PART X TAX COLLECTION
367.
367 (1) This section applies with respect to a lease of all or part of a property if all the following are satisfied: 1.  The lease was entered into on or before June 11, 1998. A lease entered into on or before June 11, 1998 that is renewed or extended after that day continues to satisfy this paragraph only if, at the time of the renewal or extension, the landlord did not have the right to renegotiate the rent under the lease. 2.  The tenant is not required under the lease to pay any part of the property taxes on the property. 3.  The property, or a portion of it, is in a property class that is one of the commercial classes or industrial classes within the meaning of subsection 308 (1). 4.  For a lease entered into after January 16, 1997 and on or before June 11, 1998, the parties to the lease did not take into account, in determining the rent and other consideration paid to the landlord, that business taxes imposed on persons carrying on business on properties would be eliminated in 1998.  2001, c. 25, s. 367 (1). Requirement to pay an amount (2) The landlord may require the tenant to pay an amount, not exceeding the maximum amount under subsection (3), in respect of the property taxes on the property for a year.  2001, c. 25, s. 367 (2). Maximum amount (3) The maximum amount the tenant may be required to pay shall be determined in accordance with the following:  where, “Property taxes” means, (a)  except as provided in clause (b), the property taxes for the year on the property or, if only a portion of the property is in one of the commercial classes or industrial classes within the meaning of subsection 308 (1), the property taxes for the year on that portion, (b)  in the case of a landlord who is not the owner of the property but who has acquired an interest in the property under a lease, (i)  the property taxes for the year described in clause (a) that the landlord is required to pay under the landlord’s lease, on the leased premises and any other part of the property in which the landlord acquired an interest under the landlord’s lease, or (ii)  the amount the landlord, as the tenant of another person, is required to pay under this section for the year in respect of the leased premises and any other part of the property in which the landlord acquired an interest under the landlord’s lease; “1997 Assessment (tenant)” means the portion of the 1997 Assessment (landlord) apportioned to the leased premises in the assessment roll for 1997, as most recently revised; “1997 Assessment (landlord)” means, (a)  except as provided in clause (b), the total of the following assessments for the property, (i)  the assessment, as set out in the assessment roll for 1997, as most recently revised, used to determine business assessment, (ii)  the vacant commercial assessment or vacant industrial assessment, as the case may be, as set out in the assessment roll for 1997, as most recently revised, and (iii)  the assessment other than residential assessment, as set out in the assessment roll for 1997, as most recently revised, for a portion of the property occupied by persons not liable to business assessment under the
Assessment Act, (b)  in the case of a landlord who is not the owner of the property but who has acquired an interest in the property under a lease, the amount determined under clause (a) but only for assessment in respect of the leased premises and any other part of the property in which the landlord acquired an interest under the landlord’s lease; “Business rate factor” means the business rate factor determined under subsection (9). 2001, c. 25, s. 367 (3). Reduction if lease for part of the year (4) If the tenant leases the premises for only part of the year, the maximum amount that the tenant may be required to pay shall be reduced by multiplying the maximum amount by the fraction of the year the tenant leases the premises.  2001, c. 25, s. 367 (4). Notice (5) The tenant is not required to pay the landlord an amount unless the landlord gives the tenant a notice in accordance with subsection (7) that the landlord requires the tenant to pay an amount under this section.  2001, c. 25, s. 367 (5). Amount is additional rent (6) The amount that a tenant is required to pay shall be deemed to be additional rent due on the date set out in the notice referred to in subsection (5).  2001, c. 25, s. 367 (6). Notice requiring payment (7) The following apply to the notice referred to in subsection (5): 1.  The notice must set out, i.  the amount the tenant is required to pay and the date it is due, ii.  the landlord’s calculation of the maximum amount the tenant may be required to pay, and iii.  the amount of the property taxes for the property for the year or an estimate of the amount of the property taxes for the property for the year if not yet determined. 2.  The notice must be given at least 30 days before the day the amount or the first instalment of the amount the tenant is required to pay is due. 3.  The landlord shall provide the tenant with a notice of adjustments, if any, to be made after the taxes for the taxation year have been determined. 4.  The notice must be given by September 30 of the taxation year or 30 days after the day the final tax notice for the taxation year is received by the landlord, whichever is later.  2001, c. 25, s. 367 (7). If notice requires more than the maximum (8) If the amount that the tenant is required to pay, as set out in the notice referred to in subsection (5), is more than the maximum amount the tenant may be required to pay under this section, the tenant is required to pay that maximum amount, not the amount set out in the notice.  2001, c. 25, s. 367 (8). Business rate factor (9) The business rate factor referred to in subsection (3) shall be determined in accordance with the following:  where, “Total business assessment (class)” means the total business assessment in the municipality, according to the assessment roll for 1997 as most recently revised, for property that, for 1998, is in the same property class the property is in; “Total commercial assessment (class)” means the total commercial assessment and industrial assessment in the municipality, according to the assessment roll for 1997 as most recently revised, for property that, for 1998, is in the same property class the property is in. 2001, c. 25, s. 367 (9). Property classes (10) For the purposes of subsection (9), the commercial classes, within the meaning of subsection 308 (1), shall be deemed to be a single property class and the industrial classes, within the meaning of subsection 308 (1), shall be deemed to be a single property class.  2001, c. 25, s. 367 (10). Interpretation (11) In subsection (9), “municipality” does not include a lower-tier municipality.  2001, c. 25, s. 367 (11). Local municipality to provide factors (12) A local municipality shall, on request, provide a person with the business rate factors, determined under subsection (9), for the local municipality.  2001, c. 25, s. 367 (12). Where s. 332 applies (13) If section 332 applies to a tenant of leased premises, the maximum amount that the tenant may be required to pay for a taxation year in respect of the leased premises is the tenant’s cap determined under subsection 332 (5) or (6), as the case may be, and not the amount determined under subsection (3).  2001, c. 25, s. 367 (13). Notices under this section (14) The following apply with respect to a notice under this section: 1.  The notice must be given by personal service or by mail. 2.  If the notice is given by mail, it shall be deemed to have been given on the day it is mailed.  2001, c. 25, s. 367 (14). Sub-leases (15) If the landlord is not the owner of the property but has acquired an interest in the property under a lease and has further sublet the property or a portion of the property, the notice referred to in subsection (5) may be given to the person holding the sublease on or before the day that is 15 days after the landlord is given a valid notice referred to in subsection (5).  2001, c. 25, s. 367 (15). Definitions (16) In this section, “landlord’s lease” means the lease under which the landlord acquired the landlord’s interest in the leased premises; (“propre bail”) “property class” means a class of real property prescribed under the Assessment Act; (“catégorie de biens”) “property taxes” means taxes under sections 311 and 312 and taxes for school purposes under the Education Act. (“impôts fonciers”)  2001, c. 25, s. 367 (16).