Education Act
Loi sur l’éducation
ONTARIO REGULATION 509/98
TAX MATTERS — RELIEF IN UNORGANIZED TERRITORY (SECTION 257.2.1 OF THE ACT)
Historical version for the period June 13, 2005 to July 22, 2012.
Last amendment: O.Reg. 310/05.
This Regulation is made in English only.
Application
1. This Regulation applies with respect to taxes for school purposes in territory without municipal organization that is not deemed to be attached to a municipality for the purposes of taxation. O. Reg. 509/98, s. 1.
Definitions
2. In this Regulation,
“levying board” means a board that levies and collects tax rates under paragraph 2 or 3 of subsection 257.7 (1) of the Act or under clause 257.14 (1) (a) or (b) of the Act. O. Reg. 509/98, s. 2.
Phase-in of 1998 Assessment-Related Changes
3. (1) The amount of the 1998 assessment-related tax increase or decrease for a property equals the school amount determined under subsection 372.1 (6) of the Municipal Act subject to the following:
1. In determining the 1997 school taxes (class) in the formula in subsection 372.1 (6) of the Municipal Act, the reference to the municipality shall be deemed to be a reference to the territory described in section 1 that is within the jurisdiction of the levying board and that is within the same territory referred to in a row to Table 2 of Ontario Regulation 438/98.
2. If a new improvement to a property is reflected in the assessment used to determine the 1998 taxes but was not reflected in the assessment used to determine the 1997 taxes, the 1998 assessment (property) shall be adjusted, in the formula in subsection 372.1 (6) of the Municipal Act, to what it would be if the improvement was not reflected in the assessment for 1998.
3. If an improvement to a property was reflected in the assessment used to determine the 1997 taxes and, because of a change related to the improvement, the improvement is not reflected in the assessment used to determine the 1998 taxes, the 1998 assessment (property) shall be adjusted, in the formula in subsection 372.1 (6) of the Municipal Act, to what it would be if the improvement was reflected in the assessment for 1998.
(2) If the 1998 assessment-related tax increase or decrease is positive, it is a 1998 assessment-related tax increase and if it is negative, it is a 1998 assessment-related tax decrease. O. Reg. 509/98, s. 3.
4. (1) A 1998 assessment-related tax increase or decrease shall be phased-in if the property is,
(a) in the residential/farm property class prescribed under the Assessment Act; or
(b) in the multi-residential property class prescribed under the Assessment Act in the Chapleau Locality Education. O. Reg. 78/99, s. 1.
(2) The first year in which a 1998 assessment-related tax increase or decrease shall be phased-in is the 1998 taxation year and the last year is the 2002 taxation year unless the increase or decrease is fully phased-in before that year. O. Reg. 509/98, s. 4 (2).
5. The following apply with respect to the phase-in of a 1998 assessment-related tax increase:
1. The following adjustments shall be made to the taxes for school purposes on the property,
i. the increase shall be subtracted from the taxes,
ii. the amount phased-in in each of the previous years shall be added to the taxes, and
iii. the amount to be phased-in in the current taxation year shall be added to the taxes.
2. The amount of the increase phased-in in a year shall be 20 per cent of the increase. However, the amount shall be at least $30.
3. Despite paragraph 2, the amount of the increase phased-in in a year shall not exceed the amount necessary to fully phase-in the increase. O. Reg. 509/98, s. 5; O. Reg. 78/99, s. 2.
6. The following apply with respect to the phase-in of a 1998 assessment-related tax decrease:
1. The following adjustments shall be made to the taxes for school purposes on the property,
i. the decrease shall be added to the taxes,
ii. the amount phased-in in each of the previous years shall be subtracted from the taxes, and
iii. the amount to be phased-in in the current taxation year shall be subtracted from the taxes.
2. The amount of the decrease phased-in in a year shall be the threshold determined in accordance with paragraph 4. However, the amount shall be at least 20 per cent of the decrease.
3. Despite paragraph 2, the amount of the decrease phased-in in a year shall not exceed the amount necessary to fully phase-in the decrease.
4. The threshold referred to in paragraph 2 is the amount determined so that the total of the decreases phased-in in the year for all properties in the same class of real property prescribed under the Assessment Act in the territory described in paragraph 1 of subsection 3 (1) equals the total of the increases phased-in in the year for all such properties. O. Reg. 509/98, s. 6.
Tax Deferrals for Low-Income Seniors and Persons with Disabilities
7. (1) In this section,
“owner” means the person assessed as the owner;
“spouse” means a person,
(a) to whom the person is married, or
(b) with whom the person is living outside marriage in a conjugal relationship, if the two persons,
(i) have cohabited for at least one year,
(ii) are together the parents of a child, or
(iii) have together entered into a cohabitation agreement under section 53 of the Family Law Act. O. Reg. 509/98, s. 7 (1); O. Reg. 78/99, s. 3 (1); O. Reg. 106/00, s. 1 (1); O. Reg. 310/05, s. 1 (1, 2).
