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Education Act
Loi sur l’éducation

ONTARIO REGULATION 3/02

Tax Relief in unorganized territory for 2001 and subsequent years

Consolidation Period:  From June 10, 2009 to the e-Laws currency date.

Last amendment:  O. Reg. 227/09.

This Regulation is made in English only.

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CONTENTS

PART I
INTERPRETATION

1.

Application

2.

Interpretation

PART II
PHASE-IN OF 2001 TAX CHANGES IN RESIDENTIAL PROPERTY CLASS

3.

Definition

4.

Phase-in of tax changes

5.

Communication

PART III
TAX DEFERRALS FOR LOW-INCOME SENIORS AND PERSONS WITH DISABILITIES — RESIDENTIAL PROPERTY CLASS

6.

Tax deferral

PART IV
REBATES TO CHARITIES — COMMERCIAL AND INDUSTRIAL PROPERTY CLASSES

7.

Rebate to eligible charity

PART V
GROSS LEASES

8.

Application of Municipal Act, s. 444.1

PART VI
REBATES FOR VACANT UNITS

9.

Interpretation

10.

Eligible property

11.

Amount of rebate

12.

Application for rebate

13.

Recalculation of rebate

14.

Deadline extension

15.

Interest on rebate, 2001

16.

Interest on rebate, 2002 and subsequent years

17.

Interest, special cases

18.

Complaint

PART VII
LIMITATION ON TAX INCREASES FOR 2001 AND SUBSEQUENT TAXATION YEARS

19.

Interpretation

20.

Determination of taxes

21.

Determination of maximum taxes, 2001

22.

Provision for recoveries

23.

Determination of maximum taxes after 2001

24.

Provision for recoveries

25.

Tenants of leased properties

26.

Recouping landlord’s shortfall

PART VIII
CANCELLATION, REDUCTION OR REFUND OF TAXES

27.

Application for cancellation

part I
interpretation

Application

1. This Regulation applies with respect to taxes for 2001 and later years for school purposes in territory without municipal organization that is not deemed to be attached to a municipality for the purposes of taxation.  O. Reg. 3/02, s. 1.

Interpretation

2. (1) In this Regulation,

“assessment” means the assessment of real property made under the Assessment Act, according to the last returned assessment roll;

“assessment corporation” means the Municipal Property Assessment Corporation;

“commercial property class” means the commercial property class prescribed under the Assessment Act;

“industrial property class” means the industrial property class prescribed under the Assessment Act;

“levying board” means a board that levies and collects tax rates under paragraph 2 or 3 of subsection 257.7 (1) of the Act or under clause 257.14 (1) (a) or (b) of the Act;

“multi-residential property class” means the multi-residential property class prescribed under the Assessment Act;

“property class” means a class of real property prescribed under the Assessment Act;

“residential property class” means,

(a) the residential property class prescribed under the Assessment Act in respect of taxation years beginning on or after January 1, 2003, or

(b) the residential/farm property class prescribed under that Act in respect of taxation years ending before January 1, 2003;

“taxation year” means, in respect of taxes for school purposes, the year for which the taxes are levied.  O. Reg. 3/02, s. 2 (1); O. Reg. 296/03, s. 1.

(2) A reference in this Regulation to an action taken by a levying board under a provision of the Municipal Act is a reference to the action taken by the board under that provision in exercising the same powers and duties of a municipality under the authority of subsection 257.10 (1) of the Act.  O. Reg. 3/02, s. 2 (2).

part ii
Phase-in of 2001 Tax Changes in Residential Property Class

Definition

3. In this Part,

“eligible property” means property or a portion of property classified in,

(a) the residential property class for taxation years beginning on or after January 1, 2003, or

(b) the residential/farm property class for taxation years ending before January 1, 2003.  O. Reg. 296/03, s. 2.

Phase-in of tax changes

4. (1) The amount of the tax increases and tax decreases from the 2000 taxation year to the 2001 taxation year on all eligible property in territory described in section 1 is subject to phase-in in accordance with this section.  O. Reg. 3/02, s. 4 (1).

(2) If the total amount of taxes for school purposes for 2001 for an eligible property before the application of the phase-in exceeds the total amount of taxes for school purposes for 2000 for the property, the maximum amount of the tax increase to be phased in is the amount of the difference.  O. Reg. 3/02, s. 4 (2).

(3) If the total amount of taxes for school purposes for 2000 for an eligible property exceeds the total amount of taxes for school purposes for 2001 for the property, before the application of the phase-in, the maximum amount of the tax decrease to be phased in is the amount of the difference.  O. Reg. 3/02, s. 4 (3).

