Bill 140, Continued Protection for Property Taxpayers Act, 2000

[37] Bill 140 Royal Assent (PDF)

Bill 140

Bill 1402000

An Act to amend

the Assessment Act,

Municipal Act and other Acts

with respect to 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

AMENDMENTS TO THE

ASSESSMENT ACT

1. (1) Clause 2 (2) (a) of the Assessment Act is repealed.

(2) Clause 2 (3.2) (c) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 1, is repealed and the following substituted:

(c)for 2000, April 30, 2000;

(d)for 2001, April 30, 2001, or such later deadline as the Minister may prescribe either before or after the April 30 deadline has passed; or

(e)for a taxation year after 2001, 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) 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, 1998, chapter 3, section 1 and 1998, chapter 33, section 1, is further amended by adding the following subsections:

Regulations re: airport authorities

(5) The Minister may make regulations for the purposes of subparagraph 24 ii of subsection 3 (1),

(a)specifying a methodology for determining payments in lieu of taxes to be paid by a designated airport authority to the municipality in which it is located for 2001 and subsequent years;

(b)requiring the designated airport authority to provide the information specified in the regulation to the specified persons within the time specified;

(c)specifying the time or times that the payment in lieu of taxes must be paid to the municipality.

General or specific

(6) A regulation made under subsection (5) may be general or specific in its application and may apply to different designated airport authorities differently.

2. (1) Paragraph 3 of subsection 3 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 3, is repealed and the following substituted:

Churches, etc.

3.Land that is owned by a church or religious organization or leased to it by another church or religious organization and that is,

i.a place of worship and the land used in connection with it,

ii.a churchyard, cemetery or burying ground, or

iii.50 per cent of the assessment of the principal residence and land used in connection with it of the member of the clergy who officiates at the place of worship referred to in subparagraph i, so long as the residence is located at the site of the place of worship.

This paragraph applies to the 2001 and subsequent taxation years.

(2) Paragraph 5 of subsection 3 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 3, is repealed and the following substituted:

Philanthropic organizations, etc.

5.Land owned, used and occupied solely by a non-profit philanthropic, religious or educational seminary of learning or land leased and occupied by any of them if the land would be exempt from taxation if it was occupied by the owner. This paragraph applies only to buildings and up to 50 acres of land.

(3) Paragraph 22 of subsection 3 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 18, is repealed and the following substituted:

Improvements for seniors

and persons with a disability

22.All alterations, improvements and additions commenced after May 15, 1984 that are made to a parcel of land containing an existing residential unit to provide, or the portion as may be prescribed by the Minister of a new residential unit constructed to provide, accommodation for or improved facilities for the accommodation of a person who would, but for the accommodation or improved facilities provided, require care in an institution, if the following conditions are met:

i.the person is at least 65 years of age or has a disability and the person resides in the premises as his or her personal residence,

ii.the owner of the property applies to the assessment corporation for the exemption and the exemption is approved by the assessment corporation,

iii.the land is assessed as residential and comprises not more than three residential units, and

iv.the person occupying the property in which the person who is at least 65 years of age or has a disability resides is not in the business of offering care to such persons.

This paragraph applies to the 2001 and subsequent taxation years.

(4) Paragraph 24 of subsection 3 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 4, is repealed and the following substituted:

Airports

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

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

ii.The authority must make payments in lieu of taxes to the municipality in which the land is located at the times and in the amounts determined in accordance with the regulations.

iii.The authority must provide any relevant information requested by the Minister, the municipality or the assessment corporation as soon as is practicable.

iv.The exemption does not apply to any portion of the land leased by a tenant, other than a designated airport authority, to whom section 18 applies.

v.If the authority fails to comply with the requirements specified in subparagraph ii, the authority shall pay the taxes for municipal and school purposes that would be payable for the taxation year if the property was taxable and the collector's roll for the municipality shall be amended accordingly.

This paragraph applies to the 2001 and subsequent taxation years.

(5) Subsection 3 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 4, 1997, chapter 29, section 3, 1997, chapter 43, Schedule F, section 1, 1997, chapter 43, Schedule G, section 18 and 1998, chapter 28, section 66, is further amended by adding the following paragraphs:

Hydro-electric generating stations

28.A hydro-electric generating station, as defined in subsection 92.1 (24) of the Electricity Act, 1998 and land, buildings and structures used in connection with the generating station, as may be prescribed by the Minister, but not any portion of the land, buildings or structures used for any other purpose. This paragraph applies to the 2001 and subsequent taxation years.

Poles and wires

29.Substructures, superstructures, rails, ties, poles, towers or lines owned by a power utility prescribed by the Minister under subsection 368.3 (1) of the Municipal Act or owned by a municipal electricity utility, as defined in section 88 of the Electricity Act, 1998, and located on an easement on land that is not owned by the power utility.

3. (1) Paragraph 3 of subsection 8 (1) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 2, is amended by striking out "A subclass for vacant units and excess land" at the beginning and substituting "A subclass for excess land".

(2) Subsection 8 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 5, is repealed and the following substituted:

Excess land

(4) The subclasses for excess land shall be prescribed so that they consist of those portions of properties that are excess land as prescribed under this section and subsection 14 (5) applies to those portions.

Transition

(4.1) Subsection (4) and paragraph 3 of subsection (1) apply with respect to 2001 and subsequent taxation years but those provisions as they read before the coming into force of section 3 of the Continued Protection for Property Taxpayers Act, 2000 apply with respect to the 2000 taxation year.

4. (1) Subsection 14 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter, 5, section 9, 1997, chapter 29, section 6, 1997, chapter 31, section 143 and 1997, chapter 43, Schedule G, section 18, is further amended by adding the following paragraph:

11.Value of land leased to tenants referred to in subsection 4 (3) of the Municipal Tax Assistance Act.

(2) Subsection 14 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 9 and amended by 1997, chapter 43, Schedule G, section 18, is repealed and the following substituted:

Portions classified in different property classes

(5) If portions of a property are classified in different classes of real property or subclasses of real property, the assessment corporation shall determine the share of the value attributable to each class or subclass, assess the property according to the proportion that each share constitutes of the total value and set out each proportion on the assessment roll.

5. (1) Subsection 19 (5) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 12, is repealed and the following substituted:

Farm lands and buildings

(5) For the purposes of determining the current value of farm lands used only for farm purposes by the owner or used only for farm purposes by a tenant of the owner and buildings thereon used solely for farm purposes, including the residence of the owner or tenant and of the owner's or tenant's employees and their families on the farm lands,

(a)consideration shall be given to the current value of the lands and buildings for farm purposes only;

(b)consideration shall not be given to sales of lands and buildings to persons whose principal occupation is other than farming; and

(c) the Minister may, by regulation, define "farm lands" and "farm purposes".

(2) Section 19 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 12, 1997, chapter 29, section 9, 1998, chapter 33, section 5, 1999, chapter 6, section 2 and 1999, chapter 9, section 11, is further amended by adding the following subsection:

Land and buildings

to be valued as farms

(5.0.1) Land or buildings or both, as prescribed by the Minister, shall be valued as described under subsection (5).

6. Section 19.0.1 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 15, Schedule E, section 1 and amended by 1999, chapter 9, section 12, is further amended by adding the following subsection:

Subsequent owners

(1.2) If a generating station building or structure is owned by one of the persons referred to in subsection 92 (1) of the Electricity Act, 1998 on January 1, 2000 and is subsequently disposed of by that person, this section continues to apply to the building or structure.

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

Convention centres

27.2 (1) Despite this or any other Act, the owner of a convention centre, as prescribed by the Minister, that is not liable to taxation under this or any other Act, shall make a payment in lieu of taxes to the municipality in which it is located, in each taxation year beginning in 2001 in such amount as may be prescribed by the Minister.

When payable

(2) Payments required under this section in respect of a taxation year shall be made at the same time as payments must be made for rateable properties in the commercial property class.

Collection of payments

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

Regulations

(4) The Minister may make regulations prescribing convention centres and the amount to be paid by convention centres for the purposes of subsection (1).

8. Section 32 of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 18, is further amended by adding the following subsection:

Change in classification

(2) If, as a result of a change in the regulations made under section 7, the classification of a property is changed for the current year or for any part or all of the three preceding years and taxes have been levied on that property that exceed the taxes that would have been levied on the property had the property been classified pursuant to the change in the regulations made under section 7, the assessor shall make any assessment necessary to change the classification and the clerk of the municipality upon notification thereof shall alter the collector's roll and the amount of any overpayment shall be refunded or credited to the owner.

9. Paragraphs 2 and 3 of subsection 34 (2.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 8, are repealed and the following substituted:

2.Paragraph 1 does not apply to a change event described in clause (c) of the definition of "change event" in subsection (2.2).

10. (1) Subsection 39.1 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 25 and amended by 1997, chapter 43, Schedule G, section 18 and 1999, chapter 9, section 13, is repealed and the following substituted:

Request for reconsideration of assessment

(1) The owner of a property or a person who has received or would be entitled to receive a notice of assessment under this Act may request the assessment corporation to reconsider the assessment including the classification of the property no later than December 31 of the taxation year in respect of which the request is made.

Omitted or supplementary assessment

(1.1) A person who has received a notice of the assessment under section 33 or 34 may request the assessment corporation to reconsider the assessment within 90 days of the mailing date of the notice of the assessment or by December 31 of the year in which the notice of the assessment is mailed, whichever is the later.

(2) Subsection 39.1 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 25 and amended by 1997, chapter 43, Schedule G, section 18, is further amended by striking out "the Assessment Review Board" and substituting "the municipality".

(3) Subsections 39.1 (6) and (7) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 25, are repealed and the following substituted:

Municipality to change collector's roll

(6) On receipt of a notice under subsection (5), the clerk of the municipality shall amend the collector's roll in accordance with the settlement and taxes shall be levied in accordance with the amended assessment.

(4) Subsection 39.1 (8) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 25, is repealed and the following substituted:

Objection by municipality

(8) If the municipality objects to the settlement, it shall complain to the Assessment Review Board within 90 days after receiving the notice under subsection (5), and section 40 applies, with necessary modifications, as though the assessment roll had been changed in accordance with the settlement and the municipality had complained about the change.

(5) Subsection 39.1 (8.1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 13, is repealed and the following substituted:

When change may be made

(8.1) For the purposes of subsections (6) and (8), a change to be made to the collector's roll may be made at any time in the year in respect of which a request is made or in the following year.

11. Section 46 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 31 and 1997, chapter 43, Schedule G, section 18, is further amended by adding the following subsections:

Omitted or supplementary assessments

(8) Despite subsection (7), an order of the court on an application under this section in respect of an assessment under section 33 or 34 shall apply in respect of all taxes levied pursuant to the assessment if the application is made in the year in which the assessment is made or in the immediately following year.

Application

(9) Subsection (8) applies to an order of the court made on or after that subsection came into force.

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

Extension of time

47. If, under this Act, the time for doing an act expires on a holiday, as defined in the Rules of Civil Procedure prescribed under the Courts of Justice Act, the act may be done on the next day that is not a holiday.

13. Subsection 53 (3) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 4, section 43, is repealed and the following substituted:

Information

(3) Subject to subsection (1), the assessment corporation shall make available to all municipalities and school boards information sufficient to meet their planning requirements.

PART II

AMENDMENTS TO THE MUNICIPAL ACT

14. Section 1 of the Municipal Act, as amended by the Statutes of Ontario, 1996, chapter 32, section 2, 1997, chapter 5, section 40, 1997, chapter 29, section 22, 1997, chapter 43, Schedule G, section 23, 1999, chapter 6, section 40 and 2000, chapter 5, section 15, is further amended by adding the following definition: "

assessment corporation" means the Ontario Property Assessment Corporation. ("socit d'valuation foncire")

15. Subsection 83.2 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 143, is amended by striking out "The Minister" at the beginning and substituting "The Minister of Finance".

16. (1) Subsection 187 (2) of the Act, as amended by the Statutes of Ontario, 1992, chapter 15, section 15, is repealed and the following substituted:

Limitation

(2) The amount borrowed and not repaid under subsection (1), together with the total of any similar borrowings that have not been repaid, shall not at any point in time exceed, for the period from January 1 to September 30 of the year, 50 per cent of the total and for the period from October 1 to December 31 of the year, 25 per cent of the total of the estimated revenues of the corporation as set out in the estimates adopted for the year.

Exception

(2.1) The amount borrowed and not repaid at any point in time may exceed the limits under subsection (2) with the approval of the Ontario Municipal Board.

(2) Subsection 187 (17) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 9, is repealed and the following substituted:

Year 2001

(17) In respect of 2001, the references to 25 per cent and 50 per cent in subsection (2) shall be deemed to be references to 45 per cent and 70 per cent, respectively.

(3) Subsection 187 (18) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 145, is repealed.

17. Section 361.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 53 and amended by 1997, chapter 29, section 32, 1998, chapter 15, Schedule E, section 19 and 1998, chapter 33, section 10, is further amended,

(a)by adding the following definition: "

general reassessment" means the updating of assessments in a year in respect of which a new valuation date, as specified under subsection 19.2 (1) of the Assessment Act, applies; ("rvaluation gnrale")

(b)by striking out clause (a) of the definition of "payment in lieu of taxes" and substituting the following:

(a) subsection 27 (3), section 27.1 or 27.2 of the Assessment Act.

18. (1) Subsection 363 (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 15" and substituting "April 30".

(2) Subsection 363 (4) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 15" and substituting "April 30".

(3) 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, 1998, chapter 3, section 14 and 1998, chapter 33, section 11, is further amended by adding the following subsection:

Exception, subsequent reassessment

(7.1) Despite subsections (6) and (7), the Minister of Finance may prescribe a new transition ratio, including the average transition ratio, for a taxation year or any previous taxation year for a property class for a municipality and,

(a)for the first year in respect of which the transition ratio is prescribed, the tax ratio may be,

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

(ii)below the allowable range if it is greater than or equal to the prescribed transition ratio for the property class for the municipality; and

(b)for a subsequent year the tax ratio may be,

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

(ii)below the allowable range if it is greater than or equal to the tax ratio for the property class for the previous year.

(4) Clause 363 (8) (a) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed.

(5) Subsection 363 (9) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted:

Regulations

(9) The Minister of Finance may make regulations extending the time limit in subsection (3) or (4) and the regulation may be made even if the time limit has expired.

Same

(9.1) The Minister of Finance may make regulations governing the determination of the tax ratios by municipalities for a taxation year.

General or specific

(9.2) A regulation under subsection (9.1) may be general or specific and may be different for different municipalities.

(6) Clause 363 (10) (b) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "subsection (7)" and substituting "subsections (7) and (7.1)".

(7) Clause 363 (10) (c) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "and (7)" and substituting "(7) and (7.1)".

(8) Subsections 363 (15) and (16) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 33 and amended by 1998, chapter 3, section 14, subsection 363 (17) of the Act, as enacted by 1997, chapter 29, section 33, subsection 363 (17.1) of the Act, as enacted by 1998, chapter 3, section 14, and subsections 363 (18) and (19) of the Act, as enacted by 1997, chapter 43, Schedule F, section 9, are repealed.

(9) Subsection 363 (20) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 14 and amended by 1998, chapter 33, section 11, is repealed and the following substituted:

Definitions

(20) In subsections (21) to (32), "

commercial classes" means the commercial property class prescribed under the Assessment Act and optional property classes that contain property that, if the council of the municipality did not opt to have the optional property class apply, would be in the commercial property class; ("catgories commerciales") "

industrial classes" means the industrial property class prescribed under the Assessment Act and optional property classes that contain property that, if the council of the municipality did not opt to have the optional property class apply, would be in the industrial property class; ("catgories industrielles") "

optional property class" means a property class that the council of a municipality may opt to have apply within the municipality under regulations made under the Assessment Act. ("catgorie de biens facultative")

(10) Paragraph 1 of subsection 363 (21) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 14, is repealed and the following substituted:

1.For the first year that an optional property class applies or, subject to subsection (29) or (30), ceases to apply in the municipality, the average transition ratio shall be the prescribed average transition ratio.

(11) Subsection 363 (22) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 14, is amended by striking out "(6) or (7)" and substituting "(6), (7) or (7.1)".

(12) Subsection 363 (23) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 14, is amended by striking out "(6) or (7)" and substituting "(6), (7) or (7.1)".

(13) Subsections 363 (25) and (26) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 14, are repealed.

(14) Subsections 363 (29) and (30) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 11, are repealed and the following substituted:

Opting out of all optional commercial classes

(29) If all optional property classes that contain property that would otherwise be in the commercial property class cease to apply for a year in a municipality, the transition ratio for the commercial property class for the year shall be equal to the average transition ratio for the commercial classes for the previous year under subsection (21), and subsection (7) or (7.1) applies, with necessary modifications, for the year.

Opting out of all optional industrial classes

(30) If all optional property classes that contain property that would otherwise be in the industrial property class cease to apply for a year in a municipality, the transition ratio for the industrial property class for the year shall be equal to the average transition ratio for the industrial classes for the previous year under subsection (21), and subsection (7) or (7.1) applies, with necessary modifications, for the year.

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

Towns of Norfolk, Haldimand

363.2 (1) The Minister of Finance may make regulations providing that the Town of Haldimand and the Town of Norfolk are deemed to be a single municipality for the purposes of a prescribed tax-related authority of an upper-tier municipality or single-tier municipality under this Act or under subsection 2 (3.1) of the Assessment Act.

Regulations

(2) A regulation under subsection (1) may,

(a)prescribe the tax-related authority;

(b)govern the manner in which the prescribed tax-related authority shall be exercised;

(c)vary the manner in which any prescribed tax-related authority applies to the towns; and

(d)establish a procedure to determine how a prescribed tax-related authority shall be exercised or applied.

Retroactive

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

Effect

(4) A by-law passed by the Town of Haldimand or the Town of Norfolk under a prescribed tax-related authority, whether it is passed before or after a regulation under this section is made, is of no effect to the extent that it does not comply with the regulation.

Definition

(5) In this section, "

single-tier municipality" means a local municipality that does not form part of an upper-tier municipality for municipal purposes.

20. (1) Subsection 364 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "January 15" and substituting "February 28".

(2) Subsection 364 (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "January 15" and substituting "February 28".

(3) Subsection 364 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 1" and substituting "April 1".

(4) Subsection 364 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "January 15" and substituting "February 28".

(5) Subsection 364 (7) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 15" and substituting "April 30".

(6) Clause 364 (10) (c) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed.

(7) Subsection 364 (11) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted:

Extension of time

(11) The Minister of Finance may make regulations extending the time limit in subsections (1), (3), (4), (5) and (7) and the regulations may be made even if the time limit has expired.

21. (1) Subsection 366 (2) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 31" and substituting "April 30".

(2) Subsection 366 (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 31" and substituting "April 30".

(3) Section 366 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 34, 1998, chapter 3, section 15 and 1998, chapter 33, section 13, is further amended by adding the following subsections:

Exception, tax increases

(4.1) Despite subsection (4), if the tax ratio or average tax ratio for the property class for the 2001 taxation year or a subsequent taxation year is above the tax ratio for the property class, as prescribed under clause (4.3) (a), tax rates to be levied on property in the property class shall be determined in the manner provided under clause (4.3) (b).

Average tax ratio

(4.2) For the purpose of subsection (4.1), the average tax ratio shall be equal to the average transition ratio for the municipality determined under subsection 363 (21) for the commercial classes or for the industrial classes.

Regulations

(4.3) The Minister of Finance may make regulations,

(a)prescribing a tax ratio for a property class for the purpose of subsection (4.1), including a single tax ratio for the commercial classes or industrial classes;

(b)providing the manner in which the tax rates on property in a property class are to be determined under subsection (4.1);

(c)providing for the determination of changes in taxes for municipal purposes for a property class.

General or specific

(4.4) A regulation under subsection (4.3) may be general or specific in its application and may provide that the regulation does not apply to specified municipalities.

(4) Paragraph 1 of subsection 366 (8.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 13, is amended by striking out "subsection 373 (1) or 442.2 (1)" at the end and substituting "section 373, 442.1, 442.2 or 442.5".

(5) Subsection 366 (15) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 15, is repealed and the following substituted:

Regulations

(15) The Minister of Finance may make regulations extending the time limit in subsection (2) or (3) and the regulations may be made even if the time limit has expired.

(6) Subsection 366 (16.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 15, is amended by striking out "sections 442.1 and 442.2" and substituting "section 442.1".

(7) Subsection 366 (16.2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 13, is amended by striking out "section 442.2" and substituting "section 442.1".

(8) Subsection 366 (16.3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 13, is amended by striking out "section 442.2" and substituting "section 442.1".

22. (1) 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 and 1998, chapter 33, section 14, is further amended by adding the following subsections:

Exception, tax increases

(4.1) Despite subsection (4), if the tax ratio or average tax ratio for the property class for the 2001 taxation year or a subsequent taxation year is above the tax ratio for the property class as prescribed under clause (4.3) (a), tax rates to be levied on property in the property class shall be determined in the manner provided under clause (4.3) (b).

Average tax ratio

(4.2) For the purpose of subsection (4.1), the average tax ratio shall be equal to the average transition ratio for the municipality determined under subsection 363 (21) for the commercial classes or for the industrial classes.

Regulations

(4.3) The Minister of Finance may make regulations,

(a)prescribing a tax ratio for a property class for the purpose of subsection (4.1), including a single tax ratio for the commercial classes or industrial classes;

(b)providing the manner in which the tax rates on property in a property class are to be determined under subsection (4.1);

(c)providing for the determination of changes in taxes for municipal purposes for a property class.

General or specific

(4.4) A regulation under subsection (4.3) may be general or specific in its application and may provide that the regulation does not apply to specified municipalities.

(2) Subsection 368 (5) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 16, is amended by striking out "sections 442.1 and 442.2" and substituting "section 442.1".

(3) Subsection 368 (6) the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 14, is amended by striking out "442.2" and substituting "442.1".

(4) Subsection 368 (7) the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 14, is amended by striking out "442.2" and substituting "442.1".

23. Subsection 368.2 (1) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 18, is amended by striking out "March 31" and substituting "April 30".

24. (1) Subsection 369 (1) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 33, section 16, is amended by striking out "the estimates for a year" in the portion before clause (a) and substituting "the estimates for a year under section 365".

(2) Clause 369 (1) (b) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 16, is amended by striking out "or 442.2 (1)" and substituting "or section 442.1, 442.2 or 442.5".

(3) Subsections 369 (5) and (6) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 16, are repealed.

25. (1) Subsection 370 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, subsection 370 (2) the Act, as enacted by 1997, chapter 5, section 55, subsection 370 (3) of the Act, as enacted by 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 39, 1998, chapter 3, section 20 and 1998, chapter 33, section 17, subsection 370 (4) of the Act, as re-enacted by 1997, chapter 29, section 39, subsection 370 (4.1) of the Act, as enacted by 1997, chapter 29, section 39, and subsection 370 (4.2) of the Act, as enacted by 1998, chapter 3, section 20, are repealed and the following substituted:

Interim levy, local municipality

(1) The council of a local municipality, before the adoption of the estimates for the year under section 367, may pass a by-law levying amounts on the assessment of property in the local municipality rateable for local municipality purposes.

When to be passed

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

Rules

(3) The amounts to be levied are subject to the following rules:

1.The amount levied on a property shall not exceed the prescribed percentage, or 50 per cent if no percentage is prescribed, of the total amount of taxes for municipal and school purposes levied on the property for the previous year.

2.The percentage under paragraph 1 may be different for different property classes but shall be the same for all properties in a property class.

3.For the purposes of calculating the total amount of taxes for the previous year under paragraph 1, if any taxes for municipal and school purposes were levied on a property 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 on the property if the taxes for municipal and school purposes had been levied for the entire year.

By-law passed before assessment roll returned

(4) If a by-law is passed under subsection (1) before the assessment roll for taxation in the current year is returned, the amounts under subsection (1) shall be levied on the assessment according to,

(a) the collector's roll for taxation in the previous year as most recently revised before the by-law is passed; or

(b)a preliminary assessment roll provided by the assessment corporation for that purpose.

Added assessment

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

(2) Subsection 370 (8) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 39, subsection 370 (9) of the Act, as re-enacted by 1997, chapter 29, section 39 and amended by 1997, chapter 43, Schedule F, section 9, subsection 370 (10) of the Act, as re-enacted by 1997, chapter 29, section 39, subsections 370 (11), (12) and (13) of the Act, as enacted by 1997, chapter 29, section 39, and subsections 370 (14) and (15) of the Act, as enacted by 1998, chapter 33, section 17, are repealed.

26. Clause 371 (1) (b) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, clause 371 (1) (c) of the Act, as re-enacted by 1997, chapter 43, Schedule F, section 9, and clause 371 (1) (d) of the Act, as enacted by 1997, chapter 43, Schedule F, section 9, are repealed and the following substituted:

(b)prescribing a percentage for the purposes of paragraph 1 of subsection 370 (3).

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

Phase-in of tax changes

resulting from reassessments

372.2 (1) On or before December 31 of the taxation year, the council of a municipality, other than a lower-tier municipality, may pass a by-law to phase in tax increases or decreases for eligible properties for a taxation year in respect of which there is a general reassessment.

Definitions

(2) In this section, "

eligible property" means property classified in any property class prescribed under the Assessment Act\; ("bien admissible") "

first taxation year" means a taxation year in respect of which there is a general reassessment; ("premire anne d'imposition") "

preceding year" means the taxation year immediately preceding the first taxation year. ("anne prcdente")

Tax increase to be phased in

(3) If the total taxes for municipal and school purposes for the first taxation year for an eligible property, but for the application of this section, exceed its total taxes for municipal and school purposes for the preceding year, the maximum amount of the tax increase to be phased in is the amount of the difference.

Tax decrease to be phased in

(4) If the total taxes for municipal and school purposes for the preceding year for an eligible property exceed its total taxes for municipal and school purposes for the first taxation year, but for the application of this section, the maximum amount of the tax decrease to be phased in is the amount of the difference.

Amounts to be phased in

in 2001 and subsequent years

(5) For properties subject to Part XXII.3 and for the purposes of subsections (3) and (4),

(a)if the preceding year is 2000, the taxes for municipal and school purposes for that year shall be determined under subsection 447.65 (2); or

(b)if the preceding year is after 2000, the taxes for municipal and school purposes for that year shall be determined under subsection 447.68 (2).

Same

(6) For properties that are not subject to Part XXII.3 and for the purposes of subsections (3) and (4), the taxes for municipal and school purposes for the preceding year shall be determined as follows:

1.Determine the taxes for municipal and school purposes that were levied on the property in the year.

2.If a supplementary assessment or change in classification was made under section 34 of the Assessment Act during that year or if an assessment or change in classification could have been made under section 34 of that Act and the appropriate change is made to the assessment roll for taxation in the first taxation year, recalculate the taxes determined under paragraph 1 as if the increase in the assessment or change in classification, as the case may be, had applied to the property for all of the year.

3.If the council of a municipality cancels, reduces or refunds taxes under section 442 for the year on an application under clause 442 (1) (a), (c), (d) or (f) or under section 443 for the year, recalculate the taxes determined under paragraph 1 as if the event that caused the cancellation, reduction or refund had occurred on January 1 of that year.

Application to lower-tiers

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

Copy

(8) An upper-tier municipality shall provide a copy of the by-law under subsection (1) to each lower-tier municipality as soon as is practicable.

By-law requirements

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

1.The by-law may apply to the first taxation year and up to the next seven taxation years.

2.The by-law may replace a by-law made under section 372 or this section so long as the first-mentioned by-law applies for at least the same number of years as remains outstanding under the by-law made under section 372 or this section.

