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Municipal Act, 2001
Loi de 2001 sur les municipalités

ONTARIO REGULATION 73/03

TAX MATTERS — SPECIAL TAX RATES AND LIMITS

Consolidation Period:  From March 9, 2017 to the e-Laws currency date.

Last amendment: O. Reg. 62/17.

This Regulation is made in English only.

CONTENTS

PART I
INTERPRETATION

1.

Definitions

2.

Application

PART II
DETERMINATION OF TAX RATES IF SUBSECTION 311 (7) OR 312 (7) OF THE ACT APPLIES

3.

General tax rate if s. 311 (7) or 312 (7) of the Act applies

4.

Municipal levy restriction thresholds

6.

Special levy for tax increase

7.

Maximum tax ratios for 2004 and subsequent years

8.

Maximum tax rates and revenue limit if s. 3 (2) applies

PART II.0.1
GRADUATED TAX RATES — SUBSECTION 314 (1) OF THE ACT

8.0.0.1

Landfill property class

PART II.1
APPLICATION OF PART IX OF THE ACT AND PHASING OUT OF THE PART

8.0.1

Resort condominium property class

8.0.2

By-law to exempt property from the application of Part IX

8.1

Casino Niagara

8.2

By-law to end the application of Part IX immediately

8.3

By-law to phase out the application of Part IX

PART III
ADJUSTMENT TO TAXES — SUBSECTION 329 (1) OF THE ACT

9.

Application of Part

10.

Levy change adjustment

11.

Actual tax rate for a taxation year

12.

Notional tax rate to raise the previous year’s levies

13.

Merged area deemed to be local municipality

14.

Graduated tax rates

15.

Previously unorganized territory

PART III.1
MUNICIPAL CAPPING OPTIONS UNDER PART IX OF THE ACT

15.1

Adjustments under par. 2 i A of s. 329.1 (1) of the Act

15.2

Adjustment to par. 3 and 4 of s. 329.1 (1) of the Act

PART IV
PRESCRIBED ADJUSTMENTS UNDER SECTION 330 OF THE ACT

16.

No adjustment for changes in taxes for school purposes

17.

Adjustment for 2003 and subsequent years, various provisions

17.1

Adjustment, par. 1 of s. 330 (4) of the Act

18.

Adjustment, par. 6 of s. 330 (8) of the Act

19.

Taxes not to be lower than uncapped taxes

20.

Previously unorganized territory

PART V
MISCELLANEOUS

21.

Special rule for assessments under ss. 33 and 34 of the Assessment Act

22.

Special rule, eligible property under s. 331 of the Act

22.1

Identification of comparable properties, subss. 331 (6), (7) of the Act

23.

Certain payments in lieu of taxes deemed to be taxes

PART VI
TAX CAPPING ON CONSOLIDATION OR DIVISION OF PARCELS

24.

Application and interpretation

25.

Consolidation of parcels, par. 1 of subs. 329 (2) of the Act

26.

Severance or subdivision of land, par. 1 of subs. 329 (2) of the Act

27.

Portion of parcel in same property class as original parcel

28.

Change in proportions of parcel in different property classes

29.

Change in tax exempt portion of a parcel

30.

Change in subclass assessment of a property

31.

Mid-year demolition, etc.

32.

Comparable property for purposes of s. 331 of the Act

 

PART I
interpretation

Definitions

1. (1) In this Regulation,

“commercial classes” has the meaning set out in subsection 308 (1) of the Act;

“former municipality” means a municipality as it existed on the day before a municipal restructuring took effect under the Act or the Old Act;

“industrial classes” has the meaning set out in subsection 308 (1) of the Act;

“merged area” means, in respect of a restructured municipality, a part of the restructured municipality that, before the restructuring, was,

(a) all or part of a former municipality, or

(b) unorganized territory;

“previous year” means, in respect of a taxation year, the immediately preceding taxation year;

“qualifying taxation year” means the 2017 taxation year;

“taxation year” means a calendar year;

“uncapped taxes” means, in respect of a taxation year, the taxes for municipal and school purposes that would have been imposed for the year if Part IX of the Act had not applied.  O. Reg. 73/03, s. 1 (1); O. Reg. 160/09, s. 1; O. Reg. 57/10, s. 1; O. Reg. 337/11, s. 1; O. Reg. 61/12, s. 1; O. Reg. 444/12, s. 1; O. Reg. 3/14, s. 1; O. Reg. 12/15, s. 1; O. Reg. 106/16, s. 1; O. Reg. 62/17, s. 1.

(2) The tax rate for a taxation year for school purposes is the tax rate prescribed for that year under section 257.12 of the Education Act.  O. Reg. 73/03, s. 1 (2).

Application

2. (1) This Regulation applies for the 2003 and subsequent taxation years. O. Reg. 73/03, s. 2.

(2) Subsections 22 (3.1) and (3.2) also apply for the 2001 and 2002 taxation years. O. Reg. 342/12, s. 2.

part ii
Determination of tax rates if subsection 311 (7) or 312 (7) of the Act applies

General tax rate if s. 311 (7) or 312 (7) of the Act applies

3. (1) This section provides for the manner in which the tax rates on property in a property class are to be determined under subsections 311 (7) and 312 (7) of the Act if the conditions set out in those subsections are satisfied.  O. Reg. 73/03, s. 3 (1).

(2) The tax rate for the general levy for the taxation year for the property class shall not exceed the sum of,

(a) the maximum class rate for the year determined for the property class under section 8; and

(b) the additional rate for the property class for the year that is determined under subsection (3) if,

(i) the municipality has calculated the tax rate for the property class pursuant to a regulation made under subsection 361 (11) of the Act, and

(ii) the property class is one of the commercial classes or industrial classes.  O. Reg. 73/03, s. 3 (2).

(3) The additional rate for a property class for a taxation year for the purposes of clause (2) (b) is determined in the following manner:

1. Determine the lowest rate that would raise an amount sufficient to fund rebates made under section 361 of the Act in respect of property in,

i. the commercial classes, if the property class is one of the commercial classes, or

ii. the industrial classes, if the property class is one of the industrial classes.

2. If the property class is one of the commercial classes, allocate to the property class the rate that will result in the rates on all the commercial classes being in the same proportion to one another as the tax ratios established under section 308 of the Act for the commercial classes.

3. If the property class is one of the industrial classes, allocate to the property class the rate that will result in the rates on all the industrial classes being in the same proportion to one another as the tax ratios established under section 308 of the Act for the industrial classes.  O. Reg. 73/03, s. 3 (3).

(3.1) Despite clause (2) (a), for a qualifying taxation year, a municipality may elect to apply a different tax rate for the general levy for a taxation year for the property class that does not exceed the rate determined using the formula:

in which,

  “G” is the actual tax rate for the residential property class as calculated under section 11, excluding the tax rate for school purposes,

  “H” is the notional tax rate for the residential property class as calculated under section 12, excluding the tax rate for school purposes, and

“I” is the notional tax rate, as calculated under section 12, for the property class to which subsection 311 (7) or 312 (7) of the Act applies, excluding the tax rate for school purposes.

