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Municipal Act, 2001

ONTARIO REGULATION 325/01

formerly under Municipal Act

tax matters — eligible property under section 364 of the Act

Consolidation Period: From April 4, 2017 to the e-Laws currency date.

Last amendment:  O. Reg. 97/17.

This is the English version of a bilingual regulation.

Landfill property class prescribed

0.1 The landfill property class is prescribed for the purposes of subsection 364 (1) of the Act. O. Reg. 97/17, s. 1.

Eligible property

1. (1) A building or structure on property that is classified in one of the commercial classes or industrial classes or in the landfill property class is prescribed to be an eligible property for the purposes of section 364 of the Act for a period of time if,

(a) the period of time is at least 90 consecutive days; and

(b) no portion of the building or structure was used at any time in the period of time.  O. Reg. 325/01, s. 1 (1); O. Reg. 300/03, s. 2 (1); O. Reg. 97/17, s. 2 (1).

(2) A portion of a building on property that is classified in one of the commercial classes or in the landfill property class is prescribed to be an eligible property under section 364 of the Act for a period of time if the period of time is at least 90 consecutive days and throughout the period of time,

(a) the portion of the building was not used and was clearly delineated or separated by physical barriers from the portion of the building that was used; and

(b) the portion of the building,

(i) was capable of being leased for immediate occupation,

(ii) was capable of being leased but not for immediate occupation because it was in need of or undergoing repairs or renovations or was under construction, or

(iii) was unfit for occupation.  O. Reg. 325/01, s. 1 (2); O. Reg. 300/03, s. 2 (2); O. Reg. 97/17, s. 2 (2).

(3) A portion of a building on property that is classified in one of the industrial classes is prescribed to be an eligible property under section 364 of the Act for a period of time if,

(a) the period of time is at least 90 consecutive days; and

(b) throughout the period of time, the portion of the building was not used and was clearly delineated or separated by physical barriers from the portion of the building that was used.  O. Reg. 325/01, s. 1 (3); O. Reg. 300/03, s. 2 (3).

(4) The following rules apply for the purposes of subsections (1), (2) and (3):

1. A reference to a period of at least 90 consecutive days shall be read as a reference to a period of at least 89 consecutive days if the period includes all of February.

2. The following, in the absence of other activity, does not constitute the use of a building or structure or a portion of a building:

i. Construction, repairs or renovations of the building, structure or portion of the building.

ii. The heating, cooling, lighting or cleaning of the building, structure or portion of the building.

iii. The presence of fixtures.  O. Reg. 325/01, s. 1 (4).

(5) Despite subsections (1), (2) and (3), a building, structure or portion of a building is not prescribed to be an eligible property under section 364 of the Act for a period of time if,

(a) it is used for commercial, industrial or landfilling activities on a seasonal basis;

(b) it is leased to a tenant who is in possession of the leasehold interest throughout the period of time; or

(c) it is included in a subclass for vacant land under subsection 8 (1) of the Assessment Act throughout the period of time.  O. Reg. 325/01, s. 1 (5); O. Reg. 300/03, s. 2 (4); O. Reg. 97/17, s. 2 (3).

(6) Despite subsections (1) and (2), a building or structure or portion of a building is not prescribed to be an eligible property under section 364 of the Act if it is in the resort condominium property class.  O. Reg. 210/05, s. 1.

Amount of rebate

2. (1) In this section,

“base property” means, in respect of an eligible property for a taxation year, the real property whose assessment on the roll returned under the Assessment Act for taxation in the taxation year includes the eligible property, excluding any portion of the real property,

(a) that is exempt from taxes for municipal and school purposes for the year,

(b) that is not included in the same class of real property for the taxation year under the Assessment Act as the eligible property, or

(c) that is included in a subclass for excess land under subsection 8 (1) of the Assessment Act.  O. Reg. 325/01, s. 2 (1).