3.The by-law may modify the phase-in on individual properties subject to a phase-in under a by-law made under section 372 or this section in order to reflect tax increases or decreases determined under subsection (3) or (4).

4.The amount to be phased in in a year, other than in the first taxation year, must be the same or less than the amount phased in in the previous year.

5.The amount phased in in the last year in which a tax increase or decrease is phased in plus the total amounts phased in in the previous years must equal the tax increase or decrease for each property as determined under subsection (3) or (4).

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

7.For the purposes of paragraph 6, the residential/farm property class, the farmlands property class and the managed forests property class shall be treated as a single property class.

8.In the first taxation year, the amounts recovered from all properties in the property class whose tax decreases are being phased in shall not exceed the revenues foregone from all properties in the property class whose tax increases are being phased-in for the municipality referred to in subsection (1).

9.The by-law may provide for a threshold amount in each taxation year, determined in dollars or as a percentage.

10.For the purposes of paragraph 9, the threshold amount for eligible properties in a property class in the municipality to which subsection (3) applies may be different from the threshold amount for eligible properties in the property class in the municipality to which subsection (4) applies.

11.If an assessment is made for a property under subsection 32 (2) or 33 (1) of the Assessment Act in or after the first taxation year but the assessment applies to a year prior to the first taxation year,

i.the by-law made under subsection (1) shall apply to the property, and

ii.the taxes for municipal and school purposes on the property shall be recalculated for the first taxation year and for any subsequent taxation year that is subject to the by-law under subsection (1).

If change in use, character,

classification of property

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

Improvements replaced after scheme begins

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

Same

(12) Subsection (11) does not apply with respect to an improvement if the destruction of the improvement is by the owner, is permitted by the owner or is done by a person who had a right to destroy the improvement.

No lower tier surplus or shortfall

(13) The council of an upper-tier municipality shall, in a by-law under subsection (1), provide that adjustments shall be made between the upper-tier municipality and lower-tier municipalities so that no lower-tier municipality has a surplus or shortfall as a result of the phase-in of the tax increases or decreases.

Upper-tier shortfall

(14) If the upper-tier municipality experiences a shortfall as a result of the application of subsection (13), the by-law made under subsection (1) shall provide that any shortfall shall be shared by the upper-tier municipality and lower-tier municipalities in the same proportion as those municipalities share in the taxes levied on the property class for municipal purposes.

Information on tax bill

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

List to be kept

(16) The treasurer of the local municipality shall maintain a list of the tax increases or decreases for each eligible property to which the by-law under subsection (1) applies.

Application to payments in lieu of taxes

(17) This section applies to payments in lieu of taxes, other than an amount referred to in subparagraph 24 ii of subsection 3 (1) of the Assessment Act or an amount received under section 157 or subsection 158 (4) of this Act, as though they were taxes but a by-law under subsection (1) may provide that it does not apply to payments in lieu of taxes.

Taxes for school purposes

(18) No phase-in of a tax increase or decrease under this section shall affect the amount a local municipality is required to pay a school board.

Certain changes in first taxation year

assessments

(19) The following apply if the assessment of an eligible property for the first taxation year changes as a result of a request under section 39.1 of the Assessment Act, a complaint under section 40 of that Act or an application under section 46 of that Act:

1.The tax increase or decrease for the property shall be redetermined under subsection (3) or (4) using the new assessment for the property.

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

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

Certain changes in assessment

in preceding year

(20) The following apply if the assessment of an eligible property for the preceding year changes as a result of a request under section 39.1 of the Assessment Act, a complaint under section 40 of that Act or an application under section 46 of that Act:

1.The tax increase or decrease for the property shall be redetermined under subsection (3) or (4) using the new assessment for the property to determine the taxes for the preceding year.

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

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

Mixed use

(21) If portions of an eligible property are classified in different property classes on the assessment roll for the first taxation year, each portion shall be deemed to be a separate property for the purposes of this section.

Regulations

(22) The Minister of Finance may make regulations,

(a)prescribing a later deadline for the purposes of subsection (1), either before or after the deadline has passed; and

(b)governing by-laws under this section and the calculation of tax increases and decreases to be phased in under such by-laws.

Restructuring orders

(23) Despite subsection 25.2 (11), a by-law under this section may be made instead of any phase-in authority or requirement set out in an order of the Minister under section 25.2 or a commission under section 25.3, but the by-law under this section must apply for at least the same number of years as remains outstanding under the phase-in authority or requirement.

General or specific

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

28. (1) Subsection 373 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1999, chapter 6, section 40, is further amended by striking out "all or part of assessment-related".

(2) The definition of "assessment-related tax increases" in subsection 373 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed.

(3) Subsection 373 (4) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1998, chapter 3, section 23, is repealed and the following substituted:

Tax increases

(4) For a tax increase beginning in a taxation year in which a general reassessment occurs, the tax increase is the tax increase determined under subsection 372.2 (3) reduced, if the tax increase is being phased in under a by-law made under subsection 372.2 (1), by the amount not yet phased in.

(4) Subsection 373 (5) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted:

Subsequent years

(5) The Minister of Finance may make regulations determining the amount of tax increases beginning in a year subsequent to the taxation year referred to in subsection (4).

(5) 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, 1998, chapter 3, section 23, 1998, chapter 33, section 19 and 1999, chapter 6, section 40, is further amended by adding the following subsection:

Past deferrals to continue

(13) This section, as it read on December 31, 2000, continues to apply to deferrals given under this section prior to that date.

29. Subsections 392 (4) and (5) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 147, are repealed and the following substituted:

By-law re separate billing

(4) The council of a local municipality may pass a by-law providing for the billing of a class of real property separately from the other classes of real property.

Separate tax bills may be issued

(5) If a by-law has been passed under subsection (4), the collector for the local municipality may issue separate tax bills for separate classes of real property and may issue a tax bill for a property to which section 447.70 applies at a different time than that for other property in the same property class.

30. (1) Subsection 393.1 (2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 21, is amended by adding the following clause:

(c)prescribing the form of the notice that must or that may be used under section 392 or 393.

(2) Section 393.1 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 21, is amended by adding the following subsection:

General or particular

(3) A regulation under subsection (2) may be general or particular in its application.

31. (1) Clause 442 (1) (a) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 60, is repealed and the following substituted:

(a)in respect of a property,

(i)if, as a result of a change event, as defined in clause (a) of the definition of "change event" in subsection 34 (2.2) of the Assessment Act, during the taxation year, the property or portion of the property is eligible to be reclassified in a different class of real property, as defined in regulations made under that Act, and that class has a lower tax ratio for the taxation year than the class the property or portion of the property is in before the change event, and

(ii)if no supplementary assessment is made in respect of the change event under subsection 34 (2) of the Assessment Act.

(2) Subsection 442 (3) of the Act, as amended by the Statutes of Ontario, 1997, chapter 23, section 10, is further amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

(3) Subsection 442 (4) of the Act, as amended by the Statutes of Ontario, 1997, chapter 23, section 10, is further amended by,

(a)striking out "the 28th" and substituting "the last"\; and

(b)striking out "the assessment commissioner" and substituting "the assessment corporation".

(4) Subsection 442 (22) of the Act, as amended by the Statutes of Ontario, 1997, chapter 29, section 47, is repealed and the following substituted:

Notice

(22) A copy of any notice of a decision of the council or Assessment Review Board shall be delivered or mailed to the assessment corporation, but failure to comply with this subsection does not invalidate the proceedings taken under this section.

32. (1) Clause 442.1 (2) (a) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 27, is amended by striking out "the Department of National Revenue" and substituting "the Canada Customs and Revenue Agency".

(2) Paragraph 2 of subsection 442.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 27, is amended by adding "or such other percentage as the Minister of Finance may prescribe" after "40 per cent".

(3) Paragraphs 3, 4 and 5 of subsection 442.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 27, are repealed and the following substituted:

3.Beginning in the 2001 taxation year, the program must provide that payment of one-half of the rebate must be made within 60 days after the receipt by the municipality of the application of the eligible charity for the rebate for the taxation year and the balance of the rebate must be paid within 120 days of the receipt of the application.

4.The program must permit the eligible charity to make an application for a rebate for a taxation year based on an estimate of the taxes payable by the eligible charity on the property it occupies.

(4) Subsection 442.1 (3) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 27, is amended by adding the following paragraph:

10.An application for a taxation year must be made after January 1 of the year and no later than the last day of February of the following year.

(5) Paragraphs 3, 4, 6 and 7 of subsection 442.l (4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 27, are repealed and the following substituted:

3.The program may provide for rebates to eligible charities or similar organizations for taxes on property that is in classes of real property prescribed under the Assessment Act other than the commercial or industrial classes within the meaning of subsection 363 (20).

4.The program may provide for rebates that are greater than those required under subsection (3) and may provide for different rebate amounts for different eligible charities or similar organizations up to 100 per cent of the taxes paid by the eligible charity or similar organization.

(6) Section 442.1 of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 27 and amended by 1998, chapter 33, section 22 and 1999, chapter 9, section 149, is further amended by adding the following subsections:

Interest

(8.1) The municipality shall pay interest, at the same rate of interest that applies under subsection 257.11 (4) of the Education Act, on the amount of any rebate to which the eligible charity is entitled under this section if the municipality fails to rebate or credit the amount within the time specified in paragraph 3 of subsection (3) or within such other time as the Minister of Finance may prescribe.

No fee

(8.2) Despite this Act, no fee may be charged by the municipality to process an application under this section.

(7) Subsection 442.1 (10) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 27, is repealed and the following substituted:

Regulations

(10) The Minister of Finance may make regulations,

(a)governing programs under this section including prescribing additional requirements for the programs;

(b)governing procedural requirements the programs must include;

(c)prescribing a percentage for the purpose of paragraph 2 of subsection (3);

(d)prescribing a time period for the purpose of subsection (8.1).

General or specific

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

33. Section 442.2 the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 28 and amended by 1998, chapter 33, section 23, is repealed and the following substituted:

Tax reductions

442.2 (1) The council of a municipality, other than a lower-tier municipality, may, by by-law passed on or before April 30 of the year to which it relates, provide for tax reductions 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.

Property classes

(2) The property classes referred to in subsection (1) are the property classes that are subject to Part XXII.3, and the by-law may treat different property classes differently.

Reductions on the collector's roll

(3) Tax reductions under a by-law under subsection (1) shall be given through adjustments made to the collector's roll for the property for the taxation year.

Sharing costs of tax reductions

(4) The cost of a tax reduction for a property shall be shared by the municipalities that share in the revenues from the taxes on the property in the same proportion as the municipalities share in those revenues.

Reductions not limited by s. 111

(5) Section 111 does not apply with respect to tax reductions under a by-law under subsection (1).

Regulations

(6) The Minister of Finance may make regulations,

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

(b)governing by-laws under subsection (1) and the reductions provided under such by-laws.

General or specific

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

Definitions

(8) In this section, "

eligible amount" means, in relation to a property, the amount by which the taxes for the year but for the application of Part XXII.3 exceed the taxes determined under subsection 447.65 (1) or 447.68 (1); ("somme admissible") "

lower-tier municipality" and "municipality" have the same meaning as in section 361.1. ("municipalit de palier infrieur", "municipalit")

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

Vacant unit rebate

442.5 (1) Every local municipality shall have a program to provide tax rebates to owners of property that has vacant portions if that property is in any of the commercial classes or industrial classes, as defined in subsection 363 (20).

Requirements of program

(2) A tax rebate program under this section must meet the following requirements:

1.The program shall apply to eligible property as prescribed by the Minister of Finance for the purposes of this section.

2.If the property is in any of the commercial classes, the rebate shall be equal to 30 per cent of the taxes applicable to the eligible property, as determined under clause (12) (b).

3.If the property is in any of the industrial classes, the rebate shall be equal to 35 per cent of the taxes applicable to the eligible property, as determined under clause (12) (b).

4.An application may be made by or on behalf of the owner.

5.The application shall be made to the local municipality by the last day of February of the year following the taxation year in respect of which the application is made or such later date as the Minister of Finance may prescribe, either before or after the expiry of the time limit.

6.Unless otherwise prescribed by the Minister of Finance, an owner or a person on behalf of the owner shall submit one application for a taxation year, except that an interim application may be made for the first six months of the taxation year.

Mixed use

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

If single percentage established

(4) If the council of a municipality, other than a lower-tier municipality, has established a single percentage for a year under subsection 368.1 (4), that percentage applies for the year rather than the percentage set out in paragraph 2 or 3 of subsection (2), as the case may be.

Evidentiary requirements

(5) The program may include evidentiary requirements that must be satisfied for the owner to be entitled to a rebate under this section.

Right of access

(6) For the purposes of verifying an application made under this section, an employee of a municipality or a person designated by the municipality, upon producing proper identification, shall at all reasonable times and upon reasonable request be given free access to all property referred to in the application made under this section.

Information

(7) Every adult person present on the property when the person referred to in subsection (6) visits the property in the performance of his or her duties shall give the person all the information within his or her knowledge that will assist the person to determine the proper amount of the rebate payable under this section.

Request for information

(8) For the purposes of determining the proper amount of any rebate payable under this section, the municipality may, by letter sent by mail, served personally or delivered by courier, require the owner or manager of a property referred to in an application under this section to provide any relevant information or produce any relevant documents within such reasonable time as is set out in the letter.

Return of information

(9) A person who receives a letter under subsection (8) shall, within the time set out in the letter, provide to the municipality all the information that is within the person's knowledge and produce all of the documents required that are within the person's possession or control.

Offence

(10) Every person who is required to provide information under this section and who defaults in doing so is guilty of an offence and on conviction is liable to a fine of $100 for each day during which the default continues.

Sharing costs of rebates

(11) The costs of a rebate of taxes on a property shall be shared by the municipalities and the 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.

Regulations

(12) The Minister of Finance may make regulations,

(a)prescribing the requirements for a property or portion of a property to be eligible property;

(b)respecting how to determine the amount of tax to which the percentages specified in paragraphs 2 and 3 of subsection (2) are to be applied;

(c)respecting the determination of the value of eligible property by the assessment corporation;

(d)prescribing the number or frequency of applications under paragraph 6 of subsection (2);

(e)governing programs under this section including prescribing additional requirements for those programs and governing the procedural requirements that those programs must include;

(f)prescribing a date for the purposes of subsections (2), (16) and (21).

General or specific

(13) A regulation under this section may be general or specific and may apply to different municipalities differently.

Rebate to include credit

(14) A municipality may credit all or part of the amount of the tax rebate owing to an outstanding tax liability of the owner.

Complaint

(15) A person who has made an application under this section may, within 120 days after the municipality mails the determination of the amount of the rebate, complain to the Assessment Review Board in writing that the amount is too low.

Same, if no determination of rebate

(16) If the municipality fails to mail the determination of the amount of the rebate to the applicant within 120 days of the receipt of the application or such later date as the Minister of Finance may prescribe, the applicant may complain in writing to the Assessment Review Board.

Determination by the Board

(17) In a complaint under subsection (15) or (16), the Assessment Review Board shall determine the amount of any rebate owing to the applicant.

Same

(18) Section 40 of the Assessment Act applies to a complaint under subsection (15), (16) or (25) as if it were a complaint under subsection 40 (1) of that Act, except the assessment corporation shall not be a party for purposes of subsection 40 (5) of that Act.

Appeal to Divisional Court

(19) Section 43.1 of the Assessment Act applies to a decision of the Assessment Review Board.

Offence

(20) Any person who knowingly makes a false or deceptive statement in an application made to a municipality or in any other document submitted to a municipality under this section is guilty of an offence and is liable on conviction to a fine of not more than an amount that is twice the amount of the rebate obtained or sought to be obtained by the false or deceptive statement except that the fine shall not be less than $500.

Interest

(21) The municipality shall pay interest, at the same rate of interest that applies under subsection 257.11 (4) of the Education Act, on the amount of any rebate to which the applicant is entitled under this section if the municipality fails to rebate or credit such amount within 120 days, or such later date as the Minister of Finance may prescribe, of the receipt of the application or interim application.

No fee

(22) Despite this Act, no fee may be imposed by a municipality to process an application made under this section.

Recovery

(23) If a rebate is paid under this section and the municipality determines that the rebate or any portion of the rebate has been paid in error, the municipality may notify the owner of the property in respect of which the rebate was made of the amount of the overpayment and upon so doing the amount shall be deemed to be taxes for municipal and school purposes under this Act.

Time limitation

(24) Subsection (23) does not apply unless the municipality notifies the owner within two years after the application with respect to which the overpayment relates was made.

Complaint

(25) The owner of the property to whom the municipality sends a notification under subsection (23) may, within 90 days of its receipt, complain to the Assessment Review Board in writing that the amount claimed or any part of it was properly payable as a rebate under this section.

Application

(26) This section applies with respect to the 2001 taxation year and subsequent taxation years.

Cancellation, reduction or refund of taxes

442.6 (1) The council of a local municipality may, in any year, pass a by-law to provide for the cancellation, reduction or refund of taxes levied for municipal and school purposes in the year by the council in respect of an eligible property of any person who makes an application in that year to the municipality for that relief and whose taxes are considered by the council to be unduly burdensome, as defined in the by-law.

Notice to upper-tier municipality, etc.

(2) If a lower-tier municipality has passed a by-law under subsection (1), it shall give notice of that fact to the upper-tier municipality and the upper-tier municipality may pass a by-law to provide a similar cancellation, reduction or refund of taxes levied for upper-tier purposes.

Sharing costs

(3) If an upper-tier municipality has passed a by-law under subsection (2), the amount of the taxes cancelled, reduced or refunded shall be shared by the municipalities and school boards that share the revenue from the taxes on the property affected by the by-law in the same proportion that those municipalities and school boards share in those revenues.

Lower-tier municipality to pay upper-tier share

(4) If an upper-tier municipality has not passed a by-law under subsection (2), the amount of the taxes cancelled, reduced or refunded shall be shared by the lower-tier municipality and school boards in the same proportion as under subsection (3) but the amount of the upper-tier municipality's share shall be the responsibility of the lower-tier municipality.

Single-tier municipality

(5) If the local municipality is a single-tier municipality, the amount of the taxes cancelled, reduced or refunded shall by shared by the municipality and school boards that share the revenues from the taxes on the property affected by the by-law in the same proportion that the municipality and school boards share in those revenues.

Definitions

(6) In this section, "

eligible property" means a property classified in the residential/farm property class, the farmlands property class or the managed forests property class; ("bien admissible") "

lower-tier municipality" and "upper-tier municipality" have the same meaning as in section 361.1; ("municipalit de palier infrieur", "municipalit de palier suprieur") "

single-tier municipality" means a local municipality that does not form part of an upper-tier municipality for municipal purposes. ("municipalit palier unique")

35. (1) Subsection 443 (4) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 23, is further amended by striking out "the Ontario Property Assessment Corporation" and substituting "the assessment corporation".

(2) Subsection 443 (6) of the Act, as amended by the Statutes of Ontario, 1997, chapter 23, section 10, is further amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

(3) Clause 443 (7) (b) of the Act is amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

(4) Subsection 443 (14) of the Act is amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

36. (1) Subsection 444 (2) of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule and 1997, chapter 23, section 10, is further amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

(2) Subsection 444 (3) of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule and 1997, chapter 23, section 10, is further amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

(3) Subsection 444 (15) of the Act, as amended by the Statutes of Ontario, 1997, chapter 29, section 49, is further amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

37. (1) Subsection 444.1 (5) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed and the following substituted:

Notice

(5) The tenant is not required to pay the landlord an amount unless the landlord gives the tenant a notice in accordance with subsection (8) that the landlord requires the tenant to pay an amount under this section.

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

Amount is additional rent

(6) The amount that a tenant is required to pay shall be deemed to be additional rent due on the date set out in the notice referred to in subsection (5).

(3) Subsection 444.1 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29 and amended by 1998, chapter 33, section 24 and 1999, chapter 9, section 151, is repealed.

(4) Subsection 444.1 (8) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29 and amended by 1998, chapter 33, section 24 and 1999, chapter 9, section 151, is repealed and the following substituted:

Notice requiring payment

(8) The following apply to the notice referred to in subsection (5):

1.The notice must set out,

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

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

iii.the amount of the property taxes for the property for the year or an estimate of the amount of the property taxes for the property for the year if not yet determined.

2.The notice must be given at least 30 days before the day the amount or the first instalment of the amount the tenant is required to pay is due.

3.The landlord shall provide the tenant with a notice of adjustments, if any, to be made after the taxes for the taxation year have been determined.

4.The notice must be given by September 30 of the taxation year or 30 days after the day the final tax notice for the taxation year is received by the landlord, whichever is later.

5.For 2000, the notice must be given by September 30, 2000 or 30 days after the final 2000 tax notice is received by the landlord, whichever is later.

(5) Subsection 444.1 (9) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is amended by striking out "paragraph 2 of".

(6) Subsections 444.1 (14.2), (14.3), (14.4), (14.5), (14.6) and (14.7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 24, are repealed and the following substituted:

Where s. 447.71 applies

(14.2) If section 447.71 applies to a tenant of leased premises, the maximum amount that the tenant may be required to pay for a taxation year in respect of the leased premises is the tenant's cap determined under subsection 447.71 (5) or (6), as the case may be, and not the amount determined under subsection (3).

(7) Subsection 444.1 (14.9) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 24, is repealed and the following substituted:

Sub-leases

(14.9) If the landlord is not the owner of the property but has acquired an interest in the property under a lease and has further sublet the property or a portion of the property, the notice referred to in subsection (5) may be given to the person holding the sub-lease on or before the day that is 15 days after the landlord is given a valid notice referred to in subsection (5).

(8) Subsections 444.1 (16) and (17) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 151, are repealed.

38. (1) Subsection 444.2 (5) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed and the following substituted:

Notice

(5) The tenant is not required to pay the landlord an amount unless the landlord gives the tenant a notice in accordance with subsection (8) that the landlord requires the tenant to pay an amount under this section.

(2) Subsection 444.2 (6) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed and the following substituted:

Amount is additional rent

(6) The amount that a tenant is required to pay shall be deemed to be additional rent due on the date set out in the notice referred to in subsection (5).

(3) Subsection 444.2 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29 and amended by 1998, chapter 33, section 25 and 1999, chapter 9, section 152, is repealed.

(4) Subsection 444.2 (8) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29 and amended by 1998, chapter 33, section 25 and 1999, chapter 9, section 152, is repealed and the following substituted:

Notice requiring payment

(8) The following apply to the notice referred to in subsection (5):

1.The notice must set out,

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

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

iii.the amount of the property taxes for the property for the year or an estimate of the amount of the property taxes for the property for the year if not yet determined.

2.The notice must be given at least 30 days before the day the amount or the first instalment of the amount the tenant is required to pay is due.

3.The landlord shall provide the tenant with a notice of adjustments, if any, to be made after the taxes for the taxation year have been determined.

4.The notice must be given by September 30 of the taxation year or 30 days after the day the final tax notice for the taxation year is received by the landlord, whichever is later.

5.For 2000, the notice must be given by September 30, 2000 or 30 days after the final 2000 tax notice is received by the landlord, whichever is later.

(5) Subsection 444.2 (9) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is amended by striking out "paragraph 2 of".

(6) Subsections 444.2 (9.1) and (9.2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 25, are repealed.

(7) Subsection 444.2 (9.4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 25, is repealed and the following substituted:

Sub-leases

(9.4) If the landlord is not the owner of the property but has acquired an interest in the property under a lease and has further sublet the property or a portion of the property, the notice referred to in subsection (5) may be given to the person holding the sub-lease on or before the day that is 15 days after the landlord is given a valid notice referred to in subsection (5).

(8) Subsections 444.2 (11) and (12) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 152, are repealed.

39. Section 447.7 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30 and amended by 1999, chapter 9, section 154, is further amended by adding the following subsections:

Omitted assessments

(4) If an assessment for a property that is made in a year under subsection 33 (3) of the Assessment Act applies to the year or to either or both of the next two preceding years, the clerk of the municipality shall revise the frozen assessment listing for the year or for the preceding year or years as provided under this section and the taxes that would have been payable if the changes had been made to the frozen assessment listing in the year shall be levied and collected.

Application

(5) Subsection (4) applies to the 1998 and subsequent taxation years.

40. Section 447.10 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30 and amended by 1998, chapter 33, section 30 and 1999, chapter 9, section 156, is further amended by adding the following subsections:

Omitted assessments

(7) If an assessment for a property that is made in a year under subsection 33 (1) of the Assessment Act applies to the year or to either or both of the next two preceding years, the clerk of the municipality shall revise the frozen assessment listing for the year or for the preceding year or years as provided under this section and the taxes that would have been payable if the changes had been made to the frozen assessment listing in the year shall be levied and collected.

More than one supplementary assessment

(8) If, as a result of more than one supplementary assessment made under section 34 of the Assessment Act after January 1, 1998 in respect of a property described in paragraph 1 of subsection (4), the increase in the assessment on the assessment roll is equal to or greater than 50 per cent of the assessment of the property on the assessment roll prior to any of the supplementary assessments being made, subsection (4) does not apply to the property and the assessment on the frozen assessment listing shall be recalculated under subsection (2) following the supplementary assessment that increases the total assessment of the property on the assessment roll by an amount equal to or greater than 50 per cent of the assessment on the assessment roll.

Application

(9) Subsections (7) and (8) apply to the 1998 and subsequent taxation years.

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

Correction of errors

447.26.1 (1) If, in 2000 or 2001, the municipality determines that there has been an error in calculating the frozen assessment listing under this Part, the municipality shall make such changes as are necessary to correct the error and,

(a)shall, if a person has been overcharged for 1998, 1999 or 2000 by reason of the error, refund to the person the amount of the overpayment, or, if there is an outstanding tax liability, credit the amount of the overpayment to that liability; and

(b)may, if a person has been undercharged for 2000 by reason of such error, increase the taxes levied against such person for 2000 to correct the error.

Notice

(2) The municipality shall mail a notice of its determination to the owner by December 31, 2001.

Application

(3) If no determination is made by a municipality, an owner of a property may apply to the municipality to request that it consider whether an error referred to in subsection (1) has been made and the application shall include an explanation as to why the owner believes there is an error and the amount that the owner believes has been overcharged.

Deadline

(4) The application under subsection (3) must be made by the last day of February in 2002 and the municipality must consider the application and make a determination within 60 days after the application is made.

Notice

(5) The municipality shall mail a notice of its determination to the owner.

Appeal by the taxpayer

(6) An appeal may be made to the Assessment Review Board by a person who is not satisfied with the determination made by a municipality under this section or if no determination is made by the municipality after an application under subsection (3) is made.

Application

(7) Subject to this section, subsections 442 (15), (16) and (18) or subsections 444 (8), (9), (12) and (13), as the case may be, apply to an appeal under this section.

Provisions relating to appeal

(8) For the purposes of subsection (7), the notice of appeal must be sent no later than June 30, 2002 or 60 days after the municipality mails a notice of its determination under subsection (2) or (5), whichever is the later.

42. (1) Section 447.34.1 of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 159, is amended by adding the following subsection:

Correction of errors

(8.1) If a municipality determines that an error was made in a notification sent out to the owner of an eligible property under subsection (7) or (8), the municipality shall mail to the owner a notice setting out the correct information.

(2) Subsection 447.34.1 (9) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 159, is amended by adding "or (8.1)" after "(7)".

(3) Subsection 447.34.1 (10) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 159, is amended by,

(a)striking out "clause (8) (b)" and substituting "clause (8) (b) or subsection (8.1)"\; and

(b)striking out "specified".

