be payable if the lands and buildings were taxable.

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, an amount equal to the taxes for municipal and school purposes that would be payable if the buildings were taxable and the assessed value were determined on the basis of $86.11 for each square metre of inside ground floor area of the actual building housing the generating, transforming and auxiliary equipment and machinery.

(2) Subsection 52 (3.2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 66, is repealed and the following substituted:

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, an amount equal to the taxes for municipal and school purposes that would be payable if the land were taxable and subsection (2) does not apply with respect to the land.

(3) Subsection 52 (15) of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 68, is further amended by striking out "twenty-one days" in the seventh line and substituting "90 days".

Provincial Land Tax Act

39.Section 21.1 of the Provincial Land Tax Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 166, is amended by adding the following subsections:

Tax relief, etc., under Education Act

(9.1) Taxes under this section are deemed, for the purposes of regulations made under section 257.2.1 of the Education Act, to be taxes for school purposes.

Adjustments in amounts owed to Province

(9.2) An amount a board is required to pay under subsection (6) shall be adjusted to reflect tax rebates or other tax relief under the regulations made under section 257.2.1 of the Education Act.

Territory attached under the Education Act

(9.3) If territory without municipal organization is attached, under the Education Act, to a municipality, the following apply with respect to the taxes under this section on property in that territory:

1. The taxes are deemed to be taxes for school purposes for the purposes of sections 372, 372.1, 373, 442.1, 442.2 and 444.1 of the Municipal Act.

2. Subsection (6) applies, with necessary modifications, to the municipality as though it were a board.

3. An amount the municipality is required to pay under subsection (6) shall be adjusted to reflect tax rebates or other tax relief under the provisions referred to in paragraph 1.

PART IV

TRANSITION, COMMENCEMENT AND SHORT TITLE

Transition

40.The amendments made by this Act apply, except where the context otherwise requires, with respect to the entire 1998 taxation year not just that portion of it that follows the day this Act receives Royal Assent.

Commencement

41.This Act comes into force on the day it receives Royal Assent.

Short title

42.The short title of this Act is the Small Business and Charities Protection Act, 1998.

Office of the Legislative Assembly of Ontario

Toronto, Ontario, Canada.