O. Reg. 66/04, s. 1; O. Reg. 58/05, s. 1; O. Reg. 44/06, s. 1; O. Reg. 172/07, s. 1; O. Reg. 105/08, s. 1; O. Reg. 160/09, s. 2 (1).

(4) Subsection (3.1) does not apply to the multi-residential property class. O. Reg. 62/17, s. 2.

Municipal levy restriction thresholds

4. The following tax ratios are prescribed for the purposes of subsections 311 (7) and 312 (7) of the Act:

1. 2.00 for the multi-residential property class.

2. 1.98 for the commercial classes.

3. 2.63 for the industrial classes.  O. Reg. 73/03, s. 4; O. Reg. 62/17, s. 3.

5. Revoked: O. Reg. 102/16, s. 1.

Special levy for tax increase

6. (1) If, in 2003 or a subsequent taxation year, subsection 7 (1) or (2) applies to a property class of the municipality, the municipality shall raise an amount by special levy equal to the amount by which its revenue was reduced by the application of that subsection to the property class.  O. Reg. 73/03, s. 6 (1); O. Reg. 102/16, s. 2 (1).

(2) The special levy shall be raised under subsection 311 (4) or 312 (4) of the Act, as applicable, on all property that is not in a property class to which subsection 7 (1) or (2) applies for the year.  O. Reg. 73/03, s. 6 (2); O. Reg. 102/16, s. 2 (2).

Maximum tax ratios for 2004 and subsequent years

7. (1) If section 6 applied in the previous year, the tax ratio established by the municipality under section 308 of the Act for the property class for a taxation year after 2003 shall not exceed the tax ratio calculated in the following manner:

1. Identify the general levy tax rate for the residential property class, as determined by the municipality for the previous year under section 312 of the Act.

2. Determine the increased residential tax rate by adding the tax rate identified in paragraph 1 and the rate for the special levy for the residential property class for the previous year, as determined under section 6.

3. Divide the previous year’s general levy tax rate for the property class that is subject to section 3, as determined by the municipality for the previous year under section 312 of the Act, by the increased residential tax rate determined under paragraph 2.  O. Reg. 73/03, s. 7 (1).

(2) If section 6 applied in the previous year, the tax ratio established by the municipality under section 308 of the Act for the property class for a taxation year after 2003 shall not exceed the tax ratio calculated in the following manner:

1. Identify the general upper-tier levy tax rate for the residential property class, as determined by the upper-tier municipality for the previous year under section 311 of the Act.

2. Identify the upper-tier special levy tax rate for the special levy for the residential class for the previous year, as determined under this subsection.

3. Multiply the upper-tier special levy tax rate identified in paragraph 2 by the upper-tier weighting factor for the taxation year, as determined under subsection (3).

4. Determine the increased tax rate for the residential property class by adding the tax rate identified in paragraph 1 and the product obtained under paragraph 3.

5. Divide the previous year’s general upper-tier levy tax rate for the property class that is subject to section 3, as determined by the municipality for the previous year under section 311 of the Act, excluding any additional rate calculated under subsection 3 (2), by the increased tax rate for the residential property that is determined under paragraph 4.  O. Reg. 73/03, s. 7 (2); O. Reg. 102/16, s. 3 (1).

(3) The upper-tier weighting factor for a taxation year shall be determined in the following manner:

1. Determine the sum of the general levies for all property classes levied for upper-tier purposes for the previous year under section 311 of the Act.

2. Determine the sum of the general levies for all property classes levied for lower-tier purposes for the previous year under section 312 of the Act.

3. Add the amounts determined under paragraphs 1 and 2.

4. Divide the amount determined under paragraph 1 by the sum obtained under paragraph 3.  O. Reg. 73/03, s. 7 (3); O. Reg. 450/03, s. 1; O. Reg. 102/16, s. 3 (2, 3).

Maximum tax rates and revenue limit if s. 3 (2) applies

8. (1) If the tax rates for the general levy imposed for 2003 or a subsequent taxation year by a local municipality under section 312 of the Act or by an upper-tier municipality under section 311 of the Act would otherwise result in revenues that would exceed the revenue limit for the municipality for the year, as determined under subsection (4), the maximum property class tax rate for the year for a property class in the municipality to which subsection 3 (2) applies in the year shall be the rate determined as follows:

1. Determine the total weighted assessment for the municipality by adding the weighted assessments for all of the property classes in the municipality, as determined under subsection 12 (4).

2. For the general upper-tier levy or local municipal levy, determine the residential rate for the taxation year by dividing the revenue limit for the municipality, as determined under subsection (4), by the total weighted assessment for the municipality determined under paragraph 1.

3. The maximum property class tax rate for the taxation year for a property class in the municipality to which subsection 3 (2) applies is the product determined by multiplying the residential rate for the taxation year, determined under paragraph 2, by the tax ratio for the property class for the taxation year as determined under section 7.

4. For the purposes of paragraph 3, the maximum tax ratio for a property class for a taxation year is the tax ratio determined for the year under section 7 or, in the case of a local municipality that is a lower-tier municipality, the tax ratio adopted by the upper-tier municipality for the taxation year.  O. Reg. 73/03, s. 8 (1); O. Reg. 66/04, s. 2 (1); O. Reg. 102/16, s. 4 (1-4).

(2, 3) Revoked: O. Reg. 102/16, s. 4 (5).

(4) The revenue limit for an upper-tier or local municipality for a taxation year after 2003 shall be determined in the following manner:

1. Identify the general levy tax rate for each property class, as determined by the municipality for the previous year under section 311 or 312 of the Act.

2. Increase the tax rate determined under paragraph 1 by adding the special levy tax rate for the property class for the previous year, if any, as determined under section 6.

3. Determine the revenue for the year for each property class by multiplying the tax rate for the property class, as determined under paragraph 2, by the sum of the assessments for all properties in the property class.

4. Determine the revenue limit for the municipality for the year by adding the revenue for the year, as determined under paragraph 3, for all property classes in the municipality.  O. Reg. 73/03, s. 8 (4).

(4.1) For a qualifying taxation year, if a municipality has elected under subsection 3 (3.1) to apply a different tax rate for the general levy for a property class, the revenue limit for the year under subsection (4) shall be deemed to be the amount determined under the following rules:

1. For each property class for which the municipality has elected under subsection 3 (3.1), determine the increase in revenue for the year for the property class as a result of the election.

2. Add the amounts determined under paragraph 1 to the revenue limit for a qualifying taxation year that would otherwise be determined under subsection (4) without the application of this subsection.  O. Reg. 66/04, s. 2 (2); O. Reg. 58/05, s. 2; O. Reg. 44/06, s. 2; O. Reg. 172/07, s. 2; O. Reg. 160/09, s. 3.

(5) For the purposes of subsection (4), the assessment for a property in a property class is the assessment for the property for the previous taxation year,

(a) less the amount, if any, equal to 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 year; and

(b) after all adjustments to the assessment, if any, made under subsection 311 (3) or 312 (3) of the Act.  O. Reg. 73/03, s. 8 (5).