(4) Section 447.34.1 of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 159, is amended by adding the following subsection:

Appeal

(12.1) Section 43.1 of the Assessment Act applies to a decision of the Assessment Review Board.

43. Paragraph 1 of section 447.43 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 37, is repealed and the following substituted:

1.Section 447.26.1 (Correction of errors).

1.1Section 447.27 (Upper-tier request for listing).

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

PART XXII.3

LIMITATION ON TAXES

FOR CERTAIN PROPERTY CLASSES

BEGINNING IN 2001

Definitions

447.63 (1) In this Part, "

commercial classes" means the commercial property class prescribed under the Assessment Act and optional property classes that contain property that, if the council of the municipality did not opt to have the optional property class apply, would be in the commercial property class; ("catgories commerciales") "

industrial classes" means the industrial property class prescribed under the Assessment Act and optional property classes that contain property that, if the council of the municipality did not opt to have the optional property class apply, would be in the industrial property class; ("catgories industrielles") "

lower-tier municipality", "municipality", "payment in lieu of taxes", "property class", and "upper-tier municipality" have the same meaning as in section 361.1. ("municipalit de palier infrieur", "municipalit", "paiement tenant lieu d'impts", "catgorie de biens", "municipalit de palier suprieur") "

optional property class" means a property class that the council of a municipality may opt to have apply within the municipality under regulations made under the Assessment Act. ("catgorie de biens facultative")

Reference to property class

(2) A reference to a specific property class, other than a reference to the commercial classes or industrial classes, is a reference to the property class prescribed under section 7 of the Assessment Act.

Portions of a property

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

Property that Part applies to

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

Non-application

(5) This Part does not apply to,

(a)property in territory without municipal organization;

(b)property in the subclasses prescribed under paragraph 1 of subsection 8 (1) of the Assessment Act\;

(c)property or a portion of the property to which a payment in lieu of taxes relates, except the property of a designated electricity utility within the meaning of subsection 19.0.1 (5) of the Assessment Act or a corporation referred to in clause (d) of the definition of "municipal electricity utility" in section 88 of the Electricity Act, 1998\;

(d)a bridge or tunnel that crosses a river forming the boundary between Ontario and the United States and the land used for the purposes of the bridge or tunnel;

(e)an eligible convention centre that is exempt from taxes for school purposes under subsection 257.6 (6) of the Education Act\;

(f)despite clause (c), land, buildings and structures to which subsection 19.0.1 (1) of the Assessment Act applies; and

(g)property classified in the residential/farm property class, farmlands property class, managed forests property class or pipe line property class.

Exception

(6) Despite clause (5) (c), this Part applies to a property or portion of a property in the commercial classes or the industrial classes to which subsection 4 (3) of the Municipal Tax Assistance Act applies but the portion of a property to which that subsection applies shall be deemed to be a separate property for the purposes of this Part.

Regulations, payments in lieu of taxes

(7) Despite clause (5) (c), the Minister of Finance may make regulations prescribing circumstances or municipalities with respect to which clause (5) (c) 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.

General or specific

(8) A regulation under subsection (7) 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.

Same

(10) Subsection (9) applies with respect to payments in lieu of taxes with respect to which this Part, but for clause (5) (c), would have applied.

Regulations, exemptions

(11) The Minister of Finance may by regulation exempt property from the application of this Part and the regulation may be general or specific in its application.

Exempt property deemed not in classes

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

Determination of taxes

447.64 (1) Except as provided in this Part, the taxes for municipal and school purposes for a year for a property to which this Part applies shall be determined in accordance with Part XXII of this Act and Division B of Part IX of the Education Act.

Annexations, 2000

(2) In respect of a property that was, on December 31, 1999, in territory without municipal organization but, on January 1, 2000, became part of a municipality, the taxes for municipal purposes for 2001 shall be limited to two-thirds of the taxes for municipal purposes that would be levied on the property but for this subsection.

Annexations, 2001

(3) In respect of a property that is, on December 31, 2000, in territory without municipal organization but, on January 1, 2001, becomes part of a municipality, the taxes for municipal purposes for 2001 shall be limited to one-third and for 2002 to two-thirds of the taxes for municipal purposes that would be levied on the property but for this subsection.

Annexations, after 2001

(4) In respect of a property that is, on the last day of the taxation year immediately preceding the taxation year, in territory without municipal organization but, on the first day of a taxation year after 2001, becomes part of a municipality, the taxes for municipal purposes for that taxation year shall be limited to one-third and for the year immediately following the taxation year to two-thirds of the taxes for municipal purposes that would be levied on the property but for this subsection.

Determination of maximum taxes, 2001

447.65 (1) Except as otherwise provided in this section and under section 447.67, the taxes for municipal and school purposes for 2001 to be levied on a property shall be the amount determined in accordance with the following:

1.Determine the 2000 taxes in accordance with subsection (2).

2.Add 5 per cent of the amount determined under paragraph 1 to the amount determined under paragraph 1.

3.The amount determined under paragraph 2 shall be adjusted, in accordance with the regulations, in respect of changes in taxes for municipal purposes.

4.The taxes for the property in 2001 shall be equal to the amount determined under paragraph 2 and adjusted under paragraph 3, if applicable.

Same

(2) The 2000 taxes for a property shall be determined as follows:

1.Determine the taxes for municipal and school purposes that were levied on the property for 2000.

2.If, for the property, the 1999 assessment roll for taxation in 2000 included an amount in the subclass for vacant units and excess land prescribed under the Assessment Act, recalculate the taxes determined under paragraph 1 as if the property did not contain any vacant units.

3.If a supplementary assessment or change in classification is made under section 34 of the Assessment Act during 2000 or if an assessment or change in classification could have been made under section 34 of that Act and the appropriate change is made on the assessment roll for taxation in 2001, recalculate the taxes determined under paragraph 1 as if the increase in the assessment or change in classification, as the case may be, had applied to the property for all of 2000.

4.If section 447.34.1 applied to the property for a part of 2000, recalculate the taxes determined under paragraph 1 as if section 447.34.1 had applied to the property for all of 2000.

5.If the assessment of a property whose classification is in the subclass for vacant land on the assessment roll for taxation in 2001 increases as a result of an improvement to that property during 2000 and if no portion of any building on the property begins to be used for any purpose during 2000, recalculate the taxes determined under paragraph 1 as if the increase in the assessment had applied to the property for all of 2000.

6.If the council of a municipality cancels, reduces or refunds taxes under section 442 for 2000 on an application under clause 442 (1) (a), (c) or (f) or under section 443 for 2000, recalculate the taxes determined under paragraph 1 as if the event that caused the cancellation, reduction or refund had occurred on January 1, 2000.

7.If a property was, on December 31, 1998, in territory without municipal organization but, on January 1, 1999 was part of a municipality specified in Table 6.1 of Ontario Regulation 7/99, the taxes for municipal purposes shall be determined, for the purposes of paragraph 1, as if the total amount determined in accordance with the formula under subsection 24.2 (3) of that Regulation had been used to determine the taxes for municipal purposes for 2000.

8.If a property was, on December 31, 1999, in territory without municipal organization but, on January 1, 2000, was part of a municipality specified in Table 6.2 of Ontario Regulation 7/99, the taxes for municipal purposes shall be determined, for the purposes of paragraph 1, as if two-thirds of the amount determined in accordance with the formula under subsection 24.2 (3) of that Regulation had been used to determine the taxes for municipal purposes for 2000.

9.If a property is, on December 31, 2000, in territory without municipal organization but, on January 1, 2001, becomes part of a municipality, the taxes for municipal purposes shall, for the purposes of paragraph 1, be the taxes for municipal purposes that will be levied on the property in 2001 under subsection 447.64 (3).

Regulations

(3) The Minister of Finance may make regulations providing for adjustments under paragraph 3 of subsection (1) in respect of changes in taxes for municipal purposes.

Different adjustments

(4) A regulation under subsection (3) may provide for different adjustments to different properties, property classes and municipalities.

Adjustment

(5) If, as a result of a request under section 39.1 of the Assessment Act, a complaint under section 40 of that Act, an application under section 46 of that Act, an application under section 447.26 or a determination under section 447.26.1, the taxes for municipal and school purposes for a property for 2000 are recalculated, the amount under paragraph 1 of subsection (2) shall be adjusted accordingly.

Omitted assessments

(6) If, as a result of an assessment under subsection 32 (2) of the Assessment Act or section 33 of the Assessment Act, the total taxes for municipal and school purposes for a property for 2000 are altered, the amount under paragraph 1 of subsection (2) shall be adjusted accordingly.

Omitted and supplementary assessments for 2001

(7) If an assessment is made in respect of property, other than a property described in subsection 447.67 (2), under section 33 or 34 of the Assessment Act increasing the assessment of the property for 2001,

(a)subsection (1) does not apply to the additional taxes for municipal and school purposes for the year attributable to the increase in the assessment; and

(b)the additional taxes for municipal and school purposes shall be determined in accordance with the following formula:

T = CT × CVAT

NT

where,

Tis the additional taxes for municipal and school purposes,

CTis the amount determined under subsection (1),

NTis the uncapped 2001 taxes, but does not include CVAT,

CVATis the supplementary taxes for municipal and school purposes that would be payable but for the application of this subsection.

Same

(8) Despite subsection (7), the 2001 taxes for municipal and school purposes for the property for the year or portion of the year in respect of which the assessment under clause (a) or (b) of this subsection was made shall be recalculated under section 447.70 if,

(a)there was an additional assessment that relates to a new building or structure erected on the property that was, prior to the assessment, assessed for 2001 as being in the subclass for vacant land under paragraph 2 of subsection 8 (1) of the Assessment Act\; or

(b)as a result of an additional assessment for 2001 or for 2000 and 2001 or any portion thereof, the assessment of the property is increased by an amount equal to or greater than 50 per cent of the assessment on the assessment roll before the additional assessment was made.

Additional assessment

(9) If an additional assessment is made for 2000 and for 2001, the percentage for the purposes of clause (8) (b) shall be determined as follows:

1.Determine the additional assessment for 2000.

2.Determine the assessment on the assessment roll for taxation in 2000 before the additional assessment referred to in paragraph 1 was made.

3.Divide the amount in paragraph 1 by the amount in paragraph 2.

4.Multiply the quotient in paragraph 3 by 100.

5.Add the amounts in paragraphs 1 and 2.

6.Divide the amount in paragraph 2 by the amount in paragraph 5.

7.Multiply the quotient determined in paragraph 6 by the assessment on the assessment roll for taxation in 2001.

8.Determine the additional assessment for 2001.

9.Divide the amount in paragraph 8 by the amount in paragraph 7.

10.Multiply the quotient in paragraph 9 by 100.

11.Add the percentages in paragraphs 4 and 10.

Same

(10) If the percentage in paragraph 11 of subsection (9) is equal to or greater than 50, subsection (8) applies for 2001.

If s. 447.34.1 applied in 2000

(11) If section 447.34.1 applied to the property for 2000 or a part of 2000, subsection (8) does not apply for 2001.

Limitation

(12) Despite subsection (1) but subject to section 447.67, if the amount determined under subsection (1) exceeds the uncapped 2001 taxes, the taxes for municipal and school purposes under this Part for 2001 shall be equal to the uncapped 2001 taxes.

Definitions

(13) In this section, "

additional assessment" means one or more assessments made under section 33 or 34 of the Assessment Act\; ("valuation additionnelle") "

uncapped 2001 taxes" means the taxes for municipal and school purposes that would have been imposed for 2001 but for the application of this Part. ("impts de 2001 non plafonns")

Option for municipalities under Part XXII.1

447.66 (1) If Part XXII.1 applies to a municipality, the council of the municipality, other than a lower-tier municipality, may pass a by-law reducing the increase under paragraph 2 of subsection 447.65 (1) or paragraph 2 of subsection 447.68 (1) to 2.5 per cent for a taxation year.

Deadline

(2) A by-law under subsection (1) may not be passed after February 28 in the taxation year to which it applies or such later deadline as the Minister of Finance may prescribe for the municipality either before or after the February 28 deadline has passed.

By-law to provide for recoveries

447.67 (1) The council of a municipality, other than a lower-tier municipality, may pass a by-law to establish a percentage by which tax decreases are limited for 2001 in respect of properties in any property class subject to this Part in order to recover all or part of the revenues foregone as a result of the application of section 447.65 to other properties in the property class.

Application

(2) A by-law under subsection (1) shall apply to all properties in the property class whose taxes for municipal and school purposes for 2000, as determined under subsection 447.65 (2), exceed their taxes for municipal and school purposes for 2001 as adjusted in accordance with the regulations in respect of changes in taxes for municipal purposes and changes in taxes for school purposes.

Single percentage

(3) A by-law under subsection (1) shall establish the same percentage for all properties in a property class, but different percentages may be established for different property classes.

Limitation

(4) The percentage established by a by-law under subsection (1) shall be limited as follows:

1.Calculate the total revenues foregone as a result of the application of section 447.65 to properties in the property class.

2.Calculate the total difference between the taxes for municipal and school purposes for all properties in the property class referred to in subsection (2) for 2000, as determined under subsection 447.65 (2), and the taxes for municipal and school purposes for properties in the same property class for 2001 as adjusted in accordance with the regulations in respect of changes in taxes for municipal purposes and changes in taxes for school purposes.

3.Calculate the percentage of the amount determined under paragraph 2 that would yield sufficient revenues to recover all of the foregone revenues calculated under paragraph 1.

4.The percentage established under the by-law shall not exceed the percentage determined under paragraph 3 or 100 per cent, whichever is the lesser percentage.

Single property class

(5) For the purpose of this section, 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.

No lower-tier surplus or shortfall

(6) The council of an upper-tier municipality shall, in a by-law under subsection (1), provide that adjustments shall be made between the upper-tier municipality and the lower-tier municipalities so that no lower-tier municipality has a surplus or shortfall as a result of the application of the by-law.

Upper-tier shortfall

(7) If the upper-tier municipality experiences a shortfall as a result of the application of subsection (6), the by-law made under subsection (1) shall provide that any shortfall shall be shared by the upper-tier municipality and the lower-tier municipalities in the same proportion as those municipalities share in the taxes levied on the property class for municipal purposes.

Taxes for 2001

(8) The taxes for municipal and school purposes for 2001 on a property to which a by-law made under this section applies shall be determined as follows:

1.Determine the taxes for municipal and school purposes for the property for 2000 under subsection 447.65 (2).

2.Determine the amount of the difference between the taxes for municipal and school purposes for the property for 2000, as determined under subsection 447.65 (2) and the taxes for municipal and school purposes for the property for 2001, as adjusted in accordance with the regulations, in respect of changes in the taxes for municipal purposes and for school purposes.

3.Multiply the percentage established for the property class the property is in under subsection (1) by the amount determined under paragraph 2.

4.Deduct the amount determined under paragraph 3 from the amount determined under paragraph 2.

5.Deduct the amount determined under paragraph 4 from the amount determined under paragraph 1.

6.The amount determined under paragraph 5 shall be adjusted, in accordance with the regulations, in respect of changes in taxes for municipal purposes and for school purposes.

7.The taxes for municipal and school purposes for 2001 shall be equal to the amount determined under paragraph 5 and adjusted under paragraph 6, if applicable.

Regulations

(9) The Minister of Finance may make regulations,

(a)providing for adjustments under subsection (2), (4) or (8) in respect of changes in taxes for municipal purposes or for school purposes; and

(b)governing the determination of the percentage under subsection (1) and the limitation on such percentage under subsection (4).

General or specific

(10) A regulation under subsection (9) may be general or specific and may treat different municipalities differently.

Taxes for school purposes

(11) No by-law made under this section shall affect the amount that a local municipality is required to pay to a school board.

Supplementary and omitted assessments in 2001

(12) If an assessment is made under section 33 or 34 of the Assessment Act to a property subject to a by-law under this section that increases the assessment of that property for 2001, subsection (8) does not apply to the additional taxes for municipal and school purposes for the year attributable to the assessment.

Determination of maximum taxes after 2001

447.68 (1) Except as otherwise provided in this section and under section 447.69, the taxes for municipal and school purposes for a taxation year after 2001 to be levied on a property shall be the amount determined in accordance with the following:

1.Determine the taxes for the previous year in accordance with subsection (2).

2.Add 5 per cent of the amount determined under paragraph 1 to the amount determined under paragraph 1.

3.The amount determined under paragraph 2 shall be adjusted, in accordance with the regulations, in respect of changes in taxes for municipal purposes.

4.The taxes for the property for the taxation year shall be equal to the amount determined under paragraph 2 and adjusted under paragraph 3, if applicable.

Previous year

(2) The taxes for the previous year for a property shall be determined as follows:

1.Determine the taxes for municipal and school purposes that were levied on the property for the year.

2.If a supplementary assessment or change in classification is made under section 34 of the Assessment Act during the year or if an assessment or change in classification could have been made under section 34 of that Act and the appropriate change is made on the assessment roll for taxation in the taxation year, recalculate the taxes determined under paragraph 1 as if the increase in the assessment or change in classification, as the case may be, had applied to the property for all of the year.

3.If section 447.70 applied to the property for a part of the year, recalculate the taxes determined under paragraph 1 as if section 447.70 had applied to the property for all of the year.

4.If the assessment of a property whose classification is in the subclass for vacant land on the assessment roll for taxation in the taxation year increases as a result of an improvement to that property during the year and if no portion of any building on the property begins to be used for any purpose during the year, recalculate the taxes determined under paragraph 1 as if the increase in the assessment had applied to the property for all of the year.

5.If the council of a municipality cancels, reduces or refunds taxes under section 442 for the year on an application under clause 442 (1) (a), (c) or (f) or under section 443 for the year, recalculate the taxes determined under paragraph 1 as if the event that caused the cancellation, reduction or refund had occurred on January 1 of the year.

6.In respect of a property referred to in paragraph 9 of subsection 447.65 (2) for 2001, the taxes for municipal purposes shall, for the purposes of paragraph 1 of this subsection, be the taxes for municipal purposes that will be levied on the property in 2002 under subsection 447.64 (3).

7.In respect of a property referred to in subsection 447.64 (4), the taxes for municipal and school purposes shall, for the purposes of paragraph 1, be the taxes that would have been levied on the property for the taxation year under that subsection.

Regulations

(3) The Minister of Finance may make regulations providing for adjustments under paragraph 3 of subsection (1) in respect of changes in taxes for municipal purposes.

Different adjustments

(4) A regulation under subsection (3) may provide for different adjustments to different properties, property classes and municipalities.

Adjustment

(5) If, as a result of a request under section 39.1 of the Assessment Act, a complaint under section 40 of that Act, an application under section 46 of that Act, an application under section 447.26 or a determination under section 447.26.1, the taxes for municipal and school purposes for a property for the previous year are recalculated, the amount under paragraph 1 of subsection (2) shall be adjusted accordingly.

Omitted assessments

(6) If, as a result of an assessment under subsection 32 (2) of the Assessment Act or section 33 of the Assessment Act, the total taxes for municipal and school purposes for a property for the previous year are altered, the amount under paragraph 1 of subsection (2) shall be adjusted accordingly.

Omitted and supplementary assessments

in the taxation year

(7) If an assessment is made in respect of property, other than property described in subsection 447.69 (2), under section 33 or 34 of the Assessment Act increasing the assessment of the property in the taxation year,

(a)subsection (1) does not apply to the additional taxes for municipal and school purposes attributable to the increase in the assessment; and

(b)the additional taxes for municipal and school purposes shall be determined in accordance with the following formula:

T = CT × CVAT

NT

where,

Tis the additional taxes for municipal and school purposes,

CTis the amount determined under subsection (1),

NTis the uncapped taxes, but does not include CVAT,

CVATis the supplementary taxes for municipal and school purposes that would be payable but for the application of this subsection.

Same

(8) Despite subsection (7), the taxes for municipal and school purposes for the property for the taxation year or portion of the year in respect of which the assessment under clause (a) or (b) of this subsection was made shall be recalculated under section 447.70 if,

(a)there was an additional assessment that relates to a new building or structure erected on the property that was, prior to the assessment, assessed for the taxation year as being in the subclass for vacant land under paragraph 2 of subsection 8 (1) of the Assessment Act\; or

(b)as a result of an additional assessment for the taxation year or for the previous year and the taxation year or any portion thereof, the assessment of the property is increased by an amount equal to or greater than 50 per cent of the assessment on the assessment roll before the additional assessment was made.

Additional assessment

(9) If an additional assessment is made for the previous year and for the taxation year, the percentage for the purposes of clause (8) (b) shall be determined as follows:

1.Determine the additional assessment for the previous year.

2.Determine the assessment on the assessment roll for taxation in the previous year before the additional assessment referred to in paragraph 1 was made.

3.Divide the amount in paragraph 1 by the amount in paragraph 2.

4.Multiply the quotient in paragraph 3 by 100.

5.Add the amounts in paragraphs 1 and 2.

6.Divide the amount in paragraph 2 by the amount in paragraph 5.

7.Multiply the quotient determined in paragraph 6 by the assessment on the assessment roll for taxation in the taxation year.

8.Determine the additional assessment for the taxation year.

9.Divide the amount in paragraph 8 by the amount in paragraph 7.

10.Multiply the quotient in paragraph 9 by 100.

11.Add the percentages in paragraphs 4 and 10.

Same

(10) If the percentage in paragraph 11 of subsection (9) is equal to or greater than 50, subsection (8) applies for the taxation year.

If s. 447.70 applied in previous year

(11) If section 447.70 applied to the property for the previous year or a part of the previous year, subsection (8) does not apply for the taxation year.

Limitation

(12) Despite subsection (1) but subject to section 447.69, if the amount determined under subsection (1) exceeds the uncapped taxes, the taxes for municipal and school purposes under this Part shall be equal to the uncapped taxes.

Annexations after 2001

(13) For the purposes of subsection (2),

(a)if a property is, on the last day of the previous year, in territory without municipal organization but, on the first day of the taxation year, becomes part of a municipality, the taxes for municipal purposes for the previous year shall be one-third of the taxes for municipal purposes that would have been levied on the property in the taxation year, but for the application of this Part; or

(b)if a property was, on the last day of the year prior to the previous year, in territory without municipal organization but, on the first day of the previous year, became part of a municipality, the taxes for municipal purposes for the previous year shall be two-thirds of the taxes for municipal purposes that would have been levied on the property for the previous year, but for the application of this Part.

Definitions

(14) In this section, "

additional assessment" means one or more assessments made under section 33 or 34 of the Assessment Act\; ("valuation additionnelle") "

previous year" means the year immediately preceding the taxation year; ("anne prcdente") "

taxation year" means the year in respect of which taxes are determined under subsection (1); ("anne d'imposition") "

uncapped taxes" means the taxes for municipal and school purposes that would have been imposed for the taxation year but for the application of this Part. ("impts non plafonns")

By-law to provide for recoveries

447.69 (1) The council of a municipality, other than a lower-tier municipality, may pass a by-law to establish a percentage by which tax decreases are limited for a taxation year in respect of properties in any property class subject to this Part in order to recover all or part of the revenues foregone as a result of the application of section 447.68 to other properties in the property class.

Application

(2) A by-law under subsection (1) shall apply to all properties in the property class whose taxes for municipal and school purposes for the previous year, as determined under subsection 447.68 (2), exceed their taxes for municipal and school purposes for the taxation year as adjusted in accordance with the regulations in respect of changes in taxes for municipal purposes and changes in taxes for school purposes.

Single percentage

(3) A by-law under subsection (1) shall establish the same percentage for all properties in a property class, but different percentages may be established for different property classes.

Limitation

(4) The percentage established by a by-law under subsection (1) shall be limited as follows:

1.Calculate the total revenues foregone as a result of the application of section 447.68 to properties in the property class.

2.Calculate the total difference between the taxes for municipal and school purposes for all properties in the property class referred to in subsection (2) for the previous year, as determined under subsection 447.68 (2), and the taxes for municipal and school purposes for properties in the same property class for the taxation year as adjusted in accordance with the regulations in respect of changes in taxes for municipal purposes and changes in taxes for school purposes.

3.Calculate the percentage of the amount determined under paragraph 2 that would yield sufficient revenues to recover all of the foregone revenues calculated under paragraph 1.

4.The percentage established under the by-law shall not exceed the percentage determined under paragraph 3 or 100 per cent, whichever is the lesser percentage.

Single property class

(5) For the purposes of this section, 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.

No lower-tier surplus or shortfall

(6) The council of an upper-tier municipality shall, in a by-law under subsection (1), provide that adjustments shall be made between the upper-tier municipality and lower-tier municipalities so that no lower-tier municipality has a surplus or shortfall as a result of the application of the by-law.

Upper-tier shortfall

(7) If the upper-tier municipality experiences a shortfall as a result of the application of subsection (6), the by-law made under subsection (1) shall provide that any shortfall shall be shared by the upper-tier municipality and lower-tier municipalities in the same proportion as those municipalities share in the taxes levied on the property class for municipal purposes.

Taxes for the taxation year

(8) The taxes for municipal and school purposes for the taxation year on a property to which a by-law made under this section applies shall be determined as follows:

1.Determine the taxes for municipal and school purposes for the property for the previous year under subsection 447.68 (2).

2.Determine the amount of the difference between the taxes for municipal and school purposes for the property for the previous year, as determined under subsection 447.68 (2) and the taxes for municipal and school purposes for the property for the taxation year, as adjusted in accordance with the regulations, in respect of changes in the taxes for municipal purposes and for school purposes.

3.Multiply the percentage established for the property class the property is in under subsection (1) by the amount determined under paragraph 2.

4.Deduct the amount determined under paragraph 3 from the amount determined under paragraph 2.

5.Deduct the amount determined under paragraph 4 from the amount determined under paragraph 1.

6.The amount determined under paragraph 5 shall be adjusted, in accordance with the regulations, in respect of changes in taxes for municipal purposes and for school purposes.

7.The taxes for municipal and school purposes for the taxation year shall be equal to the amount determined under paragraph 5 and adjusted under paragraph 6, if applicable.

Regulations

(9) The Minister of Finance may make regulations,

(a)providing for adjustments under subsection (2), (4) or (8) in respect of changes in taxes for municipal purposes or for school purposes; and

(b)governing the determination of the percentage under subsection (1) and the limitation on such percentage under subsection (4).

General or specific

(10) A regulation under subsection (9) may be general or specific and may treat different municipalities differently.

Taxes for school purposes

(11) No by-law made under this section shall affect the amount that a local municipality is required to pay to a school board.

Supplementary and omitted assessments

in the taxation year

(12) If an assessment is made under section 33 or 34 of the Assessment Act to a property subject to a by-law under this section that increases the assessment of that property for the taxation year, subsection (8) does not apply to the additional taxes for municipal and school purposes for the year attributable to the assessment.

Taxes on eligible properties

447.70 (1) The purpose of this section is to ensure that eligible properties are taxed at the same level as comparable properties.

Determination of taxes

(2) Each local municipality shall determine the taxes for municipal and school purposes for each eligible property for the year or portion of the year as follows:

1.Determine the level of taxation for each property identified by the assessment corporation under subsection (6) as a comparable property by dividing the taxes for municipal and school purposes levied for the year by the taxes for municipal and school purposes that would have been imposed but for the application of this Part.

2.Determine the average of the levels of taxation for all comparable properties determined under paragraph 1.

3.Determine the taxes for municipal and school purposes for the eligible property for the year by multiplying the average level of taxation determined under paragraph 2 by the taxes for municipal and school purposes that would have been imposed on the eligible property but for the application of this Part.

