O. Reg. 579/22: RATE RATIOS

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ontario regulation 579/22

made under the

Northern Services Boards Act

Made: December 16, 2022
Filed: December 19, 2022
Published on e-Laws: December 19, 2022
Printed in The Ontario Gazette: January 7, 2023

Amending O. Reg. 226/09

(RATE RATIOS)

1. Section 2 of Ontario Regulation 226/09 is amended by adding the following subsection:

Rate ratios before 2023

(0.1) This section applies with respect to the determination of the rate ratio for a property class in a Board area for the purposes of section 23.1 of the Act for taxation years before 2023.

2. Section 3 of the Regulation is revoked and the following substituted:

Rate ratios for 2023

3. (1) This section applies with respect to the determination of the rate ratio for a property class in a Board area for the purposes of section 23.1 of the Act for the 2023 taxation year.

(2) In this section,

“revenue neutral ratio” means the ratio determined under section 5.

(3) The rate ratio for the farm property class is 0.25.

(4) The rate ratio for the managed forests property class is 0.25.

(5) In the case of a Board that is not set out in Table 1, the rate ratio for a property class other than the farm property class and the managed forests property class is 1.

(6) In the case of a Board set out in Table 1, if no rate ratio applied for the property class because the Table indicates that the ratio is not applicable, the rate ratio is 1.

(7) In the case of a Board set out in Table 1, for a property class other than the farm property class and the managed forests property class, the following rules apply:

1. If the ratio set out in Table 1 is 1, the rate ratio is 1.

2. If the ratio set out in Table 1 is less than 1 and the rate ratio for the 2022 taxation year for the property class is greater than the revenue neutral ratio for the property class for the 2023 taxation year, the rate ratio for the property class for the 2023 taxation year is equal to the rate ratio for the property class for the 2022 taxation year.

3. If the ratio set out in Table 1 is less than 1 and the rate ratio for the 2022 taxation year for the property class is less than or equal to the revenue neutral ratio for the property class for the 2023 taxation year, the rate ratio for the property class for the 2023 taxation year is equal to the revenue neutral ratio for the property class for the 2023 taxation year.

4. If the ratio set out in Table 1 is greater than 1 and the rate ratio for the 2022 taxation year for the property class is greater than or equal to the revenue neutral ratio for the property class for the 2023 taxation year, the rate ratio for the property class for the 2023 taxation year is equal to the revenue neutral ratio for the property class for the 2023 taxation year.

5. If the ratio set out in Table 1 is greater than 1 and the rate ratio for the 2022 taxation year for the property class is less than the revenue neutral ratio for the property class for the 2023 taxation year, the rate ratio for the property class for the 2023 taxation year is equal to the rate ratio for the property class for the 2022 taxation year.

Rate ratios for taxation years after 2023

4. (1) This section applies with respect to the determination of the rate ratio for a property class in a Board area for the purposes of section 23.1 of the Act for a taxation year after 2023.

(2) In this section,

“revenue neutral ratio” means the ratio determined under section 5.

(3) The rate ratio for the farm property class is 0.25.

(4) The rate ratio for the managed forests property class is 0.25.

(5) In the case of a property class, other than the farm property class and the managed forests property class, for which no ratio applied in the previous year, the rate ratio is 1.

(6) In the case of a property class other than the farm property class and the managed forests property class, the following rules apply:

1. For a property class for which the rate ratio for the previous taxation year is 1, the rate ratio is 1.

2. If the rate ratio for the property class for the previous taxation year is less than 1 and greater than the revenue neutral ratio for the property class for the taxation year, the rate ratio for the property class for the taxation year is equal to the rate ratio for the property class for the previous taxation year.

3. If the rate ratio for the property class for the previous taxation year is less than 1 and less than or equal to the revenue neutral ratio for the property class for the taxation year, the rate ratio for the property class for the taxation year is equal to the revenue neutral ratio for the property class for the taxation year.

4. If the rate ratio for the property class for the previous taxation year is greater than 1 and greater than or equal to the revenue neutral ratio for the property class for the taxation year, the rate ratio for the property class for the taxation year is equal to the revenue neutral ratio for the property class for the taxation year.

5. If the rate ratio for the property class for the previous taxation year is greater than 1 and less than the revenue neutral ratio for the property class for the taxation year, the rate ratio for the property class for the taxation year is equal to the rate ratio for the property class for the previous taxation year.

Revenue neutral ratio

5. (1) In this section,

“specified classes” means the farm property class, the managed forests property class, the residential property class and the multi-residential property class.

(2) For the purposes of determining the revenue neutral ratio for a property class in a Board area under this section, the total assessment for 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 Board for the previous year.

(3) The revenue neutral ratio for a property class in a Board area, other than a property class in the specified classes, for a taxation year is determined as follows:

1. Multiply the rate ratio for the property class for the previous year by the amount of the total assessment of the properties in that property class for the year.

2. Multiply the rate ratio for the property class for the previous 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 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 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 classes.

4. Determine the weighted reassessment change for each property class in the Board area, other than a class in the specified classes, by dividing “C” by “D” where,

“C” is the amount determined under paragraph 1 for the property class, and

“D” is the amount determined under paragraph 2 for the property class.

5. Determine the adjustment factor for each property class in the Board area, other than the specified classes, by dividing “E” by “F” where,

“E” is the weighted reassessment change determined for the class under paragraph 4, and

“F” is the weighted reassessment change determined for the specified classes under paragraph 3.

6. Determine the revenue neutral ratio for a property class in the Board area for the taxation year by dividing “G” by “H” where,

“G” is the rate ratio for the previous year for the property class, and

“H” is the adjustment factor for the property class determined under paragraph 5.

3. The title to Table 1 of the Regulation is revoked and the following substituted:

TABLE 1
RATE RATIOS FOR TAXATION YEARS BEFORE 2023

Commencement

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

Made by:
Pris par :

Le ministre des Finances,

Peter Bethlenfalvy

Minister of Finance

Date made: December 16, 2022
Pris le : 16 décembre 2022

 

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