PART II.0.1
Graduated Tax Rates — Subsection 314 (1) of the Act

Landfill property class

8.0.0.1 The landfill property class is prescribed for the purposes of clause 314 (1) (a) of the Act. O. Reg. 62/17, s. 4.

Part II.1
Application of Part IX of the Act And Phasing Out of the Part

Resort condominium property class

8.0.1 Property in the resort condominium property class is exempt from the application of Part IX of the Act.  O. Reg. 214/05, s. 1.

By-law to exempt property from the application of Part IX

8.0.2 (1) A property is exempt from the application of Part IX of the Act for a taxation year if a by-law has been enacted by a municipality, other than a lower-tier municipality, that provides that this section applies within the municipality for the year.  O. Reg. 160/09, s. 4; O. Reg. 102/16, s. 5 (1).

(2) A by-law under subsection (1) may require that any of the following conditions must be met in order for a property to be exempt:

1. The taxes for the property in the previous year were equal to its uncapped taxes for that year.

2. As a result of Part IX of the Act, the taxes for the property in the previous year were lower than the property’s uncapped taxes for that year, but in the current year, if Part IX of the Act applied, the property’s taxes would be equal to its uncapped taxes, or a tax decrease for the property would be limited.

3. A tax decrease for the property in the previous year was limited under Part IX of the Act, but in the current year, if Part IX of the Act applied, the property’s taxes would be equal to its uncapped taxes, or a tax increase for the property would be limited.  O. Reg. 160/09, s. 4.

(3) A by-law under subsection (1) must be passed on or before the time provided for in subsection 329.1 (2) of the Act.  O. Reg. 160/09, s. 4.

(4) Revoked: O. Reg. 102/16, s. 5 (2).

Casino Niagara

8.1 The property located in the City of Niagara Falls with the assessment roll number 2725 030 002 042 00 0000 is exempt from the application of Part IX of the Act.  O. Reg. 368/03, s. 1.

By-law to end the application of Part IX immediately

8.2 (1) A municipality, other than a lower-tier municipality, may pass a by-law providing that Part IX of the Act does not apply to any property in the commercial classes, to any property in the industrial classes or to any property in the multi-residential property class if, in the previous taxation year in the municipality, there were no properties within the commercial classes, industrial classes or multi-residential property class, as the case may be. O. Reg. 102/16, s. 6.

(2) A municipality, other than a lower-tier municipality, may pass a by-law providing that Part IX of the Act does not apply to any property in the commercial classes, to any property in the industrial classes or to any property in the multi-residential property class if, in the previous taxation year in the municipality, the taxes for each property in the commercial classes, industrial classes or multi-residential property class, as the case may be, were equal to the uncapped taxes for the property for the taxation year, as shown on the final tax bill for the taxation year for the property. O. Reg. 102/16, s. 6.

(3) A by-law under this section applies to the taxation year in which it is passed and to subsequent taxation years. O. Reg. 102/16, s. 6.

By-law to phase out the application of Part IX

8.3 (1) A municipality, other than a lower-tier municipality, may pass a by-law providing that the amount of taxes for municipal and school purposes for a taxation year under subsection 329 (1) of the Act for all property in the commercial classes, the industrial classes or the multi-residential property class shall be calculated in accordance with subsections (3) to (7), but a municipality may only pass the by-law if, in the previous taxation year, the taxes for each property in the commercial classes, the industrial classes or the multi-residential property class, as the case may be, were equal to or greater than 50 per cent of the uncapped taxes for the property for the taxation year, as shown on the final tax bill for the taxation year for the property. O. Reg. 102/16, s. 6.

(2) A by-law under this section must be passed in the first year to which it applies. O. Reg. 102/16, s. 6.

(3) Subsections (4) to (6) do not apply to a property in a taxation year if the taxes for the property for the taxation year calculated without reference to the by-law (but including the adjustment under paragraph 3 of subsection 329 (1) of the Act and the application of any municipal option under subsection 329.1 (1) of the Act) are equal to the uncapped taxes for the property for the taxation year. O. Reg. 102/16, s. 6.

(4) In the first year that a by-law under this section applies to the commercial classes, industrial classes or multi-residential property class, as the case may be, the amount added under paragraph 2 of subsection 329 (1) of the Act for the taxation year for a property in the class or classes shall be determined as follows:

1. Determine the amount calculated under paragraph 2 of subsection 329 (1) of the Act for the taxation year, using the applicable option, if any, under paragraph 1 or 2 of subsection 329.1 (1) of the Act.

2. Determine the amount of the uncapped taxes before the municipal levy increase for the year, if any, by dividing the amount of the uncapped taxes by 1 plus the adjustment fraction determined under subsection 10 (3).

3. Determine the difference between the amount determined under paragraph 2 and the amount determined under paragraph 1.

4. Multiply the amount determined under paragraph 3 by one-quarter.

5. The amount to be added under paragraph 2 of subsection 329 (1) of the Act is the sum of the amount that would have been added under that paragraph without the application of this section, and the amount determined under paragraph 4 of this subsection. O. Reg. 102/16, s. 6.

(5) If subsection (4) applied to a class or classes in the previous taxation year, and the by-law has not been revoked, the amount added under paragraph 2 of subsection 329 (1) of the Act for the taxation year for a property in the class or classes shall be determined as follows:

1. Determine the amount calculated under paragraph 2 of subsection 329 (1) of the Act for the taxation year, using the applicable option, if any, under paragraph 1 or 2 of subsection 329.1 (1) of the Act.

2. Determine the amount of the uncapped taxes before the municipal levy increase for the year, if any, by dividing the amount of the uncapped taxes by 1 plus the adjustment fraction determined under subsection 10 (3).

3. Determine the difference between the amount determined under paragraph 2 and the amount determined under paragraph 1.

4. Multiply the amount determined under paragraph 3 by one-third.

5. The amount to be added under paragraph 2 of subsection 329 (1) of the Act is the sum of the amount that would have been added under that paragraph without the application of this section, and the amount determined under paragraph 4 of this subsection. O. Reg. 102/16, s. 6.

(6) If subsection (5) applied to a class or classes in the previous taxation year, and the by-law has not been revoked, the amount added under paragraph 2 of subsection 329 (1) of the Act for the taxation year for a property in the class or classes shall be determined as follows:

1. Determine the amount calculated under paragraph 2 of subsection 329 (1) of the Act for the taxation year, using the applicable option, if any, under paragraph 1 or 2 of subsection 329.1 (1) of the Act.

2. Determine the amount of the uncapped taxes before the municipal levy increase for the year, if any, by dividing the amount of the uncapped taxes by 1 plus the adjustment fraction determined under subsection 10 (3).

3. Determine the difference between the amount determined under paragraph 2 and the amount determined under paragraph 1.

4. Multiply the amount determined under paragraph 3 by one-half.

5. The amount to be added under paragraph 2 of subsection 329 (1) of the Act is the sum of the amount that would have been added under that paragraph without the application of this section, and the amount determined under paragraph 4 of this subsection. O. Reg. 102/16, s. 6.

