Bill 79, Fairness for Property Taxpayers Act, 1998

[36] Bill 79 As Amended by Standing Committee (PDF)

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Bill 79 1998

An Act to amend the Assessment Act, Municipal Act, Assessment Review Board Act and Education Act in respect of property taxes

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

PART I

Assessment Act Amendments

1. (1) Subsection 2 (3.1) of the Assessment Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 2, is amended by striking out the second sentence and substituting "In this subsection, "municipality" includes an upper-tier municipality but does not include a lower-tier municipality, both within the meaning of section 361.1 of the Municipal Act, and does not include a locality."

(2) Subsection 2 (3.2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 1, is repealed and the following substituted:

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 or cease to apply with respect to a taxation year after,

(a) for 1998, December 31, 1998 or such later deadline as the Minister may order for the municipality either before or after the December 31 deadline has passed;

(b) for 1999, March 31, 1999 or such later deadline as the Minister may prescribe either before or after the March 31 deadline has passed; or

(c) for a taxation year after 1999, 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.

(3) Paragraph 2 of subsection 2 (3.3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 1, is repealed.

(4) Section 2 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 2, 1997, chapter 29, section 2, 1997, chapter 43, Schedule G, section 18 and 1998, chapter 3, section 1, is further amended by adding the following subsection:

Municipal option classes, by-law to Minister

(3.4) A municipality that passes a by-law opting to have a class apply or cease to apply shall give the Minister a copy of the by-law within 14 days after the by-law was passed.

2. Paragraphs 1 and 2 of subsection 3 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 3, are repealed and the following substituted:

1. The land is liable to taxation but only as provided under section 368.3 of the Municipal Act or Division B of Part IX of the Education Act.

2. No assessed value or classification is required for the land.

3. The English version of subsection 16 (10) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 18, is further amended by striking out "considered by him or her" in the fourth and fifth lines and substituting "considered by the corporation".

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

Separate assessment of certain parts

17.3 (1) The Minister may make regulations providing for the assessment, as a separate property, of the portion of a property occupied by a tenant.

General or specific

(2) A regulation under subsection (1) may be general or specific in its application and may treat different municipalities and properties differently.

Applies only to commercial and industrial

(3) A regulation under subsection (1) may apply only to the commercial classes and industrial classes, both within the meaning of subsection 363 (20) of the Municipal Act.

5. Subsections 19 (3) and (4) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 12, are repealed and the following substituted:

Municipalities to opt in

(3) Regulations under subsection (2) shall provide that the regulations do not apply to land within a municipality unless the municipality has, in the prescribed manner, opted to have the regulations apply. In this subsection, "municipality" includes an upper-tier municipality but does not include a lower-tier municipality, both within the meaning of section 361.1 of the Municipal Act, and does not include a locality.

6. Section 34 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 22, 1997, chapter 29, section 18 and 1998, chapter 3, section 8, is further amended by adding the following subsection:

1998, municipal option exercised in 1999

(2.3) Subsection (2) applies with respect to a change event described in clause (c) of the definition of "change event" in subsection (2.2) that occurs in 1999 but that relates to 1998 if the Minister extended the deadline for that change event under clause 2 (3.2) (a) and the change event occurs before the deadline.

7. Section 35 of the Act, as amended by the Statutes of Ontario, 1997, chapter 29, section 19, 1997 chapter 31, section 143 and 1998, chapter 3, section 9, is further amended by adding the following subsection:

1998 taxation year, last day for complaining

(5) The following apply with respect to the 1998 taxation year:

1. Despite subsection (2.1), the last day for a person who is entitled to notice under subsection (1) or (2) to complain under section 40 is the later of,

i. the day that is 90 days after the notice required under subsection (1) is mailed, and

ii. December 31, 1998.

2. Paragraph 1 applies with respect to a complaint even if the complaint was delivered or mailed to the Assessment Review Board before paragraph 1 came into force.

8. (1) Subsection 40 (17) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 10, is repealed and the following substituted:

1998 taxation year, last day for complaining

(17) The following apply with respect to the 1998 taxation year:

1. Despite subsections (2.1) and (2.2), the last day for complaining is December 31, 1998.

2. Paragraph 1 applies with respect to a complaint even if the complaint was delivered or mailed to the Assessment Review Board before paragraph 1 came into force.

(2) Section 40 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 26, 1997, chapter 23, section 1, 1997, chapter 29, section 21, 1997, chapter 43, Schedule G, section 18 and 1998, chapter 3, section 10, is further amended by adding the following subsection:

Conflict with section 35

(18) If, in respect of a property, this section and section 35 provide for different last days for complaining under this section, the last day for complaining under this section is the later of them.

PART II

Municipal Act Amendments

9. Section 187 of the Municipal Act, as amended by the Statutes of Ontario, 1992, chapter 15, section 15 and 1996, chapter 32, section 48, is further amended by adding the following subsection:

Special rules, 1998 and 1999

(17) The following apply with respect to 1998 and 1999:

1. For 1998, the reference to 25 per cent in subsection (2) shall be deemed to be a reference to 35 per cent.

2. For 1999, the reference to 50 per cent in subsection (2) shall be deemed to be a reference to 60 per cent.

10. The definition of "payment in lieu of taxes" in section 361.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 32 and amended by 1998, chapter 15, Schedule D, section 19, is further amended by inserting, after "Act" in the fourth line, "taxes for municipal and school purposes payable by a designated electricity utility within the meaning of section 19.0.1 of the Assessment Act or by a corporation referred to in clause (d) of the definition of municipal electricity utility in Part VI of the Electricity Act, 1998".

11. (1) Paragraph 1 of subsection 363 (7) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out the portion before subparagraph i and substituting the following:

1. For the first year for which the property class applies with respect to a municipality, the tax ratio may be,

. . . . .

(2) 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, 1997, chapter 43, Schedule F, section 9 and 1998, chapter 3, section 14, is further amended by adding the following subsection:

Same, regulations in 1999

(13.1) Despite subsection (13), a regulation under clause (10) (b) or (b.1) that is made in 1999 may be retroactive to a date not earlier than January 1, 1998.

(3) Subsection 363 (20) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 14, is amended by striking out "In subsections (21) to (23)" at the beginning and substituting "In subsections (21) to (32)".

(4) 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, 1997, chapter 43, Schedule F, section 9 and 1998, chapter 3, section 14, is further amended by adding the following subsections:

Municipal option classes, new transition ratios

(27) The Minister of Finance may make regulations prescribing transition ratios for a year after 1998,

(a) for the commercial classes if a municipality opts to have a property class that is one of the commercial classes apply for the year and the property class did not apply within the municipality for the previous year; and

(b) for the industrial classes if a municipality opts to have a property class that is one of the industrial classes apply for the year and the property class did not apply within the municipality for the previous year.

Effect of new transition ratios

(28) If transition ratios are prescribed under subsection (27), paragraph 1 of subsection (7) applies, with necessary modifications, for the year with respect to which the new transition ratios apply.

Opting out of all optional commercial classes

(29) If, as a result of a municipality opting to have one or more of the commercial classes cease to apply for a year, none of the commercial classes, other than the commercial property class, apply within the municipality for the year, the commercial property class shall be deemed to have a transition ratio for the year that is equal to the average transition ratio for the commercial classes for the year under paragraph 2 of subsection (21) and paragraph 1 of subsection (7) applies, with necessary modifications, for the year with respect to which the deemed transition ratio applies.

Opting out of all optional industrial classes

(30) If, as a result of a municipality opting to have one or more of the industrial classes cease to apply for a year, none of the industrial classes, other than the industrial property class, apply within the municipality for the year, the industrial property class shall be deemed to have a transition ratio for the year that is equal to the average transition ratio for the industrial classes for the year under paragraph 2 of subsection (21) and paragraph 1 of subsection (7) applies, with necessary modifications, for the year with respect to which the deemed transition ratio applies.

1998, new tax ratios

(31) A council that has passed, before the applicable deadline expired, a by-law under subsection (3) or (4) establishing tax ratios for 1998, may pass a by-law establishing new tax ratios for 1998, subject to the following:

1. The by-law may not be passed after December 31, 1998 or such later deadline as the Minister may prescribe either before or after the December 31 deadline has passed.

2. The by-law may not establish a new tax ratio for a property class that is different from the tax ratio previously established for the property class unless the property class is one of the commercial classes or industrial classes.

3. Paragraph 2 does not apply with respect to a property class that the municipality opts to have apply for 1998 and for which no tax ratio was previously established.

4. The weighted average for the year of the new tax ratios for the commercial classes must equal the weighted average for the year of the tax ratios previously established for the commercial classes.

5. The weighted average for the year of the new tax ratios for the industrial classes must equal the weighted average for the year of the tax ratios previously established for the industrial classes.

1999, 2000, special rules

(32) The following apply with respect to by-laws establishing tax ratios for 1999 and 2000:

1. The by-law may not establish a tax ratio for a property class that is different from the tax ratio for the property class for the previous year unless the property class is one of the commercial classes or industrial classes.

2. Paragraph 1 does not apply with respect to a property class that the municipality opts to have apply for the year and for which there was no tax ratio for the previous year.

3. The weighted average for the year of the tax ratios for the commercial classes must equal the average transition ratio for the commercial classes for the year under paragraph 2 of subsection (21).

4. The weighted average for the year of the tax ratios for the industrial classes must equal the average transition ratio for the industrial classes for the year under paragraph 2 of subsection (21).

Weighted average

(33) For the purposes of subsections (31) and (32), the weighted average, for a year, of the tax ratios for property classes shall be determined in accordance with subsection (24).

Regulations

(34) The Minister may make regulations prescribing a later deadline for the purposes of paragraph 1 of subsection (31).

Same

(35) The Minister of Finance may make regulations prescribing circumstances in which subsection (31) or (32) does not apply and prescribing requirements relating to tax ratios, other than those in subsections (31) and (32), that apply in such circumstances.

12. Section 364 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by adding the following subsections:

No delegations for 1998, 1999, 2000

(14) No council shall pass a by-law under subsection (1) to delegate the authority to pass a by-law establishing tax ratios for 1998, 1999 or 2000.

