O. Reg. 121/07: TRADITIONAL MUNICIPAL TAXES, LIMITS AND COLLECTION

City of Toronto Act, 2006
Loi de 2006 sur la cité de Toronto

ONTARIO REGULATION 121/07

traditional municipal taxes, Limits and collection

Historical version for the period January 18, 2022 to March 23, 2022.

Last amendment: 15/22.

Legislative History: 93/08, 106/08, 161/09, 58/10, 338/11, 422/11, 63/12, 343/12, 443/12, 5/14, 11/15, 104/16, 107/16, 63/17, 64/17, 133/17, 263/17, 266/17, 394/17, 582/17, 21/18, 23/18, 357/18, 364/18, 383/18, 66/19, 5/20, 298/20, 44/21, 333/21, 15/22.

This Regulation is made in English only.

CONTENTS

 

part i
interpretation

Interpretation

1. (1) In this Regulation,

“commercial classes” has the meaning set out in subsection 275 (1) of the Act;

“industrial classes” has the meaning set out in subsection 275 (1) of the Act;

“optional property class” has the meaning set out in subsection 275 (1) of the Act;

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

“qualifying taxation year” means the 2022 taxation year;

“specified residential class” means the residential, farm, managed forest or new multi-residential property class;

“taxation year” means a calendar year;

“unadjusted tax ratio” means, in respect of a property class in the qualifying taxation year,

(a) the tax ratio for the property class for the previous year, or

(b) if section 7 applied to the property class in the previous year, the tax ratio for the property class for the qualifying taxation year that is determined under subsection 6 (1). O. Reg. 121/07, s. 1 (1); O. Reg. 161/09, s. 1; O. Reg. 58/10, s. 1; O. Reg. 338/11, s. 1; O. Reg. 63/12, s. 1; O. Reg. 443/12, s. 1; O. Reg. 5/14, s. 1; O. Reg. 11/15, s. 1; O. Reg. 104/16, s. 1; O. Reg. 64/17, s. 1; O. Reg. 23/18, s. 1; O. Reg. 66/19, s. 1; O. Reg. 5/20, s. 1; O. Reg. 44/21, s. 1; O. Reg. 333/21, s. 1.

(2) For the purposes of this Regulation, 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. 121/07, s. 1 (2).

part ii
Traditional Municipal Taxes

Tax Ratios — Allowable Ranges (Subsection 275 (6) of the Act)

Allowable ranges for tax ratios

2. (1) The allowable ranges for tax ratios set out in the Table to this section are prescribed, for the purposes of subsection 275 (6) of the Act, for the property classes set out in the Table.  O. Reg. 121/07, s. 2 (1).

(2) The upper and lower limits of the ranges are included in the ranges.  O. Reg. 121/07, s. 2 (2).

TABLE
ALLOWABLE RANGES FOR TAX RATIOS

 

Property class	Allowable range for tax ratio
Multi-residential property class	1.0 to 1.1
Commercial property class	0.6 to 1.1
Industrial property class	0.6 to 1.1
Pipe line property class	0.6 to 0.7
New multi-residential property class	1.0 to 1.1
Office building property class	0.6 to 1.1
Shopping centre property class	0.6 to 1.1
Parking lots and vacant land property class	0.6 to 1.1
Large industrial property class	0.6 to 1.1
Professional sports facility property class	0.001 to 1.1
Resort condominium property class	1.0 to 1.001
Residual commercial property class	0.6 to 1.1

O. Reg. 121/07, s. 2, Table; O. Reg. 93/08, s. 1.

Transition ratio for residual commercial property class

2.1 For the purposes of subsection 275 (8) of the Act, the transition ratio for the residual commercial property class for the 2008 taxation year is 3.67373.  O. Reg. 93/08, s. 2.

Transition ratios

2.2 (1) This section applies for the qualifying taxation year if, in comparison to the previous year, the percentage of total tax revenue for the qualifying taxation year derived from tax on property in a class other than a specified residential class would be lower in the qualifying taxation year if the unadjusted tax ratios for the qualifying taxation year were applied.  O. Reg. 58/10, s. 2 (1).

(2) If this section applies, the City may establish a tax ratio for the qualifying taxation year for the property class referred to in subsection (1) that is greater than the unadjusted tax ratio for the class but not greater than the transition ratio determined for the class under this section.  O. Reg. 161/09, s. 2; O. Reg. 58/10, s. 2 (2).

(3) If the City establishes a tax ratio for a property class under subsection (2), the transition ratios determined under this section apply to the City for the qualifying taxation year except for the purposes of,

(a) the specified residential classes; and

(b) an optional property class if the qualifying taxation year is the first year in which the optional property class applies in the City.  O. Reg. 161/09, s. 2; O. Reg. 58/10, s. 2 (3, 4).

(4) The following rules apply for the purposes of this section:

1. The total assessment of the properties in a property class for the previous year includes all assessments made for the purposes of taxation for the previous year that are made after the return of the roll for the previous year.

2. In determining the total assessment of the properties in a property class for the qualifying taxation year, the City may elect to exclude the assessment of a property in the property class,

i. if the current value of the property,

A. has, before any adjustment under subsection 19.1 (3) of the Assessment Act, increased by 100 per cent or such greater percentage as the City elects since 2012, or

B. has decreased by 25 per cent or such greater percentage as the City elects since 2012, and

ii. if the City also excludes the assessment of the property in determining the total assessment of the properties in the property class for the previous year.

3. An optional property class is considered to be a separate property class for the purposes of subsection (4).  O. Reg. 161/09, s. 2; O. Reg. 58/10, s. 2 (5-7); O. Reg. 443/12, s. 2.

(5) Subject to sections 2.2.2, 2.2.3, 2.3 and 2.4, the transition ratio for a property class for the purposes of subsection 275 (8) of the Act is determined as follows:

1. Multiply the unadjusted tax ratio for the property class for the qualifying taxation year by the amount of the total assessment of the properties in that property class for the year.

2. Multiply the unadjusted tax ratio for the property class for the qualifying taxation year by the amount of the total assessment of the properties in that property class for the previous year.

3. Determine the weighted reassessment change for the specified residential classes by dividing “A” by “B” where,

“A” is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the specified residential classes, and

“B” is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the specified residential classes.

4. Determine the weighted reassessment change for the commercial classes by dividing “C” by “D” where,

“C” is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the commercial classes, and

“D” is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the commercial classes.

5. Determine the weighted reassessment change for the industrial classes by dividing “E” by “F” where,

“E” is the sum of all amounts each of which is an amount determined under paragraph 1 for a property class included in the industrial classes, and

“F” is the sum of all amounts each of which is an amount determined under paragraph 2 for a property class included in the industrial classes.

6. For each property class that is not included in the specified residential classes, the commercial classes or the industrial classes, determine the weighted reassessment change for the property class by dividing the amount determined under paragraph 1 for the property class by the amount determined under paragraph 2 for the property class.

7. Determine the adjustment factor for each property class by dividing “G” by “H” where,

“G” is,

(a) the weighted reassessment change for the commercial classes as determined under paragraph 4 if the property class is included in the commercial classes,

(b) the weighted reassessment change for the industrial classes as determined under paragraph 5 if the property class is included in the industrial classes, or

(c) the weighted reassessment change for the property class as determined under paragraph 6 if the property class is not included in the specified residential classes, the commercial classes or the industrial classes, and

“H” is the weighted reassessment change for the specified residential classes as determined under paragraph 3.