(2) The owner of a property in the residential/farm property class, prescribed under the Assessment Act, is entitled to a deferral of taxes if,
(a) there is a 1998 assessment-related tax increase, within the meaning of section 3, that exceeds $30;
(b) the owner or the owner’s spouse occupies the property as their principal residence on January 1 of the taxation year;
(c) the owner or the owner’s spouse is, at any time during the taxation year,
(i) a person who is 65 years of age or older and who receives a supplement under Part II of the Old Age Security Act (Canada), or
(ii) a person who receives income support under the Ontario Disability Support Program Act, 1997;
(d) the owner or the owner’s spouse was assessed as the owner of the property on the 1998 assessment roll;
(e) if the taxation year is after 1998, there was a deferral of taxes on the property under this section for the 1998 taxation year; and
(f) a written application for the deferral, together with sufficient documentation to establish entitlement to the deferral, is given to the secretary of the levying board,
(i) for the 1998 taxation year, before March 31, 1999, or
(ii) for a taxation year after 1998, by July 1 of the taxation year. O. Reg. 509/98, s. 7 (2); O. Reg. 622/98, s. 1; O. Reg. 78/99, s. 3 (2, 3); O. Reg. 106/00, s. 1 (2); O. Reg. 310/05, s. 1 (3-5).
(3) The amount of a tax deferral under this section shall be determined in accordance with the following:
1. Subject to paragraph 2, the amount of the tax deferral is the amount of the 1998 assessment-related tax increase, within the meaning of section 3, reduced by the amount of the tax increase that is not yet phased-in.
2. The sum of a tax deferral, the taxes already deferred and the interest on such amounts shall not exceed 75 per cent of the assessed value of the property. O. Reg. 509/98, s. 7 (3); O. Reg. 78/99, s. 3 (4).
(4) Taxes deferred under this section shall bear interest. The rate of interest for each year shall be equal to the average prime rate, within the meaning of section 21 of Regulation 1013 of the Revised Regulations of Ontario, 1990, determined as of January 15 of the year. O. Reg. 509/98, s. 7 (4).
(5) Amounts deferred and the interest on such amounts become due,
(a) upon the death of the owner, subject to subsection (6);
(b) upon the transfer of the property; or
(c) on July 1 of the first year for which the owner is not entitled to a deferral of taxes, subject to subsections (7) and (8). O. Reg. 509/98, s. 7 (5).
(6) If the owner dies but the owner’s spouse is still alive, amounts deferred and the interest on such amounts are not due as long as,
(a) the spouse is alive;
(b) the property is the spouse’s principal residence; and
(c) the property is not transferred, other than to the spouse. O. Reg. 310/05, s. 1 (6).
(7) If the owner’s spouse dies and, but for the spouse’s death, the owner would be entitled to a deferral of taxes if an application was made in accordance with clause (2) (f), the amounts deferred and the interest on such amounts are not due as long as,
(a) the owner is alive;
(b) the property is the owner’s principal residence; and
(c) the property is not transferred. O. Reg. 310/05, s. 1 (6).
(8) If the owner would be entitled to a deferral of taxes in the taxation year if an application was made in accordance with clause (2) (f) but such an application is not made, the amounts already deferred and the interest on such amounts are not due if a written application to continue the deferral of the amounts already deferred and the interest on such amounts, together with sufficient documentation to establish entitlement to a deferral of taxes in the taxation year, is given to the secretary of the levying board, by July 1 of the taxation year. O. Reg. 509/98, s. 7 (8).
(9) Section 382 of the Municipal Act applies, with necessary modifications, with respect to taxes deferred under this section and interest on such taxes. O. Reg. 509/98, s. 7 (9).
Rebates to Charities
8. (1) An eligible charity is entitled to a rebate of taxes for 1998, 1999 and 2000 taxation years on property the charity occupies if,
(a) the property is in the commercial property class or the industrial property class, prescribed under the Assessment Act; and
(b) a written application for the rebate, together with sufficient documentation to establish eligibility for the rebate, is given to the secretary of the levying board,
(i) for the 1998 taxation year, on or before March 31, 1999, or
(ii) for the 1999 or 2000 taxation year, on or before June 1 of the year. O. Reg. 78/99, s. 4 (1).
(2) For the purposes of this section, a charity is eligible if it is a registered charity as defined in subsection 248 (1) of the Income Tax Act (Canada) that has a registration number issued by the Department of National Revenue. O. Reg. 509/98, s. 8 (2).
(3) The amount of the rebate shall be determined in accordance with section 2 of Ontario Regulation 47/99.
