[37] Bill 43 Royal Assent (PDF)
Bill 43 2003
An Act to provide
Ontario home property
tax relief for seniors
CONTENTS
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Definitions |
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Senior's tax credit |
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Amount of the tax credit |
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Application for the tax credit |
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Payment of the tax credit |
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Collection, use and disclosure of information |
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Examination by investigators |
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Administration of oaths |
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Offences |
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Regulations |
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Amendments to the Income Tax Act |
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Amendments to the Municipal Act, 2001 |
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Commencement |
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Short title |
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
Definitions
1. In this Act,
"eligible principal residence" has the same meaning as "principal residence" in subsection 8 (1) of the Income Tax Act, unless a different meaning is prescribed by regulation under this Act; ("résidence principale admissible")
"eligible senior" means an individual who is an eligible senior under subsection 2 (3) or (4); ("personne âgée admissible")
"home property taxes" means,
(a) taxes levied under section 257.7 of the Education Act in respect of real property that is in the residential or multi-residential property class prescribed under the Assessment Act, and
(b) such other taxes or special rates in respect of real property as may be prescribed by regulation; ("impôts fonciers résidentiels")
"housing unit" has the same meaning as in subsection 8 (1) of the Income Tax Act, unless a different meaning is prescribed by regulation under this Act; ("logement")
"Minister" means the Minister of Finance. ("ministre")
Senior's tax credit
2. (1) An eligible senior is entitled to be paid the amount of the tax credit calculated under this Act for a year in respect of his or her eligible principal residence if an application for the tax credit is made in accordance with this Act.
Same
(2) Tax credits are payable under this Act for 2004 and subsequent years and for the period commencing on July 1, 2003 and ending on December 31, 2003, which shall be deemed to be a year for the purposes of this Act.
Eligible senior
(3) An individual is an eligible senior with respect to a year for the purposes of this Act if the following criteria and such other criteria as may be prescribed by regulation are satisfied:
1. The individual is at least 65 years of age on or before December 31 of the year.
2. The individual has one or more eligible principal residences in the year.
3. The individual is liable to pay in respect of the year,
i. home property taxes on a housing unit that is his or her eligible principal residence,
ii. rent paid for the right to occupy a housing unit that is his or her eligible principal residence, or
iii. such other amount with respect to his or her eligible principal residence as may be prescribed by regulation.
Same
(4) Such other individuals as may be prescribed by regulation are eligible seniors with respect to a year for the purposes of this Act.
Amount of the tax credit
3. (1) The amount of the tax credit to which an eligible senior is entitled for a year is to be calculated in accordance with the regulations.
Basis for tax credit
(2) The amount of an eligible senior's tax credit for a year is based on,
(a) the amount, if any, of the home property taxes for the year payable by the eligible senior on his or her eligible principal residence, if the eligible senior owns the eligible principal residence;
(b) a prescribed percentage of the amount, if any, of the rent for the year payable by the eligible senior for his or her eligible principal residence; or
(c) such other factors as may be prescribed by regulation.
Minimum amount
(3) If an eligible senior's tax credit for a year, as otherwise calculated under this section, is greater than nil but less than $10, the amount payable as his or her tax credit for the year is $10.
Application for the tax credit
4. (1) An individual may apply to the Minister for a tax credit under this Act for a year and shall do so in the form and manner approved by the Minister.
Same
(2) Another person may apply for a tax credit under this Act for a year on behalf of an individual who has died during the year.
Same
(3) The application must be filed within two years after the end of the year to which the tax credit relates or within such longer period as may be prescribed by regulation.
Notice
(4) The Minister shall give the applicant written notice containing such information as may be prescribed by regulation relating to the application.
Objection or appeal
(5) The applicant may object to, or appeal, a decision of the Minister to refuse an application in whole or in part and shall do so in accordance with the regulations.