8. Determine the transition ratio for the property class for the qualifying taxation year by dividing the unadjusted tax ratio for the property class for the year by the adjustment factor for the property class determined under paragraph 7.  O. Reg. 161/09, s. 2; O. Reg. 58/10, s. 2 (8, 9); O. Reg. 64/17, s. 2.

Transition ratio for multi-residential property class, higher percentage

2.2.1 (1) This section applies for the qualifying taxation year if,

(a) in comparison to the previous year, the percentage of total tax revenue for the qualifying taxation year derived from tax on property in the multi-residential property class would be higher in the qualifying taxation year if the unadjusted tax ratio for the qualifying taxation year was applied;

(b) the unadjusted tax ratio for the multi-residential property class for the qualifying taxation year is equal to or greater than 2.0; and

(c) the City does not establish a tax ratio under subsection 2.2 (2). O. Reg. 64/17, s. 3.

(2) The transition ratio for the multi-residential property class for the qualifying taxation year is the greater of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 2.2 (5). O. Reg. 64/17, s. 3.

Transition ratio for multi-residential property class, lower percentage

2.2.2 (1) This section applies for the qualifying taxation year if, in comparison to the previous year, the percentage of total tax revenue for the qualifying taxation year derived from tax on property in the multi-residential property class would be lower in the qualifying taxation year if the unadjusted tax ratio for the qualifying taxation year was applied. O. Reg. 64/17, s. 3.

(2) If the unadjusted tax ratio for the multi-residential property class is equal to or greater than 2.0, the transition ratio for the property class for the qualifying taxation year is equal to the unadjusted tax ratio. O. Reg. 64/17, s. 3.

(3) If the unadjusted tax ratio for the multi-residential property class is less than 2.0 and if the City establishes a tax ratio under subsection 2.2 (2), the transition ratio for the property class for the qualifying taxation year is the lesser of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 2.2 (5). O. Reg. 64/17, s. 3.

Transition ratio for multi-residential property class, equal percentage

2.2.3 (1) This section applies for the qualifying taxation year if the percentage of total revenue for the qualifying taxation year derived from tax on property in the multi-residential property class would be the equal to the previous year’s if the unadjusted tax ratio for the qualifying taxation year was applied. O. Reg. 64/17, s. 3.

(2) If the unadjusted tax ratio for the multi-residential property class is equal to or greater than 2.0, the transition ratio for the property class for the qualifying taxation year shall be determined as follows:

1. Take the greater of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 2.2 (5).

2. The transition ratio is the lesser of the amount determined under paragraph 1 and the unadjusted tax ratio for the property class. O. Reg. 64/17, s. 3.

(3) If the unadjusted tax ratio for the multi-residential property class is less than 2.0 and if the City establishes a tax ratio under subsection 2.2 (2), the transition ratio for the property class for the qualifying taxation year is the lesser of 2.0 and the transition ratio for the property class determined using the rules set out in subsection 2.2 (5). O. Reg. 64/17, s. 3.

New multi-residential class

2.3 For the 2017 taxation year, the transition ratio for the new multi-residential class in the City is 1.0. O. Reg. 263/17, s. 1.

Transition ratio for new classes

2.4 The following rules apply for the purposes of subsection 275 (8) of the Act in determining the transition ratio for a property class in the City for the qualifying taxation year:

1. Subject to section 2.3, the transition ratio for a property class other than an optional property class is the upper limit of the allowable range of tax ratios prescribed for the property class if no property class was classified in the property class in the previous year.  O. Reg. 161/09, s. 2; O. Reg. 58/10, s. 4; O. Reg. 263/17, s. 2.

Average transition ratios

2.5 (1) The following rules apply for the purposes of subsection 275 (8) of the Act for the qualifying taxation year:

1. The prescribed average transition ratio for the commercial classes is the weighted average of the qualifying taxation year’s transition ratios for the property classes within the commercial classes.

2. The prescribed average transition ratio for the industrial classes is the weighted average of the qualifying taxation year’s transition ratios for the property classes within the industrial classes.  O. Reg. 161/09, s. 2; O. Reg. 58/10, s. 5 (1-3).

(2) For the purposes of subsection (1), the weighted average of the qualifying taxation year’s transition ratios shall be calculated using the formula in subsection 275 (12) of the Act, except that the phrase “tax ratios” in the portion before paragraph 1 shall be read as “transition ratios” and the phrase “tax ratio” in paragraph 1 shall be read as “transition ratio”.  O. Reg. 161/09, s. 2; O. Reg. 58/10, s. 5 (4).

(3) This section does not apply to determine transition ratios for the commercial classes or industrial classes, as the case may be, in the first year an optional property class applies in a municipality.  O. Reg. 161/09, s. 2.

Local Municipal Levies — Exceptions (Subsection 277 (7) of the Act)

General tax rate if s. 277 (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 subsection 277 (7) of the Act if the conditions set out in that subsection are satisfied.  O. Reg. 121/07, 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 7; and

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

(i) the City has calculated the tax rate for the property class under section 8 or 9, and

(ii) the property class is one of the commercial classes or industrial classes.  O. Reg. 121/07, 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 329 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 275 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 275 of the Act for the industrial classes.  O. Reg. 121/07, s. 3 (3).

(4) Despite clause (2) (a), for a qualifying taxation year, the City 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,

A x {1 + 0.5 × [(B – C) / C]}

in which,

  “A” is the notional tax rate, as calculated under section 14 of this Regulation for the property class to which subsection 277 (7) of the Act applies, excluding the tax rate for school purposes,

  “B” is the actual tax rate for the residential property class as calculated under section 18 excluding the tax rate for school purposes, and

  “C” is the notional tax rate for the residential property class as calculated under section 19 excluding the tax rate for school purposes.

O. Reg. 121/07, s. 3 (4); O. Reg. 106/08, s. 1; O. Reg. 161/09, s. 3 (1); O. Reg. 66/19, s. 2.

(5) Subsection (4) does not apply to the multi-residential property class and the landfill property class. O. Reg. 63/17, s. 1; O. Reg. 133/17, s. 1.

Municipal levy restriction thresholds

4. The following tax ratios are prescribed for the purposes of subsection 277 (7) of the Act:

1. For the multi-residential property class, 2.00.

2. For the commercial classes, 1.98.

3. For the industrial classes, 2.63.

4. For the landfill property class, 25.00. O. Reg. 121/07, s. 4; O. Reg. 63/17, s. 2; O. Reg. 133/17, s. 2.

Special levy for tax increase

5. (1) If, in a taxation year, subsection 6 (1) or (2) applies to a property class of the City, the City 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. 121/07, s. 5 (1).

(2) The special levy shall be raised under subsection 277 (4) of the Act on all property that is not in a property class to which subsection 6 (1) or (2) applies for the year.  O. Reg. 121/07, s. 5 (2).

Maximum tax ratios

6. (1) If section 5 of this Regulation applied in the previous year, the tax ratio established by the City under section 277 of the Act for the property class for a taxation year 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 City for the previous year under section 277 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 5.

3. Divide the previous year’s general levy tax rate for the property class that is subject to section 3 of this Regulation, as determined by the City for the previous year under section 277 of the Act, by the increased residential tax rate determined under paragraph 2.  O. Reg. 121/07, s. 6 (1); O. Reg. 58/10, s. 6.