(4) The levying board must pay the rebate in accordance with the following:
1. The estimated rebate for the 1998 taxation year must be paid on or before April 30, 1999.
2. The estimated rebate for the 1999 and 2000 taxation years must be paid on or before June 30 of the year.
3. Final adjustments must be made, after the taxes paid by the charity can be determined, in respect of the difference between the estimated rebate paid by the levying board and the rebate to which the charity is entitled. O. Reg. 78/99, s. 4 (2).
(5) A charity is entitled to a rebate even if the charity does not begin to occupy property until after the amounts under paragraphs 1 and 2 of subsection (4) would otherwise be payable.
(6) A charity is not entitled to a rebate from a levying board unless the charity repays any other levying board or municipality amounts by which the rebates the charity received for the year from that other levying board or municipality exceed the rebates from that other levying board or municipality to which the charity is entitled for the year. O. Reg. 509/98, s. 8 (5, 6).
Gross Leases — Taxes for School Purposes
9. (1) Section 444.1 of the Municipal Act applies, with necessary modifications, as though it formed part of this Regulation, with respect to property in territory described in section 1 with the following modifications:
1. A reference to a municipality in subsection 444.1 (10) of the Municipal Act shall be deemed to be a reference to the territory described in section 1 that is within the jurisdiction of the levying board.
2. A reference to a local municipality in subsection 444.1 (13) of the Municipal Act shall be deemed to be a reference to the levying board.
3. A reference to property taxes shall be deemed to be a reference to taxes for school purposes. O. Reg. 509/98, s. 9 (1).
(2) Revoked: O. Reg. 78/99, s. 5.
Capping of Taxes for Certain Property Taxes for 1998, 1999 and 2000 — 10/5/5 per cent cap
10. (1) Divisions A and B of Part XXII.2 of the Municipal Act apply as though they formed part of this Regulation with the modifications in this section and such other modifications as are necessary.
(2) Subject to subsections (3) and (4), Divisions A and B of Part XXII.2 of the Municipal Act apply with respect to the following classes of real property prescribed under the Assessment Act:
1. The commercial property class.
2. The industrial property class.
(3) This section does not apply with respect to property in the commercial property class in the following territories:
1. The South River Township School Area.
2. The Allan Water DSA Locality Education.
3. The Auden DSA Locality Education.
4. The Summer Beaver DSA Locality Education.
(4) This section does not apply with respect to property in the industrial property class in the following territories:
1. The Magnetawan Township School Area.
2. The West Parry Sound Board of Education.
3. The Timiskaming Locality Education.
4. The Central Algoma Locality Education.
5. The North Shore Locality Education.
6. The Upsala DSA Locality Education.
7. The Fort Francis/Rainy River Locality Education with assessment roll numbers beginning with “5903”.
8. The Red Lake Locality Education.
(5) Divisions A and B of Part XXII.2 of the Municipal Act apply with respect to the multi-residential property class prescribed under the Assessment Act in the Lake Superior Locality Education. O. Reg. 78/99, s. 6.
(6) The following apply with respect to the application of Divisions A and B of Part XXII.2 of the Municipal Act:
1. Sections 447.44 and 447.45 of the Municipal Act do not apply.
2. A reference to a municipality, including a reference in a provision of Part XXII.1 of the Municipal Act as it applies under Part XXII.2 of the Municipal Act, shall be deemed to be a reference to the levying board. However, in paragraph 2 of subsection 447.51 (4) of the Municipal Act, the reference to the municipality shall be deemed to be a reference to the territory set out in Table 1 or the Lake Superior Locality Education, as applicable.
3. A reference to 1997 mill rates shall be deemed to include only mill rates for school purposes.
4. Sections 447.52 and 447.54 of the Municipal Act do not apply.
4.1 The tax collected shall be distributed in accordance with sections 257.8 and 257.9 of the Act.
5. For the purposes of paragraph 1 of subsection 447.7 (3) and paragraph 1 of subsection 447.10 (2) of the Municipal Act, as they apply under section 447.38 of that Act,
i. the factors in Table 1 are prescribed for the territories and property classes indicated, and
ii. 0.093129 is prescribed as the factor for the multi-residential property class in the Lake Superior Locality Education.
6. Parts I and II of Ontario Regulation 7/99 apply with respect to the territories set out in Table 2 as though those Parts formed part of this Regulation with the following modifications and such other modifications as are necessary,
i. section 2 of Ontario Regulation 7/99 does not apply,
ii. a reference to a municipality shall be deemed to be a reference to a territory set out in Table 2, and
iii. a reference to Table 1 of Ontario Regulation 7/99 shall be deemed to be a reference to Table 2 of this Regulation.