(4) For the purposes of this section, the total amount of taxes for school purposes for 2000 for an eligible property is the amount determined under the following rules:

1. If paragraphs 2 and 3 do not apply, the amount of the taxes for school purposes for 2000 for the property is the amount of taxes levied on the property for 2000.

2. If a supplementary assessment or change in classification was 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 to the assessment roll for taxation in 2001, the amount of the taxes for school purposes for 2000 for the property is the amount that would have been determined for 2000 if the increase in the assessment or change in classification, as the case may be, had applied to the property for 2000.

3. If any taxes for school purposes for 2000 for the property are cancelled, reduced or refunded under section 442 of the Municipal Act on an application under clause 442 (1) (a), (a.1), (c) or (f) of that Act or under section 443 of that Act, recalculate the amount of taxes determined under paragraph 1 as if the event that caused the cancellation, reduction or refund had occurred on January 1, 2000.  O. Reg. 3/02, s. 4 (4).

(5) The following rules apply to the phase-in of a tax increase described in subsection (2):

1. The tax increase is subtracted from the amount of taxes for 2001 that would be determined before the application of this section.

2. The amount of the increase to be included in the taxes for 2001, as determined under paragraph 3, is added to the amount determined under paragraph 1, to determine the amount of taxes payable for 2001.

3. The amount of the increase to be included in the taxes for 2001 is the greater of,

i. 50 per cent of the increase, and

ii. the lesser of $30 and the amount necessary to fully phase in the increase.  O. Reg. 3/02, s. 4 (5).

(6) The following rules apply to the phase-in of a tax decrease described in subsection (3):

1. The tax decrease is added to the amount of taxes for 2001 that would be determined before the application of this section.

2. Subject to paragraph 3, the amount of the decrease to be phased in for 2001 is the greater of the threshold determined under paragraph 4 and 50 per cent of the amount of the decrease.

3. The amount of the decrease phased in for 2001 must not exceed the amount necessary to fully phase in the decrease.

4. The threshold referred to in paragraph 2 is the amount that would be determined in order that the total of the decreases phased in for 2001 for eligible property in the same locality equals the total of the increases phased in for 2001 for all eligible property in the same locality.  O. Reg. 3/02, s. 4 (6).

Communication

5. (1) A notice of demand for taxes payable in respect of which there is a phase-in under section 4 must indicate the amount of taxes that would have been payable without the phase-in, the amount of taxes that are payable and the amount of the difference.  O. Reg. 3/02, s. 5 (1).

(2) The secretary of the levying board shall maintain a list of the 2001 tax increases and decreases for the eligible properties in the area served by the board.  O. Reg. 3/02, s. 5 (2).

part iii
tax deferrals for low-income seniors and persons with disabilities — Residential Property Class

Tax deferral

6. (1) The owner of a specified residential property is entitled to a deferral of taxes for a taxation year ending after December 31, 2000 if,

(a) there is a tax increase described in subsection 4 (2) that exceeds $30;

(b) the owner or the owner’s spouse occupies the property as their principal residence on January 1 of the taxation year;

(c) the owner or the owner’s spouse is, at any time during the taxation year,

(i) a person who is 65 years of age or older and who receives a supplement under Part II of the Old Age Security Act (Canada), or

(ii) a person who receives income support under the Ontario Disability Support Program Act, 1997;

(d) the owner or the owner’s spouse was assessed as the owner of the property on the assessment roll for the previous year;

(e) if the taxation year is after 2001, there was a deferral of taxes on the property under this section for the 2001 taxation year; and

(f) a written application for the deferral, together with sufficient documentation to establish entitlement to the deferral, is given to the secretary of the levying board,

(i) for the 2001 taxation year, before March 31, 2002, or

(ii) for a taxation year after 2001, by July 1 of the taxation year.  O. Reg. 3/02, s. 6 (1); O. Reg. 296/03, s. 3 (1); O. Reg. 311/05, s. 1 (1-3).

(2) In this Part,

“owner” means the person assessed as the owner;

“specified residential property” means, in respect of a taxation year,

(a) a property in the residential property class if the taxation year begins on or after January 1, 2003, or

(b) a property in the residential/farm property class if the taxation year ends before January 1, 2003;

“spouse” means a person,

(a) to whom the person is married, or

(b) with whom the person is living outside marriage in a conjugal relationship, if the two persons,

(i) have cohabited for at least one year,

(ii) are together the parents of a child, or

(iii) have together entered into a cohabitation agreement under section 53 of the Family Law Act.  O. Reg. 3/02, s. 6 (2); O. Reg. 296/03, s. 3 (2); O. Reg. 311/05, s. 1 (4, 5).