(2) If section 6 of Ontario Regulation 73/03 (Tax Matters — Special Tax Rates and Limits, 2003 and Later Years) made under the Municipal Act, 2001 applied in 2006, the tax ratio established by the City under section 277 of the Act for the property class for 2007 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 City for 2006 under section 308 of the Municipal Act, 2001.

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 2006, as determined under section 6 of Ontario Regulation 73/03.

3. Divide the general levy tax rate for the property class that is subject to section 3 of this Regulation, as determined by the City for 2006 under section 308 of the Municipal Act, 2001, by the increased residential tax rate determined under paragraph 2.  O. Reg. 121/07, s. 6 (2).

Maximum tax rates and revenue limit if s. 6 (2) applies

7. (1) If the tax rates for the general levy imposed for a taxation year by the City under section 277 of the Act would otherwise result in revenues that would exceed the revenue limit for the City for the year, as determined under subsection (2) or (4), the maximum property class tax rate for the year for a property class to which subsection 3 (2) of this Regulation applies in the year shall be the rate determined as follows:

1. Determine the total weighted assessment for the City by adding the weighted assessments for all of the property classes in the City, as determined under subsection 19 (5).

2. For the general municipal levy, determine the residential rate for the taxation year by dividing the revenue limit for the City, as determined under subsection (2) or (4), as the case may be, by the total weighted assessment for the City determined under paragraph 1.

3. The maximum property class tax rate for the taxation year for a property class in the City 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 6.

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 6.  O. Reg. 121/07, s. 7 (1); O. Reg. 63/17, s. 3.

(2) The revenue limit for the City for 2007 shall be determined in the following manner:

1. Identify the general levy tax rate for each property class, as determined by the City for 2006 under section 312 of the Municipal Act, 2001.

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 of Ontario Regulation 73/03 (Tax Matters — Special Tax Rates and Limits, 2003 and Later Years) made under the Municipal Act, 2001.

3. Determine the revenue for 2006 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 City for 2007 by adding the revenue for the year, as determined under paragraph 3, for all property classes in the City.  O. Reg. 121/07, s. 7 (2).

(3) For the purposes of subsection (2), the assessment for a property in a property class is the assessment for the property for 2006,

(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 Municipal Act, 2001 in the tax rate applicable to the property for 2006; and

(b) after all adjustments to the assessment, if any, made under subsection 312 (3) of the Municipal Act, 2001.  O. Reg. 121/07, s. 7 (3).

(4) The revenue limit for the City for 2008 or a subsequent taxation year shall be determined in the following manner:

1. Identify the general levy tax rate for each property class, as determined by the City for the previous year under section 277 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 5.

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 City for the year by adding the revenue for the year, as determined under paragraph 3, for all property classes in the City.  O. Reg. 121/07, s. 7 (4).

(5) For a qualifying taxation year, if the City has elected under subsection 3 (4) 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 City has elected under subsection 3 (4), 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. 121/07, s. 7 (5); O. Reg. 161/09, s. 4.

(6) For the purposes of subsection (4), for the 2017 taxation year,

(a) the general levy tax rate for the landfill property class for the previous year in the City is deemed to be equal to the general levy tax rate for the commercial property class for the previous year in the City; and

(b) the special levy tax rate for the landfill property class for the previous year in the City is deemed to be equal to the special levy tax rate for the commercial property class for the previous year in the City. O. Reg. 133/17, s. 3.

Graduated Tax Rates (Subsection 279 (1) of the Act)

Landfill property class

7.0.1 The landfill property class is prescribed for the purposes of clause 279 (1) (a) of the Act. O. Reg. 63/17, s. 4.

Non-application of s. 279 of the Act

7.0.1.1 Section 279 of the Act and any by-law made under that section do not apply to property,

(a) that is in the farmland awaiting development subclass described in subsection 19 (2) of Ontario Regulation 282/98 (General) made under the Assessment Act; and

(b) for which tax rates levied for municipal purposes are reduced under section 278 of the Act or a regulation or by-law made under that section. O. Reg. 44/21, s. 2.

Application of Part XII of the Act And Phasing Out of the Part

Landfill property class

7.0.2 (1) Part XII of the Act applies to property in the landfill property class in the City if the City has passed a by-law providing that the Part applies. O. Reg. 133/17, s. 4.

(2) A by-law under subsection (1) must be passed in the first taxation year to which it applies. O. Reg. 133/17, s. 4.

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

7.1 (1) A property is exempt from the application of Part XII of the Act for a taxation year if a by-law has been enacted by the City that provides that this section applies within the City for the taxation year. O. Reg. 133/17, s. 5.

(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 taxation year were equal to its uncapped taxes for that taxation year.

2. As a result of Part XII of the Act, the taxes for the property in the previous taxation year were lower than the property’s uncapped taxes for that taxation year, but in the current taxation year, if Part XII 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 taxation year was limited under Part XII of the Act, but in the current taxation year, if Part XII 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. 133/17, s. 5.

(3) A by-law under subsection (1) must be passed in the first taxation year to which it applies. O. Reg. 133/17, s. 5.

By-law to end the application of Part XII immediately

7.2 (1) The City may pass a by-law providing that Part XII 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 City, there were no properties within the commercial classes, industrial classes or multi-residential property class, as the case may be. O. Reg. 133/17, s. 5.

(2) The City may pass a by-law providing that Part XII 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 City, the taxes for every 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. 133/17, s. 5.

(3) A by-law under this section applies to the taxation year in which it is passed and to subsequent taxation years and cannot be revoked. O. Reg. 133/17, s. 5.

By-law to phase out the application of Part XII

7.3 (1) Subject to subsection (2), the City may pass a by-law providing that the amount of taxes for municipal and school purposes for a taxation year under subsection 291 (1) of the Act for all property in the commercial classes, the industrial classes, the landfill property class or the multi-residential property class shall be calculated in accordance with subsections (4) and (5) of this section. O. Reg. 133/17, s. 5.

(2) The City may only pass a by-law under subsection (1) if, in the previous taxation year, the taxes for each property in the commercial classes, the industrial classes, the landfill property class 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. In determining whether the taxes for each property in a class were equal to or greater than 50 per cent of its uncapped taxes, the City may opt to exclude properties in a subclass for vacant land. O. Reg. 133/17, s. 5.

(3) A by-law under subsection (1) must be passed in the first taxation year to which it applies. O. Reg. 133/17, s. 5.

(4) A by-law under subsection (1) does not apply to a property in a taxation year if the taxes for the property for the taxation year that would have been calculated for the property but for the application of the by-law (but including the application of any other option contained in a by-law passed by the City under Part XII of the Act) are equal to the uncapped taxes for the property for the taxation year. O. Reg. 133/17, s. 5.

(5) If a by-law under subsection (1) applies to a property in a taxation year, the taxes for the property shall be calculated as follows:

1. Subtract the taxes for the property as determined under paragraph 4 of subsection 291 (1) of the Act from the uncapped taxes for the property.

2. Multiply the amount determined under paragraph 1 by,

i. one-quarter, if the by-law under subsection (1) did not apply to the property in the previous taxation year,

ii. one-third, if the by-law under subsection (1) applied to the property in the previous taxation year but not in the taxation year before that, or

iii. one-half, if the by-law under subsection (1) applied to the property in the previous two taxation years.

3. The taxes for the property for the taxation year shall be equal to the sum of the amount determined under paragraph 2 and the taxes for the property as determined under paragraph 4 of subsection 291 (1) of the Act. O. Reg. 133/17, s. 5.