(1.1) For the purposes of paragraph 3.1 of subsection 364 (2) of the Act, the prescribed percentage of the rebate for land in the landfill property class is 30 per cent. O. Reg. 97/17, s. 3 (1).

(2) The amount of taxes for a taxation year in respect of an eligible property to which the percentage specified in paragraph 2 or 3 of subsection 364 (2) of the Act, set out in subsection (1.1) of this section or referred to in subsection 364 (4) of the Act is to be applied is determined as follows:

1. Take the value of the eligible property for the year as determined by the assessment corporation.

2. Determine the percentage that the value of the eligible property is of the assessed value of the base property for the taxation year.

3. Multiply the percentage determined under paragraph 2 by the taxes for municipal and school purposes for the base property for the taxation year.

4. Determine the percentage that the number of days in the taxation year that the property was an eligible property is of the total number of days in the year.

5. Multiply the percentage determined under paragraph 4 by the product determined under paragraph 3.  O. Reg. 325/01, s. 2 (2); O. Reg. 300/03, s. 3 (1); O. Reg. 97/17, s. 3 (2).

(3) The amount of the rebate for the purposes of section 364 of the Act in respect of an eligible property is determined by multiplying the amount of taxes determined under subsection (2) in respect of the eligible property for the year by the percentage specified in paragraph 2 or 3 of subsection 364 (2) of the Act, set out in subsection (1.1) of this section or referred to in subsection 364 (4) of the Act, whichever percentage applies.  O. Reg. 300/03, s. 3 (2); O. Reg. 97/17, s. 3 (3).

(4) If the period of at least 90 consecutive days during which a property or portion of a property was an eligible property commences after October 3 in the prior taxation year, the amount of taxes for the taxation year is determined for the purposes of subsection (2) by adding the following amounts:

1. The amount of taxes that would be determined under subsection (2) for the previous taxation year if the only period in that year during which the property or portion of the property was an eligible property was the period after October 3 during which the building or structure or the portion of the building was an eligible property.

2. The amount of taxes that would be determined under subsection (2) for the taxation year in respect of the period in the year during which the building or structure or the portion of the building was an eligible property.  O. Reg. 325/01, s. 2 (4).

Application for rebate

3. (1) An interim application and a final application for a rebate under section 364 of the Act in respect of a taxation year must contain the following information:

1. The name of the owner of the eligible property and, if applicable, the name of the owner’s agent.

2. The address of the real property that includes the eligible property, including the number, street and municipality.

3. The assessment roll number of the real property that includes the eligible property for purposes of assessment under the Assessment Act.

4. The dates in the period covered by the interim or final application during which the building or structure or the portion of the building was an eligible property.

5. A description of the eligible property,

i. by suite or unit number and floor number, or

ii. by a method of describing its location in the building that is sufficient to identify the eligible property if it cannot be described by suite or unit number and floor number.

6. The area of the eligible property in square feet.

7. Any additional documentation the municipality or assessment corporation may request to assist in identifying the eligible property.  O. Reg. 325/01, s. 3 (1); O. Reg. 300/03, s. 4.

(2) The municipality shall forward a copy of each interim and final application to the assessment corporation for determination of the value of the eligible property.  O. Reg. 325/01, s. 3 (2).

(3) The assessment corporation shall provide the value of the eligible property to the municipality as soon as practicable.  O. Reg. 325/01, s. 3 (3).

(4) The municipality shall calculate the amount of the rebate payable to the owner as soon as practicable after receiving the determination of the value of the eligible property from the assessment corporation.  O. Reg. 325/01, s. 3 (4).

(5) The municipality may calculate the amount of a rebate based on an estimate of the amount of taxes for municipal and school purposes in respect of the eligible property and subsequently adjust the amount of the rebate when the amount of the taxes is finally determined.  O. Reg. 325/01, s. 3 (5).