(7) No adjustment shall be made under paragraph 3 of subsection 329 (1) of the Act in the calculation of the taxes for a property to which subsections (4) to (6) of this section apply. O. Reg. 102/16, s. 6.

(8) If subsection (6) applies to property in the commercial classes, industrial classes or multi-residential property class, as the case may be, in the municipality in a taxation year, Part IX of the Act does not apply to any property in that class or classes for subsequent taxation years. O. Reg. 102/16, s. 6.

part iii
Adjustment to taxes — subsection 329 (1) of the Act

Application of Part

9. This Part provides for the adjustments to be made under paragraph 3 of subsection 329 (1) of the Act  in respect of changes in taxes for municipal purposes.  O. Reg. 73/03, s. 9; O. Reg. 62/17, s. 6.

Levy change adjustment

10. (1) The amount determined under paragraph 2 of subsection 329 (1) of the Act for a taxation year in respect of a property shall be adjusted,

(a) by increasing it by the amount determined for the year under subsection (2), if the amount determined under subsection (2) is positive; or

(b) by decreasing it by the amount determined for the year under subsection (2), if the amount determined under subsection (2) is negative.  O. Reg. 73/03, s. 10 (1).

(2) The amount referred to in clauses (1) (a) and (b) for a taxation year is determined by multiplying the amount determined under paragraph 2 of subsection 329 (1) of the Act for the taxation year by the adjustment fraction calculated under subsection (3) for that year.  O. Reg. 73/03, s. 10 (2).

(3) The adjustment fraction for a taxation year shall be calculated using the formula,

in which,

  “A” is the actual tax rate for the property for the taxation year, as described in section 11, and

  “B” is the notional tax rate to raise the previous year’s levies for the property, as determined under section 12.

O. Reg. 73/03, s. 10 (3).

Actual tax rate for a taxation year

11. (1) For the purposes of subsection 10 (3), the actual tax rate for a property for a taxation year means the sum of each tax rate for the taxation year for municipal or school purposes applicable to property in the property class and local municipality the property is in.  O. Reg. 73/03, s. 11 (1).

(2) Despite subsection (1), a special local municipality levy or special upper-tier levy for a taxation year applicable to property in a property class shall be included as a tax rate in the calculation of the actual tax rate only if the levy applies to at least 50 per cent of the sum of the assessments of all properties in that property class.  O. Reg. 73/03, s. 11 (2).

(3) Despite subsection (1), if the Municipal Extra Territorial Tax Act applies to the property, the actual tax rate for the property for 2005 or a subsequent taxation year is the sum of each tax rate for the taxation year for municipal purposes that is applicable to the property.  O. Reg. 367/05, s. 2.

Notional tax rate to raise the previous year’s levies

12. (1) For the purposes of subsection 10 (3), the notional tax rate to raise the previous year’s levies for a property means, in respect of a taxation year, the rate determined under the following rules for the property class and municipality the property is in:

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. Despite paragraph 1, only general or special levies that applied in the previous year to at least 50 per cent of the sum of the assessments for the taxation year for property in the property class in the municipality are included for the purposes of this subsection.

3. Determine the total weighted assessment for the municipality by adding the weighted assessment for the taxation year, as determined under subsection (4), for each property class to which the levy applied.

4. 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 3.

5. 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 4, by the tax ratio for the property class for the taxation year.

6. For each property class, 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 5, for the property class and the tax rate for the taxation year for school purposes. O. Reg. 73/03, s. 12 (1); O. Reg. 102/16, s. 7; O. Reg. 62/17, s. 7 (1).

(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 property class to the total assessment for property in the property class 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.  O. Reg. 73/03, s. 12 (2).

(3) For the purposes of paragraph 1 of subsection (2), the total assessment for property in a property class is determined by taking the sum of the assessments for the previous year for each property in the property class and adjusting the sum for the changes in assessment that would produce the changes in taxes referred to in,

(a) paragraphs 2 and 3 of subsection 318 (6) of the Act, if the property class is not subject to Part IX of the Act; or

(b) paragraphs 2, 3, 5 and 6 of subsection 329 (2) of the Act, if the property class is subject to Part IX of the Act.  O. Reg. 73/03, s. 12 (3).

(3.1) Subject to subsection (3.1.1), a municipality, other than a lower-tier municipality, may pass a by-law in a year opting to have subsections (3.2) to (3.4) apply for the year. O. Reg. 62/17, s. 7 (2).

(3.1.1) Before passing a by-law under subsection (3.1), a municipality shall send a copy of its projected calculations for the year under subsections (3.2) to (3.4) to the Minister of Finance. O. Reg. 62/17, s. 7 (2).

(3.1.2) 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 (3.1) in respect of levies for lower-tier purposes. O. Reg. 62/17, s. 7 (2).

(3.2) A municipality that has passed a by-law under subsection (3.1) 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 (3.3):

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. O. Reg. 62/17, s. 7 (2).

(3.3) Subject to subsection (3.4), if an event listed in paragraphs 3 to 5 of subsection (3.2) 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 (3.2), 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) 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. O. Reg. 62/17, s. 7 (2).

(3.4) A change to the assessed value of a property referred to in subsection (3.3) shall be excluded from the total assessment for property in the property class if the current value of the property for the 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. O. Reg. 62/17, s. 7 (2).

(4) For the purposes of paragraph 3 of subsection (1), the weighted assessment for a taxation year for each property class to which the levy applies is calculated using the formula,

C × D

in which,

  “C” is the sum of the assessments for the taxation year for properties in the property class to which the levy applies,

  “D” is the tax ratio for the property class for the taxation year.

O. Reg. 73/03, s. 12 (4); O. Reg. 62/17, s. 7 (3).

(5) For the purposes of subsection (4), 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.  O. Reg. 73/03, s. 12 (5).

(6) Despite paragraph 6 of subsection (1), if the Municipal Extra Territorial Tax Act applies to the property, the notional tax rate for 2005 or a subsequent taxation year to raise the previous year’s levies is the sum of the class rates for the previous year, as determined under paragraph 5 of subsection (1), for the applicable property class.  O. Reg. 367/05, s. 3.

Merged area deemed to be local municipality

13. If a municipal restructuring has occurred and tax rates for municipal purposes have been adopted for the taxation year pertaining exclusively to a merged area, the merged area shall be deemed to be a local municipality for the purposes of sections 10, 11 and 12 in respect of levies that apply only in the merged area.  O. Reg. 73/03, s. 13.

Graduated tax rates

14. For the purposes of this Part, the tax rate for a property with respect to which a by-law under section 314 of the Act applies is the tax rate that would have applied if section 314 of the Act had not applied.  O. Reg. 73/03, s. 14.

Previously unorganized territory

15. The following applies for the taxation year in which unorganized territory becomes part of a municipality and for the following two taxation years:

1. No account shall be taken of any adjustment made under paragraph 3 of subsection 447.68 (1) of the Old Act for 2002 and no adjustment shall be made under paragraph 3 of subsection 329 (1) of the Act in respect of changes in taxes for municipal purposes.