Regulations, existing delegations

(15) The Minister of Finance may make regulations relating to by-laws passed under subsection (1) before subsection (14) came into force.

Same

(16) Regulations under subsection (15) may,

(a) continue or repeal a by-law or provide for its continuation, amendment or repeal;

(b) with respect to a municipality affected by a by-law under subsection (1) that is continued, amended or repealed,

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

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

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

Same

(17) A regulation under subsection (15),

(a) may be general or particular in its application and may be limited to specific municipalities;

(b) may be retroactive to a date not earlier than January 1, 1998.

13. (1) Section 366 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 23, section 10, 1997, chapter 29, section 34 and 1998, chapter 3, section 15, is further amended by adding the following subsection:

Adjustment

(8.1) The instalment under paragraph 2 of subsection (8) shall be adjusted in accordance with the following:

1. The instalment shall be decreased by 50 per cent of the county's share of the costs, for the prior year, of deferrals, cancellations or other relief under a by-law under subsection 373 (1) or 442.2 (1).

2. The instalment shall be increased by 50 per cent of the county's share of any taxes, deferred under a by-law under subsection 373 (1), that were due in the prior year.

(2) Section 366 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 23, section 10, 1997, chapter 29, section 34 and 1998, chapter 3, section 15, is further amended by adding the following subsections:

Funding of rebates under section 442.2, commercial

(16.2) The tax rates for the commercial classes, within the meaning of subsection 363 (20), shall be set as allowed under the regulations under subsection (16.1) so that the tax rates are higher than would be allowed under paragraph 2 of subsection (4) to the extent necessary to raise additional taxes to fund the upper-tier municipality's share of the cost of rebates under section 442.2 on property in the commercial classes.

Funding of rebates under section 442.2, industrial

(16.3) The tax rates for the industrial classes, within the meaning of subsection 363 (20), shall be set as allowed under the regulations under subsection (16.1) so that the tax rates are higher than would be allowed under paragraph 2 of subsection (4) to the extent necessary to raise additional taxes to fund the upper-tier municipality's share of the cost of rebates under section 442.2 on property in the industrial classes.

Special reductions

(16.4) An upper-tier municipality may, with the written approval of the Minister of Finance, set a tax rate for a property class that is lower than would otherwise be allowed under this section.

(3) Section 366 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 23, section 10, 1997, chapter 29, section 34 and 1998, chapter 3, section 15, is further amended by adding the following subsections:

Regulations, 1999

(19) The Minister may make regulations varying the application of subsections (8) and (8.1) with respect to 1999.

General or specific, etc.

(20) A regulation under subsection (19) may be general or specific in its application and may treat different municipalities differently.

14. Section 368 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1998, chapter 3, section 16, is further amended by adding the following subsections:

Funding of rebates under section 442.2, commercial

(6) The tax rates for the commercial classes, within the meaning of subsection 363 (20), shall be set as allowed under the regulations under subsection (5) so that the tax rates are higher than would be allowed under paragraph 2 of subsection (4) to the extent necessary to raise additional taxes to fund the local municipality's share of the cost of rebates under section 442.2 on property in the commercial classes.

Funding of rebates under section 442.2, industrial

(7) The tax rates for the industrial classes, within the meaning of subsection 363 (20), shall be set as allowed under the regulations under subsection (5) so that the tax rates are higher than would be allowed under paragraph 2 of subsection (4) to the extent necessary to raise additional taxes to fund the local municipality's share of the cost of rebates under section 442.2 on property in the industrial classes.

Special reductions

(8) A local municipality may, with the written approval of the Minister of Finance, set a tax rate for a property class that is lower than would otherwise be allowed under this section.

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

New 1998 levy

368.0.1 (1) This section applies with respect to a single-tier municipality or an upper-tier municipality and its lower-tier municipalities if a by-law described in subsection (2) is passed, amended or repealed, on or after the day the Fairness for Property Taxpayers Act, 1998 receives Royal Assent and the passage, amendment or repeal affects the 1998 levy for the commercial classes or industrial classes.

By-laws triggering new levy

(2) The by-laws referred to in subsection (1) are the following:

1. A by-law opting, under the regulations under the Assessment Act, to have a property class apply or cease to apply.

2. A by-law under subsection 363 (3) or (4) (Establishment of tax ratios).

3. A by-law under subsection 368.2 (1) (Graduated tax rates).

Application, by-laws under section 442.2

(3) This section also applies with respect to a single-tier municipality or an upper-tier municipality and its lower-tier municipalities if a by-law under subsection 442.2 (1) is passed, amended or repealed, on or after the day the Fairness for Property Taxpayers Act, 1998 receives Royal Assent, including repealed under paragraph 1 of subsection 442.2 (13.2).

Limitation on new 1998 levy

(4) Nothing may be done under this section that affects the tax rate for 1998 for a property in a property class other than the commercial classes and industrial classes within the meaning of subsection 363 (20).

Tiered municipalities

(5) The following apply with respect to an upper-tier municipality and its lower-tier municipalities:

1. The council of the upper-tier municipality shall pass by-laws with respect to 1998,

i. under subsection 366 (2) and, if applicable, subsection 366 (3), and

ii. under subsection 257.12.1 (3) of the Education Act.

2. The by-laws required under paragraph 1 shall be passed on or before March 1, 1999 or such later deadline as the Minister may prescribe either before or after the March 1 deadline has passed.

3. The council of each lower-tier municipality shall pass by-laws levying tax rates for 1998,

i. under subsections 366 (5) and 368 (2) and, if applicable, 368 (3), and

ii. under the Education Act.

Single-tier municipalities

(6) The following apply with respect to a single-tier municipality:

1. The council of the municipality shall pass by-laws levying tax rates for 1998,

i. under subsection 368 (2) and, if applicable, 368 (3), and

ii. under the Education Act.

Deadlines not to apply

(7) No deadlines under any other section of this Act or under the Education Act apply with respect to anything required or allowed under this section.

Regulations

(8) The Minister may make regulations, prescribing a deadline for the purposes of paragraph 2 of subsection (5).

General or particular

(9) A regulation under subsection (8) may be general or specific in its application and may be restricted to an upper-tier municipality.

Definition

(10) In this section, "

single-tier municipality" means a municipality that is not an upper-tier municipality nor a lower-tier municipality.

Re-billing for 1998

368.0.2 (1) This section applies with respect to a local municipality affected by a by-law that affects taxes for 1998 passed, on or after the day the Fairness for Property Taxpayers Act, 1998 receives Royal Assent, under one of the following provisions:

1. Section 368.0.1 (New 1998 levy).

2. Subsection 372 (1) (Phase-in of 1998 assessment-related changes).

3. Subsection 447.3 (1) (By-law making Part XXII.1 apply).

4. Subsection 447.44 (1) (By-law making Division B of Part XXII.2 apply).

Same, other changes

(2) This section also applies with respect to a local municipality if any taxes for 1998 are changed by a reduction under section 447.57 or an increase under paragraph 2 of subsection 442.2 (13.2).

Adjustments to 1998 taxes, etc.

(3) The following apply with respect to 1998 taxes:

1. No obligation to pay 1998 taxes or interest or penalties on such taxes is affected except to the extent that such an obligation is varied pursuant to a by-law described in subsection (1) or by a change described in subsection (2).

2. The clerk of the municipality shall amend the collector's roll for 1998 as necessary as a result of the by-law described in subsection (1) or the change described in subsection (2).

3. The collector of the municipality shall collect any additional amounts owing as a result of the by-law described in subsection (1) or the change described in subsection (2) and, for that purpose, the municipality shall either issue supplementary tax notices for the 1998 taxation year or increase the taxes payable on a tax notice for the 1999 taxation year, as the council of the municipality may determine.

4. If, as a result of the by-law described in subsection (1) or the change described in subsection (2), the 1998 taxes are reduced, the municipality shall reduce the taxes payable on the first tax notice for the 1999 taxation year after the collector's roll is amended under paragraph 2. If the amounts paid on account of 1998 taxes exceed the 1998 taxes, the municipality may refund the excess amount instead of reducing the taxes payable on that first tax notice. If the municipality refunds the excess amount, the municipality shall give a notice with the refund.

5. This paragraph applies if, under paragraph 3, the municipality issues a supplementary notice or increases the taxes payable on a tax notice for the 1999 taxation year or, under paragraph 4, reduces the taxes payable on a tax notice for the 1999 taxation year or gives a notice with a refund. The notice shall set out,

i. the amount the 1998 taxes would have been without the by-law described in subsection (1) or the change described in subsection (2),

ii. the amount of the 1998 taxes,

iii. the difference between the taxes described in subparagraph i and the taxes described in subparagraph ii,

iv. explanations of how the taxes described in subparagraph i and the taxes described in subparagraph ii were calculated, and

v. any other prescribed information.

6. The municipality,

i. shall waive interest and penalties on amounts that were not paid when they were due and that, as a result of the by-law described in subsection (1) or the change described in subsection (2), are no longer owed, and

ii. may pay interest on amounts it refunds or gives a reduction for under paragraph 4.

7. For the purposes of subparagraph i of paragraph 6, if different parts of the taxes were due at different times the amounts that are no longer owed shall be deemed to have been the latest taxes due.

Regulations

(4) The Minister of Finance may make regulations,

(a) governing the explanations required under subparagraph iv of paragraph 5 of subsection (3);

(b) prescribing information for the purposes of subparagraph v of paragraph 5 of subsection (3).

Limitations on 1999 levies

368.0.3 (1) The following apply with respect to the levying of tax rates for 1999:

1. The council of a municipality may not levy tax rates for 1999 before December 31, 1998 or such later date as the Minister may prescribe either before or after December 31, 1998.

2. After December 31, 1998 or such later date as the Minister may prescribe for the purposes of paragraph 1, the council of the municipality may not levy tax rates for 1999 if the 1998 levy on a property class is affected by a by-law described in subsection 368.0.1 (2) or (3) and the council has not satisfied its obligations under subsection 368.0.1 (5) or (6).

Regulations

(2) The Minister may make regulations,

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

(b) allowing the council of a municipality, despite subsection (1), to pass a by-law under a section described in subsection (3) in the circumstances set out in the regulation and varying the application, for that purpose, of the section described in subsection (3).

