O. Reg. 131/17: TAX MATTERS - SPECIAL TAX RATES AND LIMITS

 

ontario regulation 131/17

made under the

Municipal Act, 2001

Made: May 11, 2017
Filed: May 11, 2017
Published on e-Laws: May 12, 2017
Printed in The Ontario Gazette: May 27, 2017

Amending O. Reg. 73/03

(TAX MATTERS - SPECIAL TAX RATES AND LIMITS)

1. Subsection 3 (4) of Ontario Regulation 73/03 is amended by adding “and the landfill property class” after “the multi-residential property class”.

2. Section 4 of the Regulation is amended by adding the following paragraph:

4. 25.00 for the landfill property class.

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

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

(b) the special levy tax rate for the landfill property class for the previous year in a municipality is deemed to be equal to the special levy tax rate for the commercial property class for the previous year in the municipality.

4. The Regulation is amended by adding the following section to Part II.1:

Landfill property class

8.0.0.2 (1) Part IX of the Act applies to property in the landfill property class in a municipality if the municipality has passed a by-law providing that the Part applies.

(2) A by-law under subsection (1) shall not be passed by a lower-tier municipality unless its upper-tier municipality has delegated to it the power to do so.

(3) A by-law under subsection (1) must be passed in the first taxation year to which it applies.

5. Section 8.0.2 of the Regulation is revoked and the following substituted:

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

8.0.2 (1) A property is exempt from the application of Part IX of the Act for a taxation year if a by-law has been enacted by a municipality, other than a lower-tier municipality, that provides that this section applies within the municipality for the taxation year.

(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 IX 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 IX of the Act applied, the property’s taxes would be equal to its uncapped taxes, or a tax decrease for the property would be limited.

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

(3) A by-law under subsection (1) must be passed in the first taxation year to which it applies.

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 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.

(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.

By-law to phase out the application of Part IX

8.3 (1) Subject to subsection (2), 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, the landfill property class or the multi-residential property class shall be calculated in accordance with subsections (4) and (5) of this section.

(2) A municipality 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 municipality may opt to exclude properties in a subclass for vacant land.

(3) A by-law under subsection (1) must be passed in the first taxation year to which it applies.

(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 municipality under Part IX of the Act) are equal to the uncapped taxes for the property for the taxation year.

(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 329 (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 329 (1) of the Act.

(6) If a by-law made under subsection (1) applies in a municipality 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 municipality, as applicable, is exempt from the application of Part IX of the Act for every subsequent taxation year.

7. Section 9 of the Regulation is amended by adding the following subsection:

(2) This Part does not apply and no adjustment shall be made under paragraph 3 of subsection 329 (1) of the Act in respect of a property for a taxation year if a by-law under subsection 15.0.1 (2) of this Regulation applies to the property for the taxation year.

8. Section 12 of the Regulation is amended by adding the following subsection:

(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 a municipality is deemed to be equal to the tax rate for the previous year for the commercial property class in the municipality.

9. Part III.1 of the Regulation is amended by adding the following section:

Amount to be added under par. 2 of s. 329 (1) of the Act

15.0.1 (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 10 (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.

(2) A municipality, other than a lower-tier municipality, may pass a by-law providing that the amount to be added under paragraph 2 of subsection 329 (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.

(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.

(4) If the amount determined under subsection 10 (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 329 (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 329 (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 329 (1) of the Act.

(5) If the amount determined under subsection 10 (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 329 (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 10 (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 amount determined under paragraph 1 of subsection 329 (1) of the Act from the lesser of the amount determined in paragraph 3 of this subsection and the uncapped taxes for the property for the taxation year.

5. The amount determined under paragraph 4 is the amount to be added under paragraph 2 of subsection 329 (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: May 11, 2017