O. Reg. 133/17: TRADITIONAL MUNICIPAL TAXES, LIMITS AND COLLECTION

 

ontario regulation 133/17

made under the

City of Toronto Act, 2006

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. 121/07

(TRADITIONAL MUNICIPAL TAXES, LIMITS AND COLLECTION)

1. Subsection 3 (5) of Ontario Regulation 121/07 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. For the landfill property class, 25.00.

3. Section 7 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 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.

4. The Regulation is amended by adding the following section after the heading “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.

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

5. Sections 7.1, 7.2 and 7.3 of the Regulation are revoked and the following substituted:

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.

(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.

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

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.

(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.

(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 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.

(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.

(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 City under Part XII 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 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.

(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.

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

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.

(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.

(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 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.

(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 amount determined under paragraph 1 of subsection 291 (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 291 (1) of the Act.

7. Section 16 of the Regulation is amended by adding the following subsection:

(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.

8. Section 19 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 the City is deemed to be equal to the tax rate for the previous year for the commercial property class in the City.

Commencement

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

Made by:

Charles Sousa

Minister of Finance

Date made: May 11, 2017