Bill 28 2007

An Act to amend the Assessment Act with respect to homesteads

Note: This Act amends the Assessment Act.  For the legislative history of the Act, see the Table of Consolidated Public Statutes – Detailed Legislative History on www.e-Laws.gov.on.ca.

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

   1.  Section 19 of the Assessment Act is amended by adding the following subsections:

Repairs

   (1.1)  Despite subsection (1), for purposes of taxation years after 2012, if an owner of land in the residential property class has repairs, alterations, improvements or additions made to the land between the immediately preceding valuation day and the current valuation day as they are determined under subsection 19.2 (1) and if there is an increase in the current value of the land attributable to the repairs, alterations, improvements or additions, the current value of the land for the taxation year shall be based on the current value less the amount set out in subsection (1.3) if the owner submits receipts for the repairs, alterations, improvements or additions to the clerk of the municipality in which the land is located within 180 days after the current valuation day.

Disallowance of claims

   (1.2)  The municipality mentioned in subsection (1.1) may, in the assessment roll returned to the clerk under section 36, disallow, in whole or in part, a receipt submitted under that subsection.

Reduction in current value

   (1.3)  The amount for the purpose of subsection (1.1) is the lesser of,

  (a)  $100,000; and

  (b)  the value of the repairs, alterations, improvements or additions less,

           (i)  the amount that the municipality disallows under subsection (1.2), if the assessment is not appealed to the Assessment Review Board, or

          (ii)  the amount that the Assessment Review Board disallows in the assessment roll that the registrar of the Board certifies under section 36, if the assessment is appealed to the Board.

   2.  Section 19.1 of the Act is amended by adding the following subsections:

Maximum taxable assessed value, residential land class

   (5)  Despite subsections (3) and (4), if after applying the rules under those subsections the resulting assessment of land in the residential property class for a taxation year after 2008 is more than 5 per cent greater than the assessment of the land for the immediately preceding taxation year, the maximum increase in the assessment for the land shall be 5 per cent if the owner of the land on the valuation day for the taxation year is,

  (a)  the same as the owner of the land on the valuation day for the immediately preceding taxation year; or

  (b)  a spouse of the owner of the land on the valuation day for the immediately preceding taxation year.

Definitions

   (6)  In subsection (5),

"spouse" has the same meaning as in Part III of the Family Law Act; ("conjoint")

"valuation day" means the day as of which land is valued for a taxation year as determined under subsection 19.2 (1). ("jour de l'évaluation")

Reductions for seniors and disabled persons

   (7)  Whether or not subsection (5) results in a decrease in the assessment of land for a taxation year after 2008, if the land is the principal residence of the owner as defined in subsection 8 (1) of the Income Tax Act, the assessment shall be reduced by an amount equal to the lesser of,

  (a)  the assessment; and

  (b)  $10,000 times one-twelfth of the number of months, or part of a month, in the taxation year in which the owner of the land is at least 65 years of age or is disabled.

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

Record of current value assessment

   36.2  The assessment corporation shall maintain a record of the assessment of all parcels of land if the assessment is based on the current value of the parcel and shall provide a copy of the record with respect to a parcel of land to the owner of the parcel within 24 hours at no charge upon request.

   4.  Section 40 of the Act is amended by adding the following subsection:

Onus of proving increase in value

   (8.1)  If value of the land is a ground of complaint that is proceeded with, the onus of proving that there has been an increase in the value over the value on which the immediately preceding assessment of the land is based lies with the assessment corporation.

Commencement

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

Short title

   6.  The short title of this Act is the Homestead Act, 2007.

EXPLANATORY NOTE

The Bill amends the Assessment Act with respect to assessments for a taxation year after 2008.

The Bill provides that the first $100,000 in repairs, alterations, improvements or additions that an owner of residential land has made over a period of four years will not be considered to increase the current value of the land for assessment purposes if the municipality in which the land is located or the Assessment Review Board does not disallow, in the assessment roll, the value of the work done.

The Bill also imposes a cap of 5 per cent on the increase that can occur in the assessment of residential land if the owner of the land is the same as the owner of the land in the immediately preceding taxation year or is a spouse of that owner.

The assessment of a principal residence is reduced by an amount up to $10,000 for the number of months of a taxation year during which the owner is at least 65 years of age or is disabled.

The Municipal Property Assessment Corporation is required to maintain a record of the assessment of land based on its current value and to provide a copy of the record to land owners within 24 hours at no charge upon request.

If the current value of land is an issue on an appeal of an assessment to the Assessment Review Board, the onus of proving that there has been an increase in the value over the value on which the immediately preceding assessment of the land is based lies with the Municipal Property Assessment Corporation.