(3) The amount of the tax deferral for the 2001 taxation year is the amount by which the tax increase in respect of the property, as determined under subsection 4 (2), exceeds the amount of the increase that is not phased in under section 4 before 2002.  O. Reg. 3/02, s. 6 (3).

(4) For every year after 2001, the amount of the tax deferral is the amount of the tax increase from the previous taxation year.  O. Reg. 3/02, s. 6 (4).

(5) Despite subsections (3) and (4), the amount of the tax deferral for a taxation year shall not exceed the amount by which 75 per cent of the assessed value of the property exceeds the sum of,

(a) the total taxes deferred in previous years under this section or section 7 of Ontario Regulation 509/98; and

(b) the interest on amounts deferred under section 7 of Ontario Regulation 509/98.  O. Reg. 3/02, s. 6 (5).

(6) All amounts deferred under this section become due,

(a) upon the death of the owner, subject to subsection (7);

(b) upon the transfer of the property; or

(c) on July 1 of the first year for which the owner is not entitled to a deferral of taxes, subject to subsections (8) and (9).  O. Reg. 3/02, s. 6 (6).

(7) If the owner dies but the owner’s spouse is still alive, the amounts that are deferred are not due as long as,

(a) the spouse is alive;

(b) the property is the spouse’s principal residence; and

(c) the property is not transferred, other than to the spouse.  O. Reg. 311/05, s. 1 (6).

(8) If the owner’s spouse dies and, but for the spouse’s death, the owner would be entitled to a deferral of taxes if an application was made in accordance with clause (1) (f), the amounts that are deferred are not due as long as,

(a) the owner is alive;

(b) the property is the owner’s principal residence; and

(c) the property is not transferred.  O. Reg. 311/05, s. 1 (6).

(9) If the owner would have been entitled to a deferral of taxes in the taxation year if an application had been made in accordance with clause (1) (f), but an application was not made, the amounts already deferred are not due if the owner gives to the secretary of the levying board by July 1 of the taxation year:

1. A written application to continue the deferral of the amounts already deferred.

2. Sufficient documentation to establish entitlement to a deferral of taxes in the taxation year.  O. Reg. 3/02, s. 6 (9).

(10) Section 382 of the Municipal Act applies, with necessary modifications, with respect to taxes deferred under this section.  O. Reg. 3/02, s. 6 (10).

part iv
rebates to Charities — commercial and industrial property classes

Rebate to eligible charity

7. (1) An eligible charity is entitled to a rebate of taxes for school purposes for the 2001 and subsequent taxation years on property the charity occupies if,

(a) the property is in the commercial property class or the industrial property class; and

(b) a written application for the rebate, together with sufficient documentation to establish eligibility for the rebate, is given to the secretary of the levying board,

(i) for the 2001 taxation year, on or before March 31, 2002, or

(ii) for the 2002 or a subsequent taxation year, on or before June 1 of the taxation year.  O. Reg. 3/02, s. 7 (1).

(2) In this Part,

“eligible charity” means a registered charity as defined in subsection 248 (1) of the Income Tax Act (Canada) that has a valid registration number issued by the Canada Revenue Agency.  O. Reg. 3/02, s. 7 (2).

(3) The amount of the rebate to which an eligible charity is entitled for a year under this section is,

(a) the total of all amounts paid by the eligible charity for the year under section 444.1 of the Municipal Act, as made applicable by section 8, if the charity is required to pay an amount under that section; or 

(b) 40 per cent of the taxes paid for school purposes for the year by the eligible charity on the property it occupies, if clause (a) does not apply to the charity for the year.  O. Reg. 3/02, s. 7 (3).

(4) The following rules apply with respect to a rebate under this section:

1. The levying board shall pay one-half of the rebate for a taxation year to the eligible charity within 60 days after receipt of the charity’s application for the rebate and shall pay the balance of the rebate within 120 days after receipt of the application.

2. As a condition of receiving a rebate for a year, a charity shall repay all amounts, if any, by which the rebates the charity received for the year from other levying boards or municipalities exceed the rebates from the other levying boards or municipalities to which the charity is entitled for the year.

3. The costs of a rebate of taxes on property shall be shared by the levying boards and all other school boards that share in the revenue from the taxes for school purposes on the property in the same proportion as the levying boards and school boards share in the revenue. 