Same

(3) The sections referred to in clause (2) (b) are the following:

1. Section 370.

2. Section 447.30, including that section as it applies under section 447.53.

Same

(4) The following apply with respect to regulations under clause (2) (b):

1. A regulation may be general or specific in its application and may treat different municipalities and different property classes differently.

2. A regulation may allow the levying of tax rates on only some property classes.

3. A regulation varying the application of section 447.30, including that section as it applies under section 447.53, may provide for the levying or determination of taxes on a basis other than the assessment in the frozen assessment listing under Part XXII.1 or Part XXII.2.

Non-application of section

(5) This section does not apply to a municipality with respect to which Part XXII.1 applies if the by-law that makes Part XXII.1 apply was passed before the day the Fairness for Property Taxpayers Act, 1998 received Royal Assent.

16. (1) Subsection 369 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 38, is repealed and the following substituted:

Interim financing, upper-tier

(1) The council of an upper-tier municipality, other than a county, before the adoption of the estimates for a year, may by by-law requisition a sum from each lower-tier municipality not exceeding an amount determined by,

(a) adding the prescribed percentage (or 50 per cent if no percentage is prescribed) of the amount that, in the upper-tier rating by-law for the previous year, was estimated to be raised in the particular lower-tier municipality;

(b) subtracting the prescribed percentage (or 50 percent if no percentage is prescribed) of the upper-tier municipality's share of the costs, for the previous year, of deferrals, cancellations or other relief under a by-law under subsection 373 (1) or 442.2 (1); and

(c) adding the prescribed percentage (or 50 percent if no percentage is prescribed) of the upper-tier municipality's share of any taxes, deferred under a by-law under subsection 373 (1), that were due in the previous year.

(2) Section 369 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 38, is further amended by adding the following subsections:

Regulations, 1999

(5) The Minister may make regulations varying the application of subsection (1) with respect to 1999 and governing what a by-law under subsection (1) may require under subsection (2) with respect to 1999.

General or specific, etc.

(6) A regulation under subsection (5) may be general or specific in its application and may treat different municipalities differently.

17. (1) Paragraph 1 of subsection 370 (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 39, is amended by striking out "in the previous year" in the seventh line and substituting "for the previous year".

(2) Paragraph 4 of subsection 370 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 20, is repealed and the following substituted:

4. For the purposes of calculating the total amount raised for all purposes for the previous year under paragraph 1, if any tax rates were levied for only part of the previous 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.

(3) 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 and 1998, chapter 3, section 20, is further amended by adding the following paragraph:

5. For the purposes of paragraph 1, the total amount raised for all purposes for the previous year shall be adjusted in accordance with the following:

i. the amount shall be decreased by the costs, for the previous year, of deferrals, cancellations or other relief under a by-law under subsection 373 (1) or 442.2 (1),

ii. the amount shall be increased by any taxes, deferred under a by-law under subsection 373 (1) that were due in the previous year.

(4) 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, 1997, chapter 43, Schedule F, section 9 and 1998, chapter 3, section 20, is further amended by adding the following subsection:

Adjustments to interim levy

(7.1) If the council of the municipality is of the opinion that the taxes levied under subsection (1) on a property are too high or too low in relation to its estimate of the total taxes that will be levied on the property, the council may, by by-law, adjust the taxes on the property under subsection (1) to the extent it considers appropriate.

(5) 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, 1997, chapter 43, Schedule F, section 9 and 1998, chapter 3, section 20, is further amended by adding the following subsections:

Regulations, 1999 levy

(14) The Minister may make regulations varying the application of this section, other than subsections (5) and (6), with respect to 1999.

General or specific, etc.

(15) A regulation under subsection (14) may be general or specific in its application, may treat different property classes and different municipalities differently and may allow the levying of tax rates on only some property classes.

18. (1) Subsection 372 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1998, chapter 3, section 21, is further amended by striking out "In 1998" at the beginning and substituting: "On or before December 31, 1998 or such later deadline as the Minister may prescribe either before or after the December 31 deadline has passed".

(1.1) Subsection 372 (11) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 21, is amended by adding, at the end, "However, a by-law under subsection (1) may provide that it does not apply with respect to payments in lieu of taxes."

(2) Section 372 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 42 and 1998, chapter 3, section 21, is further amended by adding the following subsections:

Regulations

(16) The Minister may make regulations prescribing a later deadline for the purposes of subsection (1).

Regulations can be specific

(17) A regulation under subsection (16) may be general or specific in its application and may be limited to specific municipalities.

19. (1) Subsection 373 (6) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "tax increases of its lower-tier municipalities" at the end and substituting "tax increases for lower-tier and school purposes".

(2) Section 373 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 43 and 1998, chapter 3, section 23, is further amended by adding the following subsections:

By-law may apply to taxes already paid

(11.1) A by-law may provide for the cancellation or deferral of, or other relief in respect of, taxes that have already been paid.

Interest and penalties

(11.2) The municipality whose council passed the by-law under subsection (1) or, if the municipality is an upper-tier municipality, the lower-tier municipality,

(a) may waive interest and penalties on amounts that were not paid when they were due and that, as a result of the deferral, cancellation or other relief, are no longer owed; and

(b) may pay interest on amounts paid on account of taxes that, as a result of the deferral, cancellation or other relief, exceed the taxes.

Same

(11.3) For the purposes of clause (11.2) (a), if different parts of the taxes were due at different times the amounts that are no longer owed shall be deemed to have been the latest taxes due.

20. Subsections 392 (4) and (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule F, section 9, are repealed.

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

Notices under ss. 392 and 393

393.1 (1) The Minister of Finance may require that notices under section 392 or 393 be in a form approved by the Minister of Finance. A municipality shall not vary the form unless the variation is expressly authorized by the Minister of Finance.

Contents of notice

(2) The Minister of Finance may make regulations,

(a) prescribing information that must or that may be included on notices under section 392 or 393 and prohibiting other information from being included on the notice without the express authorization of the Minister of Finance;

(b) respecting the giving of notices under section 392 or 393.

22. Section 442.1 of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 27, is amended by adding the following subsections:

Application, Part XXII.2, Division B

(11.1) The following apply with respect to property to which Division B of Part XXII.2 applies:

1. The amount of a rebate required under paragraph 1 of subsection (3) shall be determined in accordance with the regulations instead of as provided under paragraph 2 of subsection (3).

2. A rebate shall be paid at the times and in the instalments provided for in the regulations instead of as provided under paragraphs 2 and 3 of subsection (3).

Regulations

(11.2) The Minister of Finance may make regulations,

(a) governing the amount of rebates of taxes on property to which Division B of Part XXII.2 applies;

(b) governing when and in what instalments rebates of taxes on property to which Division B of Part XXII.2 applies shall be paid;

(c) providing for the repayment of all or part of rebates of taxes on property to which Division B of Part XXII.2 applies that are paid under a program established before regulations under clause (a) come into force.

Sharing of repaid rebates

(11.3) If regulations under clause (11.2) (c) provide for the repayment of all or part of rebates, the revenue from those repaid rebates shall be shared by municipalities and school boards in the same proportions as they shared the costs of the rebates.

23. (1) Subsection 442.2 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 28, is repealed and the following substituted:

Rebates

(1) The council of a municipality, other than a lower-tier municipality, may, by by-law passed on or before February 1 of the year to which it relates, provide for rebates for owners of all or part of the eligible amount on properties in the property classes, described in subsection (2), that are designated in the by-law.

(2) Subsections 442.2 (7) and (8) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 28, are repealed and the following substituted:

Notice to Minister of Finance

(7) Within 14 days after passing a by-law under subsection (1), the municipality shall give the Minister of Finance a notice of the passing of the by-law and the notice shall include a copy of the by-law, the estimated costs of the rebates under the by-law and such other information as may be prescribed.

When by-law in effect

(8) A by-law under subsection (1) is of no effect unless the Minister of Finance informs the municipality, in writing, that the costs of the rebates will be shared by school boards.

Sharing costs of rebates

(8.1) The costs of a rebate for 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.

(3) Clauses 442.2 (12) (a) and (c) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 28, are repealed and the following substituted:

(a) extending the deadline for passing a by-law under subsection (1) either before or after the deadline has passed;

. . . . .

(c) governing the determination of an eligible amount for a taxation year after 2000 for the purposes of clause (b) of the definition of "eligible amount" in subsection (14).

(4) Section 442.2 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 28, is amended by adding the following subsection:

Regulations, Minister of Finance

(12.1) The Minister of Finance may make regulations,

(a) governing by-laws under subsection (1) and the provision of rebates under such by-laws;

(b) prescribing information for the purposes of subsection (7).

(5) Subsection 442.2 (13) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 28, is amended by inserting "or (12.1)" after "(12)" in the first line.

(6) Section 442.2 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 28, is amended by adding the following subsections:

Special rules for 1998

(13.1) The following apply with respect to 1998:

1. The deadline in subsection (1) is extended to December 31, 1998.

2. Regulations may be made under clause (12) (a) further extending the deadline extended by paragraph 1.

Certain by-laws passed in 1998

(13.2) The following apply with respect to by-laws passed under subsection (1) as it read on the day before the Fairness for Property Taxpayers Act, 1998 received Royal Assent:

1. The by-law is repealed.

2. The 1998 taxes on a property shall be increased by the amount of any rebate already paid under the by-law in respect of the property.

3. If the person who received a rebate under the by-law gave all or part of the rebate or benefit of the rebate to another person as required under the by-law, that other person shall pay an amount equal to the amount of the rebate that they were given, or the value of the benefit that they were given, to the person who received the rebate.

4. The amount a person is required to pay another person under paragraph 3 is a debt owed to that other person.

(7) The definition of "assessment-related tax increase" in subsection 442.2 (14) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 28, is repealed and the following substituted:

"

eligible amount" means, in relation to a property,

(a) for the 1998, 1999 or 2000 taxation year,

(i) subject to subclause (ii), the amount by which the taxes for the year without any reduction under section 447.57 exceed the maximum taxes determined in accordance with section 447.58, or

(ii) if Part XXII.1 or Division B of Part XXII.2 applies with respect to the property, an amount equal to zero, or

(b) for a taxation year after 2000, the amount determined in accordance with the regulations.