Payment of the tax credit
5. (1) The Minister shall pay from the Consolidated Revenue Fund the amount of the tax credit to which an eligible senior is entitled for a year under this Act.
Restriction
(2) The Minister is not required to pay the amount of an eligible senior's tax credit for a year until the Minister has received proof, satisfactory to the Minister, that the home property tax, rent or other amount in respect of which the tax credit was calculated has been paid.
Estimated payments
(3) The Minister may make one or more payments based on an estimate of an eligible senior's tax credit for a year from the Consolidated Revenue Fund if, in the Minister's opinion, such conditions as may be prescribed by regulation are satisfied.
Same
(4) If the Minister makes a payment under subsection (3), the eligible senior ceases to be entitled to the tax credit for the year if the person to whom the payment is made fails to give the Minister such additional information relating to the application for the tax credit as the Minister may require by the deadline specified by the Minister.
Minister's right of set-off
(5) Despite subsection (1), if an eligible senior who is entitled to a tax credit under this Act is liable or is about to become liable to make a payment to the Crown in right of Ontario, the Minister may apply all or part of the tax credit, including any interest, to reduce the liability, instead of paying it to the eligible senior.
Same
(6) Subsection (5) applies with necessary modifications if the estate of an eligible senior is liable or is about to become liable to make a payment to the Crown in right of Ontario.
Repayment
(7) A person who receives a payment under this Act to which the person is not entitled, or who receives an amount greater than the amount to which the person is entitled, shall repay the amount or the excess amount, as the case may be, including interest, to the Minister.
Collection
(8) An amount payable to the Minister under subsection (7) constitutes a debt to the Crown and may be recovered by way of deduction or set-off or it may be recovered in any court of competent jurisdiction in proceedings commenced at any time.
Interest
(9) The regulations may provide for the payment of interest on amounts payable under subsection (1) or (7) and, if interest is payable, it is calculated in accordance with the regulations.
Collection, use and disclosure of information
6. (1) For the purposes of administering and enforcing this Act, the Minister may require any person, including an eligible senior, to give the Minister such information and documents as the Minister considers necessary.
Same
(2) Without limiting the generality of subsection (1), the Minister may require a person to give the Minister an eligible senior's Social Insurance Number.
Duty to comply
(3) If the Minister requires a person to give him or her information or documents, the person shall do so.
Same, from municipalities
(4) For the purposes of administering and enforcing this Act, the Minister may require a municipality to give the Minister such information as the Minister considers necessary and the municipality shall do so.
Same, from the Municipal Property Assessment Corporation
(5) For the purposes of administering and enforcing this Act, the Minister may require the Municipal Property Assessment Corporation to give the Minister the following information and the Corporation shall do so:
1. The municipal address of such real property as the Minister may specify.
2. The assessed value of the specified property.
3. The classification of the specified property under the Assessment Act.
4. Information about whether the specified property is exempt from taxation under the Assessment Act or any other Act.
5. The name of the owner of the specified property and, if the owner is an individual, his or her date of birth, if known to the Corporation.
6. The name of each occupant of the specified property and his or her date of birth, if known to the Corporation.
Exchange of information
(6) For the purposes of administering and enforcing this Act, the Minister may enter into arrangements with the Government of Canada or with such other persons or entities as may be prescribed by regulation to obtain, exchange and keep confidential any information furnished under this or any other Act.
Same
(7) A person employed by the Government of Ontario may, in the course of duties in connection with the administration and enforcement of this Act,
(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 for the purposes of this Act; 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 for the purposes of this Act.
Examination by investigators
7. (1) The Minister may appoint one or more persons as investigators to conduct examinations for any purpose related to the administration or enforcement of this Act.
Powers of investigators
(2) An investigator may do any of the following things:
1. At all reasonable times enter into any premises where any business is carried on or where any books or records of a business are or should be kept.
2. Audit or examine any books or records that the investigator considers may be relevant to the administration or enforcement of this Act.