4. The levying board shall pay interest, at the rate determined under subsection 257.11 (4) of the Education Act, on the amount of the rebate to which an eligible charity is entitled under this section, if the levying board fails to rebate or credit the amount within the time specified in paragraph 1.

5. No fee may be charged by the levying board to process an application under this section.  O. Reg. 3/02, s. 7 (4).

part v
gross leases

Application of Municipal Act, s. 444.1

8. Section 444.1 of the Municipal Act applies, with necessary modifications, as though it formed part of this Regulation, with respect to property in territory described in section 1 with the following modifications:

1. A reference to a municipality in subsection 444.1 (10) of the Municipal Act shall be read as a reference to the territory described in section 1 that is within the jurisdiction of the levying board.

2. A reference to a local municipality in subsection 444.1 (13) of the Municipal Act shall be read as a reference to the levying board.

3. A reference to property taxes shall be read as a reference to taxes for school purposes.  O. Reg. 3/02, s. 8.

part vi
rebates for vacant Units

Interpretation

9. This Part applies for the purposes of section 442.5 of the Municipal Act, as made applicable by section 257.12.3 of the Act, with respect to an area in which a levying board is required to levy rates for school purposes under Division B of Part IX of the Act.  O. Reg. 3/02, s. 9.

Eligible property

10. (1) A building or structure on property is an eligible property for the purposes of this Part 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. 3/02, s. 10 (1). 

(2) A portion of a building on property that is in the commercial property class is an eligible property under this Part 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. 3/02, s. 10 (2).

(3) A portion of a building on property that is in the industrial property class is an eligible property under this Part 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. 3/02, s. 10 (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. 3/02, s. 10 (4). 

(5) Despite subsections (1), (2) and (3), a building, structure or portion of a building is not an eligible property under this Part for a period of time if,

(a) it is used for commercial or industrial activity 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 sub-class for vacant land under subsection 8 (1) of the Assessment Act throughout the period of time.  O. Reg. 3/02, s. 10 (5). 

Amount of rebate

11. (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 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. 3/02, s. 11 (1).

(2) The amount of the rebate for a taxation year for an eligible property is the amount equal to 30 per cent, if the eligible property is in the commercial property class, or 35 per cent, if the property is in the industrial property class, of the taxes for school purposes for the year for the eligible property, as determined in the following manner:

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

2. Determine the percentage that the value of the 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 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. 3/02, s. 11 (2).

(3) 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. 3/02, s. 11 (3). 

Application for rebate

12. (1) An application for a rebate under this Part 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 as recorded by the assessment corporation.

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 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 levying board or assessment corporation may request to assist in identifying the eligible property.  O. Reg. 3/02, s. 12 (1).

(2) The levying board shall forward a copy of each application to the assessment corporation for determination of the value of the eligible property.  O. Reg. 3/02, s. 12 (2).

(3) The assessment corporation shall provide the value of the eligible property to the levying board as soon as practicable.  O. Reg. 3/02, s. 12 (3).

(4) The levying board 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. 3/02, s. 12 (4). 

(5) The levying board may calculate the amount of a rebate based on an estimate of the amount of taxes for 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. 3/02, s. 12 (5). 

Recalculation of rebate

13. (1) The levying board shall recalculate the amount of a rebate in respect of an eligible property if,

(a) any of the taxes for school property are reduced under section 442 or 443 of the Municipal Act;

(b) the assessment for the property changes as the result of a settlement under section 39.1 of the Assessment Act;

(c) the assessment for the property changes as the result of an appeal under section 40 of the Assessment Act; or

(d) the assessment for the property changes as the result of an application under section 46 of the Assessment Act.  O. Reg. 3/02, s. 13 (1).

(2) If a levying board 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 levying board may recover the excess amount.  O. Reg. 3/02, s. 13 (2).

(3) If a levying board pays or credits to an owner a rebate in an amount that is less than the amount determined under a recalculation under subsection (1), the levying board shall pay or credit to the owner the additional amount of the rebate as soon as practicable after the recalculation.  O. Reg. 3/02, s. 13 (3). 

Deadline extension

14. For the purposes of this Part, 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 this Part for that preceding taxation years is extended to the day that is 90 days after the day the assessment notice is mailed to the owner under section 35 of the Assessment Act.  O. Reg. 3/02, s. 14.

Interest on rebate, 2001

15. (1) This section applies to rebates in respect of the 2001 taxation year.  O. Reg. 3/02, s. 15 (1).

