Cancellation, reduction or refund of taxes
442.6 (1) The council of a local municipality may, in any year, pass a by-law to provide for the cancellation, reduction or refund of taxes levied for municipal and school purposes in the year by the council in respect of an eligible property of any person who makes an application in that year to the municipality for that relief and whose taxes are considered by the council to be unduly burdensome, as defined in the by-law. 2000, c. 25, s. 34. Notice to upper-tier municipality, etc. (2) If a lower-tier municipality has passed a by-law under subsection (1), it shall give notice of that fact to the upper-tier municipality and the upper-tier municipality may pass a by-law to provide a similar cancellation, reduction or refund of taxes levied for upper-tier purposes. 2000, c. 25, s. 34. Sharing costs (3) If an upper-tier municipality has passed a by-law under subsection (2), the amount of the taxes cancelled, reduced or refunded shall be shared by the municipalities and school boards that share the revenue from the taxes on the property affected by the by-law in the same proportion that those municipalities and school boards share in those revenues. 2000, c. 25, s. 34. Lower-tier municipality to pay upper-tier share (4) If an upper-tier municipality has not passed a by-law under subsection (2), the amount of the taxes cancelled, reduced or refunded shall be shared by the lower-tier municipality and school boards in the same proportion as under subsection (3) but the amount of the upper-tier municipality’s share shall be the responsibility of the lower-tier municipality. 2000, c. 25, s. 34. Single-tier municipality (5) If the local municipality is a single-tier municipality, the amount of the taxes cancelled, reduced or refunded shall by shared by the municipality and school boards that share the revenues from the taxes on the property affected by the by-law in the same proportion that the municipality and school boards share in those revenues. 2000, c. 25, s. 34. Definitions (6) In this section, “eligible property” means a property classified in the residential/farm property class, the farmlands property class or the managed forests property class; (“bien admissible”) “lower-tier municipality” and “upper-tier municipality” have the same meaning as in section 361.1; (“municipalité de palier inférieur”, “municipalité de palier supérieur”) “single-tier municipality” means a local municipality that does not form part of an upper-tier municipality for municipal purposes. (“municipalité à palier unique”) 2000, c. 25, s. 34. Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 2001, chapter 17, subsection 3 (2) by adding the following section: Definitions 442.7 (1) In this section, “community improvement plan” and “community improvement project area” have the same meanings as in subsection 28 (1) of the Planning Act; (“plan d’améliorations communautaires”, “zone d’améliorations communautaires”) “development period” means, with respect to an eligible property, the period of time starting on the date the rehabilitation period ends and ending on the earlier of, (a) the date specified in the by-law made under subsection (3), or (b) the date that the tax assistance provided for the property equals the sum of, (i) the cost of any action taken to reduce the concentration of contaminants on, in or under the property to permit a record of site condition to be filed in the Environmental Site Registry under section 168.4 of the Environmental Protection Act, and (ii) the cost of complying with any certificate of property use issued under section 168.6 of the Environmental Protection Act; (“période d’aménagement”) “eligible property” means property for which a phase two environmental site assessment has been conducted, (a) that is included under section 28 of the Planning Act in a community improvement project area for which a community improvement plan is in effect containing provisions in respect of tax assistance under this section, and (b) that, as of the date the phase two environmental site assessment was completed, did not meet the standards that must be met under subparagraph 4 i of subsection 168.4 (1) of the Environmental Protection Act to permit a record of site condition to be filed under that subsection in the Environmental Site Registry; (“bien admissible”) “lower-tier municipality” has the same meaning as in section 361.1; (“municipalité de palier inférieur”) “municipality” has the same meaning as in section 361.1; (“municipalité”) “phase two environmental site assessment” has the same meaning as in Part XV.1 of the Environmental Protection Act; (“évaluation environnementale de site de phase II”) “rehabilitation period” means, with respect to an eligible property, the period of time starting on the date that tax assistance begins to be provided under this section for the property and ending on the earliest of, (a) the date that is 18 months after the date that the tax assistance begins to be provided, (b) the date that a record of site condition for the property is filed in the Environmental Site Registry under section 168.4 of the Environmental Protection Act, and (c) the date that the tax assistance provided for the property equals the sum of, (i) the cost of any action taken to reduce the concentration of contaminants on, in or under the property to permit a record of site condition to be filed in the Environmental Site Registry under section 168.4 of the Environmental Protection Act, and (ii) the cost of complying with any certificate of property use issued under section 