(6) If a by-law made under subsection (1) applies in the City to a property in the commercial classes, the industrial classes, the landfill property class or the multi-residential property class for three consecutive taxation years, every property in that class or in those classes in the City, as applicable, is exempt from the application of Part XII of the Act for every subsequent taxation year. O. Reg. 133/17, s. 5.

Local Municipal Levies — Funding of Rebates (Subsection 277 (11) of the Act)

Tax rate increases, general, re rebates to charities

8. (1) This section applies with respect to rebates under section 329 of the Act other than rebates described in subsection 9 (1).  O. Reg. 121/07, s. 8 (1).

(2) The tax rate for a property class may be greater than would be allowed under paragraph 2 of subsection 277 (6) of the Act to the extent necessary to raise an amount sufficient to fund the rebates under section 329 of the Act on property in the property class.  O. Reg. 121/07, s. 8 (2).

Tax rate increases, commercial and industrial classes, re rebates to charities

9. (1) This section applies with respect to rebates under section 329 of the Act,

(a) that are given to eligible charities; and

(b) that are on property in the commercial classes or industrial classes, within the meaning of subsection 275 (1) of the Act.  O. Reg. 121/07, s. 9 (1).

(2) The tax rates for the commercial classes may be greater than would be allowed under paragraph 2 of subsection 277 (6) of the Act to the extent necessary to raise an amount sufficient to fund the rebates described in subsection (1) on property in all the commercial classes subject to the requirement in subsection (3).  O. Reg. 121/07, s. 9 (2).

(3) The amounts by which the tax rates for each of the commercial classes are greater than what would be allowed but for this section must be in the same proportion to each other as the tax ratios established under section 275 of the Act for the commercial classes are to each other.  O. Reg. 121/07, s. 9 (3).

(4) The tax rates for the industrial classes may be greater than would be allowed under paragraph 2 of subsection 277 (6) of the Act to the extent necessary to raise an amount sufficient to fund the rebates described in subsection (1) on property in all the industrial classes subject to the requirement in subsection (5).  O. Reg. 121/07, s. 9 (4).

(5) The amounts by which the tax rates for each of the industrial classes are greater than what would be allowed but for this section must be in the same proportion to each other as the tax ratios established under section 275 of the Act for the industrial classes are to each other.  O. Reg. 121/07, s. 9 (5).

Subclass Tax Reductions (Subsection 278.1 (1) of the Act)

Small-scale on-farm business subclasses

9.1 75 per cent is prescribed for the purposes of clause 278.1 (1) (a) of the Act with respect to the small-scale on-farm business subclass for the industrial property class and the small-scale on-farm business subclass for the commercial property class. O. Reg. 364/18, s. 1.

Creative enterprise subclass

9.2 For the purposes of clause 278.1 (1) (b) of the Act, the prescribed range for the creative enterprise facilities subclass is between 0 and 50 per cent, inclusive. O. Reg. 383/18, s. 1.

Small business subclass

9.3 For the purposes of clause 278.1 (1) (b) of the Act, the prescribed range for the small business subclass is between 0 and 35 per cent, inclusive. O. Reg. 333/21, s. 2.

Taxation of Certain Railway, Power Utility Lands (Section 280 of the Act)

Tax rates

10. (1) The tax rate imposed on land described in paragraph 1 of subsection 280 (1) of the Act is $624.33 per acre.  O. Reg. 121/07, s. 10 (1); O. Reg. 394/17, s. 1; O. Reg. 357/18, s. 1.

(2) The tax rate imposed on land described in paragraph 2 of subsection 280 (1) of the Act is $834.02 per acre.  O. Reg. 121/07, s. 10 (2).

Prescribed power utilities

11. (1) A designated electricity utility, as defined in subsection 19.0.1 (5) of the Assessment Act, is prescribed as a power utility for the purposes of paragraph 2 of subsection 280 (1) of the City of Toronto Act, 2006.  O. Reg. 121/07, s. 11 (1).

(2) The following corporations are prescribed as power utilities for the purposes of paragraph 2 of subsection 280 (1) of the Act:

1. Great Lakes Power Limited.

2. Canadian Niagara Power Company Limited.

3. Cedar Rapids Transmission Company Limited.

4. Inco Limited.

5. NAV Canada.

6. Cornwall Street Railway Light & Power Company Limited.  O. Reg. 121/07, s. 11 (2).

Payments in Lieu of Taxes, Distribution (Subsections 284 (1) to (4) of the Act)

Distribution to school boards

12. (1) This section provides for the sharing of payments in lieu of taxes between the City and the school boards.  O. Reg. 121/07, s. 12 (1).

(2) If the City is eligible to receive a payment in lieu of taxes paid under subsection 4 (3) of the Municipal Tax Assistance Act in respect of any property for a year, the City shall distribute the amount in accordance with subsection (5) and the formula in subsection (3).  O. Reg. 121/07, s. 12 (2).

(3) If the City is eligible to receive a payment in lieu of taxes described in subsection (4) in respect of a residential property for a year, the City shall distribute, in accordance with subsection (5), an amount determined in accordance with the following:

School board (share) = Amount (of PIL) × [School taxes (class) / Total taxes (class)]

where,

“Amount (of PIL)” means the amount of the payment in lieu of taxes;

“School board (share)” means the amount to be distributed among the school boards;

“School taxes (class)” means the taxes levied for the year for school purposes on all property in the City in the same property class as the property in respect of which the City is eligible to receive the payment in lieu of taxes;

“Total taxes (class)” means the taxes levied for the year for municipal and school purposes on the property described in the definition of “School taxes (class)”.

O. Reg. 121/07, s. 12 (3); O. Reg. 66/19, s. 3.

(4) The payment in lieu of taxes referred to in subsection (3) is a payment in lieu of taxes paid under any of the following:

1. Subsection 4 (3) of the Municipal Tax Assistance Act.

2. Subsection 84 (2) or (5) of the Electricity Act, 1998.  O. Reg. 121/07, s. 12 (4).

(5) The amount that the City is required to distribute under subsection (3) shall be distributed in accordance with subsection 257.8 (2) of the Education Act.  O. Reg. 121/07, s. 12 (5).

(6) The fraction in the formula in subsection (3) must be calculated to five decimal places.  O. Reg. 121/07, s. 12 (6).

(7) In this section,

“residential property” means property in the residential/farm property class, the multi-residential property class or the new multi-residential property class prescribed under the Assessment Act.  O. Reg. 121/07, s. 12 (7).

Special rules for certain defence properties

13. (1) Section 12 applies with respect to a payment in lieu of taxes in respect of that portion of the lands and premises for which the assessment roll number is 19 08 031 580 00151 that are in the residential or multi-residential property class.  O. Reg. 121/07, s. 13 (1).

(2) Despite the Education Act, payments in lieu of taxes based on the tax rates set out in Ontario Regulation 392/98 (Tax Matters — Taxation of Certain Railway, Power Utility Lands) made under the Education Act, shall be retained by the City and not distributed to the school boards.  O. Reg. 121/07, s. 13 (2).

Instalment payments to school boards

14. (1) The City shall pay the amounts required by sections 12 and 13 for a year in four instalments due on or before March 31, June 30, September 30 and December 15 of the year determined in accordance with the following:

1. The first instalments to the school boards must be 25 per cent of the amount that the City was required to pay the school boards in respect of payments in lieu of taxes for the previous year.

2. The second instalment to a school board must be 50 per cent of the amount that the City is required to pay for the year less the amount of the first instalment.