2. The property shall be deemed not to be part of the municipality for the purposes of this Part.  O. Reg. 73/03, s. 15.

PART III.1
MUNICIPAL CAPPING OPTIONS UNDER PART IX OF THE ACT

Adjustments under par. 2 i A of s. 329.1 (1) of the Act

15.1 (1) The following are prescribed as the adjustments to be made under sub-subparagraph 2 i A of subsection 329.1 (1) of the Act to the amount of the taxes for municipal and school purposes that would have been levied in respect of a property for the previous year but for the application of Part IX of the Act:

1. If a supplementary assessment or change in classification was made under section 34 of the Assessment Act during the previous 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 as if the increase in the assessment or the change in classification, as the case may be, had applied to the property for all of the previous year.

2. If the assessment of a property whose classification is in the subclass 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 previous year and if no portion of any building on the property began to be used for any purpose during the previous year, recalculate the taxes as if the increase in the assessment had applied to the property for all of the previous year.

3. If the council of a municipality cancels, reduces or refunds taxes under section 357 of the Act for the previous year on an application under clause 357 (1) (a), (b), (c), (d) or (f) of the Act or under section 358 of the Act for the previous year, recalculate the taxes as if the event that caused the cancellation, reduction or refund had occurred on January 1 of the previous year.

4. If the council of a municipality increases taxes under section 359 of the Act for the previous year, recalculate the taxes for the previous year accordingly.

5. If, as a result of an assessment under subsection 32 (2) or section 33 of the Assessment Act, the total taxes for municipal and school purposes for the property for the previous year are altered, recalculate the taxes for the previous year as if the alteration had applied to the property for all of the previous year.  O. Reg. 81/05, s. 1; O. Reg. 62/17, s. 9 (1).

(2) 10 per cent is the percentage prescribed to replace 5 per cent, in both instances where “5 per cent” appears in sub-subparagraph 2 i A of subsection 329.1 (1) of the Act. O. Reg. 102/16, s. 8; O. Reg. 62/17, s. 9 (2).

Adjustment to par. 3 and 4 of s. 329.1 (1) of the Act

15.2 $500 is the amount prescribed instead of $250 for the purposes of subparagraphs 3 i and 4 i of subsection 329.1 (1) of the Act. O. Reg. 102/16, s. 9; O. Reg. 62/17, s. 10.

PART IV
PRESCRIBED ADJUSTMENTS UNDER SECTION 330 OF THE ACT

No adjustment for changes in taxes for school purposes 

16. No adjustment shall be made for the purposes of the following provisions of the Act in respect of changes in taxes for school purposes:

1. Subsection 330 (2).

2. Paragraph 2 of subsection 330 (4).

3. Paragraphs 2 and 6 of subsection 330 (8).  O. Reg. 73/03, s. 16.

Adjustment for 2003 and subsequent years, various provisions

17. (1) This section applies for 2003 and subsequent taxation years for the purposes of subsection 330 (2), paragraph 2 of subsection 330 (4) and paragraph 2 of subsection 330 (8) of the Act.  O. Reg. 73/03, s. 17 (1).

(2) The amount of the adjustment to the taxes for a taxation year in respect of changes in taxes for municipal purposes shall be determined using the formula:

in which,

“E” is the amount of uncapped taxes for the taxation year, and

“F” is the adjustment fraction for the taxation year determined under subsection 10 (3).

O. Reg. 73/03, s. 17 (2).

Adjustment, par. 1 of s. 330 (4) of the Act

17.1 For the purposes of paragraph 1 of subsection 330 (4) of the Act, foregone revenues shall be determined after taking into account revenues gained or lost as a result of the application of paragraph 3 or 4 of subsection 329.1 (1) of the Act.  O. Reg. 81/05, s. 2.

Adjustment, par. 6 of s. 330 (8) of the Act

18. (1) This section applies for 2003 and subsequent taxation years for the purposes of paragraph 6 of subsection 330 (8) of the Act.  O. Reg. 73/03, s. 18 (1).

(2) The amount determined under paragraph 5 of subsection 330 (8) of the Act in respect of the taxation year shall be adjusted,

(a) by increasing it by the amount determined under subsection (3), if the amount determined under subsection (3) is positive; or

(b) by decreasing it by the amount determined under subsection (3), if the amount determined under subsection (3) is negative.  O. Reg. 73/03, s. 18 (2).

(3) The amount referred to in clauses (2) (a) and (b) is the amount determined by multiplying the amount determined under paragraph 5 of subsection 330 (8) of the Act by the taxation year adjustment fraction determined under subsection 10 (3).  O. Reg. 73/03, s. 18 (3).

Taxes not to be lower than uncapped taxes

19. Despite subsection 330 (8) of the Act, if the taxes for municipal and school purposes for a taxation year, as determined under that subsection, are less than the uncapped taxes for the year, the taxes for municipal and school purposes for the year shall be equal to the uncapped taxes for the year.  O. Reg. 73/03, s. 19.

Previously unorganized territory

20. The following applies for the taxation year in which unorganized territory becomes part of a municipality and for the following two taxation years:

1. No adjustment shall be made under any of the provisions of the Act listed in section 16 for the taxation year in which the unorganized territory becomes part of the municipality or for the following two taxation years.

2. Section 19 does not apply.

3. The property shall be deemed not to be part of the municipality for the purposes of this Part.  O. Reg. 73/03, s. 20.

PART V
MISCELLANEOUS

Special rule for assessments under ss. 33 and 34 of the Assessment Act

21. If an additional assessment is made under section 33 of the Assessment Act for a taxation year in relation to an improvement and, in relation to the same improvement, an additional assessment is made for the subsequent taxation year under section 34 of the Assessment Act, subsection 329 (7) of the Municipal Act, 2001 shall not apply with respect to the additional assessment for the subsequent taxation year.  O. Reg. 73/03, s. 21.

Special rule, eligible property under s. 331 of the Act

22. (1) None of the following properties that becomes taxable for municipal and school purposes in 2003 or a subsequent year is eligible property for the purposes of section 331 of the Act in the year the property becomes taxable:

1. Property of a municipal electricity utility as defined in section 88 of the Electricity Act, 1998.

2. Property acquired under a transfer order under subsection 34 (1) of the Social Housing Reform Act, 2000.

3. Property of a non-profit housing corporation referred to in subsection 13 (1) of the Housing Development Act.  O. Reg. 73/03, s. 22 (1).

(2) Subject to subsection (3), the following properties are deemed to be eligible property for the purposes of section 331 of the Act:

1. A vacant parcel of land that is severed from a larger parcel of land or that is a lot in a subdivided parcel of land, if the taxation year is the first year for which the parcel is included as a separate parcel on the assessment roll.

2. Despite subsection 329 (10) of the Act, property to which section 447.70 of the Old Act or section 331 of the Act applied in the previous year as a result of an assessment made under subsection 34 (2) of the Assessment Act or a severance or subdivision, if clause 329 (7) (a) of the Act applies to the property for the taxation year.