24. (1) Paragraph 1 of subsection 444.1 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is amended by striking out "the day this section came into force" in the second line and substituting "June 11, 1998".

(2) Paragraph 4 of subsection 444.1 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is amended by striking out "the day this section came into force" in the second and third lines and substituting "June 11, 1998".

(3) Clause (a) of the definition of "Property taxes" in subsection 444.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed and the following substituted:

(a) except as provided in clause (b), the property taxes for the year on the property or, if only a portion of the property is in one of the commercial classes or industrial classes within the meaning of subsection 363 (20), the property taxes for the year on that portion.

(4) Subclause (b) (i) of the definition of "Property taxes" in subsection 444.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is amended by striking out "the property taxes for the year" at the beginning and substituting "the property taxes for the year described in clause (a)".

(5) Paragraph 1 of subsection 444.1 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed.

(6) Paragraph 2 of subsection 444.1 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed and the following substituted:

2. The notice must be given on or before January 31 or, if the time for returning the assessment roll is extended under the Assessment Act, the day that is 30 days after the assessment roll is returned.

(7) Paragraphs 3 and 4 of subsection 444.1 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, are repealed.

(8) Paragraphs 1 and 3 of subsection 444.1 (8) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, are repealed.

(9) Subsection 444.1 (14) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed and the following substituted:

Maximum amount, if Part XXII.1 applies

(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 what the tenant's cap would be under subsection 447.24 (7) without any amount being determined under paragraph 1 of that subsection.

Maximum amount if Part XXII.2 applies

(14.1) If section 447.24, as it applies under section 447.40, applies with respect to the leased premises, the maximum amount under subsection (3) in respect of the leased premises shall be what the tenant's cap would be under subsection 447.24 (7), as it applies under section 447.40, without any amount being determined under paragraph 1 of subsection 447.24 (7).

1998, special rules

(14.2) The following apply with respect to the 1998 taxation year:

1. Instead of giving the notices necessary under subsection (5) to require the tenant to pay the landlord an amount, the landlord may give the tenant a single notice in accordance with subsection (8) and such a notice may, despite paragraph 2 of subsection (8), be given at any time on or before December 15, 1998.

2. If the landlord gives the tenant a notice in accordance with paragraph 1, the amount is due, despite subsection (6), on the later of,

i. January 15, 1999, and

ii. the date set out in the notice.

3. This subsection applies with respect to a notice even if the notice was given before this subsection came into force.

4. Despite paragraph 3, this subsection does not apply if the tenant would be required, in the absence of this subsection, to pay an amount under this section.

1998, special rules if tax notices are late

(14.3) The following apply with respect to the application of subsection (14.2) with respect to a property if the final tax notice for the property for 1998 has not been mailed or delivered by the municipality before November 17, 1998 and a notice that the landlord intends to require the tenant to pay an amount under this section is given in accordance with paragraph 1 of subsection (14.2) but the notice does not set out what is required under paragraph 4 of subsection (8):

1. The tenant is required to pay the landlord an amount if the landlord gives the tenant a notice within 30 days after the final tax notice for the property is mailed or delivered. For the purposes of this paragraph, the final tax notice is the tax notice that provides for the payment of the balance of the 1998 taxes but a notice to which paragraph 5 of subsection 368.0.2 (3) applies is such a notice only if there was no previous notice that provided for the payment of the balance of the 1998 taxes.

2. The notice must set out what is required under paragraph 4 of subsection (8).

3. The amount is due, despite subsection (6), on the later of,

i. January 15, 1999,

ii. the date set out in the notice given in accordance with paragraph 1, and

iii. the day that is 30 days after the day the notice given in accordance with paragraph 1 is given.

4. This subsection applies with respect to a notice even if the notice was given before this subsection came into force.

1998 rebilling decrease, adjustment

(14.4) If section 368.0.2 applies with respect to a decrease in the taxes on the property for 1998 and the decrease results in the amount that the tenant was required to pay under the notice under subsection (8), (14.2) or (14.3) being more than the maximum amount under subsection (3) that the tenant may be required to pay, the landlord shall, within 30 days after the notice under paragraph 4 of subsection 368.0.2 (3) is mailed or delivered,

(a) give the tenant a notice adjusting the amount the tenant is required to pay so that it does not exceed the maximum amount under subsection (3); and

(b) if the tenant has paid more than the adjusted amount, refund the overpayment to the tenant.

If 1998 taxes subsequently increased

(14.5) If section 368.0.2 applies with respect to an increase in the taxes on the property for 1998 and the increase occurs after a notice under subsection (8), (14.2) or (14.3) is given, the landlord may give the tenant a further notice.

Same

(14.6) Subsection (8) applies to the giving of a notice under subsection (14.5), except that,

(a) despite paragraph 2 of subsection (8), the notice may be given within 30 days after the notice under paragraph 3 of subsection 368.0.2 (3) is mailed or delivered; and

(b) in addition to the information required under paragraph 4 of subsection (8), the notice shall set out the amount of the increase the tenant is required to pay.

Same

(14.7) A tenant who receives a notice under subsection (14.5) shall pay the increased amount within 30 days after the day the notice is given.

Notices under this section

(14.8) The following apply with respect to a notice under this section:

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

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

Sub-leases

(14.9) The following apply if the landlord is not the owner of the property but has acquired an interest in the property under a lease:

1. The notice referred to in paragraph 1 of subsection (5) may, despite paragraph 2 of subsection (7), 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).

2. The notice referred to in paragraph 2 of subsection (5) may, despite paragraph 2 of subsection (8), be given on or before the day that is 15 days after the landlord is given a valid notice referred to in paragraph 2 of subsection (5).

3. A notice under paragraph 1 of subsection (14.2) may, despite that paragraph, be given on or before the day that is 15 days after the landlord is given a valid notice under that paragraph.

4. A notice under paragraph 1 of subsection (14.3) may, despite that paragraph, be given on or before the day that is 15 days after the landlord is given a valid notice under that paragraph.

5. A notice under clause (14.4) (a) shall be given within 15 days after the landlord is given a valid notice under that clause instead of within the time period set out in subsection (14.4).

6. A notice under subsection (14.5) may, despite clause (14.6) (a), be given on or before the day that is 15 days after the landlord is given a valid notice under subsection (14.5).

25. (1) Paragraph 1 of subsection 444.2 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed.

(2) Paragraph 2 of subsection 444.2 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed and the following substituted:

2. The notice must be given on or before January 31 or, if the time for returning the assessment roll is extended under the Assessment Act, the day that is 30 days after the assessment roll is returned.

(3) Paragraphs 3 and 4 of subsection 444.2 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, are repealed.

(4) Paragraphs 1 and 3 of subsection 444.2 (8) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, are repealed.

(5) Section 444.2 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is amended by adding the following subsections:

1998, special rules

(9.1) The following apply with respect to the 1998 taxation year:

1. Instead of giving the notices necessary under subsection (5) to require the tenant to pay the landlord an amount, the landlord may give the tenant a single notice in accordance with subsection (8) and such a notice may, despite paragraph 2 of subsection (8), be given at any time on or before December 15, 1998.

2. If the landlord gives the tenant a notice in accordance with paragraph 1, the amount is due, despite subsection (6), on the later of,

i. January 15, 1999, and

ii. the date set out in the notice.

3. This subsection applies with respect to a notice even if the notice was given before this subsection came into force.

4. Despite paragraph 3, this subsection does not apply if the tenant would be required, in the absence of this subsection, to pay an amount under this section.

1998, special rules if notices are late

(9.2) The following apply with respect to the application of subsection (9.1) with respect to a property if the notice for the business improvement area charges for the property for 1998 has not been mailed or delivered by the municipality before November 17, 1998 and a notice that the landlord intends to require the tenant to pay an amount under this section is given in accordance with paragraph 1 of subsection (9.1) but the notice does not set out what is required under paragraph 4 of subsection (8):

1. The tenant is required to pay the landlord an amount if the landlord gives the tenant a notice within 30 days after the notice for the business improvement area charges for the property is mailed or delivered.

2. The notice must set out what is required under paragraph 4 of subsection (8).

3. The amount is due, despite subsection (6), on the later of,

i. January 15, 1999,

ii. the date set out in the notice given in accordance with paragraph 1, and

iii. the day that is 30 days after the day the notice given in accordance with paragraph 1 is given.

4. This subsection applies with respect to a notice even if the notice was given before this subsection came into force.

Notices under this section

(9.3) The following apply with respect to a notice under this section:

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

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

Sub-leases

(9.4) The following apply if the landlord is not the owner of the property but has acquired an interest in the property under a lease:

1. The notice referred to in paragraph 1 of subsection (5) may, despite paragraph 2 of subsection (7), 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).

2. The notice referred to in paragraph 2 of subsection (5) may, despite paragraph 2 of subsection (8), be given on or before the day that is 15 days after the landlord is given a valid notice referred to in paragraph 2 of subsection (5).

3. A notice under paragraph 1 of subsection (9.1) may, despite that paragraph, be given on or before the day that is 15 days after the landlord is given a valid notice under that paragraph.

4. A notice under paragraph 1 of subsection (9.2) may, despite that paragraph, be given on or before the day that is 15 days after the landlord is given a valid notice under that paragraph.

26. Subsection 447.1 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by adding the following definition:

"

classification" includes a determination that land is in or is no longer in a subclass prescribed under paragraph 1 of subsection 8 (1) of the Assessment Act. ("classification")

27. (1) Section 447.3 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by adding the following subsection:

No application to farm land awaiting development

(4.1) This Part does not apply with respect to property in the subclasses prescribed under paragraph 1 of subsection 8 (1) of the Assessment Act and, for the purposes of this Part, the commercial property class, the industrial property class and the multi-residential property class shall be deemed to not include property in those subclasses.

(2) Subsection 447.3 (5) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is repealed and the following substituted:

Deadline for passing by-law

(5) A by-law under subsection (1) may not be passed after December 31, 1998 or such later deadline as the Minister of Finance may order for the municipality either before or after the December 31 deadline has passed.

(3) Paragraph 2 of subsection 447.3 (6) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is repealed.