3. The third instalment to a school board must be 25 per cent of the amount that the City is required to pay for the year.

4. The fourth instalment to a school board must be equal to the balance of the amount that the City is required to pay for the year.  O. Reg. 121/07, s. 14 (1).

(2) A school board may, by agreement with the City, provide for any number of instalments and their due dates other than those provided in subsection (1), and the agreement prevails over subsection (1).  O. Reg. 121/07, s. 14 (2).

Universities, etc., Liable to Tax (Subsections 285 (1) to (5) of the Act)

Tax payable by universities, etc.

15. The prescribed amount for the purposes of subsections 285 (1), (2), (3), (4) and (5) of the Act is $75 per year.  O. Reg. 121/07, s. 15.

part iii
Limits on Traditional Municipal Taxes

Determination of Maximum Taxes — Amounts to be Added (Subsection 291 (1) of the Act)

Amount to be added under par. 2 of s. 291 (1) of the Act

15.1 (1) In this section,

“adjusted uncapped taxes” means, in respect of a property for a taxation year, the amount determined by dividing the uncapped taxes for the taxation year by the sum of 1 and the adjustment fraction determined under subsection 17 (3);

“capped taxes” means, in respect of a property for a taxation year, the taxes that would have been calculated for the property but for the application of this section. O. Reg. 133/17, s. 6.

(2) The City may pass a by-law providing that the amount to be added under paragraph 2 of subsection 291 (1) of the Act for a property in the commercial classes, the industrial classes, the landfill property class or the multi-residential property class shall be calculated in accordance with this section. O. Reg. 133/17, s. 6.

(3) A by-law under subsection (2) applies to a property for a taxation year if the adjusted uncapped taxes for the property for the taxation year are greater than the uncapped taxes for the property for the previous taxation year. O. Reg. 133/17, s. 6.

(3.1) If the City passes a by-law under section 7.3 and a by-law under this section, the taxes for a property shall be calculated in accordance with subsection 7.3 (5) before any amount is calculated for the property under this section. O. Reg. 21/18, s. 1 (1).

(4) If the amount determined under subsection 17 (2) in calculating the capped taxes for the property for the taxation year is negative, the amount to be added under paragraph 2 of subsection 291 (1) of the Act shall be calculated as follows:

1. Take the adjusted uncapped taxes for the taxation year and subtract the uncapped taxes for the previous taxation year.

2. Add the amount determined in paragraph 1 to the capped taxes for the taxation year.

3. Subtract the amount determined under paragraph 1 of subsection 291 (1) of the Act from the lesser of the amount determined in paragraph 2 of this subsection and the uncapped taxes for the property for the taxation year.

4. The amount determined under paragraph 3 is the amount to be added under paragraph 2 of subsection 291 (1) of the Act. O. Reg. 133/17, s. 6.

(5) If the amount determined under subsection 17 (2) in calculating the capped taxes for the property for the taxation year is positive, the amount to be added under paragraph 2 of subsection 291 (1) of the Act shall be calculated as follows:

1. Take the uncapped taxes for the taxation year and subtract the uncapped taxes for the previous taxation year.

2. Subtract the amount determined under subsection 17 (2) in calculating the capped taxes for the property from the amount determined under paragraph 1 of this subsection.

3. Add the capped taxes for the taxation year to the amount determined in paragraph 2.

4. Subtract the taxes for the property as determined under paragraph 2 of subsection 291 (1) of the Act from the adjusted uncapped taxes for the property.

5. If section 7.3 applies with respect to the property, subtract the amount determined under paragraph 4 from the amount determined under paragraph 1 of subsection 7.3 (5).

6. If section 7.3 applies with respect to the property, multiply the amount determined under paragraph 5 by the fraction determined under paragraph 2 of subsection 7.3 (5).

7. If section 7.3 applies with respect to the property, subtract the amount determined under paragraph 6 from the amount determined under paragraph 3.

8. Subtract the amount determined under paragraph 1 of subsection 291 (1) of the Act from the lesser of the amount determined under paragraph 7, if applicable, and the uncapped taxes for the property for the taxation year.

9. The amount determined under paragraph 8 is the amount to be added under paragraph 2 of subsection 291 (1) of the Act. O. Reg. 133/17, s. 6; O. Reg. 21/18, s. 1 (2).

Determination of Maximum Taxes — Levy Change Adjustment (Subsection 291 (1) of the Act)

Application

16. (1) Sections 17 to 20 of this Regulation provide for the adjustments to be made under paragraph 3 of subsection 291 (1) of the Act in respect of changes in taxes for municipal purposes.  O. Reg. 121/07, s. 16.

(2) Sections 17 to 20 of this Regulation do not apply and no adjustment shall be made under paragraph 3 of subsection 291 (1) of the Act in respect of a property for a taxation year if a by-law under subsection 15.1 (2) of this Regulation applies to the property for the taxation year. O. Reg. 133/17, s. 7.

(3) In sections 17 to 20,

“specified subclass” means any subclass of real property prescribed under paragraph 2 or 3 of subsection 8 (1) of the Assessment Act or subsection 8 (1.1) of that Act. O. Reg. 15/22, s. 1.

Levy change adjustment

17. (1) Subject to section 17.1, the amount determined under paragraph 2 of subsection 291 (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. 121/07, s. 17 (1); O. Reg. 298/20, s. 2.

(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 291 (1) of the Act for the taxation year by the adjustment fraction calculated under subsection (3) for that year.  O. Reg. 121/07, s. 17 (2).

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

(D - E) / E

in which,

  “D” is the actual tax rate for the property for the taxation year, as described in section 18, and

“E” is the notional tax rate to raise the previous year’s levies for the property, as determined under section 19.

O. Reg. 121/07, s. 17 (3); O. Reg. 66/9, s. 4.

Same, excess land subclass, vacant land subclass

17.1 If a portion of a property is in the excess land subclass or the vacant land subclass, the amount determined under paragraph 2 of subsection 291 (1) of the Act for a taxation year in respect of the property shall be adjusted in accordance with the following:

1. Determine the percentage of the property that each of the following portions of the property represents:

i. The portion in a specified subclass, except that if there are portions in more than one type of specified subclass, a separate percentage shall be determined for each of the types of specified subclass.

ii. The portion that is not in a specified subclass.

2. Multiply each percentage determined under paragraph 1 by the amount determined under paragraph 2 of subsection 291 (1) of the Act for the taxation year in respect of the property to determine the amount apportioned to each portion of the property.

3. Calculate an adjustment fraction for each portion of the property using the formula set out in subsection 17 (3), treating each portion as if it were a separate property.

4. For each portion, multiply the amount apportioned to it under paragraph 2 by its adjustment fraction determined under paragraph 3.

5. Add together the amounts determined for each portion under paragraph 4.

6. Adjust the amount determined under paragraph 2 of subsection 291 (1) of the Act for the taxation year in respect of the property by,

i. increasing it by the amount determined under paragraph 5, if the amount is positive, or

ii. decreasing it by the amount determined under paragraph 5, if the amount is negative. O. Reg. 298/20, s. 3; O. Reg. 15/22, s. 2.

Actual tax rate for a taxation year

18. (1) For the purposes of subsection 17 (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 that is applicable to property in the applicable property class.  O. Reg. 121/07, s. 18 (1).

(2) Despite subsection (1), a special municipal 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. 121/07, s. 18 (2).