3. Property in respect of which an assessment could have been made under section 34 of the Assessment Act in the previous year if,

i. making the assessment in the previous year would have resulted in the application to the property of clause 447.65 (8) (a) of the Old Act or clause 329 (7) (a) of the Act, and

ii. the appropriate change is made on the assessment roll for the taxation year.  O. Reg. 450/03, s. 2.

(3) None of the following is eligible property for the purposes of section 331 of the Act:

1. Property that would otherwise be eligible property only because of a change in classification from one class in the commercial classes to another class in the commercial classes or from one class in the industrial classes to another class in the industrial classes.

1.1. Property that would otherwise be eligible property only because of a change in classification and that satisfies the following conditions:

i. After the change in classification, the property is classified in a single class of real property.

ii. In the previous year, portions of the property were deemed to be separate properties under subsection 327 (3) of the Act.

iii. In the previous year, the portions of the property described in subparagraph ii were subject to Part IX of the Act.

1.2 A portion of a property, if that portion would otherwise be eligible property only because of a change in classification and if that portion satisfies the following conditions:

i. After the change in classification, the portion is deemed to be a separate property under subsection 327 (3) of the Act.

ii. After the change in classification, the portion is in the same class of property as in the previous year.

iii. In the previous year, the portion was subject to Part IX of the Act.

2. A severed parcel that is described in subsection 26 (2), (3) or (4).

3. A severed parcel that fails to satisfy the minimum size requirements for development under the relevant municipal zoning by-law. O. Reg. 105/08, s. 2; O. Reg. 160/09, s. 5; O. Reg. 342/12, s. 3.

(3.1) Paragraphs 1.1 and 1.2 of subsection (3) are deemed to have applied in 2001 and subsequent taxation years. O. Reg. 342/12, s. 4.

(3.2) However, subsection (3.1) does not apply with respect to a property for a taxation year before 2008,

(a) if the assessment corporation provided a list of comparable properties to the local municipality under subsection 331 (8) of the Act or subsection 447.70 (8) of the old Act; and

(b) if it did so as a result of a change in classification of the property as described in paragraph 1.1 or 1.2 of subsection (3). O. Reg. 342/12, s. 4.

(4) Revoked: O. Reg. 62/17, s. 11.

Identification of comparable properties, subss. 331 (6), (7) of the Act

22.1 (1) This section applies with respect to the eligible properties in any municipality in which, under subparagraph 8 ii of subsection 329.1 (1) of the Act, the amount of taxes on the properties for a particular taxation year is to be determined by multiplying the amount of the uncapped taxes by 100 per cent.  O. Reg. 337/11, s. 2.

(2) Despite subsections 331 (6) and (7) of the Act, the assessment corporation is not required to identify comparable properties with respect to those eligible properties.  O. Reg. 337/11, s. 2.

Certain payments in lieu of taxes deemed to be taxes

23. Payments in lieu of taxes made under subsections 4 (3) and (4) of the Municipal Tax Assistance Act in respect of property described in paragraphs 1, 2 and 3 of subsection 22 (1) of this Regulation shall be deemed to be taxes for municipal and school purposes for the purposes of sections 329 and 330 of the Act.  O. Reg. 73/03, s. 23.

part vi
tax capping on consolidation or division of parcels

Application and interpretation

24. (1) In this Part,

“assessment roll” means the assessment roll under the Assessment Act;

“average level of taxation” means, in respect of two or more parcels of land for the previous year, the sum of the taxes for municipal and school purposes imposed on each parcel in the previous year divided by the sum of the taxes that would have been imposed for the previous year on each parcel if Part IX of the Act had not applied;

“consolidated parcel” means a parcel of land included on the assessment roll for the taxation year that was included on the assessment roll for the previous year as two or more separate parcels;

“level of taxation” means, in respect of a parcel of land for a year, the level of taxation for the parcel for the year that would be determined under paragraph 1 of subsection 331 (2) of the Act;

“original parcel” means, in respect of a taxation year, a parcel of land included on the assessment roll for the previous year that is severed or subdivided into two or more parcels of land that are included on the assessment roll for the current taxation year;

“property class” means a property class under the Assessment Act;

“separate parcel” means, in respect of a taxation year, a parcel of land included on the assessment roll for the previous year that is included on the assessment roll for the taxation year as part of a consolidated parcel;

“severed parcel” means, in respect of a taxation year, a parcel of land included on the assessment roll for the taxation year that was part of an original parcel included on the assessment roll for the previous year;

“subclass” means subclass of real property as defined in section 1 of the Assessment Act.  O. Reg. 450/03, s. 3.

(2) For the purposes of this Part, the commercial classes, as defined in subsection 308 (1) of the Act, shall be deemed to be a single property class and the industrial classes, as defined in that subsection, shall be deemed to be a single property class.  O. Reg. 450/03, s. 3.

(3) In this Part, a reference to a provision of the Act listed in Column 1 of the following Table shall be read as a reference to the provision of the Old Act listed in the same row in Column 2 of the Table if the reference is to the application of the provision for the 2002 taxation year:

Table

 

Column 1 — Act

Column 2 — Old Act

Part IX

Part XXII.3

Section 329

section 447.68

Section 330

section 447.69

Section 331

section 447.70

paragraph 1 of subsection 331 (2)

paragraph 1 of subsection 447.70 (2)

O. Reg. 450/03, s. 3.

Consolidation of parcels, par. 1 of subs. 329 (2) of the Act

25. (1) This section applies to determine, for the purposes of paragraph 1 of subsection 329 (2) of the Act, the amount of taxes for the previous year if two or more parcels of land that were included on the assessment roll for taxation in the previous year are consolidated into one consolidated parcel on the assessment roll for the taxation year.  O. Reg. 450/03, s. 3.

(2) The amount of the taxes for the previous year for the consolidated parcel is the sum of the taxes for municipal and school purposes levied on the separate parcels for the previous year if the property class in which each separate parcel was included for the previous year and the property class in which the consolidated parcel is included for the taxation year are the same.  O. Reg. 450/03, s. 3.

(3) Subject to subsection (4), if two or more separate parcels were included in different property classes in the previous year to which Part IX of the Act applied and portions of the consolidated parcel are in the same property classes in the taxation year as the separate parcels, the amount of taxes for the previous year for the portion of the consolidated parcel that is in the same property class for the taxation year as the corresponding separate parcel in the previous year is the amount of taxes for municipal and school purposes levied for the previous year on the separate parcel.  O. Reg. 450/03, s. 3.

(4) If any of the separate parcels was included in the subclass for vacant land for the previous year and the corresponding portion of the consolidated parcel is included for the taxation year in the subclass for excess land,

(a) the amount of the taxes for the previous year for the portion of the consolidated parcel that is included in the subclass for excess land in the taxation year is the amount of the taxes for municipal and school purposes that was levied on the separate parcel included in the subclass for vacant land for the previous year; and

(b) the amount of the taxes for the previous year for each portion of the consolidated parcel that is not included in the subclass for excess land in the taxation year is the amount of the taxes for municipal and school purposes that was levied for the previous year on the corresponding separate parcel if it was included in the same property class in the previous year as the portion of the consolidated parcel.  O. Reg. 450/03, s. 3.