4.The taxes for municipal and school purposes for an eligible property for the year shall be the lesser of the amount determined for the year or portion of the year but for the application of this Part and the amount determined under paragraph 3.

Adjustments

(3) The local municipality shall make the necessary adjustments on the collector's roll for the year or portion of the year in accordance with the determination under subsection (2).

Limits to apply

(4) The taxes for municipal and school purposes on a property to which this section applies for a taxation year shall be calculated under section 447.68 for subsequent years.

Determination of taxes for the subsequent year

(5) For the purposes of paragraph 2 of subsection 447.68 (2), taxes are to be recalculated as if the amount determined under paragraph 4 of subsection (2) of this section had been determined on a full year basis.

Comparable properties identified

(6) The assessment corporation shall identify six comparable properties with respect to an eligible property for the purposes of this section or, if there are fewer than six comparable properties, as many comparable properties as there are.

Mixed use properties

(7) For the purposes of this section,

(a)if an eligible property or a comparable property is classified in more than one class of real property under section 7 of the Assessment Act, each portion shall be treated as a separate property; and

(b)up to six comparable properties, or if there are fewer than six comparable properties, as many as there are, shall be identified for each portion of an eligible property under clause (a).

List provided to municipality

(8) The assessment corporation shall provide a list of the comparable properties under subsection (6) or (7) with respect to an eligible property to the local municipality as soon as is practicable,

(a)after the return of the assessment roll for eligible properties that are on the assessment roll; or

(b)after the mailing of the notice of the assessment of the eligible property under section 33 or 34 of the Assessment Act.

List to be mailed to the owner

(9) The local municipality shall mail to the owner of each eligible property the list of the comparable properties and the determination made under subsection (2) with respect to that eligible property within 60 days after the date the list is received by the local municipality.

If no comparable property

(10) If the assessment corporation determines that there are no comparable properties with respect to an eligible property,

(a)the assessment corporation shall give notice to the local municipality of its determination; and

(b)the local municipality shall, within 60 days of receiving the notice under clause (a), give notice to the owner of the property of the assessment corporation's determination and of the amount determined for the year or portion of the year under this Part.

Complaint

(11) The owner of an eligible property may, within 90 days of the mailing of information under subsection (9), complain to the Assessment Review Board in writing concerning the properties on the list and request that up to six alternative properties be used as comparable properties for the purposes of this section.

Same

(12) If the assessment corporation has determined that there are no comparable properties with respect to an eligible property, the owner of the eligible property may, within 90 days after the owner is given a notice of determination under subsection (10), complain to the Assessment Review Board in writing concerning the determination and request that up to six properties be used as comparable properties for the purpose of this section.

Deemed complaint under s. 40 of Assessment Act

(13) Section 40 of the Assessment Act applies to a complaint under subsection (11) or (12) as if it were a complaint under subsection 40 (1) of that Act.

Appeal

(14) Section 43.1 of the Assessment Act applies to a decision of the Assessment Review Board.

Authority of the Assessment Review Board

(15) In a complaint under this section, the Assessment Review Board shall,

(a)identify up to six comparable properties from among the comparable properties proposed by the complainant or by the assessment corporation; or

(b)determine that there are no comparable properties.

Application to court

(16) The municipality or the owner of the property may apply to the Superior Court of Justice for a determination of any matter relating to the application of this section, except a matter that could be the subject of a complaint under this section.

Same

(17) Section 46 of the Assessment Act applies with necessary modifications to an application under subsection (16).

Determination by local municipality

(18) The local municipality shall determine the taxes for municipal and school purposes for the year or portion of the year in accordance with a decision of the Assessment Review Board or court under this section.

Omitted assessment in later taxation year

(19) If an assessment is made under subsection 33 (1) of the Assessment Act that relates to a taxation year prior to the year in which the assessment is made, this section applies if the first taxation year to which the assessment applies is 2001 or a subsequent year.

Application

(20) This section also applies for the 2001 taxation year to a property that is subject to this Part and that,

(a)ceased to be exempt from taxation during 1998, 1999 or 2000; or

(b)was reclassified pursuant to an assessment under section 34 of the Assessment Act during 1998, 1999 or 2000 or was classified differently on the assessment roll for taxation in 1999 or 2000 from its classification in 1998 or 1999, respectively.

Definitions

(21) In this section, "

comparable properties" means properties identified by the assessment corporation to be similar lands in the vicinity of the eligible property; ("biens comparables") "

eligible property" means a property,

(a)to which subsection 447.65 (8) or 447.68 (8) applies,

(b)that ceases to be exempt from taxation for 2001 or thereafter,

(c)that is added to the assessment roll for 2001 or a subsequent taxation year as a result of the subdivision or severance of land, or

(d)in respect of which its classification changes for 2001 or thereafter; ("bien admissible") "

vicinity" has the same meaning as under subsection 44 (2) of the Assessment Act, except that the vicinity shall not exceed the boundaries of the single-tier or upper-tier municipality, as the case may be, in which the eligible property is located. (" proximit")

Tenants of leased properties

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

(a)Part XXII.1 or XXII.2 applied and this Part applies to the leased premises; and

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

Exception

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

New leases of property

(3) This section applies with respect to a tenant described in subsection (1) even if the tenant enters into a new lease for the leased premises after December 31, 1997.

Limitation on requirement to pay taxes

(4) No tenant referred to in subsection (1) is required under any lease, despite any provision in the lease, to pay an amount on account of taxes levied for municipal and school purposes that is greater than the tenant's cap determined under subsection (5) or (6).

Tenant's cap, 2001

(5) For the 2001 taxation year, the tenant's cap referred to in subsection (4) shall be determined in accordance with the following:

1.Calculate the amount the tenant was required to pay on account of taxes for 2000.

2.Increase the amount calculated under paragraph 1 by 5 per cent or, if a by-law made under subsection 447.66 (1) applies to the property, by 2.5 per cent.

3.Adjust the amount determined under paragraph 2 in respect of any changes in taxes for municipal purposes applicable to the property as provided for in regulations referred to in paragraph 3 of subsection 447.65 (1).

4.The tenant's cap is the amount determined under paragraph 2 and adjusted under paragraph 3.

Same, after 2001

(6) For a taxation year after 2001, the tenant's cap referred to in subsection (4) shall be determined in accordance with the following:

1.Calculate the amount the tenant was required to pay on account of taxes for the immediately preceding year.

2.Increase the amount calculated under paragraph 1 by 5 per cent or, if a by-law made under subsection 447.66 (1) applies to the property, by 2.5 per cent.

3.Adjust the amount determined under paragraph 2 in respect of any changes in taxes for municipal purposes applicable to the property as provided for in regulations referred to in paragraph 3 of subsection 447.68 (1).

4.The tenant's cap is the amount determined under paragraph 2 and adjusted under paragraph 3.

Recouping of landlord's shortfall

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

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

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

3.The shortfall referred to in paragraph 2 shall be calculated by,

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

ii.adding together the amounts determined under subparagraph i.

Same

(8) The following apply with respect to the amount a tenant is required to pay under subsection (7):

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

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

3.If the lease does not provide for the payment of amounts in respect of taxes, the amount the tenant is required to pay under subsection (7) is due on the last day of the year.

Amounts under gross lease flow-through

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

1.For the purposes of subsections (4), (5), (6) and (7), an amount the tenant is required to pay under section 444.1 shall be deemed to be an amount the tenant is required to pay under the lease on account of taxes levied for municipal and school purposes.

2.For the purposes of subsections (4), (5), (6) and (7), an amount the tenant is required to pay under section 444.2 shall be deemed not to be an amount the tenant is required to pay under the lease on account of taxes levied for municipal and school purposes.

Partial year

(10) If this section applies with respect to taxes attributable to part of a year, the tenant's cap determined under subsection (5) or (6) for the year shall be reduced proportionally.

When section ceases to apply

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

Clarification of application

(12) Subsection (11) applies with respect to all the taxes for the leased premises and not just the taxes attributable to the part of the leased premises the tenant ceases to lease.

Exception

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

Recouping of landlord's shortfall

447.72 (1) A landlord may require a tenant to pay an amount on account of taxes levied for municipal and school purposes that is more than the tenant would otherwise be required to pay under the tenant's lease to the extent necessary for the landlord to recoup any shortfall, within the meaning of paragraph 3 of subsection 447.71 (7), in respect of other leased premises that form part of the property.

Same

(2) Subsection 447.71 (8) applies, with necessary modifications, with respect to an amount a tenant is required to pay under subsection (1).

Application

(3) This section applies with respect to a tenant only if,

(a)section 447.71 does not apply with respect to the tenant; and

(b)the tenant's lease was entered into before June 11, 1998 if Part XXII.1 applied to the property or before December 18, 1998 if Part XXII.2 applied to the property and the tenant's tenancy has been continuous since that date.

Application for cancellation, etc.

447.73 (1) An application to the council for the cancellation, reduction or refund of taxes levied in the year in respect of which the application is made may be made by a person who was overcharged by reason of a gross or manifest error that is a clerical error, the transposition of figures, a typographical error or similar type of error in the calculation of taxes under this Part.

Section 442 applies

(2) Section 442 applies to an application made under subsection (1).

Part prevails

447.74 Despite subsection 25.2 (11), this Part prevails over an order of the Minister under section 25.2 or a commission under section 25.3.

Conflicts

447.75 This Part prevails over an order made under section 14 of the Municipal Boundary Negotiations Act.

Where person undercharged

447.76 Section 444 applies to taxes to which this Part applies.

Regulations

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

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

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

(c)varying the application of this Part if, in the opinion of the Minister of Finance, it is necessary or desirable to do so in order to further the purposes of this Part, including varying the application of this Part in connection with a municipal restructuring or a general reassessment.

Definitions

(2) In this section, "

general reassessment" has the same meaning as in section 361.1; ("rvaluation gnrale") "

municipal restructuring" means,

(a)the incorporation of a new municipality,

(b)the amalgamation of municipalities,

(c)the alteration of the boundaries of a municipality,

(d)the dissolution of a municipality, or

(e)the establishment of an area services board under Part II of the Northern Services Boards Act. ("restructuration municipale")

Application

447.78 This Part applies to the 2001 and subsequent taxation years.

PART III

OTHER AMENDMENTS,

COMMENCEMENT AND SHORT TITLE

45. (1) Clause (b) of the definition of "education funding" in subsection 234 (14) of the Education Act, as re-enacted by the Statutes of Ontario, 1998, chapter 33, section 39, is repealed and the following substituted:

(b)from taxes under Division B of this Act or Part XXII.3 of the Municipal Act, other than taxes for the purposes of paying a board's share of the costs of rebates, if any, under section 442.1, 442.2, 442.4, 442.5 or 442.6 of the Municipal Act or paying rebates under section 257.2.1 or 257.12.3 of this Act;

(2) Clause (b.1) of the definition of "education funding" in subsection 234 (14) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 39, is amended by striking out "442.1 or 442.2" and substituting "442.1, 442.2 or 442.4".

(3) Section 257.2.1 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34 and amended by 1998, chapter 33, section 40, is further amended by adding the following subsection:

Limiting changes in taxes

(1.1) The Minister of Finance may make regulations to limit the changes in taxes for school purposes from the taxes for school purposes in 2000 or in any subsequent year or to give relief from taxes for school purposes in territory without municipal organization.

(4) Paragraph 1 of subsection 257.2.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34 and amended by 1998, chapter 33, section 40, and paragraphs 2 and 3 of subsection 257.2.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34, are repealed and the following substituted:

1.Without limiting what a regulation may provide for, the regulations may provide for any matter provided under sections 372.2, 373, 442.1, 442.2 and 444.1 and under Part XXII.3 of the Municipal Act.

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

3.A regulation made in 2001 or a later year may relate to the entire year in which it is made.

(5) Section 257.6 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is amended by adding the following subsections:

Exemption, eligible convention centres

(6) An eligible convention centre is exempt from taxes for school purposes.

Regulations

(7) The Minister of Finance may make regulations prescribing eligible convention centres for the purposes of subsection (6).

(6) Subsection 257.11 (17) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 33, section 41, 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, if any, under section 442.1, 442.2, 442.4, 442.5 or 442.6 of the Municipal Act or paying rebates under section 257.2.1 or 257.12.3 of this Act, shall be deemed to be education funding within the meaning of subsection 234 (14).

(7) Subsection 257.12 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113 and amended by 1998, chapter 33, section 42 and 1999, chapter 9, section 99, is further amended by adding the following clause:

(e) prescribing the form of the tax notices or information that must or may be included on tax notices sent to owners of property by a board that is required to levy rates for school purposes under this Division.

(8) Subsection 257.12 (1.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 42 and amended by 1999, chapter 9, section 99, is repealed and the following substituted:

Definition

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

tax rates for school purposes" includes tax rates for the purposes of,

(a)paying a board's share of the costs of rebates, if any, under section 442.1, 442.2, 442.4, 442.5 or 442.6 of the Municipal Act,

(b)paying rebates under section 257.2.1 or 257.12.3 of this Act.

(9) Subsections 257.12.2 (3), (4) and (5) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 44, are repealed and the following substituted:

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 the provincial average tax rate as prescribed.

Before 2005, below provincial average tax rate

(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 the provincial average tax rate as prescribed or less, the weighted average tax rate for school purposes for the commercial classes for the municipality for the current year must not exceed the provincial average tax rate as prescribed.

Before 2005, above provincial

average tax rate

(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 the provincial average tax rate as prescribed, 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 the provincial average tax rate as prescribed.

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.

(10) Paragraphs 1 and 2 of subsection 257.12.2 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 44, are repealed.

(11) Section 257.12.2 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 44 and amended by 1999, chapter 9, section 100, is further amended by adding the following subsection:

Regulations

(8.1) The Minister of Finance may make regulations prescribing the provincial average tax rate for the purposes of this section and the regulations may be general or specific and may be different for different classes of real property.

(12) Subsection 257.12.2 (9.1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 100, is amended by striking out "3.3 per cent" and substituting "the provincial average tax rate as prescribed".

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

Vacant unit rebate

257.12.3 Subsections 442.5 (1), (2), (3) and (5) to (26) of the Municipal Act apply with necessary modifications in respect of any area in which a board is required to levy rates for school purposes under this Division, and for that purpose, references to municipalities in those subsections shall be deemed to be references to the board that is required to levy rates for school purposes under this Division.

46. (1) Section 92 of the Electricity Act, 1998, as amended by the Statutes of Ontario, 1999, chapter 9, section 102, is further amended by adding the following subsections:

Subsequent owners

(1.1) If a generating station building or structure is owned by one of the persons referred to in subsection (1) on January 1, 2000 and is subsequently disposed of by that person, this section continues to apply to any subsequent owner.

. . . . .

Non-application

(9) This section does not apply to a hydro-electric generating station, as defined in subsection 92.1 (24), after December 31, 2000.

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

Tax and charges on hydro-electric stations

92.1 (1) The owner of a hydro-electric generating station shall pay in each year to Her Majesty in right of Ontario a tax computed at the rates specified in subsection (4) on the gross revenue from the generation of electricity.

Same

(2) Despite subsection (1), if the owner of a hydro-electric generating station was, on or before December 31, 2000, required to make payments under subsection 92 (1), whether or not there is a change in ownership after that date, the owner or any subsequent owner shall pay to the Financial Corporation a charge computed at the rates specified in subsection (4) on the gross revenue from the generation of electricity.

Payment to Ontario

(3) After Part V is repealed under section 87, all payments under subsection (2) are payable to Her Majesty in right of Ontario instead of to the Financial Corporation.

Rates

(4) For the purpose of subsections (1) and (2), the rates shall be calculated as follows:

1.2.5 per cent on gross revenue from the first 50 gigawatt hours of annual generation from the generating station.

2.4.5 per cent on gross revenue from annual generation from the generating station above 50 gigawatt hours up to and including 400 gigawatt hours.

3.6.0 per cent on gross revenue from annual generation from the generating station above 400 gigawatt hours up to and including 700 gigawatt hours.

4.26.5 per cent on gross revenue from annual generation from the generating station above 700 gigawatt hours.

Additional charge

(5) In addition to the taxes or charges under subsection (1) or (2), the holder of a water power lease shall pay a water rental charge to Her Majesty in right of Ontario calculated at 9.5 per cent on gross revenue from annual generation from the hydro-electric generating station, and the holder's lease is hereby amended to substitute this charge for any water rental charge set out in the lease.

Exception

(6) Gross revenue resulting from the generation of electricity from eligible capacity, as determined by regulation, for the first 120 months after the eligible capacity is put in service, as determined by regulation, may be deducted from gross revenue for the purposes of subsections (4) and (5).

Transition

(7) If the holder of a water power lease was not required to pay a hydro-electric charge as required under the Public Lands Act because the hydro-electric generating station has been in service for less than 10 calendar years, subsection (5) does not apply for the remainder of the 10-year period, if any.

Payment of taxes and charges

(8) The taxes and charges payable under this section shall be paid at the times and in the manner prescribed by regulation.

Application

(9) For the purposes of this section,

(a) the provisions of the Corporations Tax Act relating to assessments, refunds of overpayments, objections to assessments, appeals and administration and enforcement apply to taxes and charges under this section; and

(b)any amount payable under this section that remains unpaid after it becomes due may be collected as if it were a tax under the Corporations Tax Act.

Demand for information

(10) The Minister of Finance may, for any purpose related to the administration or enforcement of this section, by registered letter or by a demand served personally or delivered by courier service, require any person to provide any information or records to the Minister within such reasonable time as is stipulated in the letter or demand.

Offence

(11) Any person who fails to provide the information or records as required under subsection (10) is guilty of an offence and is on conviction liable to a fine of not more than $100 for each day during which the default continues.

Confidentiality

(12) Except as authorized by this section, no person employed by the Government of Ontario shall,

(a)knowingly communicate or knowingly allow to be communicated to any person any information obtained by or on behalf of the Minister of Finance for the purposes of this section; or

(b)knowingly allow any person to inspect or to have access to any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.

Testimony

(13) No person employed by the Government of Ontario shall be required, in connection with any legal proceedings,

(a)to give evidence relating to any information obtained by or on behalf of the Minister of Finance for the purposes of this section; or

(b)to produce any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.

Exception

(14) Subsections (12) and (13) do not apply in respect of,

(a)criminal proceedings under an Act of the Parliament of Canada;

(b)proceedings in respect of the trial of any person for an offence under an Act of the Legislature; or

(c)proceedings relating to the collection of taxes or charges under this section.

Communication

(15) A person employed by the Government of Ontario may, in the course of duties in connection with the administration or enforcement of this section,

(a)communicate or allow to be communicated to another person employed by the Government of Ontario in the administration or enforcement of any law, information obtained by or on behalf of the Minister of Finance for the purposes of this section; and

(b)allow another person employed by the Government of Ontario in the administration or enforcement of any law, to inspect or have access to any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.

Reciprocal communication

(16) A person who receives information or obtains access to any record or thing under subsection (15) has a duty to communicate or furnish to the Minister of Finance on a reciprocal basis any information, record or thing obtained by the person that affects the administration or enforcement of this section.

Use of information

(17) Any information, record or thing communicated or furnished under this section may be used only for the administration or enforcement of this section or an Act that is administered or enforced by the person receiving the information, record or thing.

Offence

(18) Every person who contravenes subsection (12), (13), (14), (15), (16) or (17) is guilty of an offence and on conviction is liable to a fine of not more than $2,000.

Gross lease recovery

(19) If the owner of the hydro-electric generating station is not the person who generates electricity from that facility and is unable to recover the liability imposed under this section under the terms of its contract or sublease with the person who generates electricity, the amount of such liability may be recovered from the person generating the electricity.

Section 444.1 to apply

(20) The amount specified under subsection (19) may be recovered in the same manner as amounts are recovered under subsection 444.1 (2) of the Municipal Act and subsections 444.1 (5), (6) and (8) of that Act apply in respect of the amount.

Regulations

(21) The Minister of Finance may make regulations,

(a)determining eligibility for a deduction under subsection (6);

(b)defining gross revenue for the purposes of this section;

(c)prescribing the times and the manner in which taxes and charges under this section shall be paid;

(d)providing for lower rates to be applied to specified hydro-electric generating stations for the purposes of subsections (4) and (5);

(e)determining the annual generation for the purposes of subsections (4) and (5) pursuant to energy transfers between a hydro-electric generating station in Ontario and a hydro-electric generating station in another jurisdiction or between hydro-electric generating stations in Ontario;

(f)exempting any hydro-electric generating station from the tax or charge or a portion of the tax or charge under subsection (1), (2) or (5);

(g)defining any word or expression used in this section that is not already defined;

(h)providing for compensation to be paid to municipalities in which a hydro-electric generating station is located in respect of revenues foregone as a result of the enactment of paragraph 28 of subsection 3 (1) of the Assessment Act.

General or specific

(22) A regulation under subsection (21) may be general or specific and may apply to different hydro-electric generating stations and different owners differently.

Retroactive

(23) A regulation made under this section is, if it so provides, effective with reference to a period before it is filed.

Definitions

(24) In this section, "

holder of a water power lease" means a person who has entered into an agreement, lease or other writing respecting the use of water under subsection 42 (2) of the Public Lands Act or under the Niagara Parks Act or the The St. Lawrence Development Act, 1952 (No. 2) or who is required to enter into such agreement, lease or other writing in order to be entitled to occupy public lands; ("titulaire d'un bail pour l'exploitation de ressources hydro-lectriques") "

hydro-electric generating station" includes any building or structure in which electricity is generated through the use of water power or from the movement of water; ("centrale hydro-lectrique") "

owner" includes a tenant of land owned by the Crown or a municipality on which a hydro-electric generating station is located or a tenant of land owned by any other person if the tenant is the generator of electricity from the hydro-electric generating station. ("propritaire")

47. Subsection 21 (1) of the Municipal Elections Act, 1996 is amended by striking out "assessment commissioner" and substituting "Ontario Property Assessment Corporation".

48. Paragraphs 3 and 4 of subsection 4 (3) of the Municipal Tax Assistance Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 63, are repealed and the following substituted:

3.Unless the parties have agreed otherwise, the tenant shall owe a debt to the Crown or Crown agency, as the case may be, equal to the amount paid under paragraph 2.

49. Subsection 3 (1) of the Provincial Land Tax Act, as amended by the Statutes of Ontario, 1994, chapter 25, section 84 and 1997, chapter 43, Schedule F, section 11, is further amended by adding the following paragraph:

Hydro-electric generating stations

21.A hydro-electric generating station, as defined in subsection 92.1 (24) of the Electricity Act, 1998, and land, buildings and structures used in connection with the generating station, as may be prescribed by the Minister, but not any portion of the land, buildings or structures used for any other purpose. This paragraph applies to the 2001 and subsequent taxation years.

Repeal

50. The Township of Atikokan Act, 1993, being chapter Pr22, is repealed on January 1, 2001.

Commencement

51. (1) Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.

Same

(2) Sections 3, 7, 9, 16 to 23, 27 to 29, 31 to 34, 44 and 45 and subsection 46 (2) come into force on January 1, 2001 and apply to the 2001 and subsequent taxation years.

Short title

52. The short title of this Act is the Continued Protection for Property Taxpayers Act, 2000.

[37] Bill 140 Original (PDF)

Bill 140

Bill 1402000

An Act to amend

the Assessment Act,

Municipal Act and other Acts

with respect to 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

AMENDMENTS TO THE

ASSESSMENT ACT

1. (1) Clause 2 (2) (a) of the Assessment Act is repealed.

(2) Clause 2 (3.2) (c) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 1, is repealed and the following substituted:

(c)for 2000, April 30, 2000;

(d)for 2001, April 30, 2001, or such later deadline as the Minister may prescribe either before or after the April 30 deadline has passed; or

(e)for a taxation year after 2001, 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) 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, 1998, chapter 3, section 1 and 1998, chapter 33, section 1, is further amended by adding the following subsections:

Regulations re: airport authorities

(5) The Minister may make regulations for the purposes of subparagraph 24 ii of subsection 3 (1),

(a)specifying a methodology for determining payments in lieu of taxes to be paid by a designated airport authority to the municipality in which it is located for 2001 and subsequent years;

(b)requiring the designated airport authority to provide the information specified in the regulation to the specified persons within the time specified;

(c)specifying the time or times that the payment in lieu of taxes must be paid to the municipality.

General or specific

(6) A regulation made under subsection (5) may be general or specific in its application and may apply to different designated airport authorities differently.

2. (1) Paragraph 3 of subsection 3 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 3, is repealed and the following substituted:

Churches, etc.

3.Land that is owned by a church or religious organization or leased to it by another church or religious organization and that is,

i.a place of worship and the land used in connection with it,

ii.a churchyard, cemetery or burying ground, or

iii.50 per cent of the assessment of the principal residence and land used in connection with it of the member of the clergy who officiates at the place of worship referred to in subparagraph i, so long as the residence is located at the site of the place of worship.

This paragraph applies to the 2001 and subsequent taxation years.

(2) Paragraph 5 of subsection 3 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 3, is repealed and the following substituted:

Philanthropic organizations, etc.

5.Land owned, used and occupied solely by a non-profit philanthropic, religious or educational seminary of learning or land leased and occupied by any of them if the land would be exempt from taxation if it was occupied by the owner. This paragraph applies only to buildings and up to 50 acres of land.

(3) Paragraph 22 of subsection 3 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 18, is repealed and the following substituted:

Improvements for seniors

and persons with a disability

22.All alterations, improvements and additions commenced after May 15, 1984 that are made to a parcel of land containing an existing residential unit to provide, or the portion as may be prescribed by the Minister of a new residential unit constructed to provide, accommodation for or improved facilities for the accommodation of a person who would, but for the accommodation or improved facilities provided, require care in an institution, if the following conditions are met:

i.the person is at least 65 years of age or has a disability and the person resides in the premises as his or her personal residence,

ii.the owner of the property applies to the assessment corporation for the exemption and the exemption is approved by the assessment corporation,

iii.the land is assessed as residential and comprises not more than three residential units, and

iv.the person occupying the property in which the person who is at least 65 years of age or has a disability resides is not in the business of offering care to such persons.

This paragraph applies to the 2001 and subsequent taxation years.

(4) Paragraph 24 of subsection 3 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 4, is repealed and the following substituted:

Airports

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

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

ii.The authority must make payments in lieu of taxes to the municipality in which the land is located at the times and in the amounts determined in accordance with the regulations.

iii.The authority must provide any relevant information requested by the Minister, the municipality or the assessment corporation as soon as is practicable.

iv.The exemption does not apply to any portion of the land leased by a tenant, other than a designated airport authority, to whom section 18 applies.

v.If the authority fails to comply with the requirements specified in subparagraph ii, the authority shall pay the taxes for municipal and school purposes that would be payable for the taxation year if the property was taxable and the collector's roll for the municipality shall be amended accordingly.

This paragraph applies to the 2001 and subsequent taxation years.

(5) Subsection 3 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 4, 1997, chapter 29, section 3, 1997, chapter 43, Schedule F, section 1, 1997, chapter 43, Schedule G, section 18 and 1998, chapter 28, section 66, is further amended by adding the following paragraphs:

Hydro-electric generating stations

28.A hydro-electric generating station, as defined in subsection 92.1 (24) of the Electricity Act, 1998 and land, buildings and structures used in connection with the generating station, as may be prescribed by the Minister, but not any portion of the land, buildings or structures used for any other purpose. This paragraph applies to the 2001 and subsequent taxation years.