7. Parts I.1 and II.1 of Ontario Regulation 7/99 apply with respect to territories set out in Table 3 of Ontario Regulation 400/98 and Table 2 of this Regulation as though those Parts formed part of this Regulation, with the following modifications and such other modifications as are necessary,
i. section 3.2 of Ontario Regulation 7/99 does not apply,
ii. a reference to a municipality shall be deemed to be a reference to a territory set out in Table 3 of Ontario Regulation 400/98 or Table 2 of this Regulation,
iii. a reference to Table 1 of Ontario Regulation 7/99 shall be deemed to be a reference to Table 2 of this Regulation, and
iv. a reference to section 4 of Ontario Regulation 400/98 shall be deemed to be a reference to section 3 of this Regulation. O. Reg. 78/99, s. 6; O. Reg. 346/99, s. 1; O. Reg. 397/99, s. 1.
TABLE 1
PRESCRIBED FACTORS
Territory |
Commercial Property Class |
Industrial Property Class |
Nipissing D |
||
Murchison Lyell Sabine Localities |
0.020453 |
0.029026 |
Upsala DSA Locality Education |
0.090349 |
|
Nipissing Combined School Boards |
0.027459 |
0.044277 |
Timiskiming Board of Education |
0.057696 |
|
Parry Sound D |
||
East Parry Sound Board of Education |
0.649964 |
0.571831 |
Magnetawan Township School Area |
0.486550 |
|
West Parry Sound Board of Education |
0.496118 |
|
Manitoulin D |
||
Manitoulin Locality Education |
0.612715 |
0.496853 |
Sudbury D |
||
Asquith Garvey DSA Locality Education |
0.149645 |
0.284654 |
Chapleau Locality Education |
0.153825 |
0.207990 |
Espanola Locality Education |
0.763200 |
0.817625 |
Foleyet DSA Locality Education |
0.324997 |
|
Gogama DSA Locality Education |
0.280344 |
|
Missarenda DSA Locality Education |
0.032308 |
0.021249 |
Sudbury Locality Education |
0.198351 |
0.263958 |
Timiskaming D |
||
Kirkland Lake Locality Education |
0.191431 |
0.322490 |
Timiskaming Locality Education |
0.103265 |
|
Cochrane D |
||
Cochrane Iroquois Falls BR Math Locality |
0.256425 |
0.273973 |
Hearst Locality Education |
0.265488 |
0.181107 |
James Bay Lowlands Locality Education |
0.524825 |
|
Kap SRF And Dist Locality Education |
0.303080 |
0.050073 |
Moosonee Dev Area Bd |
0.159314 |
0.258166 |
Algoma D |
||
Central Algoma Locality Education |
1.034332 |
|
Michipicoten Locality Education |
1.212400 |
0.657588 |
North Shore Locality Education |
0.967128 |
0.628865 |
Sault Ste. Marie Locality Education |
0.297442 |
0.289531 |
Thunder Bay D |
||
Armstrong DSA Locality Education |
0.065712 |
|
Caramat DSA Locality Education |
0.153776 |
|
Geraldton Locality Education |
0.067076 |
0.273529 |
Kashabowie DSA Locality Education |
0.034789 |
|
Kilkenny DSA Locality Education |
0.013594 |
|
Lake Superior Locality Education |
0.170677 |
0.132710 |
Lakehead Locality Education |
0.044092 |
0.074617 |
Nipigon Red Rock Locality Education |
0.015396 |
|
Savant Lake DSA Locality Education |
0.094232 |
|
Upsala DSA Locality Education |
0.090349 |
|
Rainy River D |
||
Atikokan Locality Education |
0.032914 |
0.046970 |
Fort Frances/Rainy River Locality Education (assessment roll numbers beginning with “5902”) |
0.024234 |
0.029332 |
Fort Frances Rainy River Locality Education (assessment roll numbers beginning with “5903”) |
0.023827 |
|
Mine Centre DSA Locality Education |
0.049430 |
0.024915 |
Kenora D |
||
Dryden Locality Education (assessment roll numbers beginning with “6060”) |
0.048815 |
0.053853 |
Dryden Locality Education (assessment roll numbers beginning with “6093”) |
0.039607 |
|
Dryden Locality Education (assessment roll numbers beginning with “6096”) |
0.049537 |
0.042325 |
Kenora Locality Education |
0.046416 |
0.032721 |
Red Lake Locality Education |
0.079659 |
|
Sturgeon Lake Locality Education |
0.582223 |
O. Reg. 78/99, s. 7.
TABLE 2
EDUCATION TAX CUTS
Territory |
Industrial property class (amounts in dollars) |
Timiskaming D |
|
Kirkland Lake Locality Education |
5,318 |
Thunder Bay D |
|
Lake Superior Locality Education |
5,335 |
Lakehead Locality Education |
12,817 |
Rainy River D |
|
Atikokan Locality Education |
1,092 |
O. Reg. 78/99, s. 7.