(5) If two or more of the separate parcels were included in the same property class to which Part IX of the Act applied in the previous year but only a portion of the consolidated parcel is included in that property class in the taxation year, the amount of the taxes for the previous year for that portion of the consolidated parcel is the amount determined in the following manner:

1. Determine the average level of taxation of the separate parcels for the previous year.

2. Determine the tax rate levied by the municipality for the previous year on property in the same property class as that portion of the consolidated parcel.

3. Determine the assessment on the portion for the taxation year.

4. Determine the total assessment of the consolidated parcel.

5. Divide the amount determined under paragraph 3 by the amount determined under paragraph 4.

6. Determine the total assessment of the separate parcels for the previous year.

7. Multiply the quotient determined under paragraph 5 by the amount determined under paragraph 6.

8. Multiply the average level of taxation determined under paragraph 1 for the previous year by the tax rate determined under paragraph 2 for the previous year.

9. Multiply the product determined under paragraph 7 by the product determined under paragraph 8.  O. Reg. 450/03, s. 3.

(6) If two or more of the separate parcels were included in different property classes to which Part IX of the Act applied in the previous year and the consolidated parcel is included in the same property class for the taxation year as one of those separate parcels, the amount of the taxes for municipal and school purposes for the consolidated parcel for the previous year is the amount determined in the following manner:

1. Determine,

i. the level of taxation for the previous year of the separate parcel that was included in the same property class in the previous year as the consolidated parcel, if only one separate parcel was in the same property class for the previous year as the consolidated parcel, or

ii. the average level of taxation for the previous year of the separate parcels that were included in the same property class in the previous year as the consolidated parcel, if more than one separate parcel was in the same property class for the previous year as the consolidated parcel.

2. Determine the sum of the assessments for the previous year of all of the separate parcels that were in different property classes for the previous year than the consolidated parcel.

3. Determine the tax rate levied by the municipality for the previous year on property in the same property class as the consolidated parcel.

4. Multiply the sum of the assessments determined under paragraph 2 by the tax rate referred to in paragraph 3.

5. Multiply the product determined under paragraph 4 by the lesser of,

i. 1.00, and

ii. the level of taxation or average level of taxation for the previous year determined under paragraph 1.

6. Add the product determined under paragraph 5 to the taxes determined for the previous year under section 329, 330 or 331 of the Act for all of the separate parcels that were included in the same property class in the previous year as the consolidated parcel.  O. Reg. 450/03, s. 3.

(7) The amount of taxes for municipal and school purposes of the consolidated parcel for the previous year is the amount determined under subsection (8) if,

(a) two or more of the separate parcels that were consolidated for the taxation year were included in different property classes for the previous year;

(b) not all of the separate parcels that were consolidated were included in property classes that were subject to Part IX of the Act for the previous year;

(c) the consolidated parcel is included in a single property class that is subject to Part IX of the Act for the taxation year; and

(d) the property class in which the consolidated parcel is included for the taxation year is the same as the property class in which one of the separate parcels was included in the previous year.  O. Reg. 450/03, s. 3.

(8) For the purposes of subsection (7), the amount is determined as follows:

1. Determine,

i. the level of taxation for the previous year of the separate parcel that was included in the same property class in the previous year as the consolidated parcel, if only one separate parcel was in the same property class for the previous year as the consolidated parcel, or

ii. the average level of taxation for the previous year of the separate parcels that were included in the same property class in the previous year as the consolidated parcel, if more than one separate parcel was in the same property class for the previous year as the consolidated parcel.

2. Determine the sum of the assessments for the previous year of all separate parcels that were included in property classes that were not subject to Part IX of the Act.

3. Determine the tax rate levied by the municipality for the previous year on property in the same property class as the consolidated parcel.

4. Multiply the sum of the assessments determined under paragraph 2 by the tax rate referred to in paragraph 3.

5. Multiply the product determined under paragraph 4 by the lesser of,

i. 1.00, and

ii. the level of taxation or average level of taxation for the previous year determined under paragraph 1.

6. Add the product determined under paragraph 5 to the taxes determined for the previous year under section 329, 330 or 331 of the Act for all of the separate parcels that were in the same property class in the previous year as the consolidated parcel.  O. Reg. 450/03, s. 3.

Severance or subdivision of land, par. 1 of subs. 329 (2) of the Act

26. (1) This section applies in determining the amount of taxes for the previous year for a severed parcel for the purposes of paragraph 1 of subsection 329 (2) of the Act.  O. Reg. 450/03, s. 3.

(2) The amount of the taxes for municipal and school purposes for the previous year for a severed parcel that is in the same property class in the taxation year as the property class in which the original parcel was included for the previous year is the amount determined in the following manner, if the original parcel was not included in the previous year in the subclass for vacant land:

1. Determine the taxes for municipal and school purposes for the original parcel for the previous year under section 329, 330 or 331 of the Act.

2. Determine the ratio of the assessment for the taxation year of each severed parcel that is in the same class as the original parcel to the total assessment of the severed parcels for the taxation year.

3. Multiply the amount of taxes determined under paragraph 1 by the ratio determined under paragraph 2.  O. Reg. 450/03, s. 3.

(3) If a portion of the original parcel was included in the subclass for excess land for the previous year, the taxes for municipal and school purposes for the previous year for a severed parcel that is not in the subclass for vacant land for the taxation year and that is in the same property class as the corresponding portion of the original parcel that was not included in the subclass for excess land for the previous year is the amount of taxes levied on the corresponding portion of the original parcel in the previous year.  O. Reg. 450/03, s. 3.

(4) If the original parcel contains portions that are in different property classes to which Part IX of the Act applied and the severed parcels are contained in the same property class as a portion of the original parcel, the taxes for municipal and school taxes for the previous year for the severed parcel is the amount of the taxes levied on the corresponding portion of the original parcel.  O. Reg. 450/03, s. 3.

Portion of parcel in same property class as original parcel

27. (1) The section applies to a portion of a parcel of land if,

(a) the parcel of land was in a single property class that was subject to Part IX of the Act in the previous year; and

(b) the parcel of land is apportioned into more than one property class for the taxation year and the portion of the parcel is in the same class as the classification of the parcel from the previous taxation year.  O. Reg. 450/03, s. 3.

(2) The taxes for the previous year for the portion of the parcel of land shall be determined in the following manner:

1.   Determine the taxes for the original parcel for the previous year under section 329, 330 or 331 of the Act.

2.   Determine the ratio of the assessment of the apportioned parcel that is in the same property class as the original parcel for the taxation year to the total assessment of the parcel for the taxation year.

3.   Multiply the amount of taxes determined under paragraph 1 by the ratio determined under paragraph 2.  O. Reg. 450/03, s. 3.

Change in proportions of parcel in different property classes

28. (1) This section applies to a parcel that satisfies the following conditions:

1. Portions of the parcel were included in different property classes for the previous year.

2. Portions of the parcel are included in the same property classes for the taxation year and not in any other property class.