(4) Section 447.3 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by adding the following subsections:

Regulations, exemptions

(7) The Minister of Finance may make regulations exempting property from the application of this Part.

Exempt property deemed not in classes

(8) The commercial classes and the industrial classes both within the meaning of subsection 363 (20) and the multi-residential property class shall be deemed, for the purposes of this Part, to not include property exempted from the application of this Part.

General or specific

(9) A regulation under subsection (7) may be general or specific in its application and may treat different municipalities and properties differently.

28. (1) Paragraph 1 of section 447.4 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by adding at the end "If the by-law was passed before the Fairness for Property Taxpayers Act, 1998 received Royal Assent, it may not be amended."

(2) Paragraph 3 of section 447.4 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is repealed.

(3) Section 447.4 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by adding the following paragraph:

6. If the council of the municipality passed a by-law under subsection 368.2 (1) for 1998 with respect to a property class with respect to which the by-law under subsection 447.3 (1) applies, the by-law under subsection 368.2 (1) also applies for 1999 and 2000 and may not be amended with respect to those years.

29. Subsection 447.5 (2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is repealed and the following substituted:

Basis of 1998 listing

(2) The frozen assessment listing for 1998 shall be based on the assessment roll for 1997, as most recently revised, including any assessments made under section 33 of the Assessment Act in respect of 1997, with the changes required under this Part.

30. Section 447.10 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by adding the following subsections:

Special rule, certain new buildings

(4) Subsection (3) applies if the assessment of the property is increased as a result of the erection of a new building and the following are satisfied:

1. There is another building on the property that was on the property on January 1, 1998 and that remains after the erection of the new building.

2. The increase in the assessment on the assessment roll is less than 50 per cent of the assessment on the assessment roll before the increase.

Application to 1998, supplementary assessments

(5) This section also applies, with necessary modifications, with respect to the frozen assessment listing for 1998 if a further assessment of a property could have been, but was not, made under section 34 of the Assessment Act for 1997 but the increase that would have resulted from that further assessment is reflected in the assessment set out in the assessment roll for 1998.

31. Paragraph 6 of subsection 447.15 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by striking out "3 and 4" at the end and substituting "3, 4 and 5".

32. (1) Paragraph 3 of subsection 447.16 (2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by striking out "the previous year to the current year" in the fifth and sixth lines and substituting "1997 to 1998".

(2) Subparagraph i of paragraph 2 of subsection 447.16 (4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by inserting "in the upper-tier municipality" after "class" in the last line.

(3) Subparagraph ii of paragraph 2 of subsection 447.16 (4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by adding at the end "in the lower-tier municipality".

33. (1) Paragraph 2 of subsection 447.19 (4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is repealed and the following substituted:

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 in the municipality equals the total 1998 tax increase phase-ins for the year for all the properties in the property class in the municipality. In this paragraph, if the property is in an upper-tier municipality, "municipality" means the upper-tier municipality.

(2) Section 447.19 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by adding the following subsection:

Modifications, omissions from 1997 assessment

(7) If any increases are made under section 33 of the Assessment Act to the assessment for the property for 1997, the uncapped 1998 taxes shall be what they would be if the corresponding changes were made to the assessment on the assessment roll used to determine the uncapped 1998 taxes.

34. Section 447.20 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by adding the following subsection:

Sharing so that no surplus or shortfall

(2) The council of an upper-tier municipality with respect to which this Part applies shall pass a by-law requiring adjustments between the upper-tier municipality and the lower-tier municipalities so that neither the upper-tier municipality nor any lower-tier municipality has a surplus or shortfall as a result of adjustments under paragraph 3 of subsection 447.15 (1).

35. Subsection 447.24 (6) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by adding the following paragraph:

4. For 1998, the amount is due at the end of 1999, despite paragraphs 2 and 3. This paragraph does not apply if the by-law that made this Part apply with respect to the property was passed before the day the Fairness for Property Taxpayers Act, 1998 received Royal Assent.

36. (1) Paragraph 6 of subsection 447.30 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by striking out "Subsections 370 (2), (5), (6) and (7)" in the first line and substituting "Subsections 370 (2), (5), (6), (7) and (7.1)".

(2) Subsection 447.30 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30, is amended by adding the following paragraph:

7. Paragraph 4 applies, with necessary modifications, with respect to the mill rate applied under paragraph 5 of section 447.21 to determine the taxes levied under paragraph 1.

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

PART XXII.2

CAPPING OF TAXES FOR CERTIN PROPERTY CLASSES FOR 1998, 1999 AND 2000 - 10/5/5 PERCENT CAP

Division A

Common provisions

Interpretation

447.35 (1) Section 447.1 applies as though it formed part of this Part with such modifications as are necessary.

Definitions

(2) In this Part, "

commercial classes" means commercial classes within the meaning of subsection 363 (20); ("catégories commerciales")

"

industrial classes" means industrial classes within the meaning of subsection 363 (20); ("catégories industrielles")

"

payment in lieu of taxes" means a payment in lieu of taxes within the meaning of section 361.1. ("paiement tenant lieu d'impôts")

Part applies to 1998, 1999 and 2000

447.36 (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), as that clause applies under section 447.43.

Property that Part applies to

447.37 (1) This Part applies with respect to property in the commercial classes, the industrial classes and the multi-residential property class.

No application if Part XXII.1 applies

(2) This Part does not apply with respect to,

(a) the commercial classes in a municipality if Part XXII.1 applies with respect to the commercial classes in the municipality;

(b) the industrial classes in a municipality if Part XXII.1 applies with respect to the industrial classes in the municipality;

(c) the multi-residential property class in a municipality if Part XXII.1 applies with respect to the multi-residential property class in the municipality.

No application to unorganized territory

(3) This Part does not apply to property in territory without municipal organization other than territory that is deemed to be attached to a municipality under section 56 of the Education Act or clause 58.1 (2) (m) of the Education Act.

No application to farm land awaiting development

(4) This Part does not apply with respect to property in the subclasses prescribed under paragraph 1 of subsection 8 (1) of the Assessment Act and, for the purposes of this Part, the commercial property class, the industrial property class and the multi-residential property class shall be deemed to not include property in those subclasses.

Payments in lieu of taxes

(5) This Part does not apply with respect to a property to which a payment in lieu of taxes relates and, for the purposes of this Part, the commercial classes, the industrial classes and the multi-residential property class shall be deemed to not include such property. This subsection does not affect the application of subsections (6) to (9) with respect to payments in lieu of taxes.

Regulations, payments in lieu of taxes

(6) The Minister of Finance may make regulations,

(a) varying the application of this Part as the Minister considers necessary or advisable as a result of the operation of subsection (5);

(b) varying the amounts of payments in lieu of taxes to which this Part, but for subsection (5), would have applied;

(c) prescribing circumstances or municipalities with respect to which subsection (5) does not apply, varying the application of this Part with respect to payments in lieu of taxes and varying the amounts of payments in lieu of taxes with respect to which this Part applies.

Conflict

(7) A regulation under subsection (6) varying the amount of a payment in lieu of taxes prevails over a provision of this or any other Act or regulation with which it conflicts.

General or specific

(8) A regulation under subsection (6) may be general or specific in its application and may treat different municipalities or different payments in lieu of taxes differently.

Payments in lieu of taxes required

(9) If an Act of Ontario or Canada or an agreement provides for, but does not require, a payment in lieu of taxes to be paid by the government of Ontario or Canada, a government agency of Ontario or Canada or any other person, the government, government agency or person is required, despite that Act or agreement, to pay the payment in lieu of taxes. This subsection applies with respect to payments in lieu of taxes with respect to which this Part, but for subsection (5), would have applied.

Regulations, exemptions

(10) The Minister of Finance may make regulations exempting property from the application of this Part.

Exempt property deemed not in classes

(11) The commercial classes, the industrial classes and the multi-residential property class shall be deemed, for the purposes of this Part, to not include property exempted from the application of this Part.

General or specific

(12) A regulation under subsection (10) may be general or specific in its application and may treat different municipalities and properties differently.

Frozen assessments

447.38 (1) Sections 447.5 to 447.13 apply as though they formed part of this Division with the modifications in this section and such other modifications as are necessary.

Minimum business assessment

(2) If the business assessment for a property is less than 30 per cent of the commercial assessment for the property, the business assessment shall be increased so that it is equal to 30 per cent of the commercial assessment.

Application of business assessment

(3) Subsection (2) applies only to property in the commercial classes or industrial classes and does not apply to a property that was used exclusively for the parking of vehicles at the end of 1997.

Application of other provisions

447.39 The following provisions apply as though they formed part of this Part with such modifications as are necessary:

0.1 Section 447.21, paragraphs 1, 2 and 3 (Multi-residential property class).

1. Section 447.22 (Mixed use).

2. Section 447.23 (Supplementary assessments, etc.).

Tenants of leased premises

447.40 (1) Section 447.24 applies as though it formed part of this Division with the modifications in this section and such other modifications as are necessary.

Same

(2) The reference to "after this section comes into force" in subsection 447.24 (3) shall be deemed, for the purposes of this Division, to be a reference to "before Part XXII.2 comes into force".

Calculation of tenant's cap

(3) Subparagraphs i, ii and iii of paragraph 3 of subsection 447.24 (7) shall be deemed, for the purposes of this Division, to read as follows:

i. for 1998, 10 per cent,

ii. for 1999, 15 per cent, or

iii. for 2000, 20 per cent.

Same

(4) Paragraph 5 of subsection 447.24 (7) shall be deemed, for the purposes of this Division, to read as follows:

5. The amount, as adjusted under paragraph 4, shall be further adjusted by making the adjustments, if any, prescribed in the regulations in respect of,

i. if Division B applies, adjustments under paragraphs 4 and 5 of subsection 447.47 (1),

ii. if Division B does not apply, adjustments under paragraphs 4 and 5 of subsection 447.58 (1).

Provision referring to coming into force of section

(5) The reference to "before this section comes into force" in clause 447.24 (13) (a) shall be deemed, for the purposes of this Division, to be a reference to "before Part XXII.2 comes into force".