(3) For the purposes of determining the actual tax rate for a property for a taxation year under subsection (1), if the property is in a specified subclass, each tax rate for the taxation year for municipal or school purposes applicable to the property shall be reduced in accordance with the reduction, if any, that applies to the tax rate under section 278 or 278.1 of the Act or section 257.7 of the Education Act. O. Reg. 298/20, s. 4; O. Reg. 15/22, s. 3.

Notional tax rate to raise the previous year’s levies

19. (1) For the purposes of subsection 17 (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 applicable property class:

1. For every general or special municipal levy for the previous year that applied to property in the City, 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 City are included for the purposes of this subsection.

3. Determine the total weighted assessment for the City by adding the weighted assessment for the taxation year, as determined under subsection (5), 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. 

7. For the purposes of paragraphs 5 and 6, if the property is in a specified subclass,

i. the class rates to raise the previous year’s levy, as determined under paragraph 5, shall each be reduced by the amount of the reduction under section 278 or 278.1 of the Act to the tax rates applicable to the property in the current year, and

ii. the tax rate for the taxation year for school purposes shall be reduced by the amount of the reduction under section 257.7 of the Education Act to the tax rates for school purposes applicable to the property in the previous year. O. Reg. 121/07, s. 19 (1); O. Reg. 107/16, s. 2; O. Reg. 63/17, s. 6 (1); O. Reg. 298/20, s. 5; O. Reg. 44/21, s. 3; O. Reg. 15/22, s. 4 (1, 2).

(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. 121/07, s. 19 (2).

(2.1) For the purposes of paragraph 1 of subsection (2), for the 2017 taxation year, the tax rate for the previous year for the landfill property class in the City is deemed to be equal to the tax rate for the previous year for the commercial property class in the City. O. Reg. 133/17, s. 8.

(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 282 (6) of the Act, if the property class is not subject to Part XII of the Act; or

(b) paragraphs 2, 3 and 5 of subsection 291 (2) of the Act, if the property class is subject to Part XII of the Act.  O. Reg. 121/07, s. 19 (3).

(4) Subject to subsection (4.1), the City may pass a by-law in a year opting to have subsections (4.2) to (4.4) apply for the year. O. Reg. 63/17, s. 6 (2).

(4.1) Before passing a by-law under subsection (4), the City shall send a copy of its projected calculations for the year under subsections (4.2) to (4.4) to the Minister of Finance. O. Reg. 63/17, s. 6 (2).

(4.2) If the City has passed a by-law under subsection (4), the City shall adjust the total assessment for property in a property class in the City, as determined under subsection (3), so that the total assessment for property in a property class in the City excludes changes to the tax roll for the previous year resulting from one or more of the following events, except as provided by subsection (4.3):

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. 63/17, s. 6 (2).

(4.3) Subject to subsection (4.4), if an event listed in paragraphs 3 to 5 of subsection (4.2) 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 (4.2), 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. 63/17, s. 6 (2).

(4.4) A change to the assessed value of a property referred to in subsection (4.3) 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. 63/17, s. 6 (2).

(5) 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,

F × G

in which,

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

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

O. Reg. 121/07, s. 19 (5); O. Reg. 63/17, s. 6 (3).

(6) For the purposes of subsection (5), 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 278 or 278.1 of the Act in the tax rate applicable to the property for the taxation year.  O. Reg. 121/07, s. 19 (6); O. Reg. 15/22, s. 4 (3).

Graduated tax rates

20. For the purposes of sections 17 to 19 of this Regulation, the tax rate for a property with respect to which a by-law under section 279 of the Act applies is the tax rate that would have applied if section 279 of the Act had not applied.  O. Reg. 121/07, s. 20.

Determination of Maximum Taxes — Adjustment for Consolidation or Division of Parcels (Subsection 291 (2) of the Act)

Application and interpretation

21. (1) In this section and sections 22 to 27,

“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 XII 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 291 (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. 121/07, s. 21 (1).

(2) For the purposes of this section and sections 22 to 27 of this Regulation, the commercial classes, as defined in subsection 288 (1) of the Act, are deemed to be a single property class and the industrial classes, as defined in that subsection, are deemed to be a single property class.  O. Reg. 121/07, s. 21 (2).

(3) In sections 22 to 27, 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 Municipal Act, 2001 listed in the same row in Column 2 of the Table if the reference is to the application of the provision for the 2006 taxation year:

Table

 

Column 1 — Act	Column 2 — Municipal Act, 2001
Part XII	Part IX
Section 291	section 329
Section 293	section 330
Section 294	section 331
paragraph 1 of subsection 294 (2)	paragraph 1 of subsection 331 (2)

O. Reg. 121/07, s. 21 (3).

Consolidation of parcels, par. 1 of s. 291 (2) of the Act

22. (1) This section applies to determine, for the purposes of paragraph 1 of subsection 291 (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. 121/07, s. 22 (1).

(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. 121/07, s. 22 (2).

(3) Subject to subsection (4), if two or more separate parcels were included in different property classes in the previous year to which Part XII 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. 121/07, s. 22 (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. 121/07, s. 22 (4).

(5) If two or more of the separate parcels were included in the same property class to which Part XII 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 City 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. 121/07, s. 22 (5).

(6) If two or more of the separate parcels were included in different property classes to which Part XII 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 City 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 291, 293 or 294 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. 121/07, s. 22 (6).

(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 XII of the Act for the previous year;

(c) the consolidated parcel is included in a single property class that is subject to Part XII 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. 121/07, s. 22 (7).

(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 XII of the Act.

3. Determine the tax rate levied by the City 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 291, 293 or 294 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. 121/07, s. 22 (8).

Severance or subdivision of land, par. 1 of s. 291 (2) of the Act

23. (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 291 (2) of the Act.  O. Reg. 121/07, s. 23 (1).

(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 291, 293 or 294 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. 121/07, s. 23 (2).

(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. 121/07, s. 23 (3).

(4) If the original parcel contains portions that are in different property classes to which Part XII 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. 121/07, s. 23 (4).

Portion of parcel in same property class as original parcel

24. (1) This 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 XII 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 year.  O. Reg. 121/07, s. 24 (1); O. Reg. 58/10, s. 7.

(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 291, 293 or 294 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. 121/07, s. 24 (2).

Change in proportions of parcel in different property classes

25. (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. 121/07, s. 25 (1).

(2) The amount of taxes for municipal and school purposes for the previous year for the purposes of paragraph 1 of subsection 291 (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 291, 293 or 294 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 XII 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 XII 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. 121/07, s. 25 (2).

(3) The taxes for municipal and school purposes for the previous year for the purposes of paragraph 1 of subsection 291 (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 291, 293 or 294 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. 121/07, s. 25 (3).

Change in tax exempt portion of a parcel

26. (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. 121/07, s. 26 (1).

(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 291 (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 25 (2) of this Regulation.

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 25 (3) of this Regulation.  O. Reg. 121/07, s. 26 (2).

Change in subclass assessment of a property

27. (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. 121/07, s. 27 (1).

(2) The amount of taxes for the previous year for the purposes of paragraph 1 of subsection 291 (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 City 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. 121/07, s. 27 (2).

(3) The amount of taxes for the previous year for the purposes of paragraph 1 of subsection 291 (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 City 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. 121/07, s. 27 (3).

Determination of Maximum Taxes — Special Rule for Certain Assessments (Subsection 291 (9) of the Act)

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

28. 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 291 (9) of the City of Toronto Act, 2006 shall not apply with respect to the additional assessment for the subsequent taxation year.  O. Reg. 121/07, s. 28.

