Tenants of leased premises
447.24(1)This section applies with respect to a tenant of leased premises that form all or part of a property if, (a) this Part applies to the leased premises; and (b) the tenant’s tenancy commenced on or before December 31, 1997 and has been continuous since that date. No application to multi-residential (2)This section does not apply if the leased premises are classified in the multi-residential property class. Clarification of application, new leases of property (3)This section applies with respect to a tenant described in subsection (1) even if the tenant enters into a new lease for the leased premises after this section comes into force. Limitation on requirement to pay taxes (4)No tenant is required under any lease, despite any provision in the lease, to pay an amount on account of taxes levied for municipal and school purposes that is greater than the tenant’s cap determined under subsection (7). Recouping of landlord’s shortfall (5)A landlord may require a tenant to pay an amount on account of taxes levied for municipal and school purposes that is more than the tenant would otherwise be required to pay under the tenant’s lease subject to the following: 1. The landlord may not require the tenant to pay an amount that would result in the tenant paying more on account of taxes levied for municipal and school purposes than is allowed under subsection (4). 2. The landlord may require a tenant to pay an amount under this subsection only to the extent necessary for the landlord to recoup shortfalls, within the meaning of paragraph 3, for other leased premises that form part of the property. 3. The shortfall referred to in paragraph 2 is the sum determined by, i. determining, for each of the other leased premises with respect to which this section applies that form part of the property, the amount, if any, by which the amount that the landlord could have required the tenant to pay under the tenant’s lease in the absence of subsection (4) exceeds the amount that the landlord may require the tenant to pay under the tenant’s lease under subsection (4), and ii. adding the amounts determined under subparagraph i together. 1998, c. 3, s. 30. Same (6)The following apply with respect to an amount a tenant is required to pay under subsection (5): 1. The amount shall be deemed to be additional rent. 2. The amount is payable in the proportions and at the times that amounts in respect of taxes are payable under the lease. 3. If the lease does not provide for the payment of amounts in respect of taxes, the amount the tenant is required to pay under subsection (5) is due on the last day of the year. 4. For 1998, the amount is due at the end of 1999, despite paragraphs 2 and 3.This paragraph does not apply if the by-law that made this Part apply with respect to the property was passed before the day the Fairness for Property Taxpayers Act, 1998 received Royal Assent. 1998, c. 3, s. 30; 1998, c. 33, s. 35. Tenant’s cap (7)The tenant’s cap referred to in subsection (4) shall be determined in accordance with the following: 1. An amount in respect of property taxes shall be determined in accordance with subsection (8). 2. An amount in respect of business taxes shall be determined in accordance with subsection (9). 3. The amount in respect of property taxes shall be added to any amount in respect of business taxes and the sum shall be increased by, i. for 1998, 2.5 per cent, ii. for 1999, 5 per cent, or iii. for 2000, 7.5 per cent. 4. The amount determined and adjusted under paragraph 3 shall be adjusted by making the prescribed adjustments, if any, in respect of any increase, under section 447.10, to the assessments for the property in the frozen assessment listing. 5. The amount, as adjusted under paragraph 4, shall be further adjusted by making the reductions, if any, prescribed in the regulations in respect of reductions under paragraph 4 or 5 of subsection 447.15 (1) or under paragraph 3 of subsection 447.16 (2) or paragraph 2 of subsection 447.16 (3). 6. The tenant’s cap is the amount determined under paragraph 3 and adjusted under that paragraph and paragraphs 4 and 5. Property tax portion (8)The amount in respect of property taxes, referred to in paragraph 1 of subsection (7), shall be determined in accordance with the following: 1. The amount shall be the amount the tenant was required under the lease to pay on account of taxes for 1997. 2. If the amount that the landlord required the tenant to pay on account of taxes for 1997 was less than the amount the landlord could have required under the lease, the amount shall be the amount the landlord could have required under the lease. 3. If the amount determined under paragraph 1 or 2 is in respect of less than the full 1997 taxation year, the amount shall be increased to what it would be if it were for the full year. Business tax portion (9)The amount in respect of business taxes, referred to in paragraph 2 of subsection (7), shall be determined in accordance with the following: 1. If the leased premises were occupied on December 31, 1997, the amount is the amount of the business taxes that would have been levied against the occupant if that occupation had been for all of 1997. 2. If the leased premises were not occupied on December 31, 1997, the amount is zero. Amounts under gross lease flow-through (10)The following apply with respect to amounts a tenant is required to pay under section 444.1 or 444.2: 1. For the purposes of subsections (4) and (5), an amount the tenant is required to pay under section 444.1 shall be deemed to be an amount the tenant is required to pay under the lease on account of taxes levied for municipal and school purposes. 2. For the purposes of subsections (4) and (5), an amount the tenant is required to pay under section 444.2 shall be deemed to not be an amount the tenant is required to pay under the lease on account of taxes levied for municipal and school purposes. Application for partial year (11)If this section applies with respect to taxes attributable to part of a year, the tenant’s cap determined under subsection (7) for the year shall be reduced proportionally. When section ceases to apply (12)If the tenant ceases to lease any part of the leased premises, this section does not apply with respect to the taxes attributable to the part of the year after the tenant ceases to lease that part of the leased premises and this section does not apply with respect to taxes for subsequent years. Clarification of application (13)For greater certainty, (a) subsection (12) applies even if the tenant ceased to lease any part of the leased premises before this section comes into force; and (b) subsection (12) applies with respect to all the taxes for the leased premises not just the taxes attributable to the part of the leased premises the tenant ceases to lease. No application to additional premises (14)This section does not apply with respect to any part of the leased premises that was not a part of the tenant’s leased premises on December 31, 1997. Information from municipality (15)The local municipality shall give the owner of a property to which this Part applies a list showing the business taxes levied on each tenant of the property for 1997. 1998, c. 3, s. 30.