Recouping of landlord's shortfall

447.41 (1) Section 447.25 applies as though it formed part of this Division with the modifications in this section and such other modifications as are necessary.

Provision referring to coming into force of section

(2) The reference to "the day this section comes into force" in subsection 447.25 (3) shall be deemed, for the purposes of this Division, to be a reference to "the day Part XXII.2 comes into force".

Limitations on appeal

447.42 (1) Section 447.26 applies as though it formed part of this Division with the modifications in this section and such other modifications as are necessary.

Applications to council

(2) Clause 447.26 (2) (b) shall be deemed, for the purposes of this Division, to read as follows:

(b) an error in judgment in a determination under the following provisions as they apply under this Division: section 447.8, subsection 447.10 (2) or (3), section 447.11, paragraph 3 of section 447.21, paragraph 2 of section 447.22 or paragraph 2 or 3 of section 447.23.

Application of other provisions

447.43 The following provisions apply as though they formed part of this Division with such modifications as are necessary:

1. Section 447.27 (Upper-tier request for listing).

2. Section 447.28 (References to assessment).

3. Section 447.34 (Regulations, general).

Division B

Optional Scheme for setting Taxes

By-law making Division apply

447.44 (1) The council of a municipality, other than a lower-tier municipality, may pass a by-law to make this Division apply for 1998, 1999 or 2000 or any combination of those years 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 Division also applies to the other commercial classes.

Industrial classes

(4) If the industrial property class is designated in a by-law under subsection (1), this Division also applies to the other industrial classes.

When by-laws may be passed, etc.

(5) The following apply with respect to when a by-law under subsection (1) may be passed, amended or repealed:

1. A by-law under subsection (1) making this Division apply for a year may not be passed after the deadline for the year.

2. A by-law under subsection (1) may not be amended or repealed after the deadline for a year so as to affect the application of this Division for the year.

3. For the purposes of paragraphs 1 and 2 the following are the deadlines for 1998, 1999 and 2000:

i. for 1998, December 31, 1998 or such later deadline as the Minister may prescribe either before or after the December 31 deadline has passed,

ii. for 1999, March 31, 1999 or such later deadline as the Minister may prescribe either before or after the March 31 deadline has passed,

iii. for 2000, March 31, 2000 or such later deadline as the Minister may prescribe either before or after the March 31 deadline has passed.

Regulations

(6) The Minister of Finance may make regulations prescribing deadlines for the purposes of subparagraphs i, ii and iii of paragraph 3 of subsection (5).

Regulations can be specific

(7) A regulation under subsection (6) may be general or specific in its application and may be limited to specific municipalities.

Restrictions if by-law passed

447.45 The following apply if the council of a municipality passes a by-law under subsection 447.44 (1) to make this Division apply for a year:

1. If this Division applies for 1999 or 2000 and it applied for the previous year, the council of the municipality shall be deemed to have established, under section 363, tax ratios for the year that are the same, for all property classes with respect to which the by-law applies, as the tax ratios for the previous year.

2. If this Division applies for 1999 or 2000 with respect to the commercial property class and it also applied with respect to the commercial property class for the previous year, the municipality may not opt, under the regulations under the Assessment Act, to have any of the commercial classes begin to apply for the year or cease to apply for the year.

3. If this Division applies for 1999 or 2000 with respect to the industrial property class and it also applied with respect to the industrial property class for the previous year, the municipality may not opt, under the regulations under the Assessment Act, to have any of the industrial classes begin to apply for the year or cease to apply for the year.

4. This paragraph applies if this Division applies for 1999 or 2000 with respect to a property class and it also applied with respect to the property class for the previous year. If the council of the municipality passed a by-law under subsection 368.2 (1) for the previous year with respect to the property class, the by-law under subsection 368.2 (1) also applies for the year and may not be amended with respect to the year.

Determination of taxes under this Division

447.46 (1) The taxes for municipal and school purposes for a year with respect to which this Division applies for a property to which this Division applies shall be determined in accordance with section 447.47 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 Division

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

Determination of amount of taxes

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

1. The 1997 mill rates shall be determined in accordance with section 447.48.

2. The 1997-level taxes for municipal and school purposes shall be determined, in accordance with section 447.49, using the 1997 mill rates.

3. The 1997-level taxes shall be adjusted, in accordance with section 447.50, 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, in accordance with the regulations, in respect of changes in taxes for municipal purposes.

6. The taxes for the property equal the 1997-level taxes, as adjusted under paragraphs 3, 4 and 5.

Regulations, tax change adjustments

(2) The Minister of Finance may make regulations,

(a) providing for adjustments under paragraph 4 of subsection (1) in respect of reductions in taxes for school purposes;

(b) providing for adjustments under paragraph 5 of subsection (1) in respect of changes in taxes for municipal purposes.

Different adjustments for different classes, etc.

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

Determination of 1997 mill rates

447.48 (1) This section governs the determination of the 1997 mill rates for a property under paragraph 1 of subsection 447.47 (1).

1997 mill rates

(2) The mill rates shall be determined in accordance with the following:

1. A 1997 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 1997 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.

Determination of 1997-level taxes

447.49 (1) This section governs the determination of the 1997-level taxes for a property under paragraph 2 of subsection 447.47 (1).

Method of determination

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

1. An amount shall be determined by applying the 1997 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 1997 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.

Multi-residential property class

(3) For property in the multi-residential property class, the 1997-level taxes shall be determined by applying the 1997 residential mill rate to the total assessment in the frozen assessment listing.

Phase-in adjustments

447.50 (1) This section governs the adjustment of the 1997-level taxes under paragraph 3 of subsection 447.47 (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 447.51, 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 447.51, 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

447.51 (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 unadjusted 1997-level 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 unadjusted 1997-level 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. For 1998, the 1998 tax increase phase-in shall be 10 per cent of the unadjusted 1997-level taxes or such lesser amount as would be necessary to increase the unadjusted 1997-level taxes so that the unadjusted 1997-level taxes equal the uncapped 1998 taxes.

2. For 1999, the 1998 tax increase phase-in shall be 5 per cent of the unadjusted 1997-level taxes or such lesser amount as would be necessary to increase the unadjusted 1997-level taxes, as increased by any 1998 tax increase phase-in for 1998, so that the unadjusted 1997-level taxes equal the uncapped 1998 taxes.

3. For 2000, the 1998 tax increase phase-in shall be 5 per cent of the unadjusted 1997-level taxes or such lesser amount as would be necessary to increase the unadjusted 1997-level taxes, as increased by any 1998 tax increase phase-ins for 1998 and 1999, so that the unadjusted 1997-level 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 unadjusted 1997-level taxes 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 in the municipality equals the total 1998 tax increase phase-ins for the year for all the properties in the property class in the municipality minus the prescribed amount, if any. In this paragraph, if the property is in an upper-tier municipality, "municipality" means the upper-tier municipality.

3. For the purposes of paragraph 2, the commercial classes shall be deemed to be a single property class and the industrial classes shall be deemed to be a single property class.

Definitions

(5) In this section, "

unadjusted 1997-level taxes", for a year, means the 1997-level taxes determined under section 447.49 for the year; ("impôts au niveau de 1997 non redressés") "

uncapped 1998 taxes" means, in relation to a property, the following taxes, adjusted, in accordance with the regulations, in respect of reductions in taxes for school purposes and changes in taxes for municipal purposes:

1. If this Division 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.

2. If this Division 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.

3. If this Division 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")

Regulations, tax change adjustments

(6) The Minister of Finance may make regulations providing for adjustments, for the purposes of the definition of "uncapped 1998 taxes" in subsection (5), in respect of reductions in taxes for school purposes and changes in taxes for municipal purposes.

Different adjustments for different classes, etc.

(7) Regulations under subsection (6) may provide for different adjustments for different property classes, municipalities and properties.

Modifications if assessment is increased

(8) If any increases are made, under section 447.10 as it applies under section 447.38, to the assessments for the property in the frozen assessment listing for 1999 or 2000, the unadjusted 1997-level 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 unadjusted 1997-level 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 unadjusted 1997-level 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.

Modifications, omissions from 1997 assessment

(9) If any increases are made under section 33 of the Assessment Act to the assessment for the property for 1997, the uncapped 1998 taxes shall be what they would be if the corresponding changes were made to the assessment on the assessment roll used to determine the uncapped 1998 taxes.

Distribution of taxes

447.52 (1) Section 447.20 applies as though it formed part of this Division with the modifications in this section and such other modifications as are necessary.

Reference to phase-in adjustments

(2) The reference to "adjustments under paragraph 3 of subsection 447.15 (1)" in subsection 447.20 (2) shall be deemed, for the purposes of this Division, to be a reference to "adjustments under paragraph 3 of subsection 447.47 (1)."

No phase-in under section 372

447.53 Section 447.29 applies as though it formed part of this Division with such modifications as are necessary.

Interim levy, local municipality

447.53.1 (1) Section 447.30 applies as though it formed part of this Division with the modifications in this section and such other modifications as are necessary.

Multi-residential property class

(2) The following apply with respect to the multi-residential property class:

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

2. Paragraph 4 of subsection 447.30 (1) applies, with such modifications as are necessary, with respect to the mill rate applied under paragraph 1.

3. Paragraph 7 of subsection 447.30 (1) does not apply.

Application of section 447.31

447.54 (1) Section 447.31 applies as though it formed part of this Division with the modifications in this section and such other modifications as are necessary.

Information in upper-tier rating by-law

(2) Subparagraph ii of paragraph 1 of section 447.31 does not apply for the purposes of this Division.

Application of sections 447.32 and 447.33

447.55 The following provisions apply as though they formed part of this Division with such modifications as are necessary:

1. Section 447.32 (Conflict with restructuring orders).

2. Section 447.33 (Conflict with orders under Municipal Boundary Negotiations Act).

Regulations, Minister of Finance

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

(a) prescribing an amount for the purposes of paragraph 2 of subsection 447.51 (4);

(b) varying the application of section 447.20 as it applies under section 447.52;

(c) varying the application of this Division,

(i) for 1999 for a municipality with respect to which this Division did not apply for 1998, and

(ii) for 2000 for a municipality with respect to which this Division did not apply for 1999.

General or specific

(2) A regulation under subsection (1) may be general or specific in its application and may treat different municipalities differently.

