O. Reg. 62/17: TAX MATTERS - SPECIAL TAX RATES AND LIMITS

 

ontario regulation 62/17

made under the

Municipal Act, 2001

Made: March 9, 2017
Filed: March 9, 2017
Published on e-Laws: March 10, 2017
Printed in The Ontario Gazette: March 25, 2017

Amending O. Reg. 73/03

(TAX MATTERS - SPECIAL TAX RATES AND LIMITS)

1. The definition of “qualifying taxation year” in subsection 1 (1) of Ontario Regulation 73/03 is amended by striking out “2016” and substituting “2017”.

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

(4) Subsection (3.1) does not apply to the multi-residential property class.

3. Paragraph 1 of section 4 of the Regulation is amended by striking out “2.74” at the beginning and substituting “2.00”.

4. The Regulation is amended by adding the following Part:

PART II.0.1
Graduated Tax Rates — Subsection 314 (1) of the Act

Landfill property class

8.0.0.1 The landfill property class is prescribed for the purposes of clause 314 (1) (a) of the Act.

5. The heading to Part II.1 of the Regulation is revoked and the following substituted:

Part II.1
Application of Part IX of the Act And Phasing Out of the Part

6. Section 9 of the Regulation is amended by striking out “for 2003 and subsequent taxation years”.

7. (1) Paragraphs 4, 5 and 6 of subsection 12 (1) of the Regulation are revoked and the following substituted:

4. For each levy, determine the residential rate to raise the previous year’s levy by dividing the previous year’s levy amount, referred to in paragraph 1, by the total weighted assessment determined under paragraph 3.

5. For each levy, determine a class rate to raise the previous year’s levy for each property class for the taxation year by multiplying the residential rate to raise the previous year’s levy, as determined under paragraph 4, by the tax ratio for the property class for the taxation year.

6. For each property class, the notional tax rate to raise the previous year’s levies is the sum of the class rates to raise the previous year’s levy, as determined under paragraph 5, for the property class and the tax rate for the taxation year for school purposes.

(2) Subsections 12 (3.1), (3.2), (3.3) and (3.4) of the Regulation are revoked and the following substituted:

(3.1) Subject to subsection (3.1.1), a municipality, other than a lower-tier municipality, may pass a by-law in a year opting to have subsections (3.2) to (3.4) apply for the year.

(3.1.1) Before passing a by-law under subsection (3.1), a municipality shall send a copy of its projected calculations for the year under subsections (3.2) to (3.4) to the Minister of Finance.

(3.1.2) An upper-tier municipality may, by by-law passed before February 28 of the year, or before April 30 if the year is 2017, delegate to each of its lower-tier municipalities the authority to pass a by-law under subsection (3.1) in respect of levies for lower-tier purposes.

(3.2) A municipality that has passed a by-law under subsection (3.1) shall adjust the total assessment for property in a property class in the municipality, as determined under subsection (3), so that the total assessment for property in a property class in the municipality excludes changes to the tax roll for the previous year resulting from one or more of the following events, except as provided by subsection (3.3):

1. A correction under subsection 32 (1.1) of the Assessment Act.

2. An assessment under subsection 32 (4) of the Assessment Act.

3. A reconsideration under section 39.1 of the Assessment Act.

4. An appeal under section 40 of the Assessment Act.

5. An application under section 46 of the Assessment Act.

(3.3) Subject to subsection (3.4), if an event listed in paragraphs 3 to 5 of subsection (3.2) changes the assessed value of a property because of one of the following types of changes, the change to the assessed value of the property shall, despite subsection (3.2), be included in the total assessment for property in the property class:

1. A change with respect to which an additional assessment of land is made under section 33 or 34 of the Assessment Act.

2. A change to the state or condition of land that results in the assessment made under section 36 of the Assessment Act for the taxation year differing from the assessment for the previous taxation year.

3. A change in the classification of land, except under section 30, 34 or 38 of Ontario Regulation 282/98 (General) under the Assessment Act.

4. A change in the status of land from taxable to tax-exempt or vice-versa.

5. A change in the valuation approach with respect to whether land is eligible for assessment under section 19.0.1 of the Assessment Act.

(3.4) A change to the assessed value of a property referred to in subsection (3.3) shall be excluded from the total assessment for property in the property class if the current value of the property for the taxation year immediately preceding the first year to which the most recent general reassessment applied is also changed under section 39.1, 40 or 46 of the Assessment Act.

(3) Subsection 12 (4) of the Regulation is amended by striking out “For the purposes of paragraph 2 of subsection (1)” at the beginning and substituting “For the purposes of paragraph 3 of subsection (1)”.

8. The heading to Part III.1 of the Regulation is revoked and the following substituted:

PART III.1
MUNICIPAL CAPPING OPTIONS UNDER PART IX OF THE ACT

9. (1) Subsection 15.1 (1) of the Regulation is amended by striking out “for the purposes of the 2005 or a subsequent taxation year” in the portion before paragraph 1.

(2) Subsection 15.1 (2) of the Regulation is amended by striking out “For 2016 and subsequent taxation years” at the beginning.

10. Section 15.2 of the Regulation is amended by striking out “For 2016 and subsequent taxation years” at the beginning.

11. Subsection 22 (4) of the Regulation is revoked.

12. Paragraph 2 of subsection 31 (1) of the Regulation is amended by striking out “subsection 313 (4)” and substituting “subsection 313 (1.1)”.

Commencement

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

Made by:

Charles Sousa

Minister of Finance

Date made: March 9, 2017