3. The proportion of the assessment of each portion of the parcel in a property class has changed between the previous year and the taxation year.

4. The change in the assessment for each portion of the parcel included in a property class for the taxation year is due only to a change in the proportion of the parcel included in each of the property classes, as a result of a change event described in clause (a) of the definition of “change event” in subsection 34 (2.2) of the Assessment Act.  O. Reg. 450/03, s. 3.

(2) The amount of taxes for municipal and school purposes for the previous year for the purposes of paragraph 1 of subsection 329 (2) of the Act for each portion of the parcel whose assessment increased between the previous year and the taxation year is determined as follows:

1. Determine the amount of taxes that were levied on the portion of the property for the previous year under section 329, 330 or 331 of the Act.

2. Determine the amount of taxes that would have been levied on the portion of the property for the previous year but for the application of Part IX of the Act.

3. Divide the amount determined under paragraph 1 by the amount determined under paragraph 2.

4. Determine the assessment of the portion of the property on the assessment roll for the taxation year.

5. Determine the total assessment of the property on the assessment roll for the taxation year.

6. Divide the amount determined under paragraph 4 by the amount determined under paragraph 5.

7. Multiply the quotient determined under paragraph 6 by the total assessment of the property on the assessment roll for the previous year.

8. Determine the amount of taxes that would have been levied in the previous year on the assessment amount determined under paragraph 7 but for the application of Part IX of the Act.

9. Subtract the amount determined under paragraph 2 from the amount determined under paragraph 8.

10. Multiply the remainder determined under paragraph 9 by the lesser of,

i. the quotient determined under paragraph 3, and

ii. 1.0.

11. Add the product determined under paragraph 10 to the amount determined under paragraph 1.  O. Reg. 450/03, s. 3.

(3) The taxes for municipal and school purposes for the previous year for the purposes of paragraph 1 of subsection 329 (2) of the Act for each portion of the parcel whose assessment decreased between the previous year and the taxation year is determined as follows:

1. Determine the assessment of the portion of the property on the assessment roll for the taxation year.

2. Determine the total assessment of the property on the assessment roll for the taxation year.

3. Divide the amount determined under paragraph 1 by the amount determined under paragraph 2.

4. Multiply the quotient determined under paragraph 3 by the total assessment of the property on the assessment roll for the previous year.

5. Determine under section 329, 330 or 331 of the Act the amount of taxes that would have been levied for the previous year on the assessment amount determined under paragraph 4.  O. Reg. 450/03, s. 3.

Change in tax exempt portion of a parcel

29. (1) This section applies if the portion of a parcel of land that is exempt from taxes for municipal and school purposes changes between the previous year and the taxation year and the change is due only to a change in the proportion of the parcel that is entitled to the exemption.  O. Reg. 450/03, s. 3.

(2) The amount of taxes for municipal and school purposes for the previous year for the taxable portion of the parcel for the purposes of paragraph 1 of subsection 329 (2) of the Act is determined as follows:

1. If the assessment of the taxable portion of the parcel increased between the previous year and the taxation year, the amount of the taxes for municipal and school purposes for the previous year for that portion is the amount that would be determined in respect of the portion of the parcel under subsection 28 (2).

2. If the assessment of the taxable portion of the parcel decreased between the previous year and the taxation year, the amount of the taxes for municipal and school purposes for the previous year for that portion is the amount that would be determined in respect of the portion of the parcel under subsection 28 (3).  O. Reg. 450/03, s. 3.

Change in subclass assessment of a property

30. (1) This section applies if,

(a) the proportion of the assessment on the portion of a property that is in a subclass for excess land, if any, changes between the previous year and the taxation year; and

(b) the change in the assessment referred to in clause (a) results from the application of municipal requirements for any development on the property.  O. Reg. 450/03, s. 3.

(2) The amount of taxes for the previous year for the purposes of paragraph 1 of subsection 329 (2) of the Act for the portion of the property that is not in a subclass for excess land is determined as follows:

1. Determine the assessment of the portion of the property that is not in a subclass for excess land for the taxation year.

2. Determine the total assessment of the property for the taxation year.

3. Determine the total assessment of the property for the previous year.

4.   Determine the tax rate levied by the municipality for the previous year on the portion of the property not in a subclass for excess land.

5.   Determine the level of taxation for the previous year for the property.

6.   Divide the amount determined under paragraph 1 by the amount determined under paragraph 2.

7.   Multiply together the following:

i. the quotient determined under paragraph 6,

ii. the amount determined under paragraph 3,

iii. the tax rate determined under paragraph 4, and

iv. the level of taxation determined under paragraph 5.  O. Reg. 450/03, s. 3.

(3) The amount of taxes for the previous year for the purposes of paragraph 1 of subsection 329 (2) of the Act for the portion of the property that is in a subclass for excess land is determined as follows:

1.   Determine the assessment of the portion of the property that is in a subclass for excess land for the taxation year.

2.   Determine the total assessment of the property for the taxation year.

3.   Determine the total assessment of the property for the previous year.

4.   Determine the applicable tax rate in the municipality for the previous year for the subclass for excess land.

5.   Determine the level of taxation for the previous year on the property.

6.   Divide the amount determined under paragraph 1 by the amount determined under paragraph 2.

7.   Multiply together the following:

i. the quotient determined under paragraph 6,

ii. the amount determined under paragraph 3,

iii. the tax rate determined under paragraph 4, and

iv. the level of taxation determined under paragraph 5.  O. Reg. 450/03, s. 3.

Mid-year demolition, etc.

31. (1) For the purposes of clause 357 (1) (b) of the Act, the recalculation of taxes for the taxation year shall include a reduction determined as follows:

1. If paragraph 2 does not apply, the reduction is,

i. 30 per cent of the taxes otherwise determined for the current taxation year, if the property was included in the commercial classes, or

ii. 35 per cent of the taxes otherwise determined for the current taxation year, if the property was included in the industrial classes.

2. If a by-law was passed under subsection 313 (1.1) of the Act that sets out a percentage of taxes between 30 and 35 per cent, the reduction is that percentage of the taxes.  O. Reg. 450/03, s. 3; O. Reg. 62/17, s. 12.

(2) Paragraph 5 of subsection 329 (2) of the Act applies to a property even if the owner of the property was entitled to but failed to make an application to the council of the municipality under clause 357 (1) (a), (b), (d) or (f) or section 358 of the Act for a cancellation, reduction or refund of taxes for the previous year, but only if the appropriate change is made to the assessment of the property on the assessment roll, as returned, for the taxation year.  O. Reg. 450/03, s. 3.

Comparable property for purposes of s. 331 of the Act

32. If subsection 328 (2) of the Act applies for the taxation year to a property that is identified as a comparable property under section 331 of the Act, the amount of taxes for municipal and school purposes that would have been imposed for the taxation year on the comparable property but for the application of Part IX of the Act, as determined for the purposes of paragraph 1 of subsection 331 (2) of the Act, shall be increased to the taxes for municipal and school purposes that would have been imposed for the taxation year but for the application of subsection 328 (2) of the Act.  O. Reg. 450/03, s. 3.