(2) All interest payable under this Part is to be applied at the same rate applied under subsection 257.11 (4) of the Act.  O. Reg. 3/02, s. 15 (2).

(3) Interest is payable in respect of a rebate if,

(a) the application is received by the levying board on or before April 30, 2002; and

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

(i) July 31, 2002, and

(ii) the day that is 120 days after the day the owner provides the information required under subsection 12 (1).  O. Reg. 3/02, s. 15 (3).

Interest on rebate, 2002 and subsequent years

16. (1) This section applies to rebates in respect of 2002 and subsequent taxation years.  O. Reg. 3/02, s. 16 (1).

(2) Interest is payable in respect of a rebate for a taxation year if,

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

(b) the levying board 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 12 (1).  O. Reg. 3/02, s. 16 (2).

Interest, special cases

17. (1) If the deadline for applying for a rebate in respect of a taxation year is extended under section 14, interest is payable in respect of the rebate if,

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

(b) the levying board 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 12 (1).  O. Reg. 3/02, s. 17 (1).

(2) If a levying board pays or credits an owner a rebate in an amount that was less than the amount determined under the recalculation under subsection 13 (1), interest is payable on the additional amount of the rebate if the levying board does not pay or credit the owner the additional amount within 120 days after receiving notice of the change to the assessment.  O. Reg. 3/02, s. 17 (2).

Complaint

18. The later date prescribed for the purposes of subsection 442.5 (16) of the Municipal Act, as made applicable by section 257.12.3 of the Act, is the later of,

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

(b) the day that interest becomes payable on the outstanding rebate.  O. Reg. 3/02, s. 18.

part vii
limitation on tax increases for 2001 and subsequent taxation years

Interpretation

19. (1) In this Part,

“additional assessment” means one or more assessments made under section 33 or 34 of the Assessment Act;

“uncapped 2001 taxes” means the amount of taxes for school purposes that would have been payable for 2001 but for the application of this Part;

“previous year” means the year immediately preceding the taxation year;

“uncapped taxes” means, in respect of a taxation year, the amount of taxes for school purposes that would have been payable for the taxation year but for the application of this Part.  O. Reg. 3/02, s. 19 (1).

(2) If portions of a property are classified in different property classes on the assessment roll, each portion shall be treated as a separate property for the purposes of this Part.  O. Reg. 3/02, s. 19 (2).

(3) This Part applies with respect to property in the commercial class, the industrial class and the multi-residential property class.  O. Reg. 3/02, s. 19 (3).

(4) This Part does not apply to,

(a) property or a portion of the property to which a payment-in-lieu of taxes is required, other than property of a designated electricity utility within the meaning of subsection 19.0.1 (5) of the Assessment Act or of a corporation referred to in clause (d) of the definition of “municipal electricity utility” in section 88 of the Electricity Act;

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

(c) property classified in the residential/farm property class, residential property class, farmlands property class, farm property class, managed forests property class or pipe line property class, as prescribed under the Assessment Act.  O. Reg. 296/03, s. 4.

Determination of taxes

20. Except as provided in this Part, the taxes for school purposes for a year for a property to which this Part applies are determined in accordance with subsection 362 (1) of the Municipal Act and Division B of Part IX of the Act.  O. Reg. 3/02, s. 20.

Determination of maximum taxes, 2001

21. (1) Except as otherwise provided in this section and section 22, the amount of the taxes for school purposes for 2001 for a property is the amount calculated as follows:

1. Determine the amount of the taxes for school purposes for 2000 for the property under subsection (2).

2. Add five per cent of the amount determined under paragraph 1.  O. Reg. 3/02, s. 21 (1).

(2) The amount of the taxes for school purposes for 2000 for a property is determined as follows:

1. Determine the amount of the taxes for school purposes that were levied on the property for 2000.

2. If, in respect of the property, the 1999 assessment roll for taxation in 2000 included an amount in the sub-class 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 the assessment of a property whose classification is in the sub-class 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.

5. If any taxes for school purposes for 2000 are cancelled, reduced or refunded under section 442 of the Municipal Act on an application under clause 442 (1) (a), (a.1), (c) or (f) of that Act or under section 443 of that Act, recalculate the taxes determined under paragraph 1 as if the event that caused the cancellation, reduction or refund had occurred on January 1, 2000.  O. Reg. 3/02, s. 21 (2).

(3) 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 of the Municipal Act or a determination under section 447.26.1 of that Act, the taxes for school purposes for a property for 2000 are recalculated, the amount under paragraph 1 of subsection (2) must be adjusted accordingly.  O. Reg. 3/02, s. 21 (3).