Poles and wires

29.Substructures, superstructures, rails, ties, poles, towers or lines owned by a power utility prescribed by the Minister under subsection 368.3 (1) of the Municipal Act or owned by a municipal electricity utility, as defined in section 88 of the Electricity Act, 1998, and located on an easement on land that is not owned by the power utility.

3. (1) Paragraph 3 of subsection 8 (1) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 2, is amended by striking out "A subclass for vacant units and excess land" at the beginning and substituting "A subclass for excess land".

(2) Subsection 8 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 5, is repealed and the following substituted:

Excess land

(4) The subclasses for excess land shall be prescribed so that they consist of those portions of properties that are excess land as prescribed under this section and subsection 14 (5) applies to those portions.

Transition

(4.1) Subsection (4) and paragraph 3 of subsection (1) apply with respect to 2001 and subsequent taxation years but those provisions as they read before the coming into force of section 3 of the Continued Protection for Property Taxpayers Act, 2000 apply with respect to the 2000 taxation year.

4. (1) Subsection 14 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter, 5, section 9, 1997, chapter 29, section 6, 1997, chapter 31, section 143 and 1997, chapter 43, Schedule G, section 18, is further amended by adding the following paragraph:

11.Value of land leased to tenants referred to in subsection 4 (3) of the Municipal Tax Assistance Act.

(2) Subsection 14 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 9 and amended by 1997, chapter 43, Schedule G, section 18, is repealed and the following substituted:

Portions classified in different property classes

(5) If portions of a property are classified in different classes of real property or subclasses of real property, the assessment corporation shall determine the share of the value attributable to each class or subclass, assess the property according to the proportion that each share constitutes of the total value and set out each proportion on the assessment roll.

5. (1) Subsection 19 (5) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 12, is repealed and the following substituted:

Farm lands and buildings

(5) For the purposes of determining the current value of farm lands used only for farm purposes by the owner or used only for farm purposes by a tenant of the owner and buildings thereon used solely for farm purposes, including the residence of the owner or tenant and of the owner's or tenant's employees and their families on the farm lands,

(a)consideration shall be given to the current value of the lands and buildings for farm purposes only;

(b)consideration shall not be given to sales of lands and buildings to persons whose principal occupation is other than farming; and

(c) the Minister may, by regulation, define "farm lands" and "farm purposes".

(2) Section 19 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 12, 1997, chapter 29, section 9, 1998, chapter 33, section 5, 1999, chapter 6, section 2 and 1999, chapter 9, section 11, is further amended by adding the following subsection:

Land and buildings

to be valued as farms

(5.0.1) Land or buildings or both, as prescribed by the Minister, shall be valued as described under subsection (5).

6. Section 19.0.1 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 15, Schedule E, section 1 and amended by 1999, chapter 9, section 12, is further amended by adding the following subsection:

Subsequent owners

(1.2) If a generating station building or structure is owned by one of the persons referred to in subsection 92 (1) of the Electricity Act, 1998 on January 1, 2000 and is subsequently disposed of by that person, this section continues to apply to the building or structure.

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

Convention centres

27.2 (1) Despite this or any other Act, the owner of a convention centre, as prescribed by the Minister, that is not liable to taxation under this or any other Act, shall make a payment in lieu of taxes to the municipality in which it is located, in each taxation year beginning in 2001 in such amount as may be prescribed by the Minister.

When payable

(2) Payments required under this section in respect of a taxation year shall be made at the same time as payments must be made for rateable properties in the commercial property class.

Collection of payments

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

Regulations

(4) The Minister may make regulations prescribing convention centres and the amount to be paid by convention centres for the purposes of subsection (1).

8. Section 32 of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 18, is further amended by adding the following subsection:

Change in classification

(2) If, as a result of a change in the regulations made under section 7, the classification of a property is changed for the current year or for any part or all of the three preceding years and taxes have been levied on that property that exceed the taxes that would have been levied on the property had the property been classified pursuant to the change in the regulations made under section 7, the assessor shall make any assessment necessary to change the classification and the clerk of the municipality upon notification thereof shall alter the collector's roll and the amount of any overpayment shall be refunded or credited to the owner.

9. Paragraphs 2 and 3 of subsection 34 (2.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 8, are repealed and the following substituted:

2.Paragraph 1 does not apply to a change event described in clause (c) of the definition of "change event" in subsection (2.2).

10. (1) Subsection 39.1 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 25 and amended by 1997, chapter 43, Schedule G, section 18 and 1999, chapter 9, section 13, is repealed and the following substituted:

Request for reconsideration of assessment

(1) The owner of a property or a person who has received or would be entitled to receive a notice of assessment under this Act may request the assessment corporation to reconsider the assessment including the classification of the property no later than December 31 of the taxation year in respect of which the request is made.

Omitted or supplementary assessment

(1.1) A person who has received a notice of the assessment under section 33 or 34 may request the assessment corporation to reconsider the assessment within 90 days of the mailing date of the notice of the assessment or by December 31 of the year in which the notice of the assessment is mailed, whichever is the later.

(2) Subsection 39.1 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 25 and amended by 1997, chapter 43, Schedule G, section 18, is further amended by striking out "the Assessment Review Board" and substituting "the municipality".

(3) Subsections 39.1 (6) and (7) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 25, are repealed and the following substituted:

Municipality to change collector's roll

(6) On receipt of a notice under subsection (5), the clerk of the municipality shall amend the collector's roll in accordance with the settlement and taxes shall be levied in accordance with the amended assessment.

(4) Subsection 39.1 (8) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 25, is repealed and the following substituted:

Objection by municipality

(8) If the municipality objects to the settlement, it shall complain to the Assessment Review Board within 90 days after receiving the notice under subsection (5), and section 40 applies, with necessary modifications, as though the assessment roll had been changed in accordance with the settlement and the municipality had complained about the change.

(5) Subsection 39.1 (8.1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 13, is repealed and the following substituted:

When change may be made

(8.1) For the purposes of subsections (6) and (8), a change to be made to the collector's roll may be made at any time in the year in respect of which a request is made or in the following year.

11. Section 46 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 31 and 1997, chapter 43, Schedule G, section 18, is further amended by adding the following subsections:

Omitted or supplementary assessments

(8) Despite subsection (7), an order of the court on an application under this section in respect of an assessment under section 33 or 34 shall apply in respect of all taxes levied pursuant to the assessment if the application is made in the year in which the assessment is made or in the immediately following year.

Application

(9) Subsection (8) applies to an order of the court made on or after that subsection came into force.

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

Extension of time

47. If, under this Act, the time for doing an act expires on a holiday, as defined in the Rules of Civil Procedure prescribed under the Courts of Justice Act, the act may be done on the next day that is not a holiday.

13. Subsection 53 (3) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 4, section 43, is repealed and the following substituted:

Information

(3) Subject to subsection (1), the assessment corporation shall make available to all municipalities and school boards information sufficient to meet their planning requirements.

PART II

AMENDMENTS TO THE MUNICIPAL ACT

14. Section 1 of the Municipal Act, as amended by the Statutes of Ontario, 1996, chapter 32, section 2, 1997, chapter 5, section 40, 1997, chapter 29, section 22, 1997, chapter 43, Schedule G, section 23, 1999, chapter 6, section 40 and 2000, chapter 5, section 15, is further amended by adding the following definition: "

assessment corporation" means the Ontario Property Assessment Corporation. ("socit d'valuation foncire")

15. Subsection 83.2 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 143, is amended by striking out "The Minister" at the beginning and substituting "The Minister of Finance".

16. (1) Subsection 187 (2) of the Act, as amended by the Statutes of Ontario, 1992, chapter 15, section 15, is repealed and the following substituted:

Limitation

(2) The amount borrowed and not repaid under subsection (1), together with the total of any similar borrowings that have not been repaid, shall not at any point in time exceed, for the period from January 1 to September 30 of the year, 50 per cent of the total and for the period from October 1 to December 31 of the year, 25 per cent of the total of the estimated revenues of the corporation as set out in the estimates adopted for the year.

Exception

(2.1) The amount borrowed and not repaid at any point in time may exceed the limits under subsection (2) with the approval of the Ontario Municipal Board.

(2) Subsection 187 (17) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 9, is repealed and the following substituted:

Year 2001

(17) In respect of 2001, the references to 25 per cent and 50 per cent in subsection (2) shall be deemed to be references to 45 per cent and 70 per cent, respectively.

(3) Subsection 187 (18) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 145, is repealed.

17. Section 361.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 53 and amended by 1997, chapter 29, section 32, 1998, chapter 15, Schedule E, section 19 and 1998, chapter 33, section 10, is further amended,

(a)by adding the following definition: "

general reassessment" means the updating of assessments in a year in respect of which a new valuation date, as specified under subsection 19.2 (1) of the Assessment Act, applies; ("rvaluation gnrale")

(b)by striking out clause (a) of the definition of "payment in lieu of taxes" and substituting the following:

(a) subsection 27 (3), section 27.1 or 27.2 of the Assessment Act.

18. (1) Subsection 363 (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 15" and substituting "April 30".

(2) Subsection 363 (4) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 15" and substituting "April 30".

(3) 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, 1998, chapter 3, section 14 and 1998, chapter 33, section 11, is further amended by adding the following subsection:

Exception, subsequent reassessment

(7.1) Despite subsections (6) and (7), the Minister of Finance may prescribe a new transition ratio, including the average transition ratio, for a taxation year or any previous taxation year for a property class for a municipality and,

(a)for the first year in respect of which the transition ratio is prescribed, the tax ratio may be,

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

(ii)below the allowable range if it is greater than or equal to the prescribed transition ratio for the property class for the municipality; and

(b)for a subsequent year the tax ratio may be,

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

(ii)below the allowable range if it is greater than or equal to the tax ratio for the property class for the previous year.

(4) Clause 363 (8) (a) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed.

(5) Subsection 363 (9) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted:

Regulations

(9) The Minister of Finance may make regulations extending the time limit in subsection (3) or (4) and the regulation may be made even if the time limit has expired.

Same

(9.1) The Minister of Finance may make regulations governing the determination of the tax ratios by municipalities for a taxation year.

General or specific

(9.2) A regulation under subsection (9.1) may be general or specific and may be different for different municipalities.

(6) Clause 363 (10) (b) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "subsection (7)" and substituting "subsections (7) and (7.1)".

(7) Clause 363 (10) (c) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "and (7)" and substituting "(7) and (7.1)".

(8) Subsections 363 (15) and (16) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 33 and amended by 1998, chapter 3, section 14, subsection 363 (17) of the Act, as enacted by 1997, chapter 29, section 33, subsection 363 (17.1) of the Act, as enacted by 1998, chapter 3, section 14, and subsections 363 (18) and (19) of the Act, as enacted by 1997, chapter 43, Schedule F, section 9, are repealed.

(9) Subsection 363 (20) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 14 and amended by 1998, chapter 33, section 11, is repealed and the following substituted:

Definitions

(20) In subsections (21) to (32), "

commercial classes" means the commercial property class prescribed under the Assessment Act and optional property classes that contain property that, if the council of the municipality did not opt to have the optional property class apply, would be in the commercial property class; ("catgories commerciales") "

industrial classes" means the industrial property class prescribed under the Assessment Act and optional property classes that contain property that, if the council of the municipality did not opt to have the optional property class apply, would be in the industrial property class; ("catgories industrielles") "

optional property class" means a property class that the council of a municipality may opt to have apply within the municipality under regulations made under the Assessment Act. ("catgorie de biens facultative")

(10) Paragraph 1 of subsection 363 (21) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 14, is repealed and the following substituted:

1.For the first year that an optional property class applies or, subject to subsection (29) or (30), ceases to apply in the municipality, the average transition ratio shall be the prescribed average transition ratio.

(11) Subsection 363 (22) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 14, is amended by striking out "(6) or (7)" and substituting "(6), (7) or (7.1)".

(12) Subsection 363 (23) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 14, is amended by striking out "(6) or (7)" and substituting "(6), (7) or (7.1)".

(13) Subsections 363 (25) and (26) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 14, are repealed.

(14) Subsections 363 (29) and (30) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 11, are repealed and the following substituted:

Opting out of all optional commercial classes

(29) If all optional property classes that contain property that would otherwise be in the commercial property class cease to apply for a year in a municipality, the transition ratio for the commercial property class for the year shall be equal to the average transition ratio for the commercial classes for the previous year under subsection (21), and subsection (7) or (7.1) applies, with necessary modifications, for the year.

Opting out of all optional industrial classes

(30) If all optional property classes that contain property that would otherwise be in the industrial property class cease to apply for a year in a municipality, the transition ratio for the industrial property class for the year shall be equal to the average transition ratio for the industrial classes for the previous year under subsection (21), and subsection (7) or (7.1) applies, with necessary modifications, for the year.

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

Towns of Norfolk, Haldimand

363.2 (1) The Minister of Finance may make regulations providing that the Town of Haldimand and the Town of Norfolk are deemed to be a single municipality for the purposes of a prescribed tax-related authority of an upper-tier municipality or single-tier municipality under this Act or under subsection 2 (3.1) of the Assessment Act.

Regulations

(2) A regulation under subsection (1) may,

(a)prescribe the tax-related authority;

(b)govern the manner in which the prescribed tax-related authority shall be exercised;

(c)vary the manner in which any prescribed tax-related authority applies to the towns; and

(d)establish a procedure to determine how a prescribed tax-related authority shall be exercised or applied.

Retroactive

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

Effect

(4) A by-law passed by the Town of Haldimand or the Town of Norfolk under a prescribed tax-related authority, whether it is passed before or after a regulation under this section is made, is of no effect to the extent that it does not comply with the regulation.

Definition

(5) In this section, "

single-tier municipality" means a local municipality that does not form part of an upper-tier municipality for municipal purposes.

20. (1) Subsection 364 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "January 15" and substituting "February 28".

(2) Subsection 364 (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "January 15" and substituting "February 28".

(3) Subsection 364 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 1" and substituting "April 1".

(4) Subsection 364 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "January 15" and substituting "February 28".

(5) Subsection 364 (7) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 15" and substituting "April 30".

(6) Clause 364 (10) (c) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed.

(7) Subsection 364 (11) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted:

Extension of time

(11) The Minister of Finance may make regulations extending the time limit in subsections (1), (3), (4), (5) and (7) and the regulations may be made even if the time limit has expired.

21. (1) Subsection 366 (2) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 31" and substituting "April 30".

(2) Subsection 366 (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by striking out "March 31" and substituting "April 30".

(3) Section 366 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 34, 1998, chapter 3, section 15 and 1998, chapter 33, section 13, is further amended by adding the following subsections:

Exception, tax increases

(4.1) Despite subsection (4), if the tax ratio or average tax ratio for the property class for the 2001 taxation year or a subsequent taxation year is above the tax ratio for the property class, as prescribed under clause (4.3) (a), tax rates to be levied on property in the property class shall be determined in the manner provided under clause (4.3) (b).

Average tax ratio

(4.2) For the purpose of subsection (4.1), the average tax ratio shall be equal to the average transition ratio for the municipality determined under subsection 363 (21) for the commercial classes or for the industrial classes.

Regulations

(4.3) The Minister of Finance may make regulations,

(a)prescribing a tax ratio for a property class for the purpose of subsection (4.1), including a single tax ratio for the commercial classes or industrial classes;

(b)providing the manner in which the tax rates on property in a property class are to be determined under subsection (4.1);

(c)providing for the determination of changes in taxes for municipal purposes for a property class.

General or specific

(4.4) A regulation under subsection (4.3) may be general or specific in its application and may provide that the regulation does not apply to specified municipalities.

(4) Paragraph 1 of subsection 366 (8.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 13, is amended by striking out "subsection 373 (1) or 442.2 (1)" at the end and substituting "section 373, 442.1, 442.2 or 442.5".

(5) Subsection 366 (15) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 15, is repealed and the following substituted:

Regulations

(15) The Minister of Finance may make regulations extending the time limit in subsection (2) or (3) and the regulations may be made even if the time limit has expired.

(6) Subsection 366 (16.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 15, is amended by striking out "sections 442.1 and 442.2" and substituting "section 442.1".

(7) Subsection 366 (16.2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 13, is amended by striking out "section 442.2" and substituting "section 442.1".

(8) Subsection 366 (16.3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 13, is amended by striking out "section 442.2" and substituting "section 442.1".

22. (1) 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 and 1998, chapter 33, section 14, is further amended by adding the following subsections:

Exception, tax increases

(4.1) Despite subsection (4), if the tax ratio or average tax ratio for the property class for the 2001 taxation year or a subsequent taxation year is above the tax ratio for the property class as prescribed under clause (4.3) (a), tax rates to be levied on property in the property class shall be determined in the manner provided under clause (4.3) (b).

Average tax ratio

(4.2) For the purpose of subsection (4.1), the average tax ratio shall be equal to the average transition ratio for the municipality determined under subsection 363 (21) for the commercial classes or for the industrial classes.

Regulations

(4.3) The Minister of Finance may make regulations,

(a)prescribing a tax ratio for a property class for the purpose of subsection (4.1), including a single tax ratio for the commercial classes or industrial classes;

(b)providing the manner in which the tax rates on property in a property class are to be determined under subsection (4.1);

(c)providing for the determination of changes in taxes for municipal purposes for a property class.

General or specific

(4.4) A regulation under subsection (4.3) may be general or specific in its application and may provide that the regulation does not apply to specified municipalities.

(2) Subsection 368 (5) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 16, is amended by striking out "sections 442.1 and 442.2" and substituting "section 442.1".

(3) Subsection 368 (6) the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 14, is amended by striking out "442.2" and substituting "442.1".

(4) Subsection 368 (7) the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 14, is amended by striking out "442.2" and substituting "442.1".

23. Subsection 368.2 (1) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 18, is amended by striking out "March 31" and substituting "April 30".

24. (1) Subsection 369 (1) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 33, section 16, is amended by striking out "the estimates for a year" in the portion before clause (a) and substituting "the estimates for a year under section 365".

(2) Clause 369 (1) (b) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 16, is amended by striking out "or 442.2 (1)" and substituting "or section 442.1, 442.2 or 442.5".

(3) Subsections 369 (5) and (6) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 16, are repealed.

25. (1) Subsection 370 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, subsection 370 (2) the Act, as enacted by 1997, chapter 5, section 55, subsection 370 (3) of the Act, as enacted by 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 39, 1998, chapter 3, section 20 and 1998, chapter 33, section 17, subsection 370 (4) of the Act, as re-enacted by 1997, chapter 29, section 39, subsection 370 (4.1) of the Act, as enacted by 1997, chapter 29, section 39, and subsection 370 (4.2) of the Act, as enacted by 1998, chapter 3, section 20, are repealed and the following substituted:

Interim levy, local municipality

(1) The council of a local municipality, before the adoption of the estimates for the year under section 367, may pass a by-law levying amounts on the assessment of property in the local municipality rateable for local municipality purposes.

When to be passed

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

Rules

(3) The amounts to be levied are subject to the following rules:

1.The amount levied on a property shall not exceed the prescribed percentage, or 50 per cent if no percentage is prescribed, of the total amount of taxes for municipal and school purposes levied on the property for the previous year.

2.The percentage under paragraph 1 may be different for different property classes but shall be the same for all properties in a property class.

3.For the purposes of calculating the total amount of taxes for the previous year under paragraph 1, if any taxes for municipal and school purposes were levied on a property 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 on the property if the taxes for municipal and school purposes had been levied for the entire year.

By-law passed before assessment roll returned

(4) If a by-law is passed under subsection (1) before the assessment roll for taxation in the current year is returned, the amounts under subsection (1) shall be levied on the assessment according to,

(a) the collector's roll for taxation in the previous year as most recently revised before the by-law is passed; or

(b)a preliminary assessment roll provided by the assessment corporation for that purpose.

Added assessment

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

(2) Subsection 370 (8) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 39, subsection 370 (9) of the Act, as re-enacted by 1997, chapter 29, section 39 and amended by 1997, chapter 43, Schedule F, section 9, subsection 370 (10) of the Act, as re-enacted by 1997, chapter 29, section 39, subsections 370 (11), (12) and (13) of the Act, as enacted by 1997, chapter 29, section 39, and subsections 370 (14) and (15) of the Act, as enacted by 1998, chapter 33, section 17, are repealed.

26. Clause 371 (1) (b) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, clause 371 (1) (c) of the Act, as re-enacted by 1997, chapter 43, Schedule F, section 9, and clause 371 (1) (d) of the Act, as enacted by 1997, chapter 43, Schedule F, section 9 are repealed and the following substituted:

(b)prescribing a percentage for the purposes of paragraph 1 of subsection 370 (3).

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

Phase-in of tax changes

resulting from reassessments

372.2 (1) On or before December 31 of the taxation year, the council of a municipality, other than a lower-tier municipality, may pass a by-law to phase in tax increases or decreases for eligible properties for a taxation year in respect of which there is a general reassessment.

Definitions

(2) In this section, "

eligible property" means property classified in any property class prescribed under the Assessment Act\; ("bien admissible") "

first taxation year" means a taxation year in respect of which there is a general reassessment; ("premire anne d'imposition") "

preceding year" means the taxation year immediately preceding the first taxation year. ("anne prcdente")

Tax increase to be phased in

(3) If the total taxes for municipal and school purposes for the first taxation year for an eligible property, but for the application of this section, exceed its total taxes for municipal and school purposes for the preceding year, the maximum amount of the tax increase to be phased in is the amount of the difference.

Tax decrease to be phased in

(4) If the total taxes for municipal and school purposes for the preceding year for an eligible property exceed its total taxes for municipal and school purposes for the first taxation year, but for the application of this section, the maximum amount of the tax decrease to be phased in is the amount of the difference.

Amounts to be phased in

in 2001 and subsequent years

(5) For properties subject to Part XXII.3 and for the purposes of subsections (3) and (4),

(a)if the preceding year is 2000, the taxes for municipal and school purposes for that year shall be determined under subsection 447.65 (2); or

(b)if the preceding year is after 2000, the taxes for municipal and school purposes for that year shall be determined under subsection 447.68 (2).

Same

(6) For properties that are not subject to Part XXII.3 and for the purposes of subsections (3) and (4), the taxes for municipal and school purposes for the preceding year shall be determined as follows:

1.Determine the taxes for municipal and school purposes that were levied on the property in the year.

2.If a supplementary assessment or change in classification was made under section 34 of the Assessment Act during that year or if an assessment or change in classification could have been made under section 34 of that Act and the appropriate change is made to the assessment roll for taxation in the first taxation year, recalculate the taxes determined under paragraph 1 as if the increase in the assessment or change in classification, as the case may be, had applied to the property for all of the year.

3.If the council of a municipality cancels, reduces or refunds taxes under section 442 for the year on an application under clause 442 (1) (a), (c), (d) or (f) or under section 443 for the year, recalculate the taxes determined under paragraph 1 as if the event that caused the cancellation, reduction or refund had occurred on January 1 of that year.

Application to lower-tiers

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

Copy

(8) An upper-tier municipality shall provide a copy of the by-law under subsection (1) to each lower-tier municipality as soon as is practicable.

By-law requirements

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

1.The by-law may apply to the first taxation year and up to the next seven taxation years.

2.The by-law may replace a by-law made under section 372 or this section so long as the first-mentioned by-law applies for at least the same number of years as remains outstanding under the by-law made under section 372 or this section.

3.The by-law may modify the phase-in on individual properties subject to a phase-in under a by-law made under section 372 or this section in order to reflect tax increases or decreases determined under subsection (3) or (4).

4.The amount to be phased in in a year, other than in the first taxation year, must be the same or less than the amount phased in in the previous year.

5.The amount phased in in the last year in which a tax increase or decrease is phased in plus the total amounts phased in in the previous years must equal the tax increase or decrease for each property as determined under subsection (3) or (4).

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

7.For the purposes of paragraph 6, the residential/farm property class, the farmlands property class and the managed forests property class shall be treated as a single property class.

8.In the first taxation year, the amounts recovered from all properties in the property class whose tax decreases are being phased in shall not exceed the revenues foregone from all properties in the property class whose tax increases are being phased-in for the municipality referred to in subsection (1).

9.The by-law may provide for a threshold amount in each taxation year, determined in dollars or as a percentage.

10.For the purposes of paragraph 9, the threshold amount for eligible properties in a property class in the municipality to which subsection (3) applies may be different from the threshold amount for eligible properties in the property class in the municipality to which subsection (4) applies.

11.If an assessment is made for a property under subsection 32 (2) or 33 (1) of the Assessment Act in or after the first taxation year but the assessment applies to a year prior to the first taxation year,

i.the by-law made under subsection (1) shall apply to the property, and

ii.the taxes for municipal and school purposes on the property shall be recalculated for the first taxation year and for any subsequent taxation year that is subject to the by-law under subsection (1).

If change in use, character,

classification of property

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

Improvements replaced after scheme begins

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

Same

(12) Subsection (11) does not apply with respect to an improvement if the destruction of the improvement is by the owner, is permitted by the owner or is done by a person who had a right to destroy the improvement.

No lower tier surplus or shortfall

(13) The council of an upper-tier municipality shall, in a by-law under subsection (1), provide that adjustments shall be made between the upper-tier municipality and lower-tier municipalities so that no lower-tier municipality has a surplus or shortfall as a result of the phase-in of the tax increases or decreases.

Upper-tier shortfall

(14) If the upper-tier municipality experiences a shortfall as a result of the application of subsection (13), the by-law made under subsection (1) shall provide that any shortfall shall be shared by the upper-tier municipality and lower-tier municipalities in the same proportion as those municipalities share in the taxes levied on the property class for municipal purposes.

Information on tax bill

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

List to be kept

(16) The treasurer of the local municipality shall maintain a list of the tax increases or decreases for each eligible property to which the by-law under subsection (1) applies.

Application to payments in lieu of taxes

(17) This section applies to payments in lieu of taxes, other than an amount referred to in subparagraph 24 ii of subsection 3 (1) of the Assessment Act or an amount received under section 157 or subsection 158 (4) of this Act, as though they were taxes but a by-law under subsection (1) may provide that it does not apply to payments in lieu of taxes.

Taxes for school purposes

(18) No phase-in of a tax increase or decrease under this section shall affect the amount a local municipality is required to pay a school board.

Certain changes in first taxation year

assessments

(19) The following apply if the assessment of an eligible property for the first taxation year changes as a result of a request under section 39.1 of the Assessment Act, a complaint under section 40 of that Act or an application under section 46 of that Act:

1.The tax increase or decrease for the property shall be redetermined under subsection (3) or (4) using the new assessment for the property.

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

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

Certain changes in assessment

in preceding year

(20) The following apply if the assessment of an eligible property for the preceding year changes as a result of a request under section 39.1 of the Assessment Act, a complaint under section 40 of that Act or an application under section 46 of that Act:

1.The tax increase or decrease for the property shall be redetermined under subsection (3) or (4) using the new assessment for the property to determine the taxes for the preceding year.

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

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

Mixed use

(21) If portions of an eligible property are classified in different property classes on the assessment roll for the first taxation year, each portion shall be deemed to be a separate property for the purposes of this section.

Regulations

(22) The Minister of Finance may make regulations,

(a)prescribing a later deadline for the purposes of subsection (1), either before or after the deadline has passed; and

(b)governing by-laws under this section and the calculation of tax increases and decreases to be phased in under such by-laws.

Restructuring orders

(23) Despite subsection 25.2 (11), a by-law under this section may be made instead of any phase-in authority or requirement set out in an order of the Minister under section 25.2 or a commission under section 25.3, but the by-law under this section must apply for at least the same number of years as remains outstanding under the phase-in authority or requirement.

General or specific

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

28. (1) Subsection 373 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1999, chapter 6, section 40, is further amended by striking out "all or part of assessment-related".