3. Require any person on the premises where the books or records are located to assist the investigator with the audit or examination and to answer questions relating to the audit or examination either orally or, if the investigator so requires, in writing on oath or by statutory declaration.
Prohibition
(3) No person shall hinder or interfere with an investigator in the exercise of his or her powers or the performance of his or her duties under this Act.
Duty to assist
(4) A person shall assist an investigator with an audit or examination under this Act if required to do so by the investigator.
Copies
(5) Where a book or record has been audited or examined under this section, the person by whom it is audited or examined, or any office of the Ministry of Finance, may make or cause to be made one or more copies of it.
Status of certified copies
(6) A document that purports to be certified by an investigator or by any office of the Ministry of Finance to be a copy of all or part of any book or record audited or examined under this section is admissible in evidence and has the same probative value as the original book or record would have had if it had been proved in the ordinary way.
Status of printout
(7) The Minister, or a person authorized by the Minister, may reproduce from original data stored electronically any document previously issued by the Minister under this Act or any information previously submitted under this Act in any form by a person, and the electronically reproduced document is admissible in evidence and has the same probative value as the original document would have had if it had been proved in the ordinary way.
Administration of oaths
8. (1) Affidavits or declarations in connection with applications under this Act or information submitted under section 6 or 7 may be taken before any officer or employee of the Ministry who is authorized by the Minister to administer oaths and take or receive affidavits and declarations for the purpose of or incidental to the administration or enforcement of this Act.
Same
(2) Every person authorized by the Minister as described in subsection (1) has, in respect of the oaths, affidavits and declarations described in that subsection, all the powers of a commissioner for taking affidavits.
Offences
9. (1) A person who, by deceit, falsehood or any fraudulent means, obtains or attempts to obtain a tax credit or other payment under this Act to which the person is not entitled is guilty of an offence and, on conviction, is liable,
(a) to a fine of not less than $300 and not more than twice the amount of the tax credit or other payment sought by the individual;
(b) to a term of imprisonment of not more than two years; or
(c) to both.
Same
(2) A person who contravenes subsection 6 (3) or 7 (3) or (4) is guilty of an offence and, on conviction, is liable to a fine of $50 for each day on which the contravention continues.
Regulations
10. (1) The Minister may make regulations,
(a) prescribing anything that must or may be prescribed by regulation or that must or may be done in accordance with the regulations;
(b) prescribing rules for calculating the amount of the tax credit payable to eligible seniors;
(c) prescribing rules pursuant to which an individual may object to, or appeal, a decision of the Minister under this Act and restricting the matters about which an individual may object or appeal;
(d) prescribing rules governing the calculation and payment of interest under this Act.
Classes
(2) A regulation may create different classes, including different classes of persons, housing units or payments, and may establish different entitlements or requirements with respect to each class.
General or specific
(3) A regulation may be general or specific.
Retroactivity
(4) A regulation is, if it so provides, effective with reference to a period before it is filed.