(4) If, as a result of an assessment under subsection 32 (2) or section 33 of the Assessment Act, the total taxes for school purposes for a property for 2000 are altered, the amount under paragraph 1 of subsection (2) must be adjusted accordingly.  O. Reg. 3/02, s. 21 (4).

(5) If the levying board cancels, reduces or refunds taxes for 2001, on an application made under clause 442 (1) (c) of the Municipal Act or under another provision of that Act prescribed by the Minister of Finance under subsection 447.65 (6.2) of that Act, the amount of the cancellation, reduction or refund is calculated using the formula,

A/B × C

in which,

  “A” is the amount of the cancellation, reduction or refund of taxes for the year, but for the application of this Part,

  “B” is the amount of taxes for the year (without deducting the amount of the cancellation, reduction or refund of taxes) that would have been payable but for the application of this Part, and

  “C” is the amount of taxes for the year that would be payable under this Part if no application were made.

O. Reg. 3/02, s. 21 (5).

(6) If an additional assessment is made in respect of property, other than a property described under subsection 22 (2), that increases the assessment of the property for 2001,

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

(b) the amount of the additional taxes for school purposes is determined using the formula,

T = CT/NT × CVAT

in which,

“T” is the amount of additional taxes for school purposes,

“CT” is the amount determined under subsection (1),

“NT” is the amount of the uncapped 2001 taxes, but does not include the amount of “CVAT”, and

“CVAT” is the amount of supplementary taxes for school purposes that would have been payable but for the application of this subsection.

O. Reg. 3/02, s. 21 (6).

(7) Despite subsection (6), the 2001 taxes for school purposes for the property for the year or portion of the year in respect of which one of the following assessments is made must be recalculated on the basis that this Part does not apply:

1. 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 sub-class for vacant land under paragraph 2 of subsection 8 (1) of the Assessment Act.

2. An additional assessment for 2001 or for 2000 and 2001 or any portion of those years, that resulted in the assessment of the property increasing by an amount equal to or greater than 50 per cent of the assessment on the assessment roll before the additional assessment was made.  O. Reg. 3/02, s. 21 (7).

(8) Despite subsection (7), if an additional assessment is made for the 2000 taxation year in relation to an improvement and, in relation to the same improvement, an additional assessment is made for the 2001 taxation year under section 34 of the Assessment Act, subsection (7) does not apply with respect to the additional assessment for the 2001 taxation year.  O. Reg. 3/02, s. 21 (8).

(9) Despite paragraph 2 of subsection (7), if an additional assessment is made for 2000 and for 2001, the percentage referred to in that paragraph is the percentage 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.  O. Reg. 3/02, s. 21 (9).

(10) If the percentage in paragraph 11 of subsection (9) is equal to or greater than 50, subsection (7) applies for 2001.  O. Reg. 3/02, s. 21 (10).

Provision for recoveries

22. (1) Subject to subsection (4), the levying board shall establish the percentage to limit the tax decreases in 2001 in respect to properties in any property class subject to this Part, to provide for recovery of all or part of the revenues foregone as a result of the application of section 21 to other properties in the property class.  O. Reg. 3/02, s. 22 (1).

(2) The limit of tax decreases in subsection (1) applies to all properties in the property class whose taxes for school purposes for 2000, as determined under subsection 21 (2), exceed their taxes for school purposes for 2001.  O. Reg. 3/02, s. 22 (2).

(3) The amount recovered within each property class, within each school locality must be sufficient, but must not exceed the amount necessary to provide for the revenues foregone as a result of the application of section 21 to properties in the property class.  O. Reg. 3/02, s. 22 (3).

(4) The percentage established under subsection (1) is limited as follows:

1. Calculate the total revenues foregone as a result of the application of subsection 21 to properties in the property class.

2. Calculate the total difference between the taxes for school purposes for all properties in the property class referred to in subsection (2) for 2000, as determined under subsection 21 (2), and the taxes for school purposes for those properties for 2001.

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 paragraph 3 must not exceed 100 per cent.  O. Reg. 3/02, s. 22 (4).

(5) The taxes for school purposes for 2001 on a property to which this section applies are determined as follows:

1. Determine the taxes for school purposes for the property for 2000 under subsection 21 (2).

2. Determine the amount of the difference between the taxes for school purposes for the property for 2000, as determined under paragraph 1 and the uncapped 2001 taxes for school purposes for the property.