168.6 of the Environmental Protection Act; (“période de réhabilitation”) “single-tier municipality” means a municipality that is not an upper-tier municipality or a lower-tier municipality; (“municipalité à palier unique”) “tax assistance” means, (a) if a by-law made under this section provides for the cancellation of taxes levied on eligible property, the taxes for municipal and school purposes that are cancelled on the property during the rehabilitation period and the development period of the property pursuant to the by-law, and (b) if a by-law made under this section provides that the taxes shall not be increased on eligible property, the difference between, (i) the amount of taxes for municipal and school purposes that would have been levied on the property during the rehabilitation period and the development period of the property in the absence of the by-law, and (ii) the amount of taxes for municipal and school purposes that are levied on the property during the rehabilitation period and the development period of the property; (“aide fiscale”) “upper-tier municipality” has the same meaning as in section 361.1. (“municipalité de palier supérieur”) Cancellation, etc., of taxes (2) Subject to subsection (6), the council of a local municipality may pass a by-law providing for the cancellation of all or a percentage of the taxes levied on eligible property for municipal and school purposes during the rehabilitation period of the property, or providing that the taxes on the property shall not be increased during the rehabilitation period of the property, on such conditions as the municipality may determine. Same (3) Subject to subsection (6), if the council of a local municipality has passed a by-law under subsection (2), the council may also pass a by-law providing for the cancellation of all or a percentage of the taxes levied on eligible property for municipal and school purposes during the development period of the property, or providing that the taxes shall not be increased on the property during the development period of the property, on such conditions as the municipality may determine. Notice to upper-tier municipality, etc. (4) If the council of a lower-tier municipality intends to pass a by-law under subsection (2) or (3), it shall give a copy of the proposed by-law to the council of the upper-tier municipality and the council of the upper-tier municipality may, by resolution, agree that the by-law may also provide for the cancellation of all or a percentage of the taxes levied for upper-tier purposes or that the taxes levied for upper-tier purposes shall not be increased, and the by-law so agreed to by the council of the upper-tier municipality and passed by the council of the local municipality is binding on the upper-tier municipality. Notice to Minister of Finance (5) If the council of a local municipality intends to pass a by-law under subsection (2) or (3), it shall give the Minister of Finance the following information: 1. A copy of the proposed by-law. 2. If a copy of the proposed by-law was given to the council of an upper-tier municipality under subsection (4) and the council of the upper-tier municipality has agreed that the by-law may also provide for the cancellation of all or a percentage of the taxes levied for upper-tier purposes or that the taxes levied for upper-tier purposes shall not be increased, a copy of the resolution of the council of the upper-tier municipality. 3. An estimate of how much the tax assistance to be provided under the by-law will cost the local municipality. 4. The tax rates currently applicable to the eligible property and its assessment and property class. 5. The taxes currently levied on the eligible property for municipal purposes and for school purposes. Agreement of Minister of Finance (6) A by-law made under subsection (2) or (3) does not apply to taxes for school purposes unless, before the by-law is passed, it is approved in writing by the Minister of Finance and, in giving approval, the Minister of Finance may require that the by-law contain such conditions or restrictions with respect to taxes for school purposes as he or she considers appropriate. Copy of by-law for Minister of Finance (7) If the council of a local municipality passes a by-law under subsection (2) or (3), it shall, within 30 days, give a copy of the by-law to the Minister and to the Minister of Finance. Application by owner of an eligible property (8) The owner of an eligible property may apply to the local municipality to receive tax assistance and shall provide to the municipality such information as the municipality may require. Approval by municipality (9) Upon approval of an application made under subsection (8), the local municipality shall advise the owner of the eligible property of the commencement date of the tax assistance and provide the owner with an estimate of the maximum amount of the tax assistance for the property during the rehabilitation period of the property. Same (10) If the council of a local municipality has passed a by-law under subsection (3), the local municipality shall provide the owner with an estimate of the maximum amount of the tax assistance for the property during the development period of the property. Notice to the Minister of Finance (11) The local municipality shall, within 30 days after providing the owner of eligible property with information under subsection (9) or (10), provide a copy of the information to the Minister of Finance, along with such other information as may be prescribed by the regulations under subsection (27). Tax cancellation