Division C

Maximum taxes if optional scheme doesn't apply

Taxes not to exceed maximum taxes

447.57 (1) If the taxes for municipal and school purposes for a property for a year less any rebates on those taxes under section 442.1 or 442.2 exceed the maximum taxes for the property for the year under this Division, the taxes shall be reduced by that excess.

No application if Division B applies

(2) This section does not apply for a year with respect to,

(a) the commercial classes in a municipality if Division B applies for the year with respect to those classes in the municipality;

(b) the industrial classes in a municipality if Division B applies for the year with respect to those classes in the municipality;

(c) the multi-residential property class in a municipality if Division B applies for the year with respect to that property class in the municipality.

Sharing of costs

(3) The following apply with respect to the sharing of the costs of a reduction of taxes on a property under subsection (1):

1. No part of the costs shall be shared by a school board.

2. If more than one municipality shares in the revenue from the taxes on the property, the cost shall be shared by the municipalities in the same proportion as the municipalities share in the municipal portion of the revenue from the taxes on the property.

Determination of maximum taxes

447.58 (1) The maximum taxes for a property for a year shall be determined in accordance with the following:

1. The 1997 mill rates shall be determined in accordance with section 447.59.

2. The 1997-level taxes for municipal and school purposes shall be determined, in accordance with section 447.60, using the 1997 mill rates.

3. The 1997-level taxes shall be adjusted in accordance with section 447.61.

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, in accordance with the regulations, in respect of changes in taxes for municipal purposes.

6. The taxes for the property equal the 1997-level taxes, as adjusted under paragraphs 3, 4 and 5.

Regulations, tax change adjustments

(2) The Minister of Finance may make regulations,

(a) providing for adjustments under paragraph 4 of subsection (1) in respect of reductions in taxes for school purposes;

(b) providing for adjustments under paragraph 5 of subsection (1) in respect of changes in taxes for municipal purposes.

Different adjustments for different classes, etc.

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

Supplementary assessments

(4) If a supplementary assessment is made under section 34 of the Assessment Act increasing the assessment for a year of a property, the maximum taxes for the property for the year shall be increased by the increase in taxes for municipal and school purposes for the year attributable to the increase in the assessment.

Determination of 1997 mill rates

447.59 (1) This section governs the determination of the 1997 mill rates for a property under paragraph 1 of subsection 447.58 (1).

1997 mill rates

(2) The mill rates shall be determined in accordance with the following:

1. A 1997 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 1997 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.

Determination of 1997-level taxes

447.60 (1) This section governs the determination of the 1997-level taxes for a property under paragraph 2 of subsection 447.58 (1).

Method of determination

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

1. An amount shall be determined by applying the 1997 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 1997 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.

Multi-residential property class

(3) For property in the multi-residential property class, the 1997-level taxes shall be determined by applying the 1997 residential mill rate to the total assessment in the frozen assessment listing.

Percentage increases

447.61 (1) This section governs the adjustment of the 1997-level taxes under paragraph 3 of subsection 447.58 (1).

1998

(2) For 1998, the 1997-level taxes shall be increased by 10 per cent.

1999

(3) For 1999, the 1997-level taxes shall be increased by 5 per cent and by the amount of the increase under subsection (2) for 1998.

2000

(4) For 2000, the 1997-level taxes shall be increased by 5 per cent and by the amount of the increase under subsection (2) for 1998 and the amount of the increase under subsection (3) for 1999.

PART III

Amendments to other Acts

Assessment Review Board Act

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

Dismissal

8.2 (1) The Board, on its own motion or on the motion of any party, may dismiss a complaint brought before it if,

(a) the Board is of the opinion that the proceeding is frivolous or vexatious, is commenced in bad faith or is commenced only for the purpose of delay;

(b) the Board is of the opinion that the reasons set out in the complaint do not disclose any apparent statutory ground on which the Board can make a decision; or

(c) the complainant has not responded to a request by the Board for further information within the time specified by the Board.

Opportunity to respond

(2) Before dismissing a complaint under clause (1) (a) or (b), the Board shall notify the complainant and give the complainant an opportunity to make representations in respect of the proposed dismissal.

Same

(3) Before dismissing a complaint under clause (1) (c), the Board shall notify the complainant and give the complainant an opportunity to respond to the request for further information.

No hearing required

(4) Despite the Statutory Powers Procedure Act, the Board may dismiss a complaint in accordance with this section after holding a hearing or without holding a hearing, as the Board considers appropriate.

Education Act

39. Clause (b) of the definition of "education funding" in subsection 234 (14) of the Education Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is repealed and the following substituted:

(b) from tax rates under Division B other than tax rates for the purposes of paying a board's share of the costs of rebates under section 442.1 or 442.2 of the Municipal Act or paying rebates under regulations under section 257.2.1 of this Act,

(b.1) from taxes under Part XXII.1 of the Municipal Act or Division B of Part XXII.2 of the Municipal Act other than taxes for the purposes of paying a board's share of the costs of rebates under section 442.1 or 442.2 of the Municipal Act or paying rebates under regulations under section 257.2.1 of this Act, and

. . . . .

40. Paragraph 1 of subsection 257.2.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34, is amended by adding "or Part XXII.2 of the Municipal Act" at the end.

41. (1) Subsection 257.11 (12) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34, is amended by striking out the portion before clause (a) and substituting the following:

Extension of instalment due dates

(12) The Minister may make regulations relating to instalments under subsection (1),

. . . . .

(2) Subsection 257.11 (15) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34, is amended by striking out "for 1998" in the second line.

(3) Paragraph 1 of subsection 257.11 (15) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34, is amended by striking out "before September 30, 1998" in the fifth and sixth lines.

(4) Subsection 257.11 (17) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34, is repealed and the following substituted:

Amounts deemed to be education funding

(17) Amounts paid by the Minister under subsection (14) or (15), other than amounts for the purposes of paying a board's share of the costs of rebates under section 442.1 or 442.2 of the Municipal Act or paying rebates under regulations under section 257.2.1 of this Act, shall be deemed to be education funding within the meaning of subsection 234 (14).

42. (1) Subsection 257.12 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is amended by striking out "and" at the end of clause (a), by adding "and" at the end of clause (b) and by adding the following clause:

(c) prescribing rates for the purposes of calculating payments in lieu of taxes, within the meaning of section 361.1 of the Municipal Act, for real property that is exempt from taxation for school purposes.

(2) Section 257.12 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113 and amended by 1998, chapter 3, section 34, is further amended by adding the following subsection:

Definition

(1.1) In clause (1) (b), "

tax rates for school purposes" includes tax rates for the purposes of paying a board's share of the costs of rebates under section 442.1 or 442.2 of the Municipal Act or paying rebates under regulations under section 257.2.1 of this Act.

(3) Section 257.12 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113 and amended by 1998, chapter 3, section 34, is further amended by adding the following subsection:

Other rates may vary

(5.1) Subsection (3) applies, with necessary modifications, with respect to regulations under clause (1) (c).

43. (1) Subsection 257.12.1 (6) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34, is repealed and the following substituted:

When rates set

(6) A by-law required under subsection (5) shall be passed on or before the day the council passes the by-law for the year under subsection 368 (2) of the Municipal Act.

(2) Subsection 257.12.1 (9) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34, is amended by striking out "clause 368.2 (3) (b)" in the third line and substituting "clauses 368.2 (3) (b) and (c)".

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

School tax rates for commercial and industrial classes

257.12.2 (1) The authority of the Minister of Finance to prescribe tax rates for school purposes under section 257.12 shall be used so that the requirements in this section are satisfied.

Application with respect to requisitions

(2) The authority of the Minister of Finance to requisition amounts under section 257.12.1 shall be used so that the tax rates set by the council of the municipality pursuant to the requisition result in the requirements in this section being satisfied.

2005 and after

(3) The weighted average tax rate for school purposes for the commercial classes for a municipality for 2005 and later years must not exceed 3.3 per cent.

Before 2005, municipalities at or below 3.3 per cent

(4) For a year after 1998 but before 2005, if the weighted average tax rate for school purposes for the commercial classes for the municipality for the previous year was 3.3 per cent or less, the weighted average tax rate for school purposes for the commercial classes for the municipality for the current year must not exceed 3.3 per cent.

Before 2005, municipalities above 3.3 per cent

(5) For a year after 1998 but before 2005, if the weighted average tax rate for school purposes for the commercial classes for the municipality for the previous year was greater than 3.3 per cent, the weighted average tax rate for school purposes for the commercial classes for the municipality for the current year must not exceed a maximum determined in accordance with the following:

1. Determine the amount by which the weighted average tax rate for school purposes for the commercial classes for the municipality for the previous year exceeds 3.3 per cent.

2. Determine the number of years until 2005, including the current year and the year 2005.

3. Divide the amount determined under paragraph 1 by the number of years under paragraph 2.

4. The maximum is the weighted average tax rate for school purposes for the commercial classes for the municipality for the previous year minus the amount determined under paragraph 3.

Weighted average tax rate

(6) For the purposes of this section, the weighted average tax rate for school purposes for the commercial classes for a municipality is a percentage determined in accordance with the following:

1. The weighted average tax rate for school purposes for the commercial classes for a municipality for a year shall be determined by adding the taxes for school purposes for the year on all property in the commercial classes in the municipality for the year, dividing that sum by the total assessment of such property, as set out in the assessment roll returned for the year, and multiplying by 100.

2. The weighted average tax rate for school purposes for the commercial classes for a municipality for a previous year shall be determined by adding the taxes for school purposes for the previous year on all property that is in the municipality in the current year and was in the commercial classes for the previous year, dividing that sum by the total assessment of such property, as set out in the assessment roll returned for the previous year, and multiplying by 100.

3. For the purposes of paragraph 2, the taxes for school purposes for a property with respect to which Part XXII.1 of the Municipal Act or Division B of Part XXII.2 of the Municipal Act applied shall be deemed to be equal to the taxes that would have been raised by the tax rate prescribed by the Minister of Finance under section 257.12 or, if the Minister of Finance requisitioned an amount under section 257.12.1, by the tax rate set by the council of a municipality pursuant to the requisition.