3. Multiply the percentage established under this section for the property class the property is in, by the amount determined under paragraph 2.

4. The taxes for school purposes for 2001 are equal to the uncapped 2001 taxes for the property plus the amount determined under paragraph 3.  O. Reg. 3/02, s. 22 (5).

(6) If an additional assessment is made to a property subject to this section that increases the assessment of that property for 2001, subsection (5) does not apply to the additional taxes for school purposes for the year attributable to the additional assessment.  O. Reg. 3/02, s. 22 (6).

Determination of maximum taxes after 2001

23. (1) Except as otherwise provided in this section and section 24, the amount of the taxes for school purposes for a taxation year after 2001 for a property is the amount calculated as follows:

1. Determine the amount of the taxes for school purposes for the previous year for the property under subsection (2).

2. Add five per cent of the amount determined under paragraph 1.  O. Reg. 3/02, s. 23 (1).

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

1. Determine the taxes for 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 the assessment of a property whose classification is in the sub-class 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.

4. If any taxes for school purposes for the year are cancelled, reduced or refunded under section 442 of the Municipal Act for the year on an application under clause 442 (1) (a), (a.1), (c) or (f) of that Act or under section 443 of that Act 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.  O. Reg. 3/02, s. 23 (2).

(3) 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 of the Municipal Act or a determination under section 447.26.1 of that Act, the taxes for school purposes for a property for the previous year are recalculated, the amount under paragraph 1 of subsection (2) must be adjusted accordingly.  O. Reg. 3/02, s. 23 (3).

(4) 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 school purposes for a property for the previous year are altered, the amount under paragraph 1 of subsection (2) must be adjusted accordingly.  O. Reg. 3/02, s. 23 (4).

(5) If the levying board cancels, reduces or refunds taxes for school purposes for the taxation year, on an application made under clause 442 (1) (c) of the Municipal Act or under another provision of that Act prescribed by the Minister of Finance under subsection 447.65 (6.2) of that Act, the amount of the cancellation, reduction or refund is calculated using the formula,

A/B × C

in which,

  “A” is the amount of the cancellation, reduction or refund of taxes for the year, but for the application of this Part,

  “B” is the amount of taxes for the year (without deducting the amount of the cancellation, reduction or refund of taxes) that would have been payable but for the application of this Part, and

  “C” is the amount of taxes for the year that would be payable under this Part if no application were made.

O. Reg. 3/02, s. 23 (5).

(6) If an additional assessment is made in respect of property, other than property described in subsection 24 (2), that increases the assessment of the property in the taxation year,

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

(b) the amount of the additional taxes for school purposes is calculated using the formula,

T = CT/NT × CVAT

in which,

“T” is the amount of the additional taxes for school purposes,

“CT” is the amount determined under subsection (1), and

“NT” is the amount of the uncapped taxes for the year, but does not include the amount of  “CVAT”,

“CVAT” is the amount of supplementary taxes for school purposes that would have been payable but for the application of this subsection.

O. Reg. 3/02, s. 23 (6).

(7) Despite subsection (6), the taxes for school purposes for the property for the taxation year or portion of the year in respect of which one of the following assessments is made must be recalculated on the basis that this Part does not apply:

1. 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 sub-class for vacant land under paragraph 2 of subsection 8 (1) of the Assessment Act.

2. An additional assessment for the taxation year or for the taxation year and the previous year or any portion of those years, that resulted in the assessment of the property increasing by an amount equal to or greater than 50 per cent of the assessment on the assessment roll before the additional assessment was made.  O. Reg. 3/02, s. 23 (7).

(8) Despite paragraph 2 of subsection (7), if an additional assessment is made for the previous year and for the taxation year, the percentage referred to in that paragraph is the percentage 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 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.  O. Reg. 3/02, s. 23 (8).

(9) If the percentage in paragraph 11 of subsection (8) is equal to or greater than 50, subsection (7) applies for the taxation year.  O. Reg. 3/02, s. 23 (9).

(10) Despite subsection (1) but subject to section 24, if the amount determined under subsection (1) exceeds the uncapped taxes, the taxes for school purposes under this Part are equal to the uncapped taxes.  O. Reg. 3/02, s. 23 (10).

Provision for recoveries

24. (1) Subject to subsection (4), the Minister of Finance shall establish the percentage for limiting tax decreases in respect of properties in any property class subject to this Part for a taxation year, to provide for recovery of all or part of the revenues foregone in a year as a result of the application of section 23 to other properties in the property class.  O. Reg. 3/02, s. 24 (1); O. Reg. 227/09, s. 1.