City Capping Option (Subsection 292 (1) of the Act)

Adjustments under par. 2 i A of s. 292 (1) of the Act

29. (1) The following are prescribed as the adjustments to be made under sub-subparagraph 2 i A of subsection 292 (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 XII 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 City council cancels, reduces or refunds taxes under section 323 of the Act for the previous year on an application under clause 323 (1) (a), (b), (c), (d) or (f) of the Act or under section 325 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 City council increases taxes under section 326 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. 121/07, s. 29 (1); O. Reg. 63/17, s. 8 (1).

(1.1) 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 292 (1) of the Act. O. Reg. 107/16, s. 3; O. Reg. 63/17, s. 8 (2).

(2) The following are prescribed as the adjustments to be made under sub-subparagraph 2 i A of subsection 292 (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 XII 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 City council cancels, reduces or refunds taxes under section 357 of the Municipal Act, 2001 for the previous year on an application under clause 357 (1) (a), (b), (c), (d) or (f) of that Act or under section 358 of that 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 City council increases taxes under section 359 of the Municipal Act, 2001 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. 121/07, s. 29 (2); O. Reg. 63/17, s. 8 (3).

Adjustment to par. 3 and 4 of s. 292 (1) of the Act

29.1 $500 is the amount prescribed instead of $250 for the purposes of subparagraphs 3 i and 4 i of subsection 292 (1) of the Act. O. Reg. 107/16, s. 4; O. Reg. 63/17, s. 9.

By-law to Provide for Recoveries — Prescribed Adjustments (Section 293 of the Act)

Re changes in taxes for school purposes 

30. 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 293 (2).

2. Paragraph 2 of subsection 293 (4).

3. Paragraphs 2 and 6 of subsection 293 (6).  O. Reg. 121/07, s. 30.

Adjustment, various provisions

31. (1) This section applies for the purposes of subsection 293 (2), paragraph 2 of subsection 293 (4) and paragraph 2 of subsection 293 (6) of the Act.  O. Reg. 121/07, s. 31 (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,

H / (J + 1)

in which,

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

“J” is the adjustment fraction for the taxation year determined under subsection 17 (3) of this Regulation.

O. Reg. 121/07, s. 31 (2); O. Reg. 66/19, s. 5.

(3) In this section,

“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 XII of the Act had not applied.  O. Reg. 121/07, s. 31 (3).

Adjustment, par. 1 of s. 293 (4) of the Act

32. For the purposes of paragraph 1 of subsection 293 (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 292 (1) of the Act.  O. Reg. 121/07, s. 32.

Adjustment, par. 6 of s. 293 (6) of the Act

33. (1) This section applies for the purposes of paragraph 6 of subsection 293 (6) of the Act.  O. Reg. 121/07, s. 33 (1).

(2) The amount determined under paragraph 5 of subsection 293 (6) of the Act in respect of a 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. 121/07, s. 33 (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 293 (6) of the Act by the taxation year adjustment fraction determined under subsection 17 (3) of this Regulation.  O. Reg. 121/07, s. 33 (3).

Taxes not to be lower than uncapped taxes

34. (1) Despite subsection 293 (6) 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. 121/07, s. 34 (1).

(2) In this section,

“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 XII of the Act had not applied.  O. Reg. 121/07, s. 34 (2).

Taxes on Eligible Properties — “Eligible Property” (Subsection 294 (20) of the Act)

Special rules re “eligible property”

35. (1) None of the following properties that becomes taxable for municipal and school purposes in 2007 or a subsequent year is eligible property for the purposes of section 294 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. 121/07, s. 35 (1).

(2) Subject to subsection (3), the following properties are deemed to be eligible property for the purposes of section 294 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 291 (12) of the Act, property to which section 294 of the City of Toronto Act, 2006 or, for 2007, section 331 of the Municipal Act, 2001 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 291 (9) (a) of the City of Toronto Act, 2006 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 291 (9) (a) of the City of Toronto Act, 2006 or, for 2007, clause 329 (7) (a) of the Municipal Act, 2001, and

ii. the appropriate change is made on the assessment roll for the taxation year.  O. Reg. 121/07, s. 35 (2).

(3) None of the following is eligible property for the purposes of section 294 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 288 (3) of the Act.

iii. In the previous year, the portions of the property described in subparagraph ii were subject to Part XII 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 288 (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 XII of the Act.

2. A severed parcel that is described in subsection 23 (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. 106/08, s. 2; O. Reg. 161/09, s. 6; O. Reg. 343/12, s. 1 (1).

(3.1) Paragraphs 1.1 and 1.2 of subsection (3) are deemed to have applied in 2007 and subsequent taxation years. O. Reg. 343/12, s. 1 (2).

(3.2) However, subsection (3.1) does not apply with respect to a property for the 2007 taxation year,

(a) if the assessment corporation provided a list of comparable properties to the local municipality under subsection 294 (8) of the 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. 343/12, s. 1 (2).

(4) Revoked: O. Reg. 63/17, s. 10.

Identification of comparable properties, s. 294 (6), (7) of the Act

35.1 (1) This section applies with respect to the eligible properties in the City in which, under subparagraph 6 ii of subsection 292 (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. 422/11, s. 1.

(2) Despite subsections 294 (6) and (7) of the Act, the assessment corporation is not required to identify comparable properties with respect to those eligible properties.  O. Reg. 422/11, s. 1.

Miscellaneous (Part XII of the Act)

Certain payments in lieu of taxes deemed to be taxes

36. 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 35 (1) of this Regulation are deemed to be taxes for municipal and school purposes for the purposes of sections 291 and 293 of the City of Toronto Act, 2006.  O. Reg. 121/07, s. 36.

part iv
Collection of Traditional Municipal Taxes

Cancellation, Reduction, Refund of Taxes — Vacant Land (Clause 323 (1) (b) of the Act)

Mid-year demolition, etc.

37. (1) For the purposes of clause 323 (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 278 (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. 121/07, s. 37 (1); O. Reg. 63/17, s. 11.

(2) Paragraph 5 of subsection 291 (2) of the City of Toronto Act, 2006 applies to a property even if the owner of the property was entitled to but failed to make an application to City council under clause 323 (1) (a), (b), (d) or (f) or section 325 of that Act or, before 2007, under clause 357 (1) (a), (b), (d) or (f) or section 358 of the Municipal Act, 2001 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. 121/07, s. 37 (2).

Cancellation, Reduction, Refund of Taxes – Repairs or Renovations (Clause 323 (1) (h) of the Act)

Land prescribed under subs. 323 (1.1)

37.1 Eligible property described in section 38 is prescribed for the purposes of subsection 323 (1.1) of the Act as land for which no cancellation, reduction or refund of taxes is permitted under clause 323 (1) (h) of the Act. O. Reg. 266/17, s. 1.

Vacant Unit Rebate (Section 331 of the Act)

Eligible property

38. (1) A building or structure on property that is classified in one of the commercial classes or industrial classes is prescribed to be an eligible property for the purposes of section 331 of the Act for a period of time if,

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

(b) no portion of the building or structure was used at any time in the period of time.  O. Reg. 121/07, s. 38 (1).

(2) A portion of a building on property that is classified in one of the commercial classes is prescribed to be an eligible property under section 331 of the Act for a period of time if the period of time is at least 90 consecutive days and throughout the period of time,

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

(b) the portion of the building,

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

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

(iii) was unfit for occupation.  O. Reg. 121/07, s. 38 (2).

