O. Reg. 66/17: TAX MATTERS - PROPERTY TAX BILLS
filed March 9, 2017 under Municipal Act, 2001, S.O. 2001, c. 25
Skip to contentontario regulation 66/17
made under the
Municipal Act, 2001
Made: March 9, 2017
Filed: March 9, 2017
Published on e-Laws: March 10, 2017
Printed in The Ontario Gazette: March 25, 2017
Amending O. Reg. 75/01
(TAX MATTERS — PROPERTY TAX BILL form and content)
1. The title of Ontario Regulation 75/01 is revoked and the following substituted:
TAX MATTERS — PROPERTY TAX BILLs
2. Paragraph 3 of section 13 of the Regulation is revoked and the following substituted:
3. The amount of the current year’s levy change, showing clearly whether the change is positive or negative, in area “3.3”.
3. The Regulation is amended by adding the following sections:
Current year’s levy change
13.1 For the purposes of paragraph 3 of section 13, the amount of the current year’s levy change for a property is determined by subtracting the product of the notional tax rate determined under subsection 13.2 (1) and the assessment of the property for the current year from the amount of the current year’s final levies as described in paragraph 2 of section 12.
Notional tax rate
13.2 (1) For the purposes of section 13.1, the notional tax rate for a property is determined in accordance with the following rules:
1. For every general or special municipal levy for the previous year that applied to property in the municipality, determine the previous year’s levy amount under subsection (2).
2. For each levy, determine the total weighted assessment for the municipality by adding the weighted assessment for the taxation year, as determined under subsection (10), for each property class to which the levy applied.
3. For each levy, determine the residential rate to raise the previous year’s levy by dividing the previous year’s levy amount, referred to in paragraph 1, by the total weighted assessment determined under paragraph 2.
4. For each levy, determine a class rate to raise the previous year’s levy for each property class for the taxation year by multiplying the residential rate to raise the previous year’s levy, as determined under paragraph 3, by the tax ratio for the property class for the taxation year.
5. For each property, the notional tax rate to raise the previous year’s levies is the sum of the class rates to raise the previous year’s levy, as determined under paragraph 4, for each levy that applies to the property.
(2) For the purposes of paragraph 1 of subsection (1), the previous year’s levy amount shall be determined in the following manner:
1. Apply the tax rate for the previous year for each general or special municipal levy to the total assessment for property to which the levy applied as determined under subsection (3).
2. The previous year’s levy amount is the sum of the amounts determined under paragraph 1 for the property classes.
(3) For the purposes of paragraph 1 of subsection (2), the total assessment for property to which the levy applies is determined by taking the sum of the assessments for the previous year for each property to which the levy applies and adjusting for the sum of changes in assessment that would produce the changes in municipal taxes referred to in paragraphs 2 and 3 of subsection 318 (6) of the Act.
(4) Subject to subsection (5), a municipality, other than a lower-tier municipality, may pass a by-law in a year opting to have subsections (7) to (9) apply for the year.
(5) Before passing a by-law under subsection (4), a municipality shall send a copy of its projected calculations for the year under subsections (7) to (9) to the Minister of Finance.
(6) An upper-tier municipality may, by by-law passed before February 28 of the year, or before April 30 if the year is 2017, delegate to each of its lower-tier municipalities the authority to pass a by-law under subsection (4) in respect of levies for lower-tier purposes.
(7) A municipality that has passed a by-law under subsection (4) shall adjust the total assessment for property in a property class in the municipality as determined under subsection (3) so that the total assessment for property in a property class in the municipality excludes changes to the tax roll for the previous year resulting from one or more of the following events, except as provided by subsection (8):
1. A correction under subsection 32 (1.1) of the Assessment Act.
2. An assessment under subsection 32 (4) of the Assessment Act.
3. A reconsideration under section 39.1 of the Assessment Act.
4. An appeal under section 40 of the Assessment Act.
5. An application under section 46 of the Assessment Act.
(8) Subject to subsection (9), if an event listed in paragraphs 3 to 5 of subsection (7) changes the assessed value of a property because of one of the following types of changes, the change to the assessed value of the property shall, despite subsection (7), be included in the total assessment for property in the property class:
1. A change with respect to which an additional assessment of land is made under section 33 or 34 of the Assessment Act.
2. A change to the state or condition of land that results in the assessment made under section 36 of the Assessment Act for the taxation year differing from the assessment for the previous taxation year.
3. A change in the classification of land, except under section 30, 34 or 38 of Ontario Regulation 282/98 (General) made under the Assessment Act.
4. A change in the status of land from taxable to tax-exempt or vice-versa.
5. A change in the valuation approach with respect to whether land is eligible for assessment under section 19.0.1 of the Assessment Act.
(9) A change to the assessed value of a property referred to in subsection (8) shall be excluded from the total assessment for property in the property class if the current value of the property for the previous taxation year immediately preceding the first year to which the most recent general reassessment applied is also changed under section 39.1, 40 or 46 of the Assessment Act.
(10) For the purposes of paragraph 2 of subsection (1), the weighted assessment for the taxation year for each property class to which the levy applies is calculated by using the formula,
C × D
in which,
“C” is the sum of the assessments for the taxation year for properties to which the levy applies in the property class to which the levy applies,
“D” is the tax ratio for the property class for the taxation year.
(11) For the purposes of subsection (10), the assessment for a taxation year for a property in a property class shall be reduced by the same percentage of the assessment as the percentage reduction, if any, under section 313 of the Act in the tax rate applicable to the property for the taxation year.
(12) Despite paragraph 5 of subsection (1), if the Municipal Extra Territorial Tax Act applies to the property, the previous year’s notional tax rate is the sum of the class rates for the previous year, as determined under paragraph 4 of subsection (1), for the applicable property class.
Commencement
4. This Regulation comes into force on the day it is filed.
Le ministre des Finances,
Charles Sousa
Minister of Finance
Date made: March 9, 2017
Pris le : 9 mars 2017