Rebates under section 442.2

(7) The following apply with respect to rebates under section 442.2 of the Municipal Act:

1. The weighted average tax rate for school purposes for the commercial classes may be greater than would be allowed under subsections (3), (4) and (5) to the extent necessary to raise additional taxes to fund the costs of the rebates with respect to property in the commercial classes that are shared by boards.

2. In determining the weighted average tax rate for school purposes for the commercial classes for a previous year for the purposes of this section, the taxes for school purposes shall be reduced by any additional taxes raised, as authorized under paragraph 1, to fund the costs of the rebates with respect to property in the commercial classes that are shared by boards.

Industrial classes

(8) Subsections (3) to (7) also apply, with necessary modifications, with respect to the industrial classes.

Definitions

(9) 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")

"

municipality" means a single-tier municipality or upper-tier municipality both as defined in subsection 257.12.1 (11). ("municipalité")

45. (1) Clause 257.14 (1) (d) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is repealed and the following substituted:

(d) providing for the apportionment and distribution of amounts levied under subsection 257.7 (1) on residential property taxable for English-language public board purposes between a district school area board and a board established under section 67, where the property is in the area of jurisdiction of both boards.

(2) Clause 257.14 (1) (f) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is repealed and the following substituted:

(f) providing, despite any provision of this Act or the Provincial Land Tax Act, that parts of territory described in subsection (2) shall be deemed, until the territory becomes or is included in a municipality, to be attached to a municipality under section 56 or clause 58.1 (2) (m), for the purposes of this Division and of section 21.1 of the Provincial Land Tax Act\;

(g) providing for such transitional matters as the Minister considers necessary or advisable in connection with a change as to which board or municipality is required to do a thing under this Division or under section 21.1 of the Provincial Land Tax Act in relation to territory without municipal organization;

(h) governing the levying of rates under subsection 255 (1) or 256 (1);

(i) providing, despite any provision of this Act, the Municipal Act or the Provincial Land Tax Act, for boards and municipalities to levy, in 1999, rates for 1998 under this Part on property in territory without municipal organization, subject to conditions set out in the regulation.

(3) Subsection 257.14 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is repealed and the following substituted:

Clause (1) (f)

(2) The territory referred to in clause (1) (f) is territory without municipal organization that, on December 31, 1997, was attached to a municipality for school purposes and that, on January 1, 1998, was not so attached.

General or particular

(3) A regulation under subsection (1) may be general or particular.

46. Subsection 257.103 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is amended by striking out "March 31, 1999" at the end and substituting "August 31, 1999".

PART IV

Transition, Commencement and Short Title

Transition, general

47. (1) 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.

Assessment Review Board Act amendment

(2) Subsection (1) does not affect the application of section 8.2 of the Assessment Review Board Act, as enacted by section 38, to proceedings relating to taxation years before 1998. For greater certainty, section 8.2 of the Assessment Review Board Act applies to a proceeding even if the proceeding was commenced before this Act receives Royal Assent.

Municipal option classes, missed previous 1998 deadline

48. If a regulation under the Assessment Act 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 and the municipality opted to have the class apply with respect to 1998 before subsection 1 (2) came into force but after the deadline that applied before subsection 1 (2) came into force, the municipality shall be deemed to have opted to have the class apply with respect to 1998 on the day subsection 1 (2) came into force.

Commencement

49. (1) Except as otherwise provided in this section, this Act comes into force on the day it receives Royal Assent.

Same

(2) Section 3 comes into force on the day subsection 18 (19) of the Ontario Property Assessment Corporation Act, 1997 comes into force.

Same

(2.1) Section 10 comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(3) Subsections 24 (3) and (4) shall be deemed to have come into force on June 11, 1998.

Short title

50. The short title of this Act is the Fairness for Property Taxpayers Act, 1998.

EXPLANATORY NOTE

The Bill amends the Assessment Act, the Municipal Act, the Assessment Review Board Act and the Education Act in relation to property taxes.

The following are the significant changes made by the Bill:

Municipal powers relating to taxation

Under the Assessment Act and the Municipal Act, municipalities have a number of powers relating to property taxes. The Bill makes a number of changes with respect to such powers including ensuring that a number of them can be used, for 1998, up to December 31, 1998 with further extensions being possible. The powers affected by the Bill include the following:

1. Opting into or out of optional property classes. (See the amendments to section 2 of the Assessment Act.)

2. Setting tax ratios for property classes. (See the amendments to section 363 of the Municipal Act.) Changes to the tax ratios for commercial and industrial property are restricted for 1998, 1999 and 2000.

3. Delegating the power to set tax ratios. (See the amendments to section 364 of the Municipal Act.) No new delegations are allowed for 1998, 1999 and 2000. Existing delegations will be dealt with under regulations.

4. Phasing-in of 1998 assessment-related tax changes. (See the amendments to section 372 of the Municipal Act.)

5. Rebates for charities. (See the amendments to section 442.1 of the Municipal Act.)

6. Rebates under section 442.2 of the Municipal Act. (See the amendments to that section.) The provisions relating to these rebates are changed significantly.

7. The power to opt to have Part XXII.1 of the Municipal Act apply. (See the new subsection 447.3 (5) of the Municipal Act.)

New Part XXII.2 of the Municipal Act

A new Part XXII.2 is added to the Municipal Act to deal with taxes for commercial, industrial and multi-residential property for 1998, 1999 and 2000 if Part XXII.1 of the Municipal Act does not apply. Part XXII.2 is divided into three Divisions.

Division A - Common provisions

Division A requires local municipalities to maintain frozen assessment listings for 1998, 1999 and 2000 for commercial, industrial and multi-residential property to which Part XXII.1 does not apply. (See sections 447.36, 447.37 and 447.38.) The frozen assessment listings are based on the assessment rolls for 1997 and are like the frozen assessment listings required under Part XXII.1.

Sections 447.24 and 447.25 of Part XXII.1, which deal with certain tenants of leased premises, are adopted into Division A. (See sections 447.40 and 447.41.) The increases from the 1997 taxes that certain tenants may be required to pay are limited and shortfalls experienced by a landlord because of such limits may be recovered from certain other tenants.

Division B - Optional scheme for setting taxes

Division B sets out a scheme for setting taxes for commercial, industrial or multi-residential property for 1998, 1999 and 2000 or any combination of those years. The Division applies if an upper-tier or single-tier municipality opts to have it apply. (See section 447.44.)

Under Division B, the taxes on a property are determined under sections 447.47 to 447.51. First, 1997 mill rates are applied to the assessments in the frozen assessment listing. Adjustments are then made to phase-in 1998 tax changes. Tax increases are phased-in to a limit of 10 per cent for 1998 and a further 5 per cent for each of 1999 and 2000. Tax decreases are phased-in based on a percentage of the difference between what the 1998 taxes would be under Division B and what they would be if Part XXII.2 didn't apply. The percentage is determined so that the tax increases being phased in, minus a prescribed amount, equal the tax decreases being phased in. Adjustments are then made, in accordance with the regulations, in respect of reductions in school taxes and changes in municipal taxes.

The scheme under Division B is similar to that under Part XXII.1 with a number of differences including the following:

1. The percentage limits on tax increases that are phased-in are different. Under Division B, the limit is 10 per cent for 1998 and 5 per cent for each of 1999 and 2000. Under Part XXII.1, the limit is 2.5 percent for each year.

2. Under Division B, adjustments may be made in respect of municipal tax increases. Under Part XXII.1, no such adjustments may be made.

Division C - Maximum taxes if optional scheme doesn't apply

Section 447.57 provides, if Division B doesn't apply, that any taxes that exceed the maximum taxes, determined under Division C, are reduced by the excess. The maximum taxes are determined under sections 447.58 to 447.61. The rules for determining maximum taxes are similar to those for determining the taxes under Division B. An amount is determined by applying the 1997 mill rates to the frozen assessment. That amount is increased by 10 per cent for 1998 and a further 5 per cent for each of 1999 and 2000. Adjustments are then made, in accordance with the regulations, in respect of reductions in school taxes or changes in municipal taxes.

Re-determination of 1998 taxes

The Bill amends the Municipal Act to provide for new 1998 levies and the re-billing of 1998 property taxes.

The new section 368.0.1 requires municipalities to do new 1998 levies if certain municipal powers are used relating to optional property classes, tax ratios, graduated tax rates or rebates under section 442.2 (see subsections 368.0.1 (1), (2) and (3)). Only the tax rates for commercial and industrial property may be affected by a new levy (see subsection 368.0.1 (4)).

The new section 368.0.2 requires rebilling as necessary following a new 1998 levy. Rebilling is also required for 1998 taxes affected by a by-law relating to the phasing-in of 1998 assessment-related tax changes, by a municipality opting to have Part XXII.1 or Division B of Part XXII.2 apply or by the application of Division C of Part XXII.2.

The new section 368.0.3 prevents any 1999 taxes from being levied until any obligations to do a new 1998 levy are satisfied. This section does not apply to a municipality that opted to have Part XXII.1 apply before the Bill passes. Other exceptions may be provided for by regulation.

Other Changes

The Bill makes a number of other changes. These include the following:

1. The deadline for appealing assessments under the Assessment Act is extended to December 31, 1998. (See the amendments to sections 35 and 40 of the Assessment Act.)

2. The provisions relating to the form and contents of tax notices are changed. (See the amendments to section 392 of the Municipal Act, the new section 393.1 added to the Municipal Act and the amendments to section 257.14 of the Education Act.)

3. The sections that allow landlords to require tenants with certain existing gross leases to pay parts of the taxes or business improvement area charges are amended in a number of respects. (See the amendments to sections 444.1 and 444.2 of the Municipal Act.)

4. Section 8.2 is added to the Assessment Review Board Act to give the Assessment Review Board certain powers to dismiss complaints.

5. Section 257.12.2 is added to the Education Act to ensure that tax rates for school purposes for commercial and industrial property will not exceed 3.3 per cent in 2005 and thereafter. Section 257.12.2 also provides for regular reductions for municipalities where, before 2005, those tax rates exceed 3.3 per cent.

Copyright © 1998

Office of the Legislative Assembly of Ontario

Toronto, Ontario, Canada.