(3) A portion of a building on property that is classified in one of the industrial classes is prescribed to be an eligible property under section 331 of the Act for a period of time if,

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

(b) throughout the period of time, the portion of the building was not used and was clearly delineated or separated by physical barriers from the portion of the building that was used.  O. Reg. 121/07, s. 38 (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. 121/07, s. 38 (4).

(5) Despite subsections (1), (2) and (3), a building, structure or portion of a building is not prescribed to be an eligible property under section 331 of the Act 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 subclass for vacant land under subsection 8 (1) of the Assessment Act throughout the period of time.  O. Reg. 121/07, s. 38 (5).

(6) Despite subsections (1) and (2), a building or structure or portion of a building is not prescribed to be an eligible property under section 331 of the Act if it is in the resort condominium property class.  O. Reg. 121/07, s. 38 (6).

Prescribed percentage for 2018, commercial classes

38.1 For the purposes of paragraph 2 of subsection 331 (2) of the Act, the prescribed rebate percentage for property in any of the commercial classes with vacant portions during the period starting July 1, 2017 and ending on June 30, 2018 is 15 per cent. O. Reg. 582/17, s. 1.

Amount of vacant unit rebate

39. (1) In this section,

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

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

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

(c) that is included in a subclass for excess land under subsection 8 (1) of the Assessment Act.  O. Reg. 121/07, s. 39 (1).

(2) The amount of taxes for a taxation year in respect of an eligible property to which the percentage specified in paragraph 2 or 3 of subsection 331 (2) of the Act is to be applied is determined as follows:

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

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

3. Multiply the percentage determined under paragraph 2 by the taxes for municipal 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. 121/07, s. 39 (2); O. Reg. 44/21, s. 4 (1, 2).

(3) The amount of the rebate for the purposes of section 331 of the Act in respect of an eligible property is determined by multiplying the amount of taxes determined under subsection (2) in respect of the eligible property for the year by the percentage set out in paragraph 2 or 3 of subsection 331 (2) of the Act, whichever percentage applies.  O. Reg. 121/07, s. 39 (3); O. Reg. 44/21, s. 4 (3).

(4) If the period of at least 90 consecutive days during which a property or portion of a property was an eligible property commences after October 3 in the previous 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 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. 121/07, s. 39 (4); O. Reg. 58/10, s. 8.

(5) Despite subsection 331 (11) of the Act, school boards that share in the revenue from the taxes on the property shall not share in the cost of the rebate. O. Reg. 44/21, s. 4 (4).

Application for vacant unit rebate

40. (1) An interim application and a final application for a rebate under section 331 of the Act in respect of a taxation year must contain the following information:

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

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

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

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

5. A description of the eligible property,

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

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

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

7. Any additional documentation the municipality or assessment corporation may request to assist in identifying the eligible property.  O. Reg. 121/07, s. 40 (1).

(2) The City shall forward a copy of each interim and final application to the assessment corporation for determination of the value of the eligible property.  O. Reg. 121/07, s. 40 (2).

(3) The assessment corporation shall provide the value of the eligible property to the City as soon as practicable.  O. Reg. 121/07, s. 40 (3).

(4) The City 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. 121/07, s. 40 (4).

(5) The City may calculate the amount of a rebate based on an estimate of the amount of taxes for municipal and school purposes in respect of the eligible property and subsequently adjust the amount of the rebate when the amount of the taxes is finally determined.  O. Reg. 121/07, s. 40 (5).

Recalculation of vacant unit rebate

41. (1) The City shall recalculate the amount of a rebate in respect of an eligible property if the taxes are reduced under section 323 or 325 of the Act or if the assessment for the property changes as the result of,

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

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

(c) an application under section 46 of the Assessment Act.  O. Reg. 121/07, s. 41 (1).

(2) If the City 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 City may recover the excess amount.  O. Reg. 121/07, s. 41 (2).

(3) If the City 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 City shall pay or credit to the owner the additional amount of the rebate as soon as practicable after the recalculation.  O. Reg. 121/07, s. 41 (3).

Deadline extension, vacant unit rebate

42. For the purposes of paragraph 5 of subsection 331 (2) of the City of Toronto Act, 2006, if the assessment corporation assesses a property during a taxation year under section 33 of the Assessment Act in respect of either of the two preceding taxation years, the deadline for making an application under section 331 of the City of Toronto Act, 2006 for that preceding taxation year is extended to the day that is 90 days after the day the assessment is mailed to the owner under section 35 of the Assessment Act.  O. Reg. 121/07, s. 42.

Interest on vacant unit rebate

43. (1) Interest is payable under subsection 331 (20) of the Act in respect of a rebate under an interim application for a taxation year if,

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

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

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

(ii) the day that is 120 days after the day the owner provides the information required under subsection 40 (1) of this Regulation.  O. Reg. 121/07, s. 43 (1).

(2) Interest is payable under subsection 331 (20) of the Act in respect of a rebate under a final application for a taxation year if,

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

(b) the City 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 40 (1) of this Regulation.  O. Reg. 121/07, s. 43 (2).

Interest on vacant unit rebate, special cases

44. (1) If the deadline for applying for a rebate in respect of a taxation year is extended under section 40 of this Regulation, interest is payable under subsection 331 (20) of the Act in respect of the rebate if,

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

(b) the City 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 40 (1) of this Regulation.  O. Reg. 121/07, s. 44 (1).

(2) If the City pays or credits an owner a rebate in an amount that was less than the amount determined under the recalculation under subsection 41 (1) of this Regulation, interest is payable under subsection 331 (20) of the Act on the additional amount of the rebate if the City does not pay or credit the owner the additional amount within 120 days after receiving notice of the change to the assessment.  O. Reg. 121/07, s. 44 (2).

Complaint to Board re vacant unit rebate

45. The later date prescribed for the purposes of subsection 331 (15) of the Act is the later of,

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

(b) the day that interest becomes payable on the outstanding rebate.  O. Reg. 121/07, s. 45.

Rebate program not required after July 1, 2018

45.1 On and after July 1, 2018, the City is not required to have a program to provide tax rebates to owners of property that has vacant portions. O. Reg. 582/17, s. 1.

Application deadline for 2018

45.2 An application for a rebate under section 331 of the Act in respect of the 2018 taxation year shall be made on or before September 28, 2018. O. Reg. 582/17, s. 1.

Cancellation of Taxes, Rehabilitation and Development Period (Section 333 of the Act)

Notice to Minister of Finance

46. (1) The following information is prescribed for the purposes of paragraph 5 of subsection 333 (6) of the Act in respect of a property:

1. Information confirming that the property is “eligible property” within the meaning of section 333 of the Act.

2. All conditions imposed by the City under subsection 333 (2) of the Act in respect of the property and confirmation of which of the conditions, if any, have been satisfied.

3. A copy of any agreements or proposed agreements between the City and the owner of the property and any undertakings or proposed undertakings by the owner of the property that are part of the arrangements relating to the tax assistance.

4. The information provided to the City by the owner of the property under subsection 333 (9) of the Act.

5. A brief description of the remediation proposed, including technologies to be used.

6. The estimated cost of the remediation, including pre-remediation studies.

7. The estimated duration of the remediation.  O. Reg. 121/07, s. 46 (1).

(2) In subsection (1),

“remediation” means soil removal or other action taken to reduce the concentration of contaminants in, on or under property.  O. Reg. 121/07, s. 46 (2).