(2) The limit of tax decreases in subsection (1) applies to all properties in the property class whose taxes for school purposes for the previous year, as determined under subsection 23 (2), exceed their taxes for school purposes for taxation year.  O. Reg. 3/02, s. 24 (2).

(3) The amount recovered within each class within each school locality must be sufficient, but must not exceed, the amount necessary to provide for the revenue foregone as a result of the application of section 23 to properties in the property class.  O. Reg. 3/02, s. 24 (3).

(4) The percentage established under subsection (1) is limited as follows:

1. Calculate the total revenues foregone as a result of the application of section 23 to properties in the property class.

2. Calculate the total difference between the taxes for school purposes for all properties in the property class referred to in subsection (2) for the previous year, as determined under subsection 23 (2), and the taxes for school purposes for those properties for the taxation year.

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 paragraph 3 must not exceed 100 per cent.  O. Reg. 3/02, s. 24 (4).

(5) The taxes for school purposes for the taxation year on a property to which this section applies are determined as follows:

1. Determine the taxes for school purposes for the property for the previous year under subsection 23 (2).

2. Determine the amount of the difference between the taxes for school purposes for the property for the previous year, as determined under paragraph 1 and the uncapped taxes for school purposes for the property for the taxation year.

3. Multiply the percentage established under this section for the property class the property is in, by the amount determined under paragraph 2.

4. The taxes for school purposes for the taxation year are equal to the uncapped taxes for the taxation year plus the amount determined under paragraph 3.  O. Reg. 3/02, s. 24 (5).

(6) If an additional assessment is made to a property that is subject to this section that increases the assessment of that property for the taxation year, subsection (5) does not apply to the additional taxes for school purposes for the year attributable to the additional assessment.  O. Reg. 3/02, s. 24 (6).

Tenants of leased properties

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

(a) Part XXII.2 of the Municipal Act, as it applies under section 10 of Ontario Regulation 509/98, applied to the leased property 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.  O. Reg. 3/02, s. 25 (1).

(2) This section does not apply if the leased premises are classified in the multi-residential property class.  O. Reg. 3/02, s. 25 (2).

(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.  O. Reg. 3/02, s. 25 (3).

(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 school purposes for the 2001 or a subsequent taxation year that is greater than the tenant’s cap for the taxation year as determined under subsection (5).  O. Reg. 3/02, s. 25 (4).

(5) The tenant’s cap referred to in subsection (4) for a taxation year is determined as follows:

1. Determine the amount the tenant was required to pay on account of taxes for school purposes for the previous year.

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

3. Add the amounts determined under paragraphs 1 and 2.  O. Reg. 3/02, s. 25 (5).

(6) For the purposes of subsections (4) and (5), an amount the tenant is required to pay under section 444.1 of the Municipal Act, as made applicable by section 8, is deemed to be an amount the tenant is required to pay under the lease on account of taxes levied for school purposes.  O. Reg. 3/02, s. 25 (6).

(7) If this section applies with respect to taxes attributable to part of a year, the tenant’s cap determined under subsection (5) for the year must be reduced proportionally.  O. Reg. 3/02, s. 25 (7).

(8) 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.  O. Reg. 3/02, s. 25 (8).

(9) Subsection (8) 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.  O. Reg. 3/02, s. 25 (9).

(10) 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.  O. Reg. 3/02, s. 25 (10).

Recouping landlord’s shortfall

26. (1) A landlord may require a tenant to pay an amount on account of taxes for 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) of the Municipal Act, in respect of other leased premises that form part of the property.  O. Reg. 3/02, s. 26 (1).

(2) Subsection 447.71 (8) of the Municipal Act applies, with necessary modifications, with respect to an amount a tenant is required to pay under subsection (1).  O. Reg. 3/02, s. 26 (2).

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

(a) section 25 does not apply to the tenant; and

(b) the tenant’s lease was entered into before December 18, 1998, the tenant’s tenancy has been continuous since that date and Part XXII.2 of the Municipal Act, as it applies under section 10 of Ontario Regulation 509/98, applied to the property.  O. Reg. 3/02, s. 26 (3).

part viii
cancellation, reduction or refund of taxes

Application for cancellation

27. (1) An application to the levying board for the cancellation, reduction or refund of taxes levied for school purposes 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.  O. Reg. 3/02, s. 27 (1).

(2) Section 442 of the Municipal Act, with necessary modifications, applies to an application made under subsection (1).  O. Reg. 3/02, s. 27 (2).