Amendments to the Income Tax Act
11. (1) Clause 8 (3.1) (a) of the Income Tax Act, as enacted by the Statutes of Ontario, 1992, chapter 25, section 3, is repealed and the following substituted:
(a) a property tax credit equal to the sum of,
(i) the lesser of $500 and the amount calculated using the formula,
A - B
in which,
"A" is the senior's occupancy cost for the taxation year, and
"B" is the lesser of the amount, if any, received by the senior under the Ontario Home Property Tax Relief for Seniors Act, 2003 for the taxation year and the amount determined in accordance with the regulations, and
(ii) the amount calculated using the formula,
(A - B) × 10%
in which "A" and "B" have the meaning assigned in subclause (i);
(2) Section 8 of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1992, chapter 25, section 3, 1993, chapter 29, section 6, 1994, chapter 17, section 99, 1996, chapter 1, Schedule C, section 8, 1996, chapter 24, section 13, 1996, chapter 29, section 9, 1997, chapter 19, section 9, 1997, chapter 43, Schedule B, section 4, 1998, chapter 5, section 3, 1998, chapter 9, section 81, 1998, chapter 34, section 69, 1999, chapter 9, section 120, 2000, chapter 42, section 55, 2001, chapter 8, section 40, 2001, chapter 23, section 131 and 2002, chapter 22, section 108, is amended by adding the following subsection:
Same
(8.6) The Minister may make regulations,
(a) prescribing alternative methods for determining the amount of an individual's property tax credit under clause (3) (a) for a taxation year in circumstances where the individual's spouse or common law partner or former spouse or former common law partner has received an amount under the Ontario Home Property Tax Relief for Seniors Act, 2003 for the taxation year;
(b) establishing classes of seniors for the purposes of clause (3.1) (a);
(c) prescribing amounts or methods for determining amounts for the purposes of the definition of "B" in clause (3.1) (a) and prescribing different amounts or methods for different classes of seniors.
Amendments to the Municipal Act, 2001
12. (1) Section 319 of the Municipal Act, 2001, as amended by the Statutes of Ontario, 2002, chapter 17, Schedule A, section 52 and 2002, chapter 22, section 155, is amended by adding the following subsections:
Exception
(2.1) Subsection (1) does not apply with respect to taxes for school purposes levied in such circumstances and in respect of such years as may be prescribed by regulation.
Same
(2.2) The Minister of Finance may make regulations prescribing the matters referred to in subsection (2.1).
. . . . .
Same
(3.1) For the purposes of subsection (3), the tax increase determined under subsection 318 (3) shall be adjusted so that it does not include any tax increase attributable to taxes described in subsection (2.1).
(2) Subsection 319 (5) of the Act is amended by adding at the end "but not tax increases attributable to taxes described in subsection (2.1)".
Commencement
13. (1) Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.
Same
(2) Sections 2 and 11 come into force on July 1, 2003.
Short title
14. The short title of this Act is the Ontario Home Property Tax Relief for Seniors Act, 2003.
EXPLANATORY NOTE
This Explanatory Note was written as a reader's aid to Bill 43 and does not form part of the law. Bill 43 has been enacted as Chapter 4 of the Statutes of Ontario, 2003.
A new statute, the Ontario Home Property Tax Relief for Seniors Act, 2003, is enacted. The new Act establishes a tax credit that is payable to eligible seniors for home property taxes payable on their eligible principal residence for 2003 and subsequent years. For 2003, the tax credit applies to home property taxes that are attributable to the period from July 1 to December 31.
"Home property taxes" is defined in section 1 of the Act.
An individual is an eligible senior with respect to a year if he or she satisfies the criteria set out in subsection 2 (3) of the Act and such additional criteria as may be prescribed by regulation. Regulations may also specify that other individuals are eligible seniors.
An individual's eligible principal residence for the purposes of this Act is the same as his or her principal residence under subsection 8 (1) of the Income Tax Act, unless otherwise prescribed by regulation.
Subsection 3 (1) of the Act specifies that the amount of the tax credit is to be calculated in accordance with the regulations.
To receive payment of the tax credit for a year, the eligible senior must apply to the Minister of Finance for the credit within two years after the end of the year or within such longer period as may be prescribed by regulation.
Complementary amendments are made to the Income Tax Act and to the Municipal Act, 2001.
Clause 8 (3.1) (a) of the Income Tax Act establishes a property tax credit for seniors. Section 8 of that Act is amended to reflect the tax credit that will be provided to Ontario seniors in respect of property tax for 2003 and subsequent years under the new Act.
Section 319 of the Municipal Act, 2001 requires municipalities to pass bylaws providing for property tax relief for low-income seniors and specified others. Amendments to that section provide that it does not apply with respect to taxes for school purposes levied in such circumstances and for such years as may be prescribed by the Minister of Finance.