Recalculation of rebate

4. (1) The municipality shall recalculate the amount of a rebate in respect of an eligible property if the taxes are reduced under section 357 or 358 of the Act or if the assessment for the property changes as the result of,

(a) a settlement under section 39.1 of the Assessment Act;

(b) an appeal under section 40 of the Assessment Act; or

(c) an application under section 46 of the Assessment Act.  O. Reg. 325/01, s. 4 (1); O. Reg. 300/03, s. 5.

(2) If a municipality pays or credits to an owner a rebate in an amount that is greater than the amount determined under a recalculation under subsection (1), the municipality may recover the excess amount.  O. Reg. 325/01, s. 4 (2).

(3) If a municipality pays or credit to an owner a rebate in an amount that is less than the amount determined under a recalculation under subsection (1), the municipality shall pay or credit to the owner the additional amount of the rebate as soon as practicable after the recalculation.  O. Reg. 325/01, s. 4 (3).

Deadline extension

5. For the purposes of paragraph 5 of subsection 364 (2) of the Act, if the assessment corporation assesses a property during a taxation year under section 33 of the Assessment Act in respect of either of the two preceding taxation years, the deadline for making an application under section 364 of the Act for that preceding taxation year is extended to the day that is 90 days after the day the assessment is mailed to the owner under section 35 of that Act.  O. Reg. 300/03, s. 6.

6. Revoked:  O. Reg. 300/03, s. 6.

Interest on rebate, 2002 and later years

7. (1) Revoked:  O. Reg. 300/03, s. 7 (1).

(2) Interest is payable under subsection 364 (20) of the Act in respect of a rebate under an interim application for a taxation year if,

(a) the interim application is received by the municipality by July 31 of the taxation year to which the rebate relates; and

(b) the municipality fails to pay or credit the owner the amount of the rebate to which the owner is entitled by the later of,

(i) November 30 of the taxation year to which the rebate relates, and

(ii) the day that is 120 days after the day the owner provides the information required under subsection 3 (1).  O. Reg. 325/01, s. 7 (2); O. Reg. 300/03, s. 7 (2).

(3) Interest is payable under subsection 364 (20) of the Act in respect of a rebate under a final application for a taxation year if,

(a) the final application is received by the municipality by the last day of February of the year immediately following the taxation year to which the rebate relates; and

(b) the municipality fails to pay or credit the owner the amount of the rebate to which the owner is entitled by the later of,

(i) June 30 of the year immediately following the taxation year to which the rebate relates, and

(ii) the day that is 120 days after the day the owner provides the information required under subsection 3 (1).  O. Reg. 325/01, s. 7 (3); O. Reg. 300/03, s. 7 (3).

Interest, special cases

8. (1) If the deadline for applying for a rebate in respect of a taxation year is extended under section 5, interest is payable under subsection 364 (20) of the Act in respect of the rebate if,

(a) an application for the rebate is received by the municipality before the deadline; and

(b) the municipality fails to pay or credit the owner the amount of the rebate to which the owner is entitled by the later of,

(i) the day that is 120 days after the deadline, and

(ii) the day that is 120 days after the day the owner provides the information required under subsection 3 (1).  O. Reg. 325/01, s. 8 (1); O. Reg. 300/03, s. 8 (1).

(2) If a municipality pays or credits an owner a rebate in an amount that was less than the amount determined under the recalculation under subsection 4 (1), interest is payable under subsection 364 (20) of the Act on the additional amount of the rebate if the municipality does not pay or credit the owner the additional amount within 120 days after receiving notice of the change to the assessment.  O. Reg. 325/01, s. 8 (2); O. Reg. 300/03, s. 8 (2).

Complaint to Board

9. The later date prescribed for the purposes of subsection 364 (15) of the Act is the later of,

(a) the day that is 120 days after the municipality receives the application; and

(b) the day that interest becomes payable on the outstanding rebate.  O. Reg. 325/01, s. 9; O. Reg. 300/03, s. 9.

 

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