(2) The definition of "assessment-related tax increases" in subsection 373 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed.

(3) Subsection 373 (4) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1998, chapter 3, section 23, is repealed and the following substituted:

Tax increases

(4) For a tax increase beginning in a taxation year in which a general reassessment occurs, the tax increase is the tax increase determined under subsection 372.2 (3) reduced, if the tax increase is being phased in under a by-law made under subsection 372.2 (1), by the amount not yet phased in.

(4) Subsection 373 (5) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is repealed and the following substituted:

Subsequent years

(5) The Minister of Finance may make regulations determining the amount of tax increases beginning in a year subsequent to the taxation year referred to in subsection (4).

(5) 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, 1998, chapter 3, section 23, 1998, chapter 33, section 19 and 1999, chapter 6, section 40, is further amended by adding the following subsection:

Past deferrals to continue

(13) This section, as it read on December 31, 2000, continues to apply to deferrals given under this section prior to that date.

29. Subsections 392 (4) and (5) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 147, are repealed and the following substituted:

By-law re separate billing

(4) The council of a local municipality may pass a by-law providing for the billing of a class of real property separately from the other classes of real property.

Separate tax bills may be issued

(5) If a by-law has been passed under subsection (4), the collector for the local municipality may issue separate tax bills for separate classes of real property and may issue a tax bill for a property to which section 447.70 applies at a different time than that for other property in the same property class.

30. (1) Subsection 393.1 (2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 21, is amended by adding the following clause:

(c)prescribing the form of the notice that must or that may be used under section 392 or 393.

(2) Section 393.1 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 21, is amended by adding the following subsection:

General or particular

(3) A regulation under subsection (2) may be general or particular in its application.

31. (1) Clause 442 (1) (a) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 60, is repealed and the following substituted:

(a)in respect of a property,

(i)if, as a result of a change event, as defined in clause (a) of the definition of "change event" in subsection 34 (2.2) of the Assessment Act, during the taxation year, the property or portion of the property is eligible to be reclassified in a different class of real property, as defined in regulations made under that Act, and that class has a lower tax ratio for the taxation year than the class the property or portion of the property is in before the change event, and

(ii)if no supplementary assessment is made in respect of the change event under subsection 34 (2) of the Assessment Act.

(2) Subsection 442 (3) of the Act, as amended by the Statutes of Ontario, 1997, chapter 23, section 10, is further amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

(3) Subsection 442 (4) of the Act, as amended by the Statutes of Ontario, 1997, chapter 23, section 10, is further amended by,

(a)striking out "the 28th" and substituting "the last"\; and

(b)striking out "the assessment commissioner" and substituting "the assessment corporation".

(4) Subsection 442 (22) of the Act, as amended by the Statutes of Ontario, 1997, chapter 29, section 47, is repealed and the following substituted:

Notice

(22) A copy of any notice of a decision of the council or Assessment Review Board shall be delivered or mailed to the assessment corporation, but failure to comply with this subsection does not invalidate the proceedings taken under this section.

32. (1) Clause 442.1 (2) (a) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 27, is amended by striking out "the Department of National Revenue" and substituting "the Canada Customs and Revenue Agency".

(2) Paragraph 2 of subsection 442.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 27, is amended by adding "or such other percentage as the Minister of Finance may prescribe" after "40 per cent".

(3) Paragraphs 3, 4 and 5 of subsection 442.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 27, are repealed and the following substituted:

3.Beginning in the 2001 taxation year, the program must provide that payment of one-half of the rebate must be made within 60 days after the receipt by the municipality of the application of the eligible charity for the rebate for the taxation year and the balance of the rebate must be paid within 120 days of the receipt of the application.

4.The program must permit the eligible charity to make an application for a rebate for a taxation year based on an estimate of the taxes payable by the eligible charity on the property it occupies.

(4) Subsection 442.1 (3) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 27, is amended by adding the following paragraph:

10.An application for a taxation year must be made after January 1 of the year and no later than the last day of February of the following year.

(5) Paragraphs 3, 4, 6 and 7 of subsection 442.l (4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 27, are repealed and the following substituted:

3.The program may provide for rebates to eligible charities or similar organizations for taxes on property that is in classes of real property prescribed under the Assessment Act other than the commercial or industrial classes within the meaning of subsection 363 (20).

4.The program may provide for rebates that are greater than those required under subsection (3) and may provide for different rebate amounts for different eligible charities or similar organizations up to 100 per cent of the taxes paid by the eligible charity or similar organization.

(6) Section 442.1 of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 27 and amended by 1998, chapter 33, section 22 and 1999, chapter 9, section 149, is further amended by adding the following subsections:

Interest

(8.1) The municipality shall pay interest, at the same rate of interest that applies under subsection 257.11 (4) of the Education Act, on the amount of any rebate to which the eligible charity is entitled under this section if the municipality fails to rebate or credit the amount within the time specified in paragraph 3 of subsection (3) or within such other time as the Minister of Finance may prescribe.

No fee

(8.2) Despite this Act, no fee may be charged by the municipality to process an application under this section.

(7) Subsection 442.1 (10) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 27, is repealed and the following substituted:

Regulations

(10) The Minister of Finance may make regulations,

(a)governing programs under this section including prescribing additional requirements for the programs;

(b)governing procedural requirements the programs must include;

(c)prescribing a percentage for the purpose of paragraph 2 of subsection (3);

(d)prescribing a time period for the purpose of subsection (8.1).

General or specific

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

33. Section 442.2 the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 28 and amended by 1998, chapter 33, section 23, is repealed and the following substituted:

Tax reductions

442.2 (1) The council of a municipality, other than a lower-tier municipality, may, by by-law passed on or before April 30 of the year to which it relates, provide for tax reductions 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.

Property classes

(2) The property classes referred to in subsection (1) are the property classes that are subject to Part XXII.3, and the by-law may treat different property classes differently.

Reductions on the collector's roll

(3) Tax reductions under a by-law under subsection (1) shall be given through adjustments made to the collector's roll for the property for the taxation year.

Sharing costs of tax reductions

(4) The cost of a tax reduction for a property shall be shared by the municipalities that share in the revenues from the taxes on the property in the same proportion as the municipalities share in those revenues.

Reductions not limited by s. 111

(5) Section 111 does not apply with respect to tax reductions under a by-law under subsection (1).

Regulations

(6) The Minister of Finance may make regulations,

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

(b)governing by-laws under subsection (1) and the reductions provided under such by-laws.

General or specific

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

Definitions

(8) In this section, "

eligible amount" means, in relation to a property, the amount by which the taxes for the year but for the application of Part XXII.3 exceed the taxes determined under subsection 447.65 (1) or 447.68 (1); ("somme admissible") "

lower-tier municipality" and "municipality" have the same meaning as in section 361.1. ("municipalit de palier infrieur", "municipalit")

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

Vacant unit rebate

442.5 (1) Every local municipality shall have a program to provide tax rebates to owners of property that has vacant portions if that property is in any of the commercial classes or industrial classes, as defined in subsection 363 (20).

Requirements of program

(2) A tax rebate program under this section must meet the following requirements:

1.The program shall apply to eligible property as prescribed by the Minister of Finance for the purposes of this section.

2.If the property is in any of the commercial classes, the rebate shall be equal to 30 per cent of the taxes applicable to the eligible property, as determined under clause (12) (b).

3.If the property is in any of the industrial classes, the rebate shall be equal to 35 per cent of the taxes applicable to the eligible property, as determined under clause (12) (b).

4.An application may be made by or on behalf of the owner.

5.The application shall be made to the local municipality by the last day of February of the year following the taxation year in respect of which the application is made or such later date as the Minister of Finance may prescribe, either before or after the expiry of the time limit.

6.Unless otherwise prescribed by the Minister of Finance, an owner or a person on behalf of the owner shall submit one application for a taxation year, except that an interim application may be made for the first six months of the taxation year.

Mixed use

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

If single percentage established

(4) If the council of a municipality, other than a lower-tier municipality, has established a single percentage for a year under subsection 368.1 (4), that percentage applies for the year rather than the percentage set out in paragraph 2 or 3 of subsection (2), as the case may be.

Evidentiary requirements

(5) The program may include evidentiary requirements that must be satisfied for the owner to be entitled to a rebate under this section.

Right of access

(6) For the purposes of verifying an application made under this section, an employee of a municipality or a person designated by the municipality, upon producing proper identification, shall at all reasonable times and upon reasonable request be given free access to all property referred to in the application made under this section.

Information

(7) Every adult person present on the property when the person referred to in subsection (6) visits the property in the performance of his or her duties shall give the person all the information within his or her knowledge that will assist the person to determine the proper amount of the rebate payable under this section.

Request for information

(8) For the purposes of determining the proper amount of any rebate payable under this section, the municipality may, by letter sent by mail, served personally or delivered by courier, require the owner or manager of a property referred to in an application under this section to provide any relevant information or produce any relevant documents within such reasonable time as is set out in the letter.

Return of information

(9) A person who receives a letter under subsection (8) shall, within the time set out in the letter, provide to the municipality all the information that is within the person's knowledge and produce all of the documents required that are within the person's possession or control.

Offence

(10) Every person who is required to provide information under this section and who defaults in doing so is guilty of an offence and on conviction is liable to a fine of $100 for each day during which the default continues.

Sharing costs of rebates

(11) The costs of a rebate of taxes on a property shall be shared by the municipalities and the 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.

Regulations

(12) The Minister of Finance may make regulations,

(a)prescribing the requirements for a property or portion of a property to be eligible property;

(b)respecting how to determine the amount of tax to which the percentages specified in paragraphs 2 and 3 of subsection (2) are to be applied;

(c)respecting the determination of the value of eligible property by the assessment corporation;

(d)prescribing the number or frequency of applications under paragraph 6 of subsection (2);

(e)governing programs under this section including prescribing additional requirements for those programs and governing the procedural requirements that those programs must include;

(f)prescribing a date for the purposes of subsections (2), (16) and (21).

General or specific

(13) A regulation under this section may be general or specific and may apply to different municipalities differently.

Rebate to include credit

(14) A municipality may credit all or part of the amount of the tax rebate owing to an outstanding tax liability of the owner.

Complaint

(15) A person who has made an application under this section may, within 120 days after the municipality mails the determination of the amount of the rebate, complain to the Assessment Review Board in writing that the amount is too low.

Same, if no determination of rebate

(16) If the municipality fails to mail the determination of the amount of the rebate to the applicant within 120 days of the receipt of the application or such later date as the Minister of Finance may prescribe, the applicant may complain in writing to the Assessment Review Board.

Determination by the Board

(17) In a complaint under subsection (15) or (16), the Assessment Review Board shall determine the amount of any rebate owing to the applicant.

Same

(18) Section 40 of the Assessment Act applies to a complaint under subsection (15), (16) or (25) as if it were a complaint under subsection 40 (1) of that Act, except the assessment corporation shall not be a party for purposes of subsection 40 (5) of that Act.

Appeal to Divisional Court

(19) Section 43.1 of the Assessment Act applies to a decision of the Assessment Review Board.

Offence

(20) Any person who knowingly makes a false or deceptive statement in an application made to a municipality or in any other document submitted to a municipality under this section is guilty of an offence and is liable on conviction to a fine of not more than an amount that is twice the amount of the rebate obtained or sought to be obtained by the false or deceptive statement except that the fine shall not be less than $500.

Interest

(21) The municipality shall pay interest, at the same rate of interest that applies under subsection 257.11 (4) of the Education Act, on the amount of any rebate to which the applicant is entitled under this section if the municipality fails to rebate or credit such amount within 120 days, or such later date as the Minister of Finance may prescribe, of the receipt of the application or interim application.

No fee

(22) Despite this Act, no fee may be imposed by a municipality to process an application made under this section.

Recovery

(23) If a rebate is paid under this section and the municipality determines that the rebate or any portion of the rebate has been paid in error, the municipality may notify the owner of the property in respect of which the rebate was made of the amount of the overpayment and upon so doing the amount shall be deemed to be taxes for municipal and school purposes under this Act.

Time limitation

(24) Subsection (23) does not apply unless the municipality notifies the owner within two years after the application with respect to which the overpayment relates was made.

Complaint

(25) The owner of the property to whom the municipality sends a notification under subsection (23) may, within 90 days of its receipt, complain to the Assessment Review Board in writing that the amount claimed or any part of it was properly payable as a rebate under this section.

Application

(26) This section applies with respect to the 2001 taxation year and subsequent taxation years.

Cancellation, reduction or refund of taxes

442.6 (1) The council of a local municipality may, in any year, pass a by-law to provide for the cancellation, reduction or refund of taxes levied for municipal and school purposes in the year by the council in respect of an eligible property of any person who makes an application in that year to the municipality for that relief and whose taxes are considered by the council to be unduly burdensome, as defined in the by-law.

Notice to upper-tier municipality, etc.

(2) If a lower-tier municipality has passed a by-law under subsection (1), it shall give notice of that fact to the upper-tier municipality and the upper-tier municipality may pass a by-law to provide a similar cancellation, reduction or refund of taxes levied for upper-tier purposes.

Sharing costs

(3) If an upper-tier municipality has passed a by-law under subsection (2), the amount of the taxes cancelled, reduced or refunded shall be shared by the municipalities and school boards that share the revenue from the taxes on the property affected by the by-law in the same proportion that those municipalities and school boards share in those revenues.

Lower-tier municipality to pay upper-tier share

(4) If an upper-tier municipality has not passed a by-law under subsection (2), the amount of the taxes cancelled, reduced or refunded shall be shared by the lower-tier municipality and school boards in the same proportion as under subsection (3) but the amount of the upper-tier municipality's share shall be the responsibility of the lower-tier municipality.

Single-tier municipality

(5) If the local municipality is a single-tier municipality, the amount of the taxes cancelled, reduced or refunded shall by shared by the municipality and school boards that share the revenues from the taxes on the property affected by the by-law in the same proportion that the municipality and school boards share in those revenues.

Definitions

(6) In this section, "

eligible property" means a property classified in the residential/farm property class, the farmlands property class or the managed forests property class; ("bien admissible") "

lower-tier municipality" and "upper-tier municipality" have the same meaning as in section 361.1; ("municipalit de palier infrieur", "municipalit de palier suprieur") "

single-tier municipality" means a local municipality that does not form part of an upper-tier municipality for municipal purposes. ("municipalit palier unique")

35. (1) Subsection 443 (4) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 23, is further amended by striking out "the Ontario Property Assessment Corporation" and substituting "the assessment corporation".

(2) Subsection 443 (6) of the Act, as amended by the Statutes of Ontario, 1997, chapter 23, section 10, is further amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

(3) Clause 443 (7) (b) of the Act is amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

(4) Subsection 443 (14) of the Act is amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

36. (1) Subsection 444 (2) of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule and 1997, chapter 23, section 10, is further amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

(2) Subsection 444 (3) of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule and 1997, chapter 23, section 10, is further amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

(3) Subsection 444 (15) of the Act, as amended by the Statutes of Ontario, 1997, chapter 29, section 49, is further amended by striking out "the assessment commissioner" and substituting "the assessment corporation".

37. (1) Subsection 444.1 (5) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed and the following substituted:

Notice

(5) The tenant is not required to pay the landlord an amount unless the landlord gives the tenant a notice in accordance with subsection (8) that the landlord requires the tenant to pay an amount under this section.

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

Amount is additional rent

(6) The amount that a tenant is required to pay shall be deemed to be additional rent due on the date set out in the notice referred to in subsection (5).

(3) Subsection 444.1 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29 and amended by 1998, chapter 33, section 24 and 1999, chapter 9, section 151, is repealed.

(4) Subsection 444.1 (8) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29 and amended by 1998, chapter 33, section 24 and 1999, chapter 9, section 151, is repealed and the following substituted:

Notice requiring payment

(8) The following apply to the notice referred to in subsection (5):

1.The notice must set out,

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

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

iii.the amount of the property taxes for the property for the year or an estimate of the amount of the property taxes for the property for the year if not yet determined.

2.The notice must be given at least 30 days before the day the amount or the first instalment of the amount the tenant is required to pay is due.

3.The landlord shall provide the tenant with a notice of adjustments, if any, to be made after the taxes for the taxation year have been determined.

4.The notice must be given by September 30 of the taxation year or 30 days after the day the final tax notice for the taxation year is received by the landlord, whichever is later.

5.For 2000, the notice must be given by September 30, 2000 or 30 days after the final 2000 tax notice is received by the landlord, whichever is later.

(5) Subsection 444.1 (9) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is amended by striking out "paragraph 2 of".

(6) Subsections 444.1 (14.2), (14.3), (14.4), (14.5), (14.6) and (14.7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 24, are repealed and the following substituted:

Where s. 447.71 applies

(14.2) If section 447.71 applies to a tenant of leased premises, the maximum amount that the tenant may be required to pay for a taxation year in respect of the leased premises is the tenant's cap determined under subsection 447.71 (5) or (6), as the case may be, and not the amount determined under subsection (3).

(7) Subsection 444.1 (14.9) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 24, is repealed and the following substituted:

Sub-leases

(14.9) If the landlord is not the owner of the property but has acquired an interest in the property under a lease and has further sublet the property or a portion of the property, the notice referred to in subsection (5) may be given to the person holding the sub-lease on or before the day that is 15 days after the landlord is given a valid notice referred to in subsection (5).

(8) Subsections 444.1 (16) and (17) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 151, are repealed.

38. (1) Subsection 444.2 (5) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed and the following substituted:

Notice

(5) The tenant is not required to pay the landlord an amount unless the landlord gives the tenant a notice in accordance with subsection (8) that the landlord requires the tenant to pay an amount under this section.

(2) Subsection 444.2 (6) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is repealed and the following substituted:

Amount is additional rent

(6) The amount that a tenant is required to pay shall be deemed to be additional rent due on the date set out in the notice referred to in subsection (5).

(3) Subsection 444.2 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29 and amended by 1998, chapter 33, section 25 and 1999, chapter 9, section 152, is repealed.

(4) Subsection 444.2 (8) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29 and amended by 1998, chapter 33, section 25 and 1999, chapter 9, section 152, is repealed and the following substituted:

Notice requiring payment

(8) The following apply to the notice referred to in subsection (5):

1.The notice must set out,

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

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

iii.the amount of the property taxes for the property for the year or an estimate of the amount of the property taxes for the property for the year if not yet determined.

2.The notice must be given at least 30 days before the day the amount or the first instalment of the amount the tenant is required to pay is due.

3.The landlord shall provide the tenant with a notice of adjustments, if any, to be made after the taxes for the taxation year have been determined.

4.The notice must be given by September 30 of the taxation year or 30 days after the day the final tax notice for the taxation year is received by the landlord, whichever is later.

5.For 2000, the notice must be given by September 30, 2000 or 30 days after the final 2000 tax notice is received by the landlord, whichever is later.

(5) Subsection 444.2 (9) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 29, is amended by striking out "paragraph 2 of".

(6) Subsections 444.2 (9.1) and (9.2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 25, are repealed.

(7) Subsection 444.2 (9.4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 25, is repealed and the following substituted:

Sub-leases

(9.4) If the landlord is not the owner of the property but has acquired an interest in the property under a lease and has further sublet the property or a portion of the property, the notice referred to in subsection (5) may be given to the person holding the sub-lease on or before the day that is 15 days after the landlord is given a valid notice referred to in subsection (5).

(8) Subsections 444.2 (11) and (12) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 152, are repealed.

39. Section 447.7 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30 and amended by 1999, chapter 9, section 154, is further amended by adding the following subsections:

Omitted assessments

(4) If an assessment for a property that is made in a year under subsection 33 (3) of the Assessment Act applies to the year or to either or both of the next two preceding years, the clerk of the municipality shall revise the frozen assessment listing for the year or for the preceding year or years as provided under this section and the taxes that would have been payable if the changes had been made to the frozen assessment listing in the year shall be levied and collected.

Application

(5) Subsection (4) applies to the 1998 and subsequent taxation years.

40. Section 447.10 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 30 and amended by 1998, chapter 33, section 30 and 1999, chapter 9, section 156, is further amended by adding the following subsections:

Omitted assessments

(7) If an assessment for a property that is made in a year under subsection 33 (1) of the Assessment Act applies to the year or to either or both of the next two preceding years, the clerk of the municipality shall revise the frozen assessment listing for the year or for the preceding year or years as provided under this section and the taxes that would have been payable if the changes had been made to the frozen assessment listing in the year shall be levied and collected.

More than one supplementary assessment

(8) If, as a result of more than one supplementary assessment made under section 34 of the Assessment Act after January 1, 1998 in respect of a property described in paragraph 1 of subsection (4), the increase in the assessment on the assessment roll is equal to or greater than 50 per cent of the assessment of the property on the assessment roll prior to any of the supplementary assessments being made, subsection (4) does not apply to the property and the assessment on the frozen assessment listing shall be recalculated under subsection (2) following the supplementary assessment that increases the total assessment of the property on the assessment roll by an amount equal to or greater than 50 per cent of the assessment on the assessment roll.

Application

(9) Subsections (7) and (8) apply to the 1998 and subsequent taxation years.

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

Correction of errors

447.26.1 (1) If, in 2000 or 2001, the municipality determines that there has been an error in calculating the frozen assessment listing under this Part, the municipality shall make such changes as are necessary to correct the error and,

(a)shall, if a person has been overcharged for 1998, 1999 or 2000 by reason of the error, refund to the person the amount of the overpayment, or, if there is an outstanding tax liability, credit the amount of the overpayment to that liability; and

(b)may, if a person has been undercharged for 2000 by reason of such error, increase the taxes levied against such person for 2000 to correct the error.

Notice

(2) The municipality shall mail a notice of its determination to the owner by December 31, 2001.

Application

(3) If no determination is made by a municipality, an owner of a property may apply to the municipality to request that it consider whether an error referred to in subsection (1) has been made and the application shall include an explanation as to why the owner believes there is an error and the amount that the owner believes has been overcharged.

Deadline

(4) The application under subsection (3) must be made by the last day of February in 2002 and the municipality must consider the application and make a determination within 60 days after the application is made.

Notice

(5) The municipality shall mail a notice of its determination to the owner.

Appeal by the taxpayer

(6) An appeal may be made to the Assessment Review Board by a person who is not satisfied with the determination made by a municipality under this section or if no determination is made by the municipality after an application under subsection (3) is made.

Application

(7) Subject to this section, subsections 442 (15), (16) and (18) or subsections 444 (8), (9), (12) and (13), as the case may be, apply to an appeal under this section.

Provisions relating to appeal

(8) For the purposes of subsection (7), the notice of appeal must be sent no later than June 30, 2002 or 60 days after the municipality mails a notice of its determination under subsection (2) or (5), whichever is the later.

42. (1) Section 447.34.1 of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 159, is amended by adding the following subsection:

Correction of errors

(8.1) If a municipality determines that an error was made in a notification sent out to the owner of an eligible property under subsection (7) or (8), the municipality shall mail to the owner a notice setting out the correct information.

(2) Subsection 447.34.1 (9) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 159, is amended by adding "or (8.1)" after "(7)".

(3) Subsection 447.34.1 (10) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 159, is amended by,

(a)striking out "clause (8) (b)" and substituting "clause (8) (b) or subsection (8.1)"\; and

(b)striking out "specified".

(4) Section 447.34.1 of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 159, is amended by adding the following subsection:

Appeal

(12.1) Section 43.1 of the Assessment Act applies to a decision of the Assessment Review Board.

43. Paragraph 1 of section 447.43 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 37, is repealed and the following substituted:

1.Section 447.26.1 (Correction of errors).

1.1Section 447.27 (Upper-tier request for listing).

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

PART XXII.3

LIMITATION ON TAXES

FOR CERTAIN PROPERTY CLASSES

BEGINNING IN 2001

Definitions

447.63 (1) In this Part, "

commercial classes" means the commercial property class prescribed under the Assessment Act and optional property classes that contain property that, if the council of the municipality did not opt to have the optional property class apply, would be in the commercial property class; ("catgories commerciales") "

industrial classes" means the industrial property class prescribed under the Assessment Act and optional property classes that contain property that, if the council of the municipality did not opt to have the optional property class apply, would be in the industrial property class; ("catgories industrielles") "

lower-tier municipality", "municipality", "payment in lieu of taxes", "property class", and "upper-tier municipality" have the same meaning as in section 361.1. ("municipalit de palier infrieur", "municipalit", "paiement tenant lieu d'impts", "catgorie de biens", "municipalit de palier suprieur") "

optional property class" means a property class that the council of a municipality may opt to have apply within the municipality under regulations made under the Assessment Act. ("catgorie de biens facultative")

Reference to property class

(2) A reference to a specific property class, other than a reference to the commercial classes or industrial classes, is a reference to the property class prescribed under section 7 of the Assessment Act.

Portions of a property

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

Property that Part applies to

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

Non-application

(5) This Part does not apply to,

(a)property in territory without municipal organization;

(b)property in the subclasses prescribed under paragraph 1 of subsection 8 (1) of the Assessment Act\;

(c)property or a portion of the property to which a payment in lieu of taxes relates, except the property of a designated electricity utility within the meaning of subsection 19.0.1 (5) of the Assessment Act or a corporation referred to in clause (d) of the definition of "municipal electricity utility" in section 88 of the Electricity Act, 1998\;

(d)a bridge or tunnel that crosses a river forming the boundary between Ontario and the United States and the land used for the purposes of the bridge or tunnel;

(e)an eligible convention centre that is exempt from taxes for school purposes under subsection 257.6 (6) of the Education Act\;

(f)despite clause (c), land, buildings and structures to which subsection 19.0.1 (1) of the Assessment Act applies; and

(g)property classified in the residential/farm property class, farmlands property class, managed forests property class or pipe line property class.

Exception

(6) Despite clause (5) (c), this Part applies to a property or portion of a property in the commercial classes or the industrial classes to which subsection 4 (3) of the Municipal Tax Assistance Act applies but the portion of a property to which that subsection applies shall be deemed to be a separate property for the purposes of this Part.

Regulations, payments in lieu of taxes

(7) Despite clause (5) (c), the Minister of Finance may make regulations prescribing circumstances or municipalities with respect to which clause (5) (c) 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.

General or specific

(8) A regulation under subsection (7) 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.

Same

(10) Subsection (9) applies with respect to payments in lieu of taxes with respect to which this Part, but for clause (5) (c), would have applied.

Regulations, exemptions

(11) The Minister of Finance may by regulation exempt property from the application of this Part and the regulation may be general or specific in its application.

Exempt property deemed not in classes

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

Determination of taxes

447.64 (1) Except as provided in this Part, the taxes for municipal and school purposes for a year for a property to which this Part applies shall be determined in accordance with Part XXII of this Act and Division B of Part IX of the Education Act.

Annexations, 2000

(2) In respect of a property that was, on December 31, 1999, in territory without municipal organization but, on January 1, 2000, became part of a municipality, the taxes for municipal purposes for 2001 shall be limited to two-thirds of the taxes for municipal purposes that would be levied on the property but for this subsection.

Annexations, 2001

(3) In respect of a property that is, on December 31, 2000, in territory without municipal organization but, on January 1, 2001, becomes part of a municipality, the taxes for municipal purposes for 2001 shall be limited to one-third and for 2002 to two-thirds of the taxes for municipal purposes that would be levied on the property but for this subsection.

Annexations, after 2001

(4) In respect of a property that is, on the last day of the taxation year immediately preceding the taxation year, in territory without municipal organization but, on the first day of a taxation year after 2001, becomes part of a municipality, the taxes for municipal purposes for that taxation year shall be limited to one-third and for the year immediately following the taxation year to two-thirds of the taxes for municipal purposes that would be levied on the property but for this subsection.