for portion of a year (12) If the tax assistance provided with respect to a property under this section is for a portion of a taxation year, the amount of the tax assistance shall apply only to that portion of the year, and the taxes otherwise payable shall apply to the other portion of the year. Sharing costs, if by-law under subs. (2) (13) If a by-law is passed under subsection (2) by the council of a single-tier municipality, the amount of the tax assistance shall be shared by the municipality and the school boards that share in the revenues from the taxes on the property affected by the by-law in the same proportion that tax assistance is provided under the by-law. Same (14) If a by-law is passed under subsection (2) by the council of a lower-tier municipality and the by-law applies to the upper-tier municipality, the amount of the tax assistance shall be shared by the municipalities and the school boards that share in the revenue from the taxes on the property affected by the by-law in the same proportion that tax assistance is provided under the by-law. Same (15) If a by-law is passed under subsection (2) by the council of a lower-tier municipality and the by-law does not apply to the upper-tier municipality, the amount of the tax assistance shall be shared by the lower-tier municipality and the school boards that share in the revenue from the taxes on the property affected by the by-law in the same proportion that the tax assistance is provided under the by-law, but the taxes for upper-tier purposes shall not be affected. Same (16) Despite subsections (13), (14) and (15), if a by-law made under subsection (2) does not apply to taxes for school purposes, the amount of the tax assistance does not affect the amount of taxes for school purposes to be paid to the school boards. Sharing costs, if by-law under subs. (3) (17) If a by-law is passed under subsection (3) by the council of a single-tier municipality, the amount of the tax assistance shall be shared by the municipality and the school boards that share in the revenues from the taxes on the property affected by the by-law in the same proportion that tax assistance is provided under the by-law. Same (18) If a by-law is passed under subsection (3) by the council of a lower-tier municipality and the by-law applies to the upper-tier municipality, the amount of the tax assistance shall be shared by the municipalities and the school boards that share in the revenue from the taxes on the property affected by the by-law in the same proportion that tax assistance is provided under the by-law. Same (19) If a by-law is passed under subsection (3) by the council of a lower-tier municipality and the by-law does not apply to the upper-tier municipality, the amount of the tax assistance shall be shared by the lower-tier municipality and the school boards that share in the revenue from the taxes on the property affected by the by-law in the same proportion that the tax assistance is provided under the by-law, but the taxes for upper-tier purposes shall not be affected. Same (20) Despite subsections (17), (18) and (19), if a by-law made under subsection (3) does not apply to taxes for school purposes, the amount of the tax assistance does not affect the amount of taxes for school purposes to be paid to the school boards. Refund of credits or tax (21) If an application made under subsection (8) is approved with respect to a property and the taxes for which the tax assistance is given have been paid, the local municipality may refund the taxes to the extent required to provide the tax assistance or may credit the amount to be refunded to an outstanding tax liability of the owner of the eligible property with respect to the property. Collector’s roll (22) The treasurer of the local municipality shall alter the collector’s roll, in accordance with the tax assistance to be provided for an eligible property pursuant to the approval of an application made under subsection (8). Notice to municipality (23) If the owner of an eligible property files a record of site condition with respect to the property in the Environmental Site Registry under section 168.4 of the Environmental Protection Act, the owner shall, within 30 days, notify the local municipality of the filing and, within 30 days after receiving the notice, the municipality shall advise the Minister of Finance of the filing. Repeal or amendment of by-law (24) The council of a local municipality that has passed a by-law under subsection (2) or (3) may repeal or amend the by-law, but the repeal or amendment does not affect any property in respect of which an application made under subsection (8) has been approved. Same (25) Subsections (4), (5), (6) and (7) apply, with necessary modifications, to the amendment of a by-law passed under subsection (2) or (3), and subsections (4) and (7) apply, with necessary modifications, to the repeal of a by-law passed under subsection (2) or (3). Regulations (26) The Minister may make regulations governing by-laws under subsection (2) or (3). Same (27) The Minister of Finance may make regulations specifying additional information to be provided by a municipality under subsection (11). Specific or general (28) A regulation made under subsection (26) or (27) may be general or specific in its application and may apply to different municipalities and different properties differently. Application (29) This section applies to the portion of the taxation year remaining in the taxation year in which this section comes into force and to subsequent taxation years. See: 2001, c. 17, ss. 3 (2), 8.