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O. Reg. 102/16: TAX MATTERS - SPECIAL TAX RATES AND LIMITS

filed April 21, 2016 under Municipal Act, 2001, S.O. 2001, c. 25

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ontario regulation 102/16

made under the

Municipal Act, 2001

Made: April 20, 2016
Filed: April 21, 2016
Published on e-Laws: April 21, 2016
Printed in The Ontario Gazette: May 7, 2016

Amending O. Reg. 73/03

(TAX MATTERS - SPECIAL TAX RATES AND LIMITS)

1. Section 5 of Ontario Regulation 73/03 is revoked.

2. (1) Subsection 6 (1) of the Regulation is amended by striking out “5 (1) or (2) or”.

(2) Subsection 6 (2) of the Regulation is amended by striking out “5 (1) or (2) or”.

3. (1) Paragraph 2 of subsection 7 (2) of the Regulation is amended by striking out “subsection 5 (2) or this subsection, whichever applied in the previous year” at the end and substituting “this subsection”.

(2) Paragraph 1 of subsection 7 (3) of the Regulation is amended by striking out “or, if the previous year is 2002, under section 366 of the Old Act” at the end.

(3) Paragraph 2 of subsection 7 (3) of the Regulation is amended by striking out “or, if the previous year is 2002, under section 368 of the Old Act” at the end.

4. (1) Subsection 8 (1) of the Regulation is amended by striking out “(2) or” in the portion before paragraph 1.

(2) Paragraph 2 of subsection 8 (1) of the Regulation is amended by striking out “subsection (2) or (4), as the case may be” and substituting “subsection (4)”.

(3) Paragraph 3 of subsection 8 (1) of the Regulation is amended by striking out “section 5 or 7, whichever applies for the year” at the end and substituting “section 7”.

(4) Paragraph 4 of subsection 8 (1) of the Regulation is amended by striking out “section 5 or 7” and substituting “section 7”.

(5) Subsections 8 (2) and (3) of the Regulation are revoked.

5. (1) Subsection 8.0.2 (1) of the Regulation is amended by adding “, other than a lower-tier municipality,” after “enacted by a municipality”.

(2) Subsection 8.0.2 (4) of the Regulation is revoked.

6. Sections 8.2 and 8.3 of the Regulation are revoked and the following substituted:

By-law to end the application of Part IX immediately

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

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

(3) A by-law under this section applies to the taxation year in which it is passed and to subsequent taxation years.

By-law to phase out the application of Part IX

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

(2) A by-law under this section must be passed in the first year to which it applies.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

7. Paragraph 4 of subsection 12 (1) of the Regulation is amended by striking out “paragraph 2” at the end and substituting “paragraph 3”.

8. Section 15.1 of the Regulation is amended by adding the following subsection:

(2) For 2016 and subsequent taxation years, 10 per cent is the percentage prescribed to replace 5 per cent, in both instances where “5 per cent” appears in sub-subparagraph 2 i A of subsection 329.1 (1) of the Act.

9. Section 15.2 of the Regulation is revoked and the following substituted:

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

15.2 For 2016 and subsequent taxation years, $500 is the amount prescribed instead of $250 for the purposes of subparagraphs 3 i and 4 i of subsection 329.1 (1) of the Act.

Commencement

10. This Regulation comes into force on the day it is filed.

Made by:

Charles Sousa

Minister of Finance

Date made: April 20, 2016