Determination of maximum taxes, 2001

447.65 (1) Except as otherwise provided in this section and under section 447.67, the taxes for municipal and school purposes for 2001 to be levied on a property shall be the amount determined in accordance with the following:

1.Determine the 2000 taxes in accordance with subsection (2).

2.Add 5 per cent of the amount determined under paragraph 1 to the amount determined under paragraph 1.

3.The amount determined under paragraph 2 shall be adjusted, in accordance with the regulations, in respect of changes in taxes for municipal purposes.

4.The taxes for the property in 2001 shall be equal to the amount determined under paragraph 2 and adjusted under paragraph 3, if applicable.

Same

(2) The 2000 taxes for a property shall be determined as follows:

1.Determine the taxes for municipal and school purposes that were levied on the property for 2000.

2.If, for the property, the 1999 assessment roll for taxation in 2000 included an amount in the subclass for vacant units and excess land prescribed under the Assessment Act, recalculate the taxes determined under paragraph 1 as if the property did not contain any vacant units.

3.If a supplementary assessment or change in classification is made under section 34 of the Assessment Act during 2000 or if an assessment or change in classification could have been made under section 34 of that Act and the appropriate change is made on the assessment roll for taxation in 2001, recalculate the taxes determined under paragraph 1 as if the increase in the assessment or change in classification, as the case may be, had applied to the property for all of 2000.

4.If section 447.34.1 applied to the property for a part of 2000, recalculate the taxes determined under paragraph 1 as if section 447.34.1 had applied to the property for all of 2000.

5.If the assessment of a property whose classification is in the subclass for vacant land on the assessment roll for taxation in 2001 increases as a result of an improvement to that property during 2000 and if no portion of any building on the property begins to be used for any purpose during 2000, recalculate the taxes determined under paragraph 1 as if the increase in the assessment had applied to the property for all of 2000.

6.If the council of a municipality cancels, reduces or refunds taxes under section 442 for 2000 on an application under clause 442 (1) (a), (c) or (f) or under section 443 for 2000, recalculate the taxes determined under paragraph 1 as if the event that caused the cancellation, reduction or refund had occurred on January 1, 2000.

7.If a property was, on December 31, 1998, in territory without municipal organization but, on January 1, 1999 was part of a municipality specified in Table 6.1 of Ontario Regulation 7/99, the taxes for municipal purposes shall be determined, for the purposes of paragraph 1, as if the total amount determined in accordance with the formula under subsection 24.2 (3) of that Regulation had been used to determine the taxes for municipal purposes for 2000.

8.If a property was, on December 31, 1999, in territory without municipal organization but, on January 1, 2000, was part of a municipality specified in Table 6.2 of Ontario Regulation 7/99, the taxes for municipal purposes shall be determined, for the purposes of paragraph 1, as if two-thirds of the amount determined in accordance with the formula under subsection 24.2 (3) of that Regulation had been used to determine the taxes for municipal purposes for 2000.

9.If a property is, on December 31, 2000, in territory without municipal organization but, on January 1, 2001, becomes part of a municipality, the taxes for municipal purposes shall, for the purposes of paragraph 1, be the taxes for municipal purposes that will be levied on the property in 2001 under subsection 447.64 (3).

Regulations

(3) The Minister of Finance may make regulations providing for adjustments under paragraph 3 of subsection (1) in respect of changes in taxes for municipal purposes.

Different adjustments

(4) A regulation under subsection (3) may provide for different adjustments to different properties, property classes and municipalities.

Adjustment

(5) If, as a result of a request under section 39.1 of the Assessment Act, a complaint under section 40 of that Act, an application under section 46 of that Act, an application under section 447.26 or a determination under section 447.26.1, the taxes for municipal and school purposes for a property for 2000 are recalculated, the amount under paragraph 1 of subsection (2) shall be adjusted accordingly.

Omitted assessments

(6) If, as a result of an assessment under subsection 32 (2) of the Assessment Act or section 33 of the Assessment Act, the total taxes for municipal and school purposes for a property for 2000 are altered, the amount under paragraph 1 of subsection (2) shall be adjusted accordingly.

Omitted and supplementary assessments for 2001

(7) If an assessment is made in respect of property, other than a property described in subsection 447.67 (2), under section 33 or 34 of the Assessment Act increasing the assessment of the property for 2001,

(a)subsection (1) does not apply to the additional taxes for municipal and school purposes for the year attributable to the increase in the assessment; and

(b)the additional taxes for municipal and school purposes shall be determined in accordance with the following formula:

T = CT × CVAT

NT

where,

Tis the additional taxes for municipal and school purposes,

CTis the amount determined under subsection (1),

NTis the uncapped 2001 taxes, but does not include CVAT,

CVATis the supplementary taxes for municipal and school purposes that would be payable but for the application of this subsection.

Same

(8) Despite subsection (7), the 2001 taxes for municipal and school purposes for the property for the year or portion of the year in respect of which the assessment under clause (a) or (b) of this subsection was made shall be recalculated under section 447.70 if,

(a)there was an additional assessment that relates to a new building or structure erected on the property that was, prior to the assessment, assessed for 2001 as being in the subclass for vacant land under paragraph 2 of subsection 8 (1) of the Assessment Act\; or

(b)as a result of an additional assessment for 2001 or for 2000 and 2001 or any portion thereof, the assessment of the property is increased by an amount equal to or greater than 50 per cent of the assessment on the assessment roll before the additional assessment was made.

Additional assessment

(9) If an additional assessment is made for 2000 and for 2001, the percentage for the purposes of clause (8) (b) shall be determined as follows:

1.Determine the additional assessment for 2000.

2.Determine the assessment on the assessment roll for taxation in 2000 before the additional assessment referred to in paragraph 1 was made.

3.Divide the amount in paragraph 1 by the amount in paragraph 2.

4.Multiply the quotient in paragraph 3 by 100.

5.Add the amounts in paragraphs 1 and 2.

6.Divide the amount in paragraph 2 by the amount in paragraph 5.

7.Multiply the quotient determined in paragraph 6 by the assessment on the assessment roll for taxation in 2001.

8.Determine the additional assessment for 2001.

9.Divide the amount in paragraph 8 by the amount in paragraph 7.

10.Multiply the quotient in paragraph 9 by 100.

11.Add the percentages in paragraphs 4 and 10.

Same

(10) If the percentage in paragraph 11 of subsection (9) is equal to or greater than 50, subsection (8) applies for 2001.

If s. 447.34.1 applied in 2000

(11) If section 447.34.1 applied to the property for 2000 or a part of 2000, subsection (8) does not apply for 2001.

Limitation

(12) Despite subsection (1) but subject to section 447.67, if the amount determined under subsection (1) exceeds the uncapped 2001 taxes, the taxes for municipal and school purposes under this Part for 2001 shall be equal to the uncapped 2001 taxes.

Definitions

(13) In this section, "

additional assessment" means one or more assessments made under section 33 or 34 of the Assessment Act\; ("valuation additionnelle") "

uncapped 2001 taxes" means the taxes for municipal and school purposes that would have been imposed for 2001 but for the application of this Part. ("impts de 2001 non plafonns")

Option for municipalities under Part XXII.1

447.66 (1) If Part XXII.1 applies to a municipality, the council of the municipality, other than a lower-tier municipality, may pass a by-law reducing the increase under paragraph 2 of subsection 447.65 (1) or paragraph 2 of subsection 447.68 (1) to 2.5 per cent for a taxation year.

Deadline

(2) A by-law under subsection (1) may not be passed after February 28 in the taxation year to which it applies or such later deadline as the Minister of Finance may prescribe for the municipality either before or after the February 28 deadline has passed.

By-law to provide for recoveries

447.67 (1) The council of a municipality, other than a lower-tier municipality, may pass a by-law to establish a percentage by which tax decreases are limited for 2001 in respect of properties in any property class subject to this Part in order to recover all or part of the revenues foregone as a result of the application of section 447.65 to other properties in the property class.

Application

(2) A by-law under subsection (1) shall apply to all properties in the property class whose taxes for municipal and school purposes for 2000, as determined under subsection 447.65 (2), exceed their taxes for municipal and school purposes for 2001 as adjusted in accordance with the regulations in respect of changes in taxes for municipal purposes and changes in taxes for school purposes.

Single percentage

(3) A by-law under subsection (1) shall establish the same percentage for all properties in a property class, but different percentages may be established for different property classes.

Limitation

(4) The percentage established by a by-law under subsection (1) shall be limited as follows:

1.Calculate the total revenues foregone as a result of the application of section 447.65 to properties in the property class.

2.Calculate the total difference between the taxes for municipal and school purposes for all properties in the property class referred to in subsection (2) for 2000, as determined under subsection 447.65 (2), and the taxes for municipal and school purposes for properties in the same property class for 2001 as adjusted in accordance with the regulations in respect of changes in taxes for municipal purposes and changes in taxes for school purposes.

3.Calculate the percentage of the amount determined under paragraph 2 that would yield sufficient revenues to recover all of the foregone revenues calculated under paragraph 1.

4.The percentage established under the by-law shall not exceed the percentage determined under paragraph 3 or 100 per cent, whichever is the lesser percentage.

Single property class

(5) For the purpose of this section, 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.

No lower-tier surplus or shortfall

(6) The council of an upper-tier municipality shall, in a by-law under subsection (1), provide that adjustments shall be made between the upper-tier municipality and the lower-tier municipalities so that no lower-tier municipality has a surplus or shortfall as a result of the application of the by-law.

Upper-tier shortfall

(7) If the upper-tier municipality experiences a shortfall as a result of the application of subsection (6), the by-law made under subsection (1) shall provide that any shortfall shall be shared by the upper-tier municipality and the lower-tier municipalities in the same proportion as those municipalities share in the taxes levied on the property class for municipal purposes.

Taxes for 2001

(8) The taxes for municipal and school purposes for 2001 on a property to which a by-law made under this section applies shall be determined as follows:

1.Determine the taxes for municipal and school purposes for the property for 2000 under subsection 447.65 (2).

2.Determine the amount of the difference between the taxes for municipal and school purposes for the property for 2000, as determined under subsection 447.65 (2) and the taxes for municipal and school purposes for the property for 2001, as adjusted in accordance with the regulations, in respect of changes in the taxes for municipal purposes and for school purposes.

3.Multiply the percentage established for the property class the property is in under subsection (1) by the amount determined under paragraph 2.

4.Deduct the amount determined under paragraph 3 from the amount determined under paragraph 2.

5.Deduct the amount determined under paragraph 4 from the amount determined under paragraph 1.

6.The amount determined under paragraph 5 shall be adjusted, in accordance with the regulations, in respect of changes in taxes for municipal purposes and for school purposes.

7.The taxes for municipal and school purposes for 2001 shall be equal to the amount determined under paragraph 5 and adjusted under paragraph 6, if applicable.

Regulations

(9) The Minister of Finance may make regulations,

(a)providing for adjustments under subsection (2), (4) or (8) in respect of changes in taxes for municipal purposes or for school purposes; and

(b)governing the determination of the percentage under subsection (1) and the limitation on such percentage under subsection (4).

General or specific

(10) A regulation under subsection (9) may be general or specific and may treat different municipalities differently.

Taxes for school purposes

(11) No by-law made under this section shall affect the amount that a local municipality is required to pay to a school board.

Supplementary and omitted assessments in 2001

(12) If an assessment is made under section 33 or 34 of the Assessment Act to a property subject to a by-law under this section that increases the assessment of that property for 2001, subsection (8) does not apply to the additional taxes for municipal and school purposes for the year attributable to the assessment.

Determination of maximum taxes after 2001

447.68 (1) Except as otherwise provided in this section and under section 447.69, the taxes for municipal and school purposes for a taxation year after 2001 to be levied on a property shall be the amount determined in accordance with the following:

1.Determine the taxes for the previous year in accordance with subsection (2).

2.Add 5 per cent of the amount determined under paragraph 1 to the amount determined under paragraph 1.

3.The amount determined under paragraph 2 shall be adjusted, in accordance with the regulations, in respect of changes in taxes for municipal purposes.

4.The taxes for the property for the taxation year shall be equal to the amount determined under paragraph 2 and adjusted under paragraph 3, if applicable.

Previous year

(2) The taxes for the previous year for a property shall be determined as follows:

1.Determine the taxes for municipal and school purposes that were levied on the property for the year.

2.If a supplementary assessment or change in classification is made under section 34 of the Assessment Act during the year or if an assessment or change in classification could have been made under section 34 of that Act and the appropriate change is made on the assessment roll for taxation in the taxation year, recalculate the taxes determined under paragraph 1 as if the increase in the assessment or change in classification, as the case may be, had applied to the property for all of the year.

3.If section 447.70 applied to the property for a part of the year, recalculate the taxes determined under paragraph 1 as if section 447.70 had applied to the property for all of the year.

4.If the assessment of a property whose classification is in the subclass for vacant land on the assessment roll for taxation in the taxation year increases as a result of an improvement to that property during the year and if no portion of any building on the property begins to be used for any purpose during the year, recalculate the taxes determined under paragraph 1 as if the increase in the assessment had applied to the property for all of the year.

5.If the council of a municipality cancels, reduces or refunds taxes under section 442 for the year on an application under clause 442 (1) (a), (c) or (f) or under section 443 for the year, recalculate the taxes determined under paragraph 1 as if the event that caused the cancellation, reduction or refund had occurred on January 1 of the year.

6.In respect of a property referred to in paragraph 9 of subsection 447.65 (2) for 2001, the taxes for municipal purposes shall, for the purposes of paragraph 1 of this subsection, be the taxes for municipal purposes that will be levied on the property in 2002 under subsection 447.64 (3).

7.In respect of a property referred to in subsection 447.64 (4), the taxes for municipal and school purposes shall, for the purposes of paragraph 1, be the taxes that would have been levied on the property for the taxation year under that subsection.

Regulations

(3) The Minister of Finance may make regulations providing for adjustments under paragraph 3 of subsection (1) in respect of changes in taxes for municipal purposes.

Different adjustments

(4) A regulation under subsection (3) may provide for different adjustments to different properties, property classes and municipalities.

Adjustment

(5) If, as a result of a request under section 39.1 of the Assessment Act, a complaint under section 40 of that Act, an application under section 46 of that Act, an application under section 447.26 or a determination under section 447.26.1, the taxes for municipal and school purposes for a property for the previous year are recalculated, the amount under paragraph 1 of subsection (2) shall be adjusted accordingly.

Omitted assessments

(6) If, as a result of an assessment under subsection 32 (2) of the Assessment Act or section 33 of the Assessment Act, the total taxes for municipal and school purposes for a property for the previous year are altered, the amount under paragraph 1 of subsection (2) shall be adjusted accordingly.

Omitted and supplementary assessments

in the taxation year

(7) If an assessment is made in respect of property, other than property described in subsection 447.69 (2), under section 33 or 34 of the Assessment Act increasing the assessment of the property in the taxation year,

(a)subsection (1) does not apply to the additional taxes for municipal and school purposes attributable to the increase in the assessment; and

(b)the additional taxes for municipal and school purposes shall be determined in accordance with the following formula:

T = CT × CVAT

NT

where,

Tis the additional taxes for municipal and school purposes,

CTis the amount determined under subsection (1),

NTis the uncapped taxes, but does not include CVAT,

CVATis the supplementary taxes for municipal and school purposes that would be payable but for the application of this subsection.

Same

(8) Despite subsection (7), the taxes for municipal and school purposes for the property for the taxation year or portion of the year in respect of which the assessment under clause (a) or (b) of this subsection was made shall be recalculated under section 447.70 if,

(a)there was an additional assessment that relates to a new building or structure erected on the property that was, prior to the assessment, assessed for the taxation year as being in the subclass for vacant land under paragraph 2 of subsection 8 (1) of the Assessment Act\; or

(b)as a result of an additional assessment for the taxation year or for the previous year and the taxation year or any portion thereof, the assessment of the property is increased by an amount equal to or greater than 50 per cent of the assessment on the assessment roll before the additional assessment was made.

Additional assessment

(9) If an additional assessment is made for the previous year and for the taxation year, the percentage for the purposes of clause (8) (b) shall be determined as follows:

1.Determine the additional assessment for the previous year.

2.Determine the assessment on the assessment roll for taxation in the previous year before the additional assessment referred to in paragraph 1 was made.

3.Divide the amount in paragraph 1 by the amount in paragraph 2.

4.Multiply the quotient in paragraph 3 by 100.

5.Add the amounts in paragraphs 1 and 2.

6.Divide the amount in paragraph 2 by the amount in paragraph 5.

7.Multiply the quotient determined in paragraph 6 by the assessment on the assessment roll for taxation in the taxation year.

8.Determine the additional assessment for the taxation year.

9.Divide the amount in paragraph 8 by the amount in paragraph 7.

10.Multiply the quotient in paragraph 9 by 100.

11.Add the percentages in paragraphs 4 and 10.

Same

(10) If the percentage in paragraph 11 of subsection (9) is equal to or greater than 50, subsection (8) applies for the taxation year.

If s. 447.70 applied in previous year

(11) If section 447.70 applied to the property for the previous year or a part of the previous year, subsection (8) does not apply for the taxation year.

Limitation

(12) Despite subsection (1) but subject to section 447.69, if the amount determined under subsection (1) exceeds the uncapped taxes, the taxes for municipal and school purposes under this Part shall be equal to the uncapped taxes.

Annexations after 2001

(13) For the purposes of subsection (2),

(a)if a property is, on the last day of the previous year, in territory without municipal organization but, on the first day of the taxation year, becomes part of a municipality, the taxes for municipal purposes for the previous year shall be one-third of the taxes for municipal purposes that would have been levied on the property in the taxation year, but for the application of this Part; or

(b)if a property was, on the last day of the year prior to the previous year, in territory without municipal organization but, on the first day of the previous year, became part of a municipality, the taxes for municipal purposes for the previous year shall be two-thirds of the taxes for municipal purposes that would have been levied on the property for the previous year, but for the application of this Part.

Definitions

(14) In this section, "

additional assessment" means one or more assessments made under section 33 or 34 of the Assessment Act\; ("valuation additionnelle") "

previous year" means the year immediately preceding the taxation year; ("anne prcdente") "

taxation year" means the year in respect of which taxes are determined under subsection (1); ("anne d'imposition") "

uncapped taxes" means the taxes for municipal and school purposes that would have been imposed for the taxation year but for the application of this Part. ("impts non plafonns")

By-law to provide for recoveries

447.69 (1) The council of a municipality, other than a lower-tier municipality, may pass a by-law to establish a percentage by which tax decreases are limited for a taxation year in respect of properties in any property class subject to this Part in order to recover all or part of the revenues foregone as a result of the application of section 447.68 to other properties in the property class.

Application

(2) A by-law under subsection (1) shall apply to all properties in the property class whose taxes for municipal and school purposes for the previous year, as determined under subsection 447.68 (2), exceed their taxes for municipal and school purposes for the taxation year as adjusted in accordance with the regulations in respect of changes in taxes for municipal purposes and changes in taxes for school purposes.

Single percentage

(3) A by-law under subsection (1) shall establish the same percentage for all properties in a property class, but different percentages may be established for different property classes.

Limitation

(4) The percentage established by a by-law under subsection (1) shall be limited as follows:

1.Calculate the total revenues foregone as a result of the application of section 447.68 to properties in the property class.

2.Calculate the total difference between the taxes for municipal and school purposes for all properties in the property class referred to in subsection (2) for the previous year, as determined under subsection 447.68 (2), and the taxes for municipal and school purposes for properties in the same property class for the taxation year as adjusted in accordance with the regulations in respect of changes in taxes for municipal purposes and changes in taxes for school purposes.

3.Calculate the percentage of the amount determined under paragraph 2 that would yield sufficient revenues to recover all of the foregone revenues calculated under paragraph 1.

4.The percentage established under the by-law shall not exceed the percentage determined under paragraph 3 or 100 per cent, whichever is the lesser percentage.

Single property class

(5) For the purposes of this section, 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.

No lower-tier surplus or shortfall

(6) The council of an upper-tier municipality shall, in a by-law under subsection (1), provide that adjustments shall be made between the upper-tier municipality and lower-tier municipalities so that no lower-tier municipality has a surplus or shortfall as a result of the application of the by-law.

Upper-tier shortfall

(7) If the upper-tier municipality experiences a shortfall as a result of the application of subsection (6), the by-law made under subsection (1) shall provide that any shortfall shall be shared by the upper-tier municipality and lower-tier municipalities in the same proportion as those municipalities share in the taxes levied on the property class for municipal purposes.

Taxes for the taxation year

(8) The taxes for municipal and school purposes for the taxation year on a property to which a by-law made under this section applies shall be determined as follows:

1.Determine the taxes for municipal and school purposes for the property for the previous year under subsection 447.68 (2).

2.Determine the amount of the difference between the taxes for municipal and school purposes for the property for the previous year, as determined under subsection 447.68 (2) and the taxes for municipal and school purposes for the property for the taxation year, as adjusted in accordance with the regulations, in respect of changes in the taxes for municipal purposes and for school purposes.

3.Multiply the percentage established for the property class the property is in under subsection (1) by the amount determined under paragraph 2.

4.Deduct the amount determined under paragraph 3 from the amount determined under paragraph 2.

5.Deduct the amount determined under paragraph 4 from the amount determined under paragraph 1.

6.The amount determined under paragraph 5 shall be adjusted, in accordance with the regulations, in respect of changes in taxes for municipal purposes and for school purposes.

7.The taxes for municipal and school purposes for the taxation year shall be equal to the amount determined under paragraph 5 and adjusted under paragraph 6, if applicable.

Regulations

(9) The Minister of Finance may make regulations,

(a)providing for adjustments under subsection (2), (4) or (8) in respect of changes in taxes for municipal purposes or for school purposes; and

(b)governing the determination of the percentage under subsection (1) and the limitation on such percentage under subsection (4).

General or specific

(10) A regulation under subsection (9) may be general or specific and may treat different municipalities differently.

Taxes for school purposes

(11) No by-law made under this section shall affect the amount that a local municipality is required to pay to a school board.

Supplementary and omitted assessments

in the taxation year

(12) If an assessment is made under section 33 or 34 of the Assessment Act to a property subject to a by-law under this section that increases the assessment of that property for the taxation year, subsection (8) does not apply to the additional taxes for municipal and school purposes for the year attributable to the assessment.

Taxes on eligible properties

447.70 (1) The purpose of this section is to ensure that eligible properties are taxed at the same level as comparable properties.

Determination of taxes

(2) Each local municipality shall determine the taxes for municipal and school purposes for each eligible property for the year or portion of the year as follows:

1.Determine the level of taxation for each property identified by the assessment corporation under subsection (6) as a comparable property by dividing the taxes for municipal and school purposes levied for the year by the taxes for municipal and school purposes that would have been imposed but for the application of this Part.

2.Determine the average of the levels of taxation for all comparable properties determined under paragraph 1.

3.Determine the taxes for municipal and school purposes for the eligible property for the year by multiplying the average level of taxation determined under paragraph 2 by the taxes for municipal and school purposes that would have been imposed on the eligible property but for the application of this Part.

4.The taxes for municipal and school purposes for an eligible property for the year shall be the lesser of the amount determined for the year or portion of the year but for the application of this Part and the amount determined under paragraph 3.

Adjustments

(3) The local municipality shall make the necessary adjustments on the collector's roll for the year or portion of the year in accordance with the determination under subsection (2).

Limits to apply

(4) The taxes for municipal and school purposes on a property to which this section applies for a taxation year shall be calculated under section 447.68 for subsequent years.

Determination of taxes for the subsequent year

(5) For the purposes of paragraph 2 of subsection 447.68 (2), taxes are to be recalculated as if the amount determined under paragraph 4 of subsection (2) of this section had been determined on a full year basis.

Comparable properties identified

(6) The assessment corporation shall identify six comparable properties with respect to an eligible property for the purposes of this section or, if there are fewer than six comparable properties, as many comparable properties as there are.

Mixed use properties

(7) For the purposes of this section,

(a)if an eligible property or a comparable property is classified in more than one class of real property under section 7 of the Assessment Act, each portion shall be treated as a separate property; and

(b)up to six comparable properties, or if there are fewer than six comparable properties, as many as there are, shall be identified for each portion of an eligible property under clause (a).

List provided to municipality

(8) The assessment corporation shall provide a list of the comparable properties under subsection (6) or (7) with respect to an eligible property to the local municipality as soon as is practicable,

(a)after the return of the assessment roll for eligible properties that are on the assessment roll; or

(b)after the mailing of the notice of the assessment of the eligible property under section 33 or 34 of the Assessment Act.

List to be mailed to the owner

(9) The local municipality shall mail to the owner of each eligible property the list of the comparable properties and the determination made under subsection (2) with respect to that eligible property within 60 days after the date the list is received by the local municipality.

If no comparable property

(10) If the assessment corporation determines that there are no comparable properties with respect to an eligible property,

(a)the assessment corporation shall give notice to the local municipality of its determination; and

(b)the local municipality shall, within 60 days of receiving the notice under clause (a), give notice to the owner of the property of the assessment corporation's determination and of the amount determined for the year or portion of the year under this Part.

Complaint

(11) The owner of an eligible property may, within 90 days of the mailing of information under subsection (9), complain to the Assessment Review Board in writing concerning the properties on the list and request that up to six alternative properties be used as comparable properties for the purposes of this section.

Same

(12) If the assessment corporation has determined that there are no comparable properties with respect to an eligible property, the owner of the eligible property may, within 90 days after the owner is given a notice of determination under subsection (10), complain to the Assessment Review Board in writing concerning the determination and request that up to six properties be used as comparable properties for the purpose of this section.

Deemed complaint under s. 40 of Assessment Act

(13) Section 40 of the Assessment Act applies to a complaint under subsection (11) or (12) as if it were a complaint under subsection 40 (1) of that Act.

Appeal

(14) Section 43.1 of the Assessment Act applies to a decision of the Assessment Review Board.

Authority of the Assessment Review Board

(15) In a complaint under this section, the Assessment Review Board shall,

(a)identify up to six comparable properties from among the comparable properties proposed by the complainant or by the assessment corporation; or

(b)determine that there are no comparable properties.

Application to court

(16) The municipality or the owner of the property may apply to the Superior Court of Justice for a determination of any matter relating to the application of this section, except a matter that could be the subject of a complaint under this section.

Same

(17) Section 46 of the Assessment Act applies with necessary modifications to an application under subsection (16).

Determination by local municipality

(18) The local municipality shall determine the taxes for municipal and school purposes for the year or portion of the year in accordance with a decision of the Assessment Review Board or court under this section.

Omitted assessment in later taxation year

(19) If an assessment is made under subsection 33 (1) of the Assessment Act that relates to a taxation year prior to the year in which the assessment is made, this section applies if the first taxation year to which the assessment applies is 2001 or a subsequent year.

Application

(20) This section also applies for the 2001 taxation year to a property that is subject to this Part and that,

(a)ceased to be exempt from taxation during 1998, 1999 or 2000; or

(b)was reclassified pursuant to an assessment under section 34 of the Assessment Act during 1998, 1999 or 2000 or was classified differently on the assessment roll for taxation in 1999 or 2000 from its classification in 1998 or 1999, respectively.

Definitions

(21) In this section, "

comparable properties" means properties identified by the assessment corporation to be similar lands in the vicinity of the eligible property; ("biens comparables") "

eligible property" means a property,

(a)to which subsection 447.65 (8) or 447.68 (8) applies,

(b)that ceases to be exempt from taxation for 2001 or thereafter,

(c)that is added to the assessment roll for 2001 or a subsequent taxation year as a result of the subdivision or severance of land, or

(d)in respect of which its classification changes for 2001 or thereafter; ("bien admissible") "

vicinity" has the same meaning as under subsection 44 (2) of the Assessment Act, except that the vicinity shall not exceed the boundaries of the single-tier or upper-tier municipality, as the case may be, in which the eligible property is located. (" proximit")

Tenants of leased properties

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

(a)Part XXII.1 or XXII.2 applied and this Part applies to the leased premises; and

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

Exception

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

New leases of property

(3) This section applies with respect to a tenant described in subsection (1) even if the tenant enters into a new lease for the leased premises after December 31, 1997.

Limitation on requirement to pay taxes

(4) No tenant referred to in subsection (1) is required under any lease, despite any provision in the lease, to pay an amount on account of taxes levied for municipal and school purposes that is greater than the tenant's cap determined under subsection (5) or (6).

Tenant's cap, 2001

(5) For the 2001 taxation year, the tenant's cap referred to in subsection (4) shall be determined in accordance with the following:

1.Calculate the amount the tenant was required to pay on account of taxes for 2000.

2.Increase the amount calculated under paragraph 1 by 5 per cent or, if a by-law made under subsection 447.66 (1) applies to the property, by 2.5 per cent.

3.Adjust the amount determined under paragraph 2 in respect of any changes in taxes for municipal purposes applicable to the property as provided for in regulations referred to in paragraph 3 of subsection 447.65 (1).

4.The tenant's cap is the amount determined under paragraph 2 and adjusted under paragraph 3.

Same, after 2001

(6) For a taxation year after 2001, the tenant's cap referred to in subsection (4) shall be determined in accordance with the following:

1.Calculate the amount the tenant was required to pay on account of taxes for the immediately preceding year.

2.Increase the amount calculated under paragraph 1 by 5 per cent or, if a by-law made under subsection 447.66 (1) applies to the property, by 2.5 per cent.

3.Adjust the amount determined under paragraph 2 in respect of any changes in taxes for municipal purposes applicable to the property as provided for in regulations referred to in paragraph 3 of subsection 447.68 (1).

4.The tenant's cap is the amount determined under paragraph 2 and adjusted under paragraph 3.

Recouping of landlord's shortfall

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

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

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

3.The shortfall referred to in paragraph 2 shall be calculated by,

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

ii.adding together the amounts determined under subparagraph i.

Same

(8) The following apply with respect to the amount a tenant is required to pay under subsection (7):

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

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

3.If the lease does not provide for the payment of amounts in respect of taxes, the amount the tenant is required to pay under subsection (7) is due on the last day of the year.

Amounts under gross lease flow-through

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

1.For the purposes of subsections (4), (5), (6) and (7), an amount the tenant is required to pay under section 444.1 shall be deemed to be an amount the tenant is required to pay under the lease on account of taxes levied for municipal and school purposes.

2.For the purposes of subsections (4), (5), (6) and (7), an amount the tenant is required to pay under section 444.2 shall be deemed not to be an amount the tenant is required to pay under the lease on account of taxes levied for municipal and school purposes.

Partial year

(10) If this section applies with respect to taxes attributable to part of a year, the tenant's cap determined under subsection (5) or (6) for the year shall be reduced proportionally.

When section ceases to apply

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

Clarification of application

(12) Subsection (11) applies with respect to all the taxes for the leased premises and not just the taxes attributable to the part of the leased premises the tenant ceases to lease.

Exception

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

Recouping of landlord's shortfall

447.72 (1) A landlord may require a tenant to pay an amount on account of taxes levied for municipal and school purposes that is more than the tenant would otherwise be required to pay under the tenant's lease to the extent necessary for the landlord to recoup any shortfall, within the meaning of paragraph 3 of subsection 447.71 (7), in respect of other leased premises that form part of the property.

Same

(2) Subsection 447.71 (8) applies, with necessary modifications, with respect to an amount a tenant is required to pay under subsection (1).

Application

(3) This section applies with respect to a tenant only if,

(a)section 447.71 does not apply with respect to the tenant; and

(b)the tenant's lease was entered into before June 11, 1998 if Part XXII.1 applied to the property or before December 18, 1998 if Part XXII.2 applied to the property and the tenant's tenancy has been continuous since that date.

Application for cancellation, etc.

447.73 (1) An application to the council for the cancellation, reduction or refund of taxes levied in the year in respect of which the application is made may be made by a person who was overcharged by reason of a gross or manifest error that is a clerical error, the transposition of figures, a typographical error or similar type of error in the calculation of taxes under this Part.

Section 442 applies

(2) Section 442 applies to an application made under subsection (1).

Part prevails

447.74 Despite subsection 25.2 (11), this Part prevails over an order of the Minister under section 25.2 or a commission under section 25.3.

Conflicts

447.75 This Part prevails over an order made under section 14 of the Municipal Boundary Negotiations Act.

Where person undercharged

447.76 Section 444 applies to taxes to which this Part applies.

Regulations

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

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

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

(c)varying the application of this Part if, in the opinion of the Minister of Finance, it is necessary or desirable to do so in order to further the purposes of this Part, including varying the application of this Part in connection with a municipal restructuring or a general reassessment.

Definitions

(2) In this section, "

general reassessment" has the same meaning as in section 361.1; ("rvaluation gnrale") "

municipal restructuring" means,

(a)the incorporation of a new municipality,

(b)the amalgamation of municipalities,

(c)the alteration of the boundaries of a municipality,

(d)the dissolution of a municipality, or

(e)the establishment of an area services board under Part II of the Northern Services Boards Act. ("restructuration municipale")

Application

447.78 This Part applies to the 2001 and subsequent taxation years.

PART III

OTHER AMENDMENTS,

COMMENCEMENT AND SHORT TITLE

45. (1) Clause (b) of the definition of "education funding" in subsection 234 (14) of the Education Act, as re-enacted by the Statutes of Ontario, 1998, chapter 33, section 39, is repealed and the following substituted:

(b)from taxes under Division B of this Act or Part XXII.3 of the Municipal Act, other than taxes for the purposes of paying a board's share of the costs of rebates, if any, under section 442.1, 442.2, 442.4, 442.5 or 442.6 of the Municipal Act or paying rebates under section 257.2.1 or 257.12.3 of this Act;

(2) Clause (b.1) of the definition of "education funding" in subsection 234 (14) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 39, is amended by striking out "442.1 or 442.2" and substituting "442.1, 442.2 or 442.4".

(3) Section 257.2.1 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34 and amended by 1998, chapter 33, section 40, is further amended by adding the following subsection:

Limiting changes in taxes

(1.1) The Minister of Finance may make regulations to limit the changes in taxes for school purposes from the taxes for school purposes in 2000 or in any subsequent year or to give relief from taxes for school purposes in territory without municipal organization.

(4) Paragraph 1 of subsection 257.2.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34 and amended by 1998, chapter 33, section 40, and paragraphs 2 and 3 of subsection 257.2.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 34, are repealed and the following substituted:

1.Without limiting what a regulation may provide for, the regulations may provide for any matter provided under sections 372.2, 373, 442.1, 442.2 and 444.1 and under Part XXII.3 of the Municipal Act.

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

3.A regulation made in 2001 or a later year may relate to the entire year in which it is made.

(5) Section 257.6 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113, is amended by adding the following subsections:

Exemption, eligible convention centres

(6) An eligible convention centre is exempt from taxes for school purposes.

Regulations

(7) The Minister of Finance may make regulations prescribing eligible convention centres for the purposes of subsection (6).

(6) Subsection 257.11 (17) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 33, section 41, 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, if any, under section 442.1, 442.2, 442.4, 442.5 or 442.6 of the Municipal Act or paying rebates under section 257.2.1 or 257.12.3 of this Act, shall be deemed to be education funding within the meaning of subsection 234 (14).

(7) Subsection 257.12 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113 and amended by 1998, chapter 33, section 42 and 1999, chapter 9, section 99, is further amended by adding the following clause:

(e) prescribing the form of the tax notices or information that must or may be included on tax notices sent to owners of property by a board that is required to levy rates for school purposes under this Division.

(8) Subsection 257.12 (1.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 42 and amended by 1999, chapter 9, section 99, is repealed and the following substituted:

Definition

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

tax rates for school purposes" includes tax rates for the purposes of,

(a)paying a board's share of the costs of rebates, if any, under section 442.1, 442.2, 442.4, 442.5 or 442.6 of the Municipal Act,

(b)paying rebates under section 257.2.1 or 257.12.3 of this Act.

(9) Subsections 257.12.2 (3), (4) and (5) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 44, are repealed and the following substituted:

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 the provincial average tax rate as prescribed.

Before 2005, below provincial average tax rate

(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 the provincial average tax rate as prescribed or less, the weighted average tax rate for school purposes for the commercial classes for the municipality for the current year must not exceed the provincial average tax rate as prescribed.

Before 2005, above provincial

average tax rate

(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 the provincial average tax rate as prescribed, 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 the provincial average tax rate as prescribed.

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.

(10) Paragraphs 1 and 2 of subsection 257.12.2 (7) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 44, are repealed.

(11) Section 257.12.2 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 33, section 44 and amended by 1999, chapter 9, section 100, is further amended by adding the following subsection:

Regulations

(8.1) The Minister of Finance may make regulations prescribing the provincial average tax rate for the purposes of this section and the regulations may be general or specific and may be different for different classes of real property.

(12) Subsection 257.12.2 (9.1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 100, is amended by striking out "3.3 per cent" and substituting "the provincial average tax rate as prescribed".

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

Vacant unit rebate

257.12.3 Subsections 442.5 (1), (2), (3) and (5) to (26) of the Municipal Act apply with necessary modifications in respect of any area in which a board is required to levy rates for school purposes under this Division, and for that purpose, references to municipalities in those subsections shall be deemed to be references to the board that is required to levy rates for school purposes under this Division.

46. (1) Section 92 of the Electricity Act, 1998, as amended by the Statutes of Ontario, 1999, chapter 9, section 102, is further amended by adding the following subsections:

Subsequent owners

(1.1) If a generating station building or structure is owned by one of the persons referred to in subsection (1) on January 1, 2000 and is subsequently disposed of by that person, this section continues to apply to any subsequent owner.

. . . . .

Non-application

(9) This section does not apply to a hydro-electric generating station, as defined in subsection 92.1 (24), after December 31, 2000.

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

Tax and charges on hydro-electric stations

92.1 (1) The owner of a hydro-electric generating station shall pay in each year to Her Majesty in right of Ontario a tax computed at the rates specified in subsection (4) on the gross revenue from the generation of electricity.

Same

(2) Despite subsection (1), if the owner of a hydro-electric generating station was, on or before December 31, 2000, required to make payments under subsection 92 (1), whether or not there is a change in ownership after that date, the owner or any subsequent owner shall pay to the Financial Corporation a charge computed at the rates specified in subsection (4) on the gross revenue from the generation of electricity.

Payment to Ontario

(3) After Part V is repealed under section 87, all payments under subsection (2) are payable to Her Majesty in right of Ontario instead of to the Financial Corporation.

Rates

(4) For the purpose of subsections (1) and (2), the rates shall be calculated as follows:

1.2.5 per cent on gross revenue from the first 50 gigawatt hours of annual generation from the generating station.

2.4.5 per cent on gross revenue from annual generation from the generating station above 50 gigawatt hours up to and including 400 gigawatt hours.

3.6.0 per cent on gross revenue from annual generation from the generating station above 400 gigawatt hours up to and including 700 gigawatt hours.

4.26.5 per cent on gross revenue from annual generation from the generating station above 700 gigawatt hours.

Additional charge

(5) In addition to the taxes or charges under subsection (1) or (2), the holder of a water power lease shall pay a water rental charge to Her Majesty in right of Ontario calculated at 9.5 per cent on gross revenue from annual generation from the hydro-electric generating station, and the holder's lease is hereby amended to substitute this charge for any water rental charge set out in the lease.

Exception

(6) Gross revenue resulting from the generation of electricity from eligible capacity, as determined by regulation, for the first 120 months after the eligible capacity is put in service, as determined by regulation, may be deducted from gross revenue for the purposes of subsections (4) and (5).

Transition

(7) If the holder of a water power lease was not required to pay a hydro-electric charge as required under the Public Lands Act because the hydro-electric generating station has been in service for less than 10 calendar years, subsection (5) does not apply for the remainder of the 10-year period, if any.

Payment of taxes and charges

(8) The taxes and charges payable under this section shall be paid at the times and in the manner prescribed by regulation.

Application

(9) For the purposes of this section,

(a) the provisions of the Corporations Tax Act relating to assessments, refunds of overpayments, objections to assessments, appeals and administration and enforcement apply to taxes and charges under this section; and

(b)any amount payable under this section that remains unpaid after it becomes due may be collected as if it were a tax under the Corporations Tax Act.

Demand for information

(10) The Minister of Finance may, for any purpose related to the administration or enforcement of this section, by registered letter or by a demand served personally or delivered by courier service, require any person to provide any information or records to the Minister within such reasonable time as is stipulated in the letter or demand.

Offence

(11) Any person who fails to provide the information or records as required under subsection (10) is guilty of an offence and is on conviction liable to a fine of not more than $100 for each day during which the default continues.

Confidentiality

(12) Except as authorized by this section, no person employed by the Government of Ontario shall,

(a)knowingly communicate or knowingly allow to be communicated to any person any information obtained by or on behalf of the Minister of Finance for the purposes of this section; or

(b)knowingly allow any person to inspect or to have access to any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.

Testimony

(13) No person employed by the Government of Ontario shall be required, in connection with any legal proceedings,

(a)to give evidence relating to any information obtained by or on behalf of the Minister of Finance for the purposes of this section; or

(b)to produce any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.

Exception

(14) Subsections (12) and (13) do not apply in respect of,

(a)criminal proceedings under an Act of the Parliament of Canada;

(b)proceedings in respect of the trial of any person for an offence under an Act of the Legislature; or

(c)proceedings relating to the collection of taxes or charges under this section.

Communication

(15) A person employed by the Government of Ontario may, in the course of duties in connection with the administration or enforcement of this section,

(a)communicate or allow to be communicated to another person employed by the Government of Ontario in the administration or enforcement of any law, information obtained by or on behalf of the Minister of Finance for the purposes of this section; and

(b)allow another person employed by the Government of Ontario in the administration or enforcement of any law, to inspect or have access to any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.

Reciprocal communication

(16) A person who receives information or obtains access to any record or thing under subsection (15) has a duty to communicate or furnish to the Minister of Finance on a reciprocal basis any information, record or thing obtained by the person that affects the administration or enforcement of this section.

Use of information

(17) Any information, record or thing communicated or furnished under this section may be used only for the administration or enforcement of this section or an Act that is administered or enforced by the person receiving the information, record or thing.

Offence

(18) Every person who contravenes subsection (12), (13), (14), (15), (16) or (17) is guilty of an offence and on conviction is liable to a fine of not more than $2,000.

Gross lease recovery

(19) If the owner of the hydro-electric generating station is not the person who generates electricity from that facility and is unable to recover the liability imposed under this section under the terms of its contract or sublease with the person who generates electricity, the amount of such liability may be recovered from the person generating the electricity.

Section 444.1 to apply

(20) The amount specified under subsection (19) may be recovered in the same manner as amounts are recovered under subsection 444.1 (2) of the Municipal Act and subsections 444.1 (5), (6) and (8) of that Act apply in respect of the amount.

Regulations

(21) The Minister of Finance may make regulations,

(a)determining eligibility for a deduction under subsection (6);

(b)defining gross revenue for the purposes of this section;

(c)prescribing the times and the manner in which taxes and charges under this section shall be paid;

(d)providing for lower rates to be applied to specified hydro-electric generating stations for the purposes of subsections (4) and (5);

(e)determining the annual generation for the purposes of subsections (4) and (5) pursuant to energy transfers between a hydro-electric generating station in Ontario and a hydro-electric generating station in another jurisdiction or between hydro-electric generating stations in Ontario;

(f)exempting any hydro-electric generating station from the tax or charge or a portion of the tax or charge under subsection (1), (2) or (5);

(g)defining any word or expression used in this section that is not already defined;

(h)providing for compensation to be paid to municipalities in which a hydro-electric generating station is located in respect of revenues foregone as a result of the enactment of paragraph 28 of subsection 3 (1) of the Assessment Act.

General or specific

(22) A regulation under subsection (21) may be general or specific and may apply to different hydro-electric generating stations and different owners differently.

Retroactive

(23) A regulation made under this section is, if it so provides, effective with reference to a period before it is filed.

Definitions

(24) In this section, "

holder of a water power lease" means a person who has entered into an agreement, lease or other writing respecting the use of water under subsection 42 (2) of the Public Lands Act or under the Niagara Parks Act or the The St. Lawrence Development Act, 1952 (No. 2) or who is required to enter into such agreement, lease or other writing in order to be entitled to occupy public lands; ("titulaire d'un bail pour l'exploitation de ressources hydro-lectriques") "

hydro-electric generating station" includes any building or structure in which electricity is generated through the use of water power or from the movement of water; ("centrale hydro-lectrique") "

owner" includes a tenant of land owned by the Crown or a municipality on which a hydro-electric generating station is located or a tenant of land owned by any other person if the tenant is the generator of electricity from the hydro-electric generating station. ("propritaire")

47. Subsection 21 (1) of the Municipal Elections Act, 1996 is amended by striking out "assessment commissioner" and substituting "Ontario Property Assessment Corporation".

48. Paragraphs 3 and 4 of subsection 4 (3) of the Municipal Tax Assistance Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 63, are repealed and the following substituted:

3.Unless the parties have agreed otherwise, the tenant shall owe a debt to the Crown or Crown agency, as the case may be, equal to the amount paid under paragraph 2.

49. Subsection 3 (1) of the Provincial Land Tax Act, as amended by the Statutes of Ontario, 1994, chapter 25, section 84 and 1997, chapter 43, Schedule F, section 11, is further amended by adding the following paragraph:

Hydro-electric generating stations

21.A hydro-electric generating station, as defined in subsection 92.1 (24) of the Electricity Act, 1998, and land, buildings and structures used in connection with the generating station, as may be prescribed by the Minister, but not any portion of the land, buildings or structures used for any other purpose. This paragraph applies to the 2001 and subsequent taxation years.

Repeal

50. The Township of Atikokan Act, 1993, being chapter Pr22, is repealed on January 1, 2001.

Commencement

51. (1) Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.

Same

(2) Sections 3, 7, 9, 16 to 23, 27 to 29, 31 to 34, 44 and 45 and subsection 46 (2) come into force on January 1, 2001 and apply to the 2001 and subsequent taxation years.

Short title

52. The short title of this Act is the Continued Protection for Property Taxpayers Act, 2000.

EXPLANATORY NOTE

The Bill amends the Assessment Act, the Municipal Act, the Education Act, the Electricity Act, 1998, the Municipal Tax Assistance Act and the Provincial Land Tax Act in relation to property taxes.

The following are the significant changes made by the Bill:

Municipal powers relating to taxation

Under the Municipal Act, municipalities have a number of powers relating to property taxes. The Bill makes a number of changes to the Municipal Act with respect to such powers including,

(a)the interim borrowing authority of a municipality (amendments to section 187);

(b)setting tax ratios and tax rates for property classes (amendments to sections 363, 366 and 368);

(c)the authority to set interim levies on property (amendments to sections 370 and 371);

(d)phasing in tax increases and decreases in 2001 and any subsequent year in which there is a general reassessment required under the Assessment Act (new section 372.2);

(e)the deferral of tax increases for low income seniors and disabled persons (amendment to section 373);

(f)the authority to bill different property classes at different times (amendments to subsections 392 (4) and (5));

(g)rebates for charities (amendments to section 442.1);

(h)tax reductions for commercial and industrial properties to meet the limits under Part XXII.3 (amendments to section 442.2);

(i)a new requirement to provide rebates to owners of commercial and industrial property in respect of vacant portions of their properties (new section 442.5);

(j)the authority to cancel, reduce or refund taxes, including school taxes, on residential, farm lands and managed forests property, that the council of a municipality considers to be unduly burdensome (new section 442.6);

(k)the authority to make changes to the frozen assessment listing for 1998, 1999 and 2000 (new sections 447.7 and 447.10);

(l)the authority to correct errors in the frozen assessment listing discovered in 2000 or 2001 and provide for adjustments to tax liabilities (new section 447.26.1).

New Part XXII.3 of the Municipal Act

A new Part XXII.3 is added to the Municipal Act to deal with increases in taxes on commercial, industrial and multi-residential property for 2001 and subsequent years. For 2001, tax increases on these properties cannot exceed 5 per cent of the 2000 taxes paid by the owner, as calculated under subsection 447.65 (2) of the Act (or 2.5 per cent in the case of an upper-tier municipality exercising the option under section 447.66), with an adjustment for changes in municipal taxes between 2000 and 2001, as determined by regulation (sections 447.64 and 447.65). The municipality may limit tax decreases in 2001 in order to recover foregone revenues (section 447.67).

For taxation years after 2001, tax increases on these properties are also limited to 5 per cent of the previous year's taxes paid by the owner, as calculated under subsection 447.68 (2) of the Act, or 2.5 per cent (if that option is chosen by the municipality under section 447.66), with an adjustment for changes in municipal taxes between the previous year and the taxation year, as determined by regulation (section 447.68). The municipality may limit tax decreases in the taxation year in order to recover foregone revenues (section 447.69).

For eligible properties, such as newly-built properties and properties that change classification after January 1, 1998 or that begin to be taxed in the commercial, industrial or multi-residential classes for municipal and school purposes, their taxes will be calculated so that the level of taxation is no higher than the level of taxation of comparable properties in the year, after 2000, that the provision begins to apply to the eligible property. Up to six comparable properties are to be identified by the Ontario Property Assessment Corporation and provided to the municipality. The municipality will provide the owner of the property with the list of comparable properties and the calculation of the proposed taxes. The owner may appeal the list of comparable properties to the Assessment Review Board (section 447.70).

Tenants whose taxes were capped under Part XXII.1 or XXII.2 of the Municipal Act will pay in 2001 no more than 5 per cent above what they paid in 2000 on account of taxes, with an adjustment for changes in municipal taxes, if applicable to the property in which they are tenants. There is a similar limitation on what the tenants have to pay for years after 2001. The owner of the property will be permitted to recover any shortfall from those tenants from whom shortfalls could be recovered under Part XXII.1 or XXII.2 of the Act (section 447.71).

Changes to the Electricity Act, 1998

The Act is amended to require owners of hydro-electric generating stations to pay a tax to the Province at graduated rates on the gross revenue from the annual generation of electricity from the generating station. Successors of Ontario Hydro or municipal electricity utilities are required to make their payments to the Ontario Electricity Financial Corporation. Regulations provide authority for the Minister of Finance to compensate municipalities for lost property tax revenue (section 92.1).

Holders of provincial water power leases will be required to pay a water rental charge to the Province calculated at the rate of 9.5 per cent of the gross revenue from the generation of electricity from the generating station (section 92.1).

For new, rebuilt or expanded generating stations, the gross revenue resulting from the additional capacity would qualify for a ten-year holiday from all taxes and charges under section 92.1.

An exemption from property taxation for hydro-electric generating stations and related lands is added to the Assessment Act and to the Provincial Land Tax Act. The Township of Atikokan Act, 1993 is repealed since the facility described in that Act becomes exempt from property taxes.

Other changes

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

1.The last date for a municipality to choose optional property classes for the 2001 taxation year is set at April 30, 2001 (clause 2 (3.2) (d) of the Assessment Act).

2.The exemption from taxation for places of worship is expanded to include 50 per cent of the value of the principal residence of the member of the clergy if the residence is at the same location as the place of worship (paragraph 3 of subsection 3 (1) of the Assessment Act).

3.The exemption from taxation for seminaries of learning is clarified. It applies to buildings and up to 50 acres of land (paragraph 5 of subsection 3 (1) of the Assessment Act).

4.The exemption from taxation for improvements to residences to accommodate seniors or disabled persons is expanded to include the portion of a new residence as may be prescribed by the Minister of Finance (paragraph 22 of subsection 3 (1) of the Assessment Act).

5.The amount and the timing of the payments in lieu of taxes by an exempt airport authority to the municipality will be determined by a regulation made by the Minister of Finance (paragraph 24 of subsection 3 (1) of the Assessment Act).

6.An exemption from taxation for poles, lines and towers owned by power utilities on easements is added (paragraph 29 of subsection 3 (1) of the Assessment Act).

7.The subclass for vacant units and excess land in commercial and industrial property is replaced with a subclass for excess land (subsection 8 (4) of the Assessment Act). Rebates for vacant units will be provided under the new section 442.5 of the Municipal Act.

8.The Minister of Finance is given authority to define "farm lands" and "farm purposes". Land and buildings that are prescribed by the Minister are required to be valued at farm land rates (subsections 19 (5) and 19 (5.0.1) of the Assessment Act).

9.Convention centres prescribed by the Minister of Finance will be required to make payments in lieu of taxes, in the prescribed amount (section 27.2 of the Assessment Act).

10.The Ontario Property Assessment Corporation is required to issue amended notices of assessment to reflect changes in a property's classification resulting from a change to the regulation under the Assessment Act defining property classes for the current year and, if the regulation is retroactive in its application, for up to three preceding tax years (section 32 of the Assessment Act).

11.The authority is given to the Ontario Property Assessment Corporation to change the classification of a property during the year to a lower-taxed class (subsection 34 (2.1) of the Assessment Act).

12.The time for making a request for reconsideration, for a person who has received a supplementary or omitted assessment, is specified (subsection 39.1 (1.1) of the Assessment Act). The involvement of the Assessment Review Board in implementing a settlement after a request for the reconsideration of an assessment or classification is eliminated, other than on an appeal by a municipality, and the settlement will be implemented by the municipality (subsections 39.1 (5), (6), (8) and (8.1) of the Assessment Act).

13.The requirement for a landlord to provide a notice of intention to charge a tenant under a gross lease with an amount in respect of property taxes or business improvement area charges is eliminated. The landlord must give a notice at least 30 days prior to the time the tenant must pay the amount or pay instalments. The tenant must be advised of any adjustments when the property taxes for the year are determined (sections 444.1 and 444.2 of the Municipal Act).

14.The authority is given to municipalities to correct errors in the notice sent to the owners of newly-built properties concerning the calculation of the frozen assessment listing for 2000 (subsection 447.34.1 (8.1) of the Municipal Act).

15.The authority of the Minister of Finance to make regulations to give relief to taxpayers in territory without municipal organization in respect of changes to taxes for school purposes is updated to refer to provisions applying to municipalities (section 257.2.1 of the Education Act).

16.Eligible convention centres, as prescribed by the Minister of Finance, will be exempt from paying school taxes (section 257.6 of the Education Act).

17.As a consequence of the reassessment of property for 2001, the provincial average tax rate for school purposes may change and so the references to 3.3 per cent will be removed and replaced with the provincial average tax rate to be prescribed by the Minister of Finance (section 257.12.2 of the Education Act).

18.In territory without municipal organization, each school board responsible for the collection of school taxes must establish a program for refunding a portion of school taxes on vacant commercial and industrial properties that is similar to the program that a municipality must establish under section 442.5 of the Municipal Act (section 257.12.3 of the Education Act).

19.The property tax treatment of provincially-owned property that is leased to persons other than the Crown or a Crown agency is clarified (section 4 of